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New order advice - finance vs purchase

LdnTes

Member
Oct 15, 2021
8
3
London
Hi all

Test drove the model three last week and immediately fell in love, have been reading this forum ever since and there is some absolutely brilliant advice on here. Am hoping to pick the brains of the forum on something.

I have ordered a new model three long range (black, standard wheels, all in about £49,000) but have decided to do this on a finance deal for two years.

The car will be purchased by my company (that I own) and will mean there is a tax write off on the payments which over these two years - in total the payments will cost me around £12,000 before tax deduction but after 50% VAT reclaim.

As a business we could look to purchase the car outright which would mean a 100% write off in the first year, saving around £9000 in corporation tax.

The reason I am looking at the finance is that I don't seem to be able to see any figures on what the depreciation would be like. Part of the reason I am changing at this time is that I can sell my car for more than I paid for it 18 months ago so I know that the second hand prices are perhaps not to be trusted long term on auto trader and once the rest of the market/manufacturers are busy producing vehicles again the whole market will have a correction.

I guess the question is that if you buy the car now, will it be worth more or less than (£49,000 - £12,000) £37,000 in two years.

I suppose my concerns are that it is hard to judge depreciation as it is likely in the next two years we will see other manufacturers really ramping up other options on available EV's, Tesla will likely once again bring out new models, may stop models as they seem to have done with the S and X, and will technology moving, super charging going to the masses, have a big knock on to used prices of the current teslas.

I know its a guessing game but would love some input.
 

Alan J

Member
Jun 17, 2019
280
183
Glasgow
Hard to predict the future but I see the Game Changer being the introduction of the 4860 Battery whenever that will be as it is a serious Technical step forward, suggest you Google it. Based on current very good residuals I think you'll be OK on a 2 year timescale.
 

Mgd1

New Member
Oct 10, 2021
2
0
Uk
I was in the same boat and decided on the lease.

Reason being with the lease I can claim 50% of the vat.

The sheer amount of model 3’s being sold/leased mean that the residuals might not be as good in 2/3 years time compared to now.
 

LdnTes

Member
Oct 15, 2021
8
3
London
Hard to predict the future but I see the Game Changer being the introduction of the 4860 Battery whenever that will be as it is a serious Technical step forward, suggest you Google it. Based on current very good residuals I think you'll be OK on a 2 year timescale.
Thank you for your input and I am definitely going to look into the battery situation - they are the leading edge of the whole car in many ways I guess.
 

LdnTes

Member
Oct 15, 2021
8
3
London
I was in the same boat and decided on the lease.

Reason being with the lease I can claim 50% of the vat.

The sheer amount of model 3’s being sold/leased mean that the residuals might not be as good in 2/3 years time compared to now.
Think I will stick with lease - there is an opportunity cost to the cash being tied up and not be able to use/invest elsewhere too. It being the biggest selling car and a lot of people leasing well mean a huge influx in 24/36/48 months time. There is also part of me that thinks the model y could tempt me away in two years with a growing family.
 

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