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Non Tesla Leasing Options

Discussion in 'Model S: Ordering, Production, Delivery' started by MsElectric, Mar 24, 2015.

  1. MsElectric

    MsElectric Active Member

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    Does anyone know of any "non Tesla" leasing options for the Model S?

    Are there any banks that will lease a Tesla? Preferably one that gives you the advantage of the $7,500 tax rebate.
     
  2. jmdavis

    jmdavis New Member

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    Buy definition, when you lease the car you do not own it. You are essentially renting the car and paying for depreciation while the leasing company owns it. Therefore they receive the tax rebate and not you. There are some companies that will "credit" you the 7,500, but they essentially adjust the residuals to compensate. The Tesla lease is the best standard lease that you can get currently. If you do not plan on buying the car afterward (which is typical with a lease), you want a high residual which minimizes your payments. The Tesla lease essentially has USBank keeping the 7,500 and working that into the residual value. If you think you may buy the car, then leasing is not a good option at all because the cost of ownership will be significantly higher with the loss of the 7,500.
     
  3. MsElectric

    MsElectric Active Member

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    Thanks and do realize all that. I was wondering if any other banks or credit unions have a leasing programs for a Tesla. Tesla is charging 4% interest on their lease program so I'm trying to find a better option.
     
  4. madhav

    madhav Member

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    New member here. I am looking to buy 70D. 75 K base price plus 10 K in options.
    Tesla leasing is quoting me about 1000 monthly payment with 5000 down payment.

    In 36 months, i will pay 41,000. (36000 + 5000)
    Residual value is about 42,000. (50% of 75000 and 43% of 10000)


    If i pay down 42K and buy the car, the net amount i will pay is 83K for a 85K car. Also i have the option of walking away after 3 years if a better model is there.
    It looks good to think this way. What am i missing? I there something i am not seeing?

    I know i am assuming that if i want to keep the car, i am paying down 42K. So if that is financed, the cost will be more. Also i may be liable for the taxes on the 42K when i buy.

    Gurus, please let me know the flaws in this.

    Thanks
     
  5. CHGolferJim

    CHGolferJim Member

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    If you pay cash, the $85k car will cost you $77.5k. So the lease "cost" is $5.5 less possible tax benefits. If leasing, do you avoid property tax? Is there any difference in cost of insurance?
     
  6. MsElectric

    MsElectric Active Member

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    Your car is $85K with the options. With applicable rebates, based on the state you live in you might be able to buy this car for right around $75K with all the rebates factored in.

    So if you lease the car, you are looking at $6696 {due at signing} + $395 {disposition fee} + (35 * $1,001) {35 because the first payment is included in the "down payment"}

    Your grand total for leasing the car is: $42,126. At the end of the 3 years, you basically own nothing and you return the car to them and be possibly responsible for excess mileage. At this point if you buy the car, you would have paid $84,126.

    So if you decide to buy the car, you are about loosing about $10,000 -- or essentially the value of the rebate. They've done something awful with lease residuals by the way with how they treat the rebate. They apply the rebate to lower your lease payments but if you decide to buy the car at the end of the lease period, they add the rebate back to the residual and thereby essentially taking it away from you.

    IMHO the only time leasing makes sense financially is if you own a business and can deduct pretty much the entire lease payment as a business expense.

    By the way, if you lease you also need to return the car back in pretty much pristine condition. Here are the lease stipulations:

    "We have based the Monthly Payment on the assumption that you will not subject the Vehicle to excess wear and use. You agree not to expose the Vehicle to excess wear and use. If you do so and if you do not purchase the Vehicle at the scheduled end of the Lease Term, you agree to pay us the amount that it would cost to makeall repairs to the Vehicle that are not the result of normal wear whether or not we, in our sole discretion, actually make the repairs. Any excess wear and use assessedat scheduled termination of this Lease will be based upon an estimate of the repair cost unless we actually make the repairs.Excess wear and use includes, but is not limited to, the amount it would cost to repair: (1) inoperative mechanical parts, including power accessories; (2) dented,scratched, chipped or rusted areas on the body; (3) mismatched paint or any special identification mark; (4) cracked, scratched, pitted or chipped windows, brokenor discolored windows or inoperative window mechanisms; (5) broken headlight lenses or sealed beams; (6) scratches more than two inches long through the chromeon bumpers or bumper dents; (7) broken grills or dents in the grille; (8) single dents or a series of dents on other trim parts, including headlight and tail light bezels;(9) electronic malfunctions; (10) seats, seat belts, headlining, dashboards, door panels or carpeting which is torn or damaged beyond ordinary wear and tear or isburned; (11) major fluid leaks; (12) damaged exhaust systems; (13) damage from flood, water, hail or sand; (14) damage which makes the Vehicle either unsafe orunlawful to operate; (15) all damage which would be covered by the required comprehensive, collision and upset insurance whether or not such insurance actuallyis in force; and (16) the Vehicle to restore any original equipment or accessories which were removed or altered during the Lease Term.Excess wear and use also includes, but is not limited to, the amount it would cost to replace: (i) any tire not part of a matching set of five tires (or four with emergency“doughnut” spare if initially so equipped); (ii) any tires with less than 1/8 inch of tread remaining at the shallowest point; (iii) any tire with gouged, cut, torn or pluggedsidewalls; (iv) any missing or dented parts, accessories and adornments, including bumpers, jacks, ornamentation, aerials, hubcaps, chrome stripping, rear view"

     
  7. Lloyd

    Lloyd Active Member

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    Central City Leasing will give you a quote!

    Call them:

    1313 E Main St, Santa Maria, CA 93454
    (805) 928-3388

    Ask for Bill.
     
  8. madhav

    madhav Member

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    I live in Texas. so rebate is 7500.

    So when i consider 1200 destination fee, 2400 in extra sales tax (difference between lease and buy) and the finance charge on the loan, the difference between lease and buy is minimal.

    But i definitely see all the other things you mentioned like maintaining the car in pristine condition in the lease option.

    Thanks for your opinions.
     
  9. zer0cool

    zer0cool Member

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    #9 zer0cool, Apr 29, 2015
    Last edited: Apr 29, 2015
    I don't recommend leasing Tesla... Tesla's lease is pretty terrible... you can lease a low to mid 70'sk BMW 550i Msport in the mid 700s with 0 down and 15k miles per year, while a similarly priced Tesla (after tax incentives) leases for 1200... So it's like 60% or about 450/m more per month for two cars that are essentially the same price. BMW also has free maintenance in the first 4 years or 50k miles, so there's basically another 2000 difference there. Basically Tesla lease is as bad as Porsche's. Different companies just do it differently. BMW encourages leases so it provides very attractive leases, while Porsche and Audi (same parent company, VW) really don't like leases and basically just make them super unattractive so you end up buying.

    Another example is Audi S6 and BMW 550i. They are about the same prices, but the Audi leases for 1110+ while BMW can be had in the mid 700's... so it's not just Tesla. This has nothing to do with depreciation since S6 keeps its value MUCH BETTER than 550i...

    So clearly, on the spectrum, Tesla is not a brand to lease.
     
  10. MsElectric

    MsElectric Active Member

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    I agree with you. That's why I am looking for alternate lease providers. The only reason we are even considering a Tesla lease is because of the business tax deduction with our company. If this was a private lease there's no way I'd be considering a Tesla lease. Apart from the business tax deduction I think it is a pretty awful deal.

    The Tesla lease is too much up front, too much each month, and they take away the rebate if you try to buy the car at the end of the lease period. I think both BMW and Mercedes offers better lease deals on comparably priced cars. I'm still looking for an alternate lease provider but so far not much luck.

    - - - Updated - - -

    Thanks! I will call them. Are they a bank? I casually googled them and did not find anything for them...

     
  11. Lloyd

    Lloyd Active Member

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    They are an independent leasing company. They in the past have worked with B of A, but the leases are theirs. B of A just has the credit line with them.
     
  12. MsElectric

    MsElectric Active Member

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    Good to know! Thanks so much for sharing. How did you find out about them BTW?

    - - - Updated - - -

    UPDATE: Just spoke with Bill and they are no longer doing car leases. So I guess it is just Tesla...
     
  13. kyalami

    kyalami Member

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    Take a look at Earth Auto Leasing in Texas. Referred to them by Tesla. I live in R.I. where Tesla lease is not available.

    Earthautoleasing.com

    I have not done business with them yet but had a very informative and pleasant conversation with them last week.
     
  14. aus

    aus Member

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    #14 aus, May 6, 2015
    Last edited: May 7, 2015
    Agreed. Tesla Leasing basically blows. There's no way the payment should be so high with how high the true market value at the end of the lease is on these cars vs. the very low residual value on the lease.

    Thanks for the heads up on them taking awake the credit if you buy it at the end of the lease. Not sure why they do that???
    .
     

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