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

[jgrgnt]

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.

Always run the numbers. You'd be surprised how well you can do with a lease. The total cost of my current BMW lease, which is ending in a few months, will be approximately $2k less than if I had financed it with a loan at the same interest rate (1.9%) and sold it. At that's assuming a generous private party value, so the spread could be even higher come lease end.

If you strike when residuals are high, the MF is low, and can score a heavy discount off MSRP, you can do quite well.

 

[SSKMX]

Anyone who leased their Tesla, can you please share your experience? I am having a tough time to get things in order. Tesla is telling me Car will be registered on name of my business which then means ,I will have to get a commercial auto insurance(According to my insurance agent). I spoke to my DS about registering the car on my name but he told me that since I applied for a business lease it has to be on name of the business and not me. Can someone who has experience with this shed light on how you were able to handle this situation? I live in TX so not sure if state matters here.

 

[AZ Desert Driver]

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.

I asked "why" and you gave some cases that I did not know, and answered Why. But - what you said - applies to both purchase and lease= negotiate a good purchase price, negotiate a good interest rate, sell it when its in a good condition to maximize residual. Own it long enough and the taxes are identical to lease and purchase. So lease money factor at 5% is worse than Allient loan at 1.5%. And a bank does not take a thousand dollars to set up the loan. Tesla purchase is not really subject to negotiation. [Used cars are another story].
I just cant see a way where this is a good deal for me. There might be a corner case where the math works, but I have yet to find it. I looked at a lease for my wifes Honda, and the dealership pushed hard on Lease - so hard that I had to dig deeper and found so many gotchas that I swore I'd never do business with that dealer again.