Snagged a P90D Inventory car for $700/mnth on the new 24 month lease

[CmdrThor]

Only $1K a month.

Who are you people? You must have found a way to grow money trees.

I even debate this with my wife at times......

$700 dollars a month is a good deal however is $700 a month.

Too often people buy $700 a month cars when they only have $350 a month available. Stupid banks are still giving people loans outside of their means in order to compete with other banks. I thought this last "recession/depression" would have educated people and banks.

Compared to the depreciation someone would incur purchasing a new P90D with no discount, $1k a month is a good deal. Those who are in the market for Model S recognize that. People who only have $350 a month available obviously aren't in the market for Model S unless they've saved up $50k or so. And there is certainly a small minority of Model S owners that are in that category, but they just placed a very high priority on owning a Tesla.

Thankfully Model 3 and other future models are coming that will be more affordable.

 

[SoCal Jimmy]

@SoCal Jimmy,

Thanks for the heads-up on this. I found a good deal (not as good as yours!) on an inventory pre-refresh P90DL and pulled the trigger on a 2-year lease this afternoon. Only problem is now I will probably get spoiled with P and L and will be locked into the PXXDL Model 3 when it comes out. But was leaning that way anyway so I guess that's ok.

Congrats. Glad to see others are able to find something too.

 

[xav-]

@SoCal Jimmy,

Thanks for the heads-up on this. I found a good deal (not as good as yours!) on an inventory pre-refresh P90DL and pulled the trigger on a 2-year lease this afternoon. Only problem is now I will probably get spoiled with P and L and will be locked into the PXXDL Model 3 when it comes out. But was leaning that way anyway so I guess that's ok.

Can you give details on the deal that you got? Thanks

 

[xav-]

Compared to the depreciation someone would incur purchasing a new P90D with no discount, $1k a month is a good deal. Those who are in the market for Model S recognize that. People who only have $350 a month available obviously aren't in the market for Model S unless they've saved up $50k or so. And there is certainly a small minority of Model S owners that are in that category, but they just placed a very high priority on owning a Tesla.

Thankfully Model 3 and other future models are coming that will be more affordable.

What about the depreciation on a base 60? I'm coming pretty much to $1k a month as well. Mainly because of the reliability problems, high cost of repairs, the much cheaper model 3 and the advancement in self driving and battery technology.

 

[Super_Popular]

That car isn't discounted very much.

It's missing quite a few options:
21" wheels
High Fidelity sound
Air suspension
Premium interior and probably others.

At least 10k in options missing compared to the other deals found in the last couple days.
To be fair though, this is a brand new inventory car with only 50 miles. The lease though for 24 months won't be as attractive.

Agreed, not a good buy.

 

[Mike K]

So would this also apply to say a 90D? And would 36 months work out to be more favorable or less?

If I could get a 90D with UHFS, Air, Pano and Premium for even close to this I'd pump out the cash tomorrow.

 

[xav-]

So would this also apply to say a 90D? And would 36 months work out to be more favorable or less?

If I could get a 90D with UHFS, Air, Pano and Premium for even close to this I'd pump out the cash tomorrow.

You need big discounts off MSRP. Because the residual is based on the MSRP you get this massive savings on the lease. Without big discounts off MSRP the lease can be significantly more expensive even for a car that is not as good.

Basically do the math in this case.. You get 20 percent off..

So you pay 80 percent of the car. But the residual after the $7500 tax credit is 67 percent so really you only pay 13 percent of the depreciation of the car for that 24 month period.

Of course to that you need to add the interest (4 percent in this case) and the acquisition fees.

To my knowledge these huge discounts are only available on demo P90Ds unfortunately. In general you are unlikely to find these deals unless the car is loaded.

 

[AZ Desert Driver]

Haven't found the way to grow it on trees yet but I have taken a different approach than some.... I've been buying rental properties these past few years to secure an early retirement. Sinking almost all our investable funds from my business into this strategy and living below our means. Late last year we hit our goal for # of acquisitions of trashed bank owned properties and I was ready to make a discretionary purchase on a new Tesla mostly as a high tech toy. Instead, I found a house the bank wanted to offload quick for $110K that also needed a ton of work, time and money. Ugh, can I handle one more? I offered $85K cash (my Model S cash to be exact) hoping the bank would reject the low ball offer. Instead, they took it and we closed end of January. I spent a month on and off sleeping on a cot at the house fixing it up plus $10K credit card funds in repairs, replacements. By mid March I rented it for $1200/month. Buying this house wiped out the Model S money and I am beating down the CC debt before the 0% period runs out early next year. I think it was a much smarter and better decision. Here's why. After taxes, insurance and even a 15% repair" fund I still have $700 left over for a lease payment (income tax is another story). I've never leased before and always tried to be a cash buyer. I wish I had my new Model S months ago but I feel buying this property was the better move. I know this strategy is not for everyone but I'm a firm believer of paying yourself first and being prepared for a rainy day. As a family we try to balance our wants and needs and occasionally splurge but have been on a "spending freeze" since 2008 and acquired 12 properties in total. Not all are free and clear but they will be in 2020 and the last kid finishes college in 2023 and then retirement at 56. Wife still hasn't bought into the concept and wants a new kitchen first (35 years old and very 1980). Grrrrrrr, trying to negotiate a reasonable compromise....

There are many ways to fund lifestyle. Buying fixer-uppers and converting sweat equity to cash is one. In my case, years ago I bought a car and made monthly payments of (don't recall, lets call it $350/mo). When the car was paid off, I drove it for many more years until it became unreliable - all the while I continued to pay $350/mo - to my own saving account and made 5% instead of paying 5%. Bought next car for cash, but continued to pay into my "car" account $350/mo and paid insurance/tires from that growing dedicated account. Once Spreadsheet 1,2,3 was invented, I no longer needed a separate account to track budget numbers, but the concept remained. Lived beneath my income, paid myself first, managed every major budget item, funded IRA and 401K and SEP. Now - I CAN buy any Tesla out there but can't justify a P100dL - The raw power is painful, not a treat. See, still managing every budget item.
Not growing on trees, but good fiscal management can come in many lines of work. Buy toys now, or later when you have your house in order?

 

[n2mb_racing]

Any P90DLs still left on the east coast? I'm interested in leasing one!

Are you able to get the $7500 tax credit on a lease?

 

[singleview]

Are you able to get the $7500 tax credit on a lease?

As I understand it - - no $7500 federal credit for leased cars (the credit goes to the leasing company!).

 

[xav-]

tesla adds the credit back to residual so you do get it in a form of lower monthly payment. So yes you do get it. You do not get a check from the government.

..That said tesla seems to take advantage of the federal tax credit to lower their residuals. Their residuals are pretty low.

 

[Max*]

Only $1K a month.

Who are you people? You must have found a way to grow money trees.

Everyone has priorities.

Do you want a big house? Do you want 15 kids? Do you want to eat out every day? Do you want a nice car? Do you want all of the above?

 

[Garlan Garner]

Everyone has priorities.

Do you want a big house? Do you want 15 kids? Do you want to eat out every day? Do you want a nice car? Do you want all of the above?

Although you are correct there is a thing called misplaced priorities.
There is a thing called living beyond your means.
There is a thing called doing the wrong thing.
There is a think called stupid.

I teach the kids I'm around all day that just because you want or prioritize to have something....live within your means. The reason I'm trying to teach kids this is so that they won't turn out to be like some of the Adults I see and read about - living in their Lamborghinis.

 

[Max*]

Although you are correct there is a thing called misplaced priorities.
There is a thing called living beyond your means.
There is a thing called doing the wrong thing.
There is a think called stupid.

I teach the kids I'm around all day that just because you want or prioritize to have something....live within your means. The reason I'm trying to teach kids this is so that they won't turn out to be like some of the Adults I see and read about - living in their Lamborghinis.

Why are you generalizing [that people are living outside their means, that people are doing the wrong thing, that people are stupid] with respect to forum members here?

 

[Mike K]

Although you are correct there is a thing called misplaced priorities.
There is a thing called living beyond your means.
There is a thing called doing the wrong thing.
There is a think called stupid.

I teach the kids I'm around all day that just because you want or prioritize to have something....live within your means. The reason I'm trying to teach kids this is so that they won't turn out to be like some of the Adults I see and read about - living in their Lamborghinis.

You're painting with a rather broad brush if you're insinuating that anyone considering a $1000/ month payment is living beyond their means. If you're making $50,000 a year than $1000 a month seems ridiculous but if you're making $300,000 a year it's not much at all. It's all relative.

I would suggest that most Tesla owners are making well above the median income level. Likewise, when coming from an ICE vehicle you must take into account gas savings. I was spending nearly $400 a month in gas. That is money that can be directly applied to another vehicle (minus the estimated cost of electricity).

In that sense I think we see more people punching above their income level when buying a Tesla but it works out since they completely eliminate their fuel expense.

 

[Mike K]

You need big discounts off MSRP. Because the residual is based on the MSRP you get this massive savings on the lease. Without big discounts off MSRP the lease can be significantly more expensive even for a car that is not as good.

Basically do the math in this case.. You get 20 percent off..

So you pay 80 percent of the car. But the residual after the $7500 tax credit is 67 percent so really you only pay 13 percent of the depreciation of the car for that 24 month period.

Of course to that you need to add the interest (4 percent in this case) and the acquisition fees.

To my knowledge these huge discounts are only available on demo P90Ds unfortunately. In general you are unlikely to find these deals unless the car is loaded.

Ah I dig. So I'm basically looking for the cheapest car relative to it's sticker price then, yes?

 

[EinSV]

What about the depreciation on a base 60? I'm coming pretty much to $1k a month as well. Mainly because of the reliability problems, high cost of repairs, the much cheaper model 3 and the advancement in self driving and battery technology.

Xav,

You have been critical of Tesla's leases (except for inventory P90Ds), but haven't posted much in the way of comparative data to support your statements. From what I have seen, I don't think the criticism is justified, particularly for the two-year lease.

I have always bought my cars instead of leasing but as noted upthread decided to jump on the new two-year lease deal. I started by looking at a two-year lease on a fairly stripped down S60, which start at $593/mo before gas savings. When I researched two-year leases for comparably priced cars, Tesla's payments appear to be not only competitive but far cheaper than the other leases I found.

For example, a 2-year lease on a Mercedes E400 (MSRP $60,650 -- about $5K less than a Model S) with $5K down is $1013 per month. A two-year lease on a 2015 Lexus GS 450h (MSRP $61330 -- also about $5K less than a Model S) is going for $1255 per month with $5K down -- more than double the monthly payment for the higher priced Tesla. I looked for comparable BMW two-year leases but did not find any. To try to get as close as possible to an apples-to-apples comparison, I chose 10,000 miles for the Mercedes and Tesla leases and 12K miles (the closest available) for the Lexus.

From what I have seen, monthly payments for two-year leases for other companies are typically significantly higher than for a three year lease -- presumably because most depreciation takes place in the first year (that new car smell is expensive ....). Tesla's lower rates for a two-year lease, however, can take advantage of the $7500 federal tax credit and Tesla's relatively good depreciation rates, resulting in terms that based on my (limited} research appear to be far less expensive than even lower priced cars from other companies.

I was lucky enough to find a demo pre-refresh P90DL with 9,000+ miles and some repair work done and got what I thought was a very good deal ($893/month before referral credit). So I decided to plunk down a little extra for all the bells and whistles on a demo/inventory P90DL. But IMO the two-year lease on the base model was also an excellent deal as far as two-year leases go. Short-term leases are not for everyone, but the S60 lease appeared to me to be a good deal for someone who is interested in a Model S but may want to turn it over in a couple years for whatever reason (in my case, to buy a Model 3 or Y).

 

[Garlan Garner]

Why are you generalizing [that people are living outside their means, that people are doing the wrong thing, that people are stupid] with respect to forum members here?

I'm generalizing because it is absolutely a bad thing to live beyond your means. That's what I believe.

Now we have to get serious here. I would never call people stupid. What they do can be stupid. There are geniouses that make stupid mistakes...ie. a man named Tesla once did.

 

[xav-]

Xav,

You have been critical of Tesla's leases (except for inventory P90Ds), but haven't posted much in the way of comparative data to support your statements. From what I have seen, I don't think the criticism is justified, particularly for the two-year lease.

I have always bought my cars instead of leasing but as noted upthread decided to jump on the new two-year lease deal. I started by looking at a two-year lease on a fairly stripped down S60, which start at $593/mo before gas savings. When I researched two-year leases for comparably priced cars, Tesla's payments appear to be not only competitive but far cheaper than the other leases I found.

For example, a 2-year lease on a Mercedes E400 (MSRP $60,650 -- about $5K less than a Model S) with $5K down is $1013 per month. A two-year lease on a 2015 Lexus GS 450h (MSRP $61330 -- also about $5K less than a Model S) is going for $1255 per month with $5K down -- more than double the monthly payment for the higher priced Tesla. I looked for comparable BMW two-year leases but did not find any. To try to get as close as possible to an apples-to-apples comparison, I chose 10,000 miles for the Mercedes and Tesla leases and 12K miles (the closest available) for the Lexus.

From what I have seen, monthly payments for two-year leases for other companies are typically significantly higher than for a three year lease -- presumably because most depreciation takes place in the first year (that new car smell is expensive ....). Tesla's lower rates for a two-year lease, however, can take advantage of the $7500 federal tax credit and Tesla's relatively good depreciation rates, resulting in terms that based on my (limited} research appear to be far less expensive than even lower priced cars from other companies.

I was lucky enough to find a demo pre-refresh P90DL with 9,000+ miles and some repair work done and got what I thought was a very good deal ($893/month before referral credit). So I decided to plunk down a little extra for all the bells and whistles on a demo/inventory P90DL. But IMO the two-year lease on the base model was also an excellent deal as far as two-year leases go. Short-term leases are not for everyone, but the S60 lease appeared to me to be a good deal for someone who is interested in a Model S but may want to turn it over in a couple years for whatever reason (in my case, to buy a Model 3 or Y).

Snagged a P90D Inventory car for $700/mnth on the new 24 month lease

Xav,

You have been critical of Tesla's leases (except for inventory P90Ds), but haven't posted much in the way of comparative data to support your statements. From what I have seen, I don't think the criticism is justified, particularly for the two-year lease.

I have always bought my cars instead of leasing but as noted upthread decided to jump on the new two-year lease deal. I started by looking at a two-year lease on a fairly stripped down S60, which start at $593/mo before gas savings. When I researched two-year leases for comparably priced cars, Tesla's payments appear to be not only competitive but far cheaper than the other leases I found.

For example, a 2-year lease on a Mercedes E400 (MSRP $60,650 -- about $5K less than a Model S) with $5K down is $1013 per month. A two-year lease on a 2015 Lexus GS 450h (MSRP $61330 -- also about $5K less than a Model S) is going for $1255 per month with $5K down -- more than double the monthly payment for the higher priced Tesla. I looked for comparable BMW two-year leases but did not find any. To try to get as close as possible to an apples-to-apples comparison, I chose 10,000 miles for the Mercedes and Tesla leases and 12K miles (the closest available) for the Lexus.

From what I have seen, monthly payments for two-year leases for other companies are typically significantly higher than for a three year lease -- presumably because most depreciation takes place in the first year (that new car smell is expensive ....). Tesla's lower rates for a two-year lease, however, can take advantage of the $7500 federal tax credit and Tesla's relatively good depreciation rates, resulting in terms that based on my (limited} research appear to be far less expensive than even lower priced cars from other companies.

I was lucky enough to find a demo pre-refresh P90DL with 9,000+ miles and some repair work done and got what I thought was a very good deal ($893/month before referral credit). So I decided to plunk down a little extra for all the bells and whistles on a demo/inventory P90DL. But IMO the two-year lease on the base model was also an excellent deal as far as two-year leases go. Short-term leases are not for everyone, but the S60 lease appeared to me to be a good deal for someone who is interested in a Model S but may want to turn it over in a couple years for whatever reason (in my case, to buy a Model 3 or Y).

Take a BMW 5 series for instance:
- Residual is 61 percent after 3 years.
- Model S it's 62 percent after 2 years.

Then the APR is 4.3 percent with tesla. BMW it's 2 percent once you add the refundable security deposits (3 percent without them). Tesla doesn't do security deposits.

Then comes MSRP. Your GS450h quote seems to assume $0 off MSRP. Is this realistic? Assuming $5k off MSRP.. Not uncommon for cars like that.. Your entire down payment would not be needed anymore.

lets take the demo car as an example. I could easily find a demo 5 series with $10k off for 400 to 500 a month. Some people even got less than $400. That assumes $0 down other than the refundable security deposits. For a $55k - $60k car. Even new cars in stock you easily get 10 percent off.

With tesla you can only do that with loaded p90ds. BMWs don't do these deals only for a loaded M5.. They do it accross the board.

Back to your base tesla example once you add the $5k down... That $593 turns into $800+ a month. For a base car with cloth seats and no autopilot I think its steep, especially in contrast to what you got.

I think you got a killer deal. Do all cars lease great? Absolutely not I have never said that. Most do not. Does a GS450h lease well? I doubt it. I don't think many buy these cars at sticker though.

But why doesn't tesla do some deals on demo 60s or 70s? I am not asking for anything like you got.. But something simple like $5k off would eliminate the entire down payment.

 

[Chopr147]

This could be a good reason why Tesla is offering 2 year leases on vehicles. This lot is full of 70D's and a few 90D's. All still new and waiting on a buyer