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 and becoming a Supporting Member. For more info: Support TMC

New Lease numbers seems very high

Discussion in 'Model X' started by bell2041, May 31, 2018.

  1. bell2041

    bell2041 Member

    Joined:
    Mar 17, 2018
    Messages:
    97
    Location:
    Brooklyn
    #1 bell2041, May 31, 2018
    Last edited: May 31, 2018
    Hello, My Tesla 75D is in route to me now and Tesla sent me a Lease Estimator.

    MSRP is $97,750 + $4870 NY Tax, (Money Factor 5.04%) (12K miles)
    with $7500 Due at signing, my monthly payment is set to $1,433

    I looked at swaplease.com to see what people are paying and not sure why but my price is very hight.

    For example
    1. 2017 Tesla Model X lease in Brooklyn, NY
    The MSRP of this car is $102K and the monthly payment is $1,284.06 per month

    2. 2017 Tesla Model X lease in Jamaica, NY
    The MSRP of this car is $114K and the monthly payment is $1,141 per month

    I understand that this is might be an inventory or showroom car that was sold with discount, but I don't see any car 75D at the same price as I got.

    Please share your thoughts
     
  2. Peteybabes

    Peteybabes redneck drivin' a tesla...

    Joined:
    Apr 8, 2016
    Messages:
    1,150
    Location:
    'murica
    you're right, way more than when i leased mine...even the starting lease used to be like $600-$700 for a Model S 75 for 24 months.

    now at 36 months a 75D is over $1000 with not many options...

    my 7-seat model x P90D $1183/month...these days seem long over. (MSRP $138K reduced to $111K as a Demo)
     
  3. bell2041

    bell2041 Member

    Joined:
    Mar 17, 2018
    Messages:
    97
    Location:
    Brooklyn
    but what changed?
     
  4. Krazaak

    Krazaak Member

    Joined:
    Jul 30, 2017
    Messages:
    452
    Location:
    Charlotte, NC
    Doesn't look like the money factor changed. Perhaps the residual dropped due to higher than expected depreciation.
     
  5. CUBldr97

    CUBldr97 Member

    Joined:
    Apr 20, 2015
    Messages:
    264
    Location:
    MD
    is it depreciation? they are saying the residual value at the end of the term is lower?
     
  6. bro1999

    bro1999 Active Member

    Joined:
    Apr 26, 2016
    Messages:
    1,727
    Location:
    Maryland
    That interest rate/MF is sky high. Leases I've seen with most cars have rates between 1-2%.
     
  7. outie

    outie Active Member

    Joined:
    May 22, 2016
    Messages:
    2,064
    Location:
    SoCal
    Please keep in mind the ones you see on swaplease are very likely inventory cars in the first place so the comparison is moot.
     
  8. P85_DA

    P85_DA Supporting Member

    Joined:
    Apr 25, 2015
    Messages:
    2,542
    Location:
    Chula Vista, CA
    That is high for 75D..
     
    • Like x 1
  9. jeffro01

    jeffro01 Active Member

    Joined:
    Jan 30, 2013
    Messages:
    2,180
    Location:
    SF Bay Area
    That's exceptionally high which either means your credit doesn't qualify you for a better MF or Tesla is having problems getting reasonable rates...

    Jeff
     
  10. bell2041

    bell2041 Member

    Joined:
    Mar 17, 2018
    Messages:
    97
    Location:
    Brooklyn
    My Credit Score is 800+
     
  11. jeffro01

    jeffro01 Active Member

    Joined:
    Jan 30, 2013
    Messages:
    2,180
    Location:
    SF Bay Area
    Then you're being absolutely raked over the coals with that MF... That's so egregiously high I'd flat walk away...

    Jeff
     
    • Like x 1
  12. bell2041

    bell2041 Member

    Joined:
    Mar 17, 2018
    Messages:
    97
    Location:
    Brooklyn
    Yeah, but they will ask me why do I think it high?
    I'm trying to understand logically based on numbers given why is that so hight

    ps. they took my $2500 deposit already, so can't just walk away :)
     
  13. Krazaak

    Krazaak Member

    Joined:
    Jul 30, 2017
    Messages:
    452
    Location:
    Charlotte, NC
    That's the same MF Tesla's been offering since I bought mine last July when I got 0.99% to purchase. It's a horrible money factor and it only makes sense when you've got a showroom adjustment that gets tacked onto the residual, making the depreciation seem much lower.

    5.04% MF translates to a 12.1% APR and it doesn't get any better with higher credit.
     
  14. Zaphod

    Zaphod Galaxy President (former)

    Joined:
    Dec 10, 2015
    Messages:
    2,158
    Location:
    Austin, TX
    This is main reason why --> Money Factor 5.04%. Technically the money factor is 0.0021 and 5.04% is the equivalent APR. So basically you are paying "loan" based on 5% interest rate. Tesla leases have always been horrible, especially how they handle the tax credit by incorporating into the residual value and not into cap reduction. Only reason it made sense to lease is if someone can utilize it as business/tax write-off. You are probably better off looking into loan instead as you can surely get better rate and (assuming) you can utilize the full tax credit yourself.
     
  15. outie

    outie Active Member

    Joined:
    May 22, 2016
    Messages:
    2,064
    Location:
    SoCal
    That’s probably the standard lease rate they offer. Tesla leases have always been high when you compared to German makers that subsidize their leases with both MF and inflated residual. However leases are much more favorable when it’s an inventory car because all the adjustments come as capital reduction and residual is still based on original MSRP.
     
  16. Krazaak

    Krazaak Member

    Joined:
    Jul 30, 2017
    Messages:
    452
    Location:
    Charlotte, NC
    If they're actually reporting the APR in place of the money factor, that's still bad, but not as bad as if the money factor is really .00504.
     
  17. mattack4000

    mattack4000 Member

    Joined:
    Oct 1, 2017
    Messages:
    862
    Location:
    CA
    5.04 is the interest rate, not money factor
     
  18. Stasla

    Stasla Member

    Joined:
    Mar 30, 2016
    Messages:
    374
    Location:
    New York
    Have you considered financing? You can still get a decent rate and if you have a trade, NY state will only apply sales tax to the difference between trade and new car... You still get the $7500 tax credit and a $500 NYSREDA rebate. Sell or trade it in 3 years if you don't plan to keep longer.
     
  19. bell2041

    bell2041 Member

    Joined:
    Mar 17, 2018
    Messages:
    97
    Location:
    Brooklyn
    They want $10K less then my current payoff for my current car and I paid sales tax on 25K on my current car, so I will still need to pay taxes on 75K for Tesla. Doesn't make sense
     
  20. Krazaak

    Krazaak Member

    Joined:
    Jul 30, 2017
    Messages:
    452
    Location:
    Charlotte, NC
    Ah, yes, Thanks. I went back and re-read the original leasing email they sent me.

    Money Factor (0.0021) Convert to Rate* 5.04%
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC