Strongly considering a lease vs buy (MYP). Pros/Cons?

[jkdman123]

I agree. I am going to lease until 2035. This is when all cars have to be electric in the states. When this happens I assume price cuts, better battery production and longevity, in addition to possible more teslas. Buying you end up over/under and not worth it right now.

Ain't no way we're gonna meet the deadline of 2035. There's no way the infrastructure to support all those EVs will be in place, especially for apartment and condo dwellers.

 

[ewoodrick]

still pondering the LLC route though perhaps it would be an S corp

going to start a new thread on that

Why? It's the same results.

 

[ewoodrick]

I agree. I am going to lease until 2035. This is when all cars have to be electric in the states. When this happens I assume price cuts, better battery production and longevity, in addition to possible more teslas. Buying you end up over/under and not worth it right now.

I believe that it is all NEW cars.

But that date will probably change with administrations.

 

[joeinNFLA]

Every company allows a certain degree of "normal wear and tear" but the verbiage isn't fully defined, and each company views "normal" differently, as does each employee who takes in the lease (this is the one person whose opinion matters most).

I've never had a dealer red flag an item that I felt was undeserving. Tesla, however, has earned a reputation for being... let's say "quirky and inconsistent" when it comes to the condition of their vehicles, so it's anyone's guess what you'll get when you turn it back in.

You pay for wear and tear whether you lease or not. If you trade in a car you purchased either cash or finance it is appraised for its value. If you have bald tires (deduct) dents scratches interior etc. then they will reduce the value. If it’s a garage queen in perfect condition no deduction.
Same with miles. People always say I can’t lease I drive too many miles. Look at what the lease end charge for miles over is. Most times it’s less than the deduction on a regular appraisal for a high mileage trade

 

[Dear_OP]

Many people opt for lease due to the lower financial burden in order to get into a new car. I'd lease if as a business write-off. Else it is a long term rental. YMMV.

We keep our cars >7 years and one of my car is going on 16 years but that's a weekend toy.

 

[Sunshine Speed]

Leasing non-EVs : Bad financial idea. Better to just buy and sell later.
Leasing an EV: Great idea.
1) Get the $7500 tax credit free money now, then get another $7500 tax credit free money in 2 years on your next lease. This federal tax credit is why the Tesla payments are so cheap. After the lease fees you'll probably save $5000 from the tax credit money on each lease.
2) Save several thousand dollars in sales tax by leasing the car instead of buying and paying sales tax on the entire car cost.
3) In 2 years there will be newer battery tech with higher-range, faster-charging Juniper Y. You will avoid the deprecation on the 2024 Model Y (with 2020 battery pack tech) by leasing and returning, versus attempting to sell into used market when new Juniper Y is out and available.
Good luck!

 

[ewoodrick]

Leasing non-EVs : Bad financial idea. Better to just buy and sell later.
Leasing an EV: Great idea.
1) Get the $7500 tax credit free money now, then get another $7500 tax credit free money in 2 years on your next lease. This federal tax credit is why the Tesla payments are so cheap. After the lease fees you'll probably save $5000 from the tax credit money on each lease.
2) Save several thousand dollars in sales tax by leasing the car instead of buying and paying sales tax on the entire car cost.
3) In 2 years there will be newer battery tech with higher-range, faster-charging Juniper Y. You will avoid the deprecation on the 2024 Model Y (with 2020 battery pack tech) by leasing and returning, versus attempting to sell into used market when new Juniper Y is out and available.
Good luck!

How many new battery technologies have there been since you joined this forum in 2017? 1, maybe 2? So why do expect another in 2 years. Did the model 3 refresh bring big advances? No. Why would you expect the Model Y to?

Leasing an EV, 10 years ago might have made sense. But even 6 years ago, the EV market stabilized.

I just go with your first (slightly modified statement). Being an EV is inconsequential at this point.

Leasing : Bad financial idea. Better to just buy and sell later.

 

[danpass]

I did it, today, leasing a new 2024 MYP, picking up April 19.

I went with existing inventory instead of building one.

Doing a Two year lease. Did it under my personal name.

Taking advantage of the new $5,xxxx additional discount along with the $7,500 credit

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Design

Model Y Performance Dual Motor All-Wheel Drive
Pearl White Paint
Performance Upgrade
21’’ Überturbine Wheels
All Black Premium Interior
Five Seat Interior
Autopilot
Tow Hitch

You cannot edit design at this time

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[CuriousWren]

I leased my MYLR for 3 years, got a very cheap payment on an amazing car. Even if I go over miles, it’ll be worth it. I’m going to lease the next Juniper MYLR in 3 years anyway.

 

[ewoodrick]

I did it, today, leasing a new 2024 MYP, picking up April 19.

I went with existing inventory instead of building one.

Doing a Two year lease. Did it under my personal name.

Taking advantage of the new $5,xxxx additional discount along with the $7,500 credit

===============

Design

Model Y Performance Dual Motor All-Wheel Drive
Pearl White Paint
Performance Upgrade
21’’ Überturbine Wheels
All Black Premium Interior
Five Seat Interior
Autopilot
Tow Hitch

You cannot edit design at this time

===============

Congrats, make sure you have someone to take a picture of the grin when you pick it up!

 

[kpanda17]

I’m strongly considering a two year lease. Pros / Cons?

I had leased way back and went way over miles. That mileage has been the case for years but since the world ended many of us work from home.

This means that mileage is no longer a factor.

Being able to let the car go at the end of the lease without any drama is actually a Pro for me (at this time)

-

pro, cheaper out of pocket
con, the flat front of the vehicle and if no ppf, after 36 months, you could have to repaint the bumper or pay damages
leasing an M3 now, but never handed back a Tesla from a lease, Ill know in 2.5 years
there could be drama

 

[kpanda17]

I leased both of my MY's. Don't like to keep cars past 3 years. And with such volatile price adjustments, I have many friends who are so underwater on the value vs loan payoff, it's not a position I envy...

how were your returns? how tough is Tesla with rocks, debris damage to the front bumper?

 

[kpanda17]

Ask yourself the question, why would a dealer/manufacturer offer a lease. It's because they can make more money off the vehicle.

By default, a lease is (New Price - Anticipated sale price) / months + commercial interest + $$PROFIT$$.

A two-year lease is one of the most expensive ways to own a vehicle. All you are paying for is depreciation, the expensive phase.

There aren't any expectations of problems with technology in a Tesla anymore.

Unless you want to throw away money....

its now easier to say own vs lease, due to, doubting EV prices dropping as drastically as 2022 to 2024
i took a bath on my MYP, a 2023 purchased in 2022, now $12K cheaper after 17 months, 1% per month
but it was the risk I took as a mid adopter, not early, but not more main stream at this time

 

[ewoodrick]

its now easier to say own vs lease, due to, doubting EV prices dropping as drastically as 2022 to 2024
i took a bath on my MYP, a 2023 purchased in 2022, now $12K cheaper after 17 months, 1% per month
but it was the risk I took as a mid adopter, not early, but not more main stream at this time

People seem to forget how leases are calculated.

Today's price - anticipated future price + cost of money for the lease period + profit for the leasing company.

It's all the price of the vehicle when you sell it as to whether it is a good idea or not.

Can you guess the end of lease price better than the professionals?

 

[Dear_OP]

Objectively the only way to make lease work for you is if have your own incorporated business and write the lease payment off that way. Else the house usually wins. In Tesla's case, you are really just renting the car. Money just goes out.... That said, it reduces the price of admission. The German brands are so very good at this. I think BMW reported over half of their vehicles are leased.

 

[elambo]

I did it, today, leasing a new 2024 MYP, picking up April 19.

I went with existing inventory instead of building one.

Doing a Two year lease. Did it under my personal name.

Taking advantage of the new $5,xxxx additional discount along with the $7,500 credit

===============

Design

Model Y Performance Dual Motor All-Wheel Drive
Pearl White Paint
Performance Upgrade
21’’ Überturbine Wheels
All Black Premium Interior
Five Seat Interior
Autopilot
Tow Hitch

You cannot edit design at this time

===============

Congrats! Considering all the recent activity at Tesla, a lease is a good idea. I'm quite thrilled about my choice.

 

[kpanda17]

People seem to forget how leases are calculated.

Today's price - anticipated future price + cost of money for the lease period + profit for the leasing company.

It's all the price of the vehicle when you sell it as to whether it is a good idea or not.

Can you guess the end of lease price better than the professionals?

Only Elon knew he would rattle the industry and Hertz with dropping EVs $12-20K 2022 to 2024.

 

[elambo]

I don't know that Elon dictates such things. Because he's such a public character we tend to think that he's making every decision for each of his companies, but he does have executives who helm these departments.