No lease for M3?

[internalaudit]

Then 60% depreciation over 4 years?

So in 8 years you pay 120% of a new M3 if you do two 4 year leases vs just buying the car outright.

This doesn’t even touch higher lease rent charge (interest) acquisition fees, etc.

Not to mention the car you bought is still worth something in 8 years, the lease is worth zero

Yeah 70% from my earlier post is too ridiculous ( wrong arithmetic) and it would definitely tip the scale over to financing.

Maintenancece is $6k over the eight years, ESA is $4k so in year 8, leasing was overall only 20-25% (including higher borrowing cost for leasing).

Then on year 9 all hell breaks lose with any major issues with the vehicle. $9k for a major brake job as posted on TMC, battery and drive unit needs to come from Tesla because there is no Right to Repair so major components will be rejected by the vehicle.

For a reliable make, for sure buying the car makes sense. With Tesla, quality is crapshoot so until we ( no ESA) are all into year 5 or year 9 ( with ESA), there is no hard and fast rule.

That's probably why Tesla is shying away from offering leasing.

 

[voip-ninja]

60% depreciation is quite generous of you. Yeah 70% from my earlier post is too ridiculous and it would definitely tip the scale over to financing.

Maintenancece is $6k over the eight years, ESA is $4k so in year 8, leasing was overall only 20-25% (including higher borrowing cost for leasing).

Then on year 9 all hell breaks lose with any major issues with the vehicle. $9k for a major brake job, battery and drive unit needs to come from Tesla.

For a reliable make, for sure buying the car makes sense. With Tesla, quality is crapshoot.

8 years of ownership is 7 $500 annual services and one $850 “major” service going by your same estimate of not doing the last maintenance the year you get rid of the car.

So $4350 plus anything that fails on the bumper to bumper after 4 years you have to fix out of pocket.

I agree that Tesla is an unreliable brand with not much of a track record.

It is still cheaper to buy it and sell or trade it after 3-4 years than lease it.

The only advantage of leasing from a financial perspective is protection from possible crap resale.

 

[CarbonFree]

Right now it's pretty clear that Tesla doesn't have the capital to lease the 3 themselves, and no bank wants to be on the hook for a brand new model, in case resale value goes south and they lose two or three billion dollars on 500,000 leases. Or even 10,000 leases. This could happen if Tesla folds, resale demand is poor, or there are reliability issues. It's the same situation Tesla was in with the S. Tesla's junk bond sales and poor balance sheet don't help matters.

I expect they'll be able to talk a bank into it within a year or so. Until then, or until sub-$49K cars become available to buy, it's an $800 a month car payment. Of course, TCO may vary depending on your tax credit situation.

 

[SteveG3]

As it happens, someone has an offer in the TMC "for sale" section for basically a 1 year lease of his Model 3 (looking for something like $1k/month or better). It's a guy who wants to own the car, but, is looking to raise some funds to pay some of the cost of his loading the car with almost all the options. Delivery in about 3 weeks. I think I'm going to get my car within the next 2-3 months, but, if I had to wait a year, I'd be tempted.

One Year Lease of My Unused Model 3 Available in 3-4 Weeks

 

[turtlesz]

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.

Exactly! I don't think many Tesla lease buyers are aware they are getting ripped off. You need to find a car with a high residual value, deep discount from asking price to score great lease rates. Tesla doesn't even pass on the $7500 tax credit to the buyers, they just use it to change the residual values. Buying a 3 makes sense from a financial perspective, you can always sell it if you dont like it and shouldn't lose much as the 3 will be in high demand the upcoming years. Leasehackr is a good reference to learn about how to score lease deals and become more informed. I got a $52k MSRP i3 as a extra HOV vehicle for $260 a month with absolutely $0 out of pocket, registration, taxes etc factored into monthly payment and still will get the $2500 CA rebate and $450 socal electric rebate.

 

[glh280]

I knew exactly how bad the Tesla leases were. They suck! ...however, they also lose money so fast that a lease is the best way to protect yourself from low residual values (much lower than they estimate).

Ex: We purchased a 2016 MS P90DL at a $22k discount ($142k MSRP). Leased it for $1144/mo for 24 months (15k miles). Buyout is $92k (in another 8 months). Trade-in offer from Tesla was $62k (30k miles on the odometer). Had I purchased instead of buying I would have lost an additional $30k. So, even though the lease sucks, it is still better than buying if you do not plan to run the car into the ground.