Non-Tesla lease

[SocalEV]

Since Tesla M3 is not setup for leasing option as of right now and might not be available for my early delivery. Is there a way to lease the car thru a bank ? I did send an email to Tesla inquiring about leasing option and they called me back (which was very nice of them) and the sales rep told me that there are no lease options available for now. Only cash or loan.

I was wondering if anyone had an experience leasing a new car thru a bank.

 

[israndy]

I was thinking the same, but it appears no one has heard about such a thing...

-Randy

 

[355rockit]

I sold my Ferrari to a friend who bought it via a lease arrangement from Putnam Leasing. Pain in the butt dealing with the leasing company since it took much longer than if he just got a loan for the car.
www.putnamleasing.com

 

[Zaphod]

I know there is one called Earth Auto Leasing. Don't know anything about it other than it exists.

I think you will find leases through third party will not be great and really not much better than actually purchasing with a normal loan. Tesla leases even directly from them are not great. Definitely will not be attractive compare to BMW for example.

Earth Auto Leasing

 

[mrtian97]

I would imagine soon Tesla will also offer leasing for M3

 

[AlanSqB]

Once the backlog is clear they will. Leases can be beneficial for businesses and I think the Model 3 will be a popular business vehicle.

 

[strykeroz]

I presumed to Tesla the lease will look like a cash sale. You'd negotiate with your lease provider and they'll settle the dollars on the day. Even though my most recent lease (for a Honda) said "Ford Finance" on it, it was actually a contract with GE Money (now, Latitude Finance). Previous to that I'd used "Honda Finance" which was also another 3rd party, who precisely I can't recall.

From these experiences I wasn't expecting to need a Tesla specific finance company for the lease on my m3. Is there something that restricts Tesla to taking a person's money not a finance company's for the sale?

 

[zer0cool]

Tesla has terrible lease deals already and I can only imagine a third party lease would only be worse. Leases are only attractive when manufacturers set inflated residuals and there are huge discounts. Tesla has none of these so Model S leases look terrible.

Not sure why you want to lease at this time.

 

[SocalEV]

I also believe that lease option will be coming online soon. We are several months away from selling to public, I am sure by then Tesla would have something setup. Leases are a lucrative business, I don't think Tesla would want to lose that money.

Although I have not completed decided on leasing vs buying. But I think 5-years from now, when I do try sell M3, I would be competing with brand new EVs from just about every manufacturer that are the same cost of my used M3, but better range and maybe technology.

 

[burnside]

Although I have not completed decided on leasing vs buying. But I think 5-years from now, when I do try sell M3, I would be competing with brand new EVs from just about every manufacturer that are the same cost of my used M3, but better range and maybe technology.

That's my feelings as well. The features/tech in EV cars changes more rapidly than in ICE cars to the point that either you'll have a very outdated vehicle in 3 years or a smaller buyer base. I feel if you buy right now, buy for long term (6+ years).

As far as Tesla not offering lease options, could it be because they are looking for more cash in hand with production just starting?

 

[pace]

Since Tesla M3 is not setup for leasing option as of right now and might not be available for my early delivery. Is there a way to lease the car thru a bank ? I did send an email to Tesla inquiring about leasing option and they called me back (which was very nice of them) and the sales rep told me that there are no lease options available for now. Only cash or loan.

I was wondering if anyone had an experience leasing a new car thru a bank.

Another interesting possibility is a company called IncentiveLease (incentivelease.com), who is looking to facilitate person to person leases on the Model 3. I'm not affiliated with them in any way, but I do have an extra reservation, and I'd be tempted to lease my second one at the right price as doing so would allow me to pocket a tax credit on the second car.

The question is whether or not there would be willing lessees at a small premium over a traditional lease rate.

 

[brucet999]

I also believe that lease option will be coming online soon. We are several months away from selling to public, I am sure by then Tesla would have something setup. Leases are a lucrative business, I don't think Tesla would want to lose that money.

Although I have not completed decided on leasing vs buying. But I think 5-years from now, when I do try sell M3, I would be competing with brand new EVs from just about every manufacturer that are the same cost of my used M3, but better range and maybe technology.

@zerOcool is right on leases. There are really only a few reasons to lease; first if the mfr is desperate to move cars and makes leasing very attractive; second if you can achieve tax benefits for your corporation or LLC; third if you plan to drive the car only a few years (and miles) and you are convinced that resale value will tank so badly that paying all that extra cost of a lease is cheaper than the loss of resale value.

TCO of buying, even financed through credit union, will almost always beat any lease deal, especially if you don't change cars frequently.

 

[SocalEV]

...third if you plan to drive the car only a few years (and miles) and you are convinced that resale value will tank so badly that paying all that extra cost of a lease is cheaper than the loss of resale value.

That's mostly my reason...especially for an EV.

 

[israndy]

Don't forget leasing to take advantage of the federal tax credit if you are already paying the AMT

-Randy

 

[SageBrush]

I was wondering if anyone had an experience leasing a new car thru a bank.

It is actually quite common, but they call it a repossession.

 

[EVNow]

Don't forget leasing to take advantage of the federal tax credit if you are already paying the AMT

-Randy

Nope. The credit is AMTproof.

 

[shokunin]

You can't take the federal tax credit if you lease, the lessor will typically roll the credit into the residual.

 

[israndy]

I didn't realize the Tax credit was Alternative Minimum Tax-proof, wonder how I could have found that out. I will not be looking for leasing if that is true. Thanks!

-Randy

 

[EVNow]

I didn't realize the Tax credit was Alternative Minimum Tax-proof, wonder how I could have found that out. I will not be looking for leasing if that is true. Thanks!

Just search "ev tax credit amt".

I'm confused by your second statement. I would think - since the tax credit can reduce your AMT too, you would look at leasing if you pay AMT.

BTW, this is only for individuals.

Top 15 FAQs on the Income Tax Credit for Plug-in Vehicles

Can I apply the New Plug-in Tax Credit against alternative minimum tax?

The personal portion of the credit (i.e., the amount of credit attributable to personal driving) can be applied to reduce AMT liability. However, to the extent the vehicle is used for business purposes, the business portion of the credit cannot be used to reduce the taxpayer’s AMT liability.