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New Member- feedback on my lease deal am about to ink?

Discussion in 'Model X: Ordering, Production, Delivery' started by ChrisKA, Sep 18, 2017.

  1. ChrisKA

    ChrisKA Member

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    New member here, about to sign a deal on a New Inventory Model X.

    Have already put down my deposit but curious for everyones thoughts on the lease terms.

    With $6000 adjustment, referral + $5,000 down, am getting quoted 1308 per month (10K miles per year, 3 years). This is on a 102,200 purchase price (not sure if that includes the $1,000 discount for referral). But curious what everyone thinks?

    Does this seem right / is it a good deal?

    Thanks in advance!!



    [​IMG]
     
  2. ChrisKA

    ChrisKA Member

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    Oh sorry forgot to mention, that I am also removing AutoPilot (we live in the city) and that credits us back $5,000. So out the door price should be $96,200 (i.e. 101,200 - 5,000). At $96,200 and $5k down, I feel like $1,308 per month is high.

    Thoughts?
     
  3. James*

    James* Member

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    Are you sure you got quoted for a lease? From my calculations, that would be the monthly payment (my calculations came out to $1305.18) for 72 month financing at 0.99% for $96,200 with $5,000 down payment.
     
  4. ChrisKA

    ChrisKA Member

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    Hi James- thanks so much for the response! Very good point you raised. I am going to ask for clarification from my owner advisor at Santa Monica Tesla. Perhaps she was using the loan calculator and not lease calculator. Will post back, thank you!!
     
  5. Chickenlittle

    Chickenlittle Active Member

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    How bad is your credit?
     
  6. bcampbelllds

    bcampbelllds Member

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    You will want to increase the yearly miles to 15,000. Once you realize how amazing this vehicle is you will be finding any excuse to drive.
     
  7. ChrisKA

    ChrisKA Member

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    Not that bad lol, have 730+.

    I thought this quote was off. Maybe they used the wrong calculator (loan vs lease).

    Can anyone tell me what this lease should be?

    Chris
     
  8. Sully's8

    Sully's8 Member

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    Leases are just a financial instrument that amortizes a debt over a period of time. For a lease, the key components (variables) are the final negotiated sticker price, the "Money factor" which for all intents and purposes is an interest rate, and then the "residual value." The Residual value is extremely important, as it represents the estimated value of the vehicle upon reversion (return to the dealership at end of lease). . . The negotiated price, minus the residual gives you the capital cost of your vehicle over the lease term. Take that cost and apply the money factor and it determines your payments.

    To figure out the residual of your car, I assumed a 3 year term, 2% interest and your 1308 payment. That results in a Present Value of $45,666. So the residual in the case of your car is sticker less 45666 or 96,200-45,666 = 50,534. So, the wisdom of the bankers are saying that after you drive 30K miles, your car will be worth 50,534. That's essentially it. Adjust money factor to your actual quoted percentage and that's it. . . The lower the residual the higher the lease payment. . . The higher the residual, the lesser the lease payment.

    you may already know all this, but this is how I'd do a quick and dirty test if I was shopping for a lease.

    You can look at the CPO websites to see what off lease Xs are going for but there probably aren't many since the X is just a couple years old.

    IMHO the math works and the amount looks legit. . . If you're just looking to confirm it's not a mistake.

    Good luck!
     
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  9. ChrisKA

    ChrisKA Member

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    Hey Everyone,


    Just got an email from my OA. Looks like there was an error in their down payment calculation.

    Here's the corrected breakdown;

    $96,200 total, $7,471 down and $1205 per month. Thoughts? Does the money factor look right?

    Thanks everyone for letting me know your thoughts!

    Chris

    Screen Shot 2017-09-18 at 11.22.12 PM.png
     
  10. AZ Desert Driver

    AZ Desert Driver Genesis - The Beginning - MS75D

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    Why would anyone lease? First, in this case, he has to pay $1090 to set up the loan. If you borrowed the money from a bank, do THEY have loan acquisition fees? You can borrow at 1.5% - so why pay these guys 5%. Your car will depreciate - whether on lease, or loan, or purchase. Why pay some one else to calculate its depreciation - wont change what really happens, and the lease company will always win on this.
    I see zero value to a lease. You don't really get a lower payment, and you don't really get out of the car at the end any easier. Somebody tell me WHY anyone would lease.
     
  11. gooman

    gooman Member

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    for what ur paying for the lease i would just buy it, unless you have a business where u can write it off

    thanks
     
  12. patrick40363

    patrick40363 Member

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    If the car is used for business.
     
  13. Zaphod

    Zaphod Galaxy President (former)

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    ^ this is probably only good reason. At least for a Tesla.
     
  14. rjdoc74

    rjdoc74 Member

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    I am sorry, but 7k "down" is insane on a lease. If you drive off the lot and total the car, you loose your "down". You should never ever put anything down on a lease. Just imho.

    P.S. MF looks to be correct for a Tesla. They never subsidize their leases like other luxury car companies.
     
  15. AZ Desert Driver

    AZ Desert Driver Genesis - The Beginning - MS75D

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    If it is bad economics for an individual, it should still be bad economics for a business. If it is a small business, then the treasurer should be able to figure out it is hurting his business and its his job to be a better fiduciary guide.
     
  16. 7summits

    7summits Member

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    I am thankful you are not my financial adviser. All joking aside, leasing makes a ton of sense for a variety of reasons.

    1) Leasing significantly reduces your risk of ownership which is especially important with a Tesla.
    *If you get in a wreck and own your car, the value depreciates significantly.
    *The technology changes all the time on Tesla and again can rapidly depreciate the value of your car.
    2) You can get out of the lease very easily at any time. You cannot do that with owning the car in the first 2 years typically unless you want to take a serious hit.
    3) In the vast majority of states, you pay more in taxes when purchasing a car vs leasing. In my state, it was about a $5K difference in taxes.
    4) If you can find the right inventory car, leasing is significantly cheaper than buying a car over a 3 year period and much less risk.

    I ran the math several different ways over a 3 year period and I was ahead by leasing with way less risk and a lot more flexibility. I did get a great deal on an inventory car which made the lease numbers extremely attractive.
     
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  17. rjdoc74

    rjdoc74 Member

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    Can you explain to me how you can "get out of the lease very easily at anytime"? Very curious to hear an explanation.
     
  18. 7summits

    7summits Member

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    Tesla financing and US Bank both allow lease transfers to other parties. The original lessee does not remain liable. I have been in and out of 7 cars in the last 2 years by doing this. It is extremely easy to do.
     
  19. jgrgnt

    jgrgnt Member

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    Same here. A few years ago, I transferred my BMW lease to someone else. There's a cost associated with this (for BMW, it was $500), but you can negotiate with the new lesee and have them pay it, which is what I did. Easy peasy.
     
  20. 7summits

    7summits Member

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    BMW is by far the easiest to deal with. I have had the entire process take 5 business days. The only time it has taken longer is when I was getting a car from CA which took 2 weeks. Dealing with the CA DMV is a process.
     

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