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No lease for M3?
- Thread starter GadgetGeek407
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- Model 3
Snow Drift
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voip-ninja
Give me some sugar baby
Leasing for this car makes little sense since not only do you pass on the tax credit, but Tesla is offering no lease support for the Model 3.
If Tesla simply partners with a bank that offers a lease rate based on what they think the car will be worth in 3 years then the only advantage of leasing is letting the bank carry the depreciation risk..... as the person doing the lease, you pay a premium in the form of higher interest rate (money factor) and other lease costs such as acquisition and disposition fees, security deposits, etc.
Most people lease because they "want a lower payment". Smart people lease when they understand the financials and recognize when a manufacturer is heavily subsidizing their leases (BMW).
I recommend people do their own lease of the Model 3. If you can't pay cash for the car or would rather invest the cash then finance the portion of the car you are comfortable with and make a cash payment for the rest. You can do this to get your "lease payments" in line with what they would be if you were actually leasing.
Then take advantage of the tax credit, and just sell the car in 3-4 years, hopefully before it depreciates like crazy.
If Tesla simply partners with a bank that offers a lease rate based on what they think the car will be worth in 3 years then the only advantage of leasing is letting the bank carry the depreciation risk..... as the person doing the lease, you pay a premium in the form of higher interest rate (money factor) and other lease costs such as acquisition and disposition fees, security deposits, etc.
Most people lease because they "want a lower payment". Smart people lease when they understand the financials and recognize when a manufacturer is heavily subsidizing their leases (BMW).
I recommend people do their own lease of the Model 3. If you can't pay cash for the car or would rather invest the cash then finance the portion of the car you are comfortable with and make a cash payment for the rest. You can do this to get your "lease payments" in line with what they would be if you were actually leasing.
Then take advantage of the tax credit, and just sell the car in 3-4 years, hopefully before it depreciates like crazy.
really wish there was a lease option since we seem to go through cars every 3-4 years. In our case, we have a toddler and another baby on the way, so our next vehicle will either need to accommodate our family for a while, or be swapped out in a few years for something else.
I was pleased to see the recent video of the 6'7" guy fitting comfortably into a Model 3's front and backseats, so I'm optimistic the car will work for us for a little while. However, my wife made a hard push for leasing an Acura RDX last weekend for $300/month that I torpedoed at the last minute over ethical concerns of driving a V6 given what we know about climate change today. 95% of our driving is city driving, and the test drive vehicle showed the RDX was getting 12.3 mpg (dealer is in an urban location).
I thought the Model 3's competition for us was an Accord or Civic (which had me feeling pretty good), but apparently we're now cross-shopping a likely $500-monthly payment for the base 3 with leasing heated leather seat SUVs that take premium gas... she wants to look at a Q5 next weekend
I was pleased to see the recent video of the 6'7" guy fitting comfortably into a Model 3's front and backseats, so I'm optimistic the car will work for us for a little while. However, my wife made a hard push for leasing an Acura RDX last weekend for $300/month that I torpedoed at the last minute over ethical concerns of driving a V6 given what we know about climate change today. 95% of our driving is city driving, and the test drive vehicle showed the RDX was getting 12.3 mpg (dealer is in an urban location).
I thought the Model 3's competition for us was an Accord or Civic (which had me feeling pretty good), but apparently we're now cross-shopping a likely $500-monthly payment for the base 3 with leasing heated leather seat SUVs that take premium gas... she wants to look at a Q5 next weekend
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...I thought the Model 3's competition for us was an Accord or Civic (which had me feeling pretty good), but apparently we're now cross-shopping a likely $500-monthly payment for the base 3 with leasing heated leather seat SUVs that take premium gas... she wants to look at a Q5 next weekend
Yikes, why is the monthly for the T3 likely to be so much more than comparable 35k-ish cars?
After paying the $3,500 required initial payment ($1k reservation fee, $2,500 order payment), we'll be financing the rest of the cost, including the $1k destination fee. So $32,500 financed, and I'm hoping that the rate will be anywhere from 2.80%-3% for a 72-month loan (hopefully not much more!). So probably around $500/month at first, then use the $7,500 tax credit to self-subsidize the remaining payments.
I'd be inclined to adjust our withholding to take the credit as we go during the next year, but I have no clue when our SR base car will be ready for delivery (maybe March, April, or May?), or how the tax reform legislation will impact us specifically.
Other auto manufacturers subsidize vehicle leases and financing. Not Tesla for the 3.
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T34ME
Active Member
Tesla needs to be less aggressive right now with ~500K back orders. You can see on this Forum how antsy people are getting because their cars are being delayed even a month or two!
Maybe when the tax credit allotment has been reached and the back orders have been substantially reduced and when there is some real competition in a couple of years, they might offer a 'less than aggressive' lease plan.Why not just finance the model 3, say for 72 months, should be about the same as lease payments? As soon as the model Y is introduced in a couple of years, I speculate that you would get a priority reservation since you already own the 3. Then just trade in your 3 to Tesla when your Y is available. In the meantime, you should have more than enough room in the back seat of the 3 for two car seats and the trunk is truly cavernous for strollers, etc.
"Other auto manufacturers" new car sales are hurting so they need to subsidize their vehicles. Tesla sales are booming, no need to subsidize.
THX for that, I'm probably in a similar scenario..
except I pay freelacers 'quarterly estimated taxes' so can use those usual big payments to pay the car monthly.
except I pay freelacers 'quarterly estimated taxes' so can use those usual big payments to pay the car monthly.
Aggressive lease program from Tesla? You gota be kidding yourself. Tesla has among the worst lease deals in the car industry because Tesla doesn't discount.
You get great lease deals when residuals are inflated and there is large discount from MSRP. Tesla doesn't do any of those, resulting in terrible lease numbers. Just forget about it.
You get great lease deals when residuals are inflated and there is large discount from MSRP. Tesla doesn't do any of those, resulting in terrible lease numbers. Just forget about it.
I definitely wish that was the case with the 3, but all personal calculations and online calculators I use for a base 3 show that a 72-month loan at anywhere from 2.75-3% yields around $500/month payments (nothing down beyond the $3,500 initial payment, so not even sure if a 72 month loan would be an option). As I found out on Sunday, my wife has been comparing this figure to year-end lease offers for ICE SUVs that range anywhere from $279-450/month ($2,500-$4,000 down). Of course, she doesn't buy gas so she wasn't factoring in the premium fuel expense, but our gas costs for our compact ILX which we use premium gas in never really exceeds $90/month (we get just under 24 mpg combined).
Another odd but important variable is that our cheapest insurance quote for the 3 has been from Geico, our current company, at around $940/6 months, so our car insurance would be around $250-300 more ever six months for the 3 compared to an Acura RDX, Audi Q5, BMW X3, Volvo XC60... not sure why that is - 1 car, no accidents, no tickets in the last 10 years, etc.
T34ME
Active Member
I think you can do much better than 2.75%. Have you received a quote from Penfed?
Hmmmmmmm, we have been members of Geico for decades. I just went online for a quote on the model 3. It came out to $444 for 6 months (full everything coverage, semi-rural SoCal, 12K miles per year, not financed, no infractions, two car discount). That's less than half of your quote. I guess loyalty pays.
That's stunningly low. Comparing insurance quotes is generally pointless because insurance companies seemly pick numbers based on the last time they heard someone fart and then work some sort of occult formula from there, but what deductible and coverage levels is that based on? I tend to carry very high liability limits because of the amount of high-end cars in my area and I'd hate to have to kill myself because I made a mistake and totaled someone's Lamborghini while only carrying $50k in liability coverage.
However, my wife made a hard push for leasing an Acura RDX last weekend for $300/month that I torpedoed at the last minute over ethical concerns of driving a V6 given what we know about climate change today. 95% of our driving is city driving, and the test drive vehicle showed the RDX was getting 12.3 mpg (dealer is in an urban location).
I thought the Model 3's competition for us was an Accord or Civic (which had me feeling pretty good), but apparently we're now cross-shopping a likely $500-monthly payment for the base 3 with leasing heated leather seat SUVs that take premium gas... she wants to look at a Q5 next weekend
Here's a wild suggestion for a family vehicle for you: a Pacifica hybrid (plug-in) minivan. They don't look so minivan--ish, gets about 40 miles all electricity, which is probably enough for your city driving most days, gets tax credit and HOV sticker (in CA). They are way more environmental than these heated leather seat SUVs. There is even a trim level with built in vacuum cleaner. At the minimum, insisting on checking out the Pacifica will delay your wife another week after looking at the Q5.
I second that your insurance quote seems high. Liberty Mutual gave me $700/6 month if it were the only car.
I have not, though I don't have any military background or have any close relatives who served in the military to the best of my knowledge, so not sure how I'd be able to join. However, it looks like their rates are 2.99% for 60 months and 3.24% for 72 months.
Maybe part of our quote has to do with living in Seattle. We have had Geico for about 14 years, have full everything, and only drive our 1 car about 6,000 miles per year.
T34ME
Active Member
Thomas, whyfore dust thou doubt me?
Collision/Comp = $500 deductible
Liability = $100K/300K/100K If I increase to $300K/500K/100K my premium goes up by $20 for 6 months. (I also carry a $1M personal liability policy with another company)
Incl/ roadside assistance
uninsured motorist
rental reimbursement
mechanical breakdown
(in other words, the whole enchilada!}
I would add that this car will not be used for commuting, pleasure only
