TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

New business lease - does anyone have the fine print?

Discussion in 'Model S: Ordering, Production, Delivery' started by bigdomer, Apr 30, 2014.

  1. bigdomer

    bigdomer Member

    Joined:
    Feb 17, 2014
    Messages:
    167
    Location:
    Franklin, TN
    I am looking for the actual lease agreement, application form, etc. I want to see all of the details. I have called the corporate office and stopped by a center. No one can get this for me. Has anyone been able to obtain these documents? Thanks.
     
  2. llngoc

    llngoc Member

    Joined:
    May 25, 2014
    Messages:
    175
    Location:
    Bay Area
    I just have my lease approved and here is some detail:

    The leasing program is a 36 month lease with a 15,000 miles per year limit ($.25 per mile overage). The estimated amounts due at delivery are presented below.

    · Capitalized cost reduction: $5,000
    · Acquisition fee: $700
    · Title and registration fees: $677.83

    The money factor is 0.00145 which works out to be same as the financing interest rate. Of course your monthly payment will be different from mine but the acq fee should be the same. The residual value is calculated as 50% of the 60kwh price and 40% of any options. So the odd thing I found is that for the 85kwh model, the residual is calculated as 50% of the 60kwh price + (40% of $10k which accounts for the 85kwh option upgrade). Also, only a 15k miles/year and 3 year program is available as of now.

    You can apply for the business lease as soon as you ordered and approval is really fast. (1-2 days) And if you do not get approved, you can cancel the order since you have 2 weeks to confirm order.

    Hope this helps.
     
  3. bigdomer

    bigdomer Member

    Joined:
    Feb 17, 2014
    Messages:
    167
    Location:
    Franklin, TN
    Thanks for posting. Quick follow up question. Did you have to provide any business info besides name and employer ID number?
     
  4. llngoc

    llngoc Member

    Joined:
    May 25, 2014
    Messages:
    175
    Location:
    Bay Area
    No, you only need to provide the EIN# and corporation name. The income and credit check are with your personal SS#.
     
  5. jasonhu

    jasonhu Member

    Joined:
    Jul 18, 2014
    Messages:
    5
    Location:
    Oak Brook, IL
    I apologize ahead of time for resurrecting this thread, but I am interested in understanding whether the credit check is indeed with personal SSN rather than a business credit check.

    Isn't it odd that they are looking for personal credit for a business lease?

    The reason this peaks my interest is because I have a Tesla on order and will need to apply soon; however, I cannot be bothered to have my credit checked because I am scheduled to close on a new home in a month or so. During our order, a Tesla Owner specialist told us that the credit check would involve the Company only. Can anyone with a business lease confirm they checked personal credit?
     
  6. bigdomer

    bigdomer Member

    Joined:
    Feb 17, 2014
    Messages:
    167
    Location:
    Franklin, TN
    It is a personal credit inquiry. Sorry. This is really a personal lease that they just brand a business lease because I do not believe that they really want to be in the leasing business. They simply added this product to help folks like you that really wanted the tax deduction. They require a business employer identification number just to make sure you actually have a business, but the lease is legally assigned to you individually. All of the underwriting is at the individual level as well.
     
  7. jasonhu

    jasonhu Member

    Joined:
    Jul 18, 2014
    Messages:
    5
    Location:
    Oak Brook, IL
    Thanks for the follow up and clarification! :)

    It looks like I won't have to apply for the lease until very late stage of the production and close to delivery time, which would give me enough time after the house closing.
     
  8. shrink

    shrink Member

    Joined:
    May 21, 2013
    Messages:
    555
    Location:
    Phoenix, AZ
    Great info. Thanks for posting. The Cap cost is only $5000? I wonder why it's not the full $7500 for the federal tax credit?
     
  9. bigdomer

    bigdomer Member

    Joined:
    Feb 17, 2014
    Messages:
    167
    Location:
    Franklin, TN
    They told me that there is no pass through of the federal tax credit. They are not considering the credit in the economics of the lease.
     
  10. shrink

    shrink Member

    Joined:
    May 21, 2013
    Messages:
    555
    Location:
    Phoenix, AZ
    Wow. So the $5000 cap reduction is just the deposit? I can't believe they are not considering the tax credit. $7500 is a good chunk of change to leave on the table.

    $850/month for 36 months is about $30K and then no asset at the end of that term. Was considering leasing a MS 60 as a daily driver and making my Roadster a garage queen. My wife just got a used MS 85. But for $30K, I'd rather own a different lower cost EV and use that as a daily.

    Again, thanks for breaking all that down. I'm a bit surprised the credit hit is on the personal side and I was wondering about the money factor.
     
  11. TaBz Rx

    TaBz Rx New Member

    Joined:
    Jul 30, 2014
    Messages:
    1
    Location:
    Irving, TX
    I have a weird question. Do you specifically have to be the owner of the business? I work for a large retail chain and my job entails 75% travel where I go from store to store and check on daily operations. Could I be a candidate for the business lease?
     
  12. bigdomer

    bigdomer Member

    Joined:
    Feb 17, 2014
    Messages:
    167
    Location:
    Franklin, TN
    I think that the challenge here is that you have to provide an employer identification number. You could certainly get that from your Form W-2, but if Tesla finance contacted your employer, would you get in trouble for using it? I am convinced that this lease program is only for small business owners who write off a huge percentage of their lease payments (thus making the tax credit less material).
     
  13. shrink

    shrink Member

    Joined:
    May 21, 2013
    Messages:
    555
    Location:
    Phoenix, AZ
    From the following article:
    Tesla Reports 2nd Quarter Earnings

    In other words, Tesla hopes to move over
    13,000 EVs in the 4th quarter, almost double anything they have sold in any quarter before. Of note Tesla expects to lease about 300 cars in Q3, but much more in Q4 – look for a more competitive leasing program to be announced during the second half to help get them there.

    ​Would love to learn more about this "competitive leasing program."
     

Share This Page