Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Tesla Lease - Opinion needed, delivery tomorrow.

Drewsatx

New Member
Dec 29, 2015
3
0
SA, TX
Because I'm OCD, I keep second guessing my lease versus traditional financing, on the p85d I'm picking up tomorrow.

10k miles, still new as its a demo. Fully loaded (but range and 3rd row), so 127k sticker, getting for 114k.

payment is. $1255, 15k term. Residual is around. .0015. payment is at least $600 lower than tesla website on a brand new, I believe.

I have a truck so it's not my only driver and I rarely keep cars outside of warranty. I do well, so payment isn't a concern.

I think its a solid lease offer, looking for any opinions to help confirm, as I'm no leasing pro.

Thanks, and regardless of the method of financing, look forward to joining the Tesla crew!
 

luvnMyTS

Member
Jan 6, 2015
340
203
Los Angeles, CA
Lease, lease, lease!!

I was originally 100% against the lease. Then two things changed my mind. The value of the car after 1 year. And simple math.

Just add up what your total three year cost is going to be.

How much is your drive-off in either scenario. How much are 36 months worth of payments in both scenarios. Tesla guarantees you a value of 50% for the base price plus 40% for options. So your car is going to be worth less than 50% of its value new. Trust me, I ran the numbers, the lease is cheaper.

Kelly blue book on a year old P85D is only $78,000. The P versions are getting killed in initial deprecation.

The other benefits are, you don't have to worry about it. Many people are paranoid about how they drive the car, charge the battery, etc....On a lease, just drive it and turn it in in 3 years.

Remember, this is a technology company that builds cars. They change on a daily basis. With new features constantly added, the cars are partially out of date within 1 year anyway.

Tesla is an amazing vehicle, but it does depreciate like any old car. With a lease, who cares. The residual value they're offering is much higher than what the value of the car will be. Keep in mind, on a lease, you still get state rebates plus they factor in the $7,500 federal tax credit into the price, so you're guaranteed to get it. Some people may not qualify for when they actually do their taxes, or qualify for a lessor amount. This takes that out of the equation. Also, if you are using it for business, you can write off your entire lease payment, where as on a purchase, you have to depreciate it over a longer period of time.

Tesla wanted around $20,000 for me to buy the car as drive-off. Lease was $7,500 out the door. Plus I get $2,500 back from the state. Payments are $100 a month more for 36 months, so I pay $3,600 more over three years, but save $15,000 going in after the sate rebate. I can charge the car to 100% every single time if I want to and not worry about it. No warranty worries or having to buy the $4,000 extended warranty as the car will be gone before the factory warranty expires. I can launch the car in Ludicrous mode every single time if I so choose and not worry about the stress it's putting on the chassis or body in the long run. Not my problem at the end of the lease. Also, don't have to deal with the hassle of having to sell it.

Tesla is offering about 52% on a 2 year old car right now on trade, so that's not much more than what they would be forced to give you after 3 years on the guaranteed buyback. So if you wanted out after two years, you're going to owe well more on your loan than what its worth. Doing the math, you'll just about break even on your loan balance after three years versus the buyback guarantee amount. Yet, you'll put out $15,000 more up front to buy it and save only $3,600 in payments. Thus paying $11,400 more over three years. In either scenario, you give the car back or trade it in for what you owe on it and walk with nothing. And lose tax deductions.

My 20 cents worth. Again, was 100% convinced I had to buy the car, then when I put pen to paper, it wasn't even close.

Good luck. Either way, you'll love your new car. Congrats!!
 

Drewsatx

New Member
Dec 29, 2015
3
0
SA, TX
Thanks buddy!! Great response. I unfortunately can't write off the lease due to income, but it all adds up to me I think. Even if I pay $5k more after 36 months, the peace of mind alone is probably worth it to me.

Lease, lease, lease!!

I was originally 100% against the lease. Then two things changed my mind. The value of the car after 1 year. And simple math.

Just add up what your total three year cost is going to be.

How much is your drive-off in either scenario. How much are 36 months worth of payments in both scenarios. Tesla guarantees you a value of 50% for the base price plus 40% for options. So your car is going to be worth less than 50% of its value new. Trust me, I ran the numbers, the lease is cheaper.

Kelly blue book on a year old P85D is only $78,000. The P versions are getting killed in initial deprecation.

The other benefits are, you don't have to worry about it. Many people are paranoid about how they drive the car, charge the battery, etc....On a lease, just drive it and turn it in in 3 years.

Remember, this is a technology company that builds cars. They change on a daily basis. With new features constantly added, the cars are partially out of date within 1 year anyway.

Tesla is an amazing vehicle, but it does depreciate like any old car. With a lease, who cares. The residual value they're offering is much higher than what the value of the car will be. Keep in mind, on a lease, you still get state rebates plus they factor in the $7,500 federal tax credit into the price, so you're guaranteed to get it. Some people may not qualify for when they actually do their taxes, or qualify for a lessor amount. This takes that out of the equation. Also, if you are using it for business, you can write off your entire lease payment, where as on a purchase, you have to depreciate it over a longer period of time.

Tesla wanted around $20,000 for me to buy the car as drive-off. Lease was $7,500 out the door. Plus I get $2,500 back from the state. Payments are $100 a month more for 36 months, so I pay $3,600 more over three years, but save $15,000 going in after the sate rebate. I can charge the car to 100% every single time if I want to and not worry about it. No warranty worries or having to buy the $4,000 extended warranty as the car will be gone before the factory warranty expires. I can launch the car in Ludicrous mode every single time if I so choose and not worry about the stress it's putting on the chassis or body in the long run. Not my problem at the end of the lease. Also, don't have to deal with the hassle of having to sell it.

Tesla is offering about 52% on a 2 year old car right now on trade, so that's not much more than what they would be forced to give you after 3 years on the guaranteed buyback. So if you wanted out after two years, you're going to owe well more on your loan than what its worth. Doing the math, you'll just about break even on your loan balance after three years versus the buyback guarantee amount. Yet, you'll put out $15,000 more up front to buy it and save only $3,600 in payments. Thus paying $11,400 more over three years. In either scenario, you give the car back or trade it in for what you owe on it and walk with nothing. And lose tax deductions.

My 20 cents worth. Again, was 100% convinced I had to buy the car, then when I put pen to paper, it wasn't even close.

Good luck. Either way, you'll love your new car. Congrats!!
 

larmor

Active Member
Oct 27, 2014
2,182
5,520
Westlake, TX
That is great! I tried to lease an MS form inventory with 10k miles also, but TM in Orange County/fashion island said they cannot lease a car with 10k miles on it....

Because I'm OCD, I keep second guessing my lease versus traditional financing, on the p85d I'm picking up tomorrow.

10k miles, still new as its a demo. Fully loaded (but range and 3rd row), so 127k sticker, getting for 114k.

payment is. $1255, 15k term. Residual is around. .0015. payment is at least $600 lower than tesla website on a brand new, I believe.

I have a truck so it's not my only driver and I rarely keep cars outside of warranty. I do well, so payment isn't a concern.

I think its a solid lease offer, looking for any opinions to help confirm, as I'm no leasing pro.

Thanks, and regardless of the method of financing, look forward to joining the Tesla crew!
 
Oct 25, 2015
242
143
Chicago, IL
If there's a non-negligible chance you will want to keep the car at the end of the lease, I advocate buying the car now. Otherwise, the lease is a good option.

Reason: If you buy the car at the end of the lease, you essentially lose the $7500 federal tax credit. You can see this by summing up all payments on the lease (downpayment + monthly lease payments) and comparing against paying cash or financing (and backing out the $7500 tax credit from the cash/financed amounts). The lease adds the $7500 credit to the residual, which lowers your lease payments - but doesn't get taken back out if you purchase the car at the end of the lease.
 

brkaus

Well-Known Member
Jul 8, 2014
7,689
6,219
Austin, TX
How long are you planning on keeping the car? In Texas, you pay sales tax on the full purchase price less trade in. You don't own the car at the end of the lease so you don't have the trade in reduction on the following car after the tesla.

Some states you only pay tax on the payments.
 

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top