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Tesla Will Lease You A Model Y For $499 Per Month

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I have heard that the money factor is 0.002367 but how/where are you getting 66.75% residual? They hadn't been near that high in the past. I wonder if Tesla is still "padding" lease residual as they did when they were applying the former federal tax credit to the number?
I figured lease and came to a 63.9 residual with .0000 money factor. I had to back in to money factor, but if I did not make a mistake that is a great lease, I also figured out over three years money cash laid out lease versus buy. Lease was $8412 less. Loan left after three years is $23,657. Add $8,000 additional cash spent and car would have to be worth $32,069 or 62.5% of $51,190 price. If you hold 3 years lease looks like a better deal without taking on risk of resale.
 
Why are EV leases trapped in ICE world lease restrictions?

10,000 miles is not enough for a mode of transportation that costs less to run and wears out much less than an equivalent ICE.

Call me crazy but a base EV lease should have at a MINIMUM 16,000-20,000 miles.

Pretty sure that 10,000/year. Leases are usually specific as 8,000, 10,000, 12,000, .. per year.

I have 10,000 on my Model X lease and not sure if I will even hit 24,000 before the end of the 3 year lease in 9 months.
 
I've done some research but can't get a good answer on how a state ev tax credit (NY is $2,000) affects the lease. Some say it doesn't apply to leases, but Tesla's lease calculator does. Does anybody have input/experience on this? TIA.
 
Well since we don't know what technology, battery efficiency or consumer sentiment will be in 3 years, I'd much rather lease technology that changes all the time and only depreciates. My $56k Model 3 from 2018 is now worth ~$38k. It's the same car as a 2020 Model 3 basically.

Yes, I plan to lease the Model Y and trade in our M3.

Did you collect at $7500 tax credit? How about state incentives?
 
I figured lease and came to a 63.9 residual with .0000 money factor. I had to back in to money factor, but if I did not make a mistake that is a great lease, I also figured out over three years money cash laid out lease versus buy. Lease was $8412 less. Loan left after three years is $23,657. Add $8,000 additional cash spent and car would have to be worth $32,069 or 62.5% of $51,190 price. If you hold 3 years lease looks like a better deal without taking on risk of resale.
Only negative versus buy if you like to get new car every 3 years is the mileage limitation. 12,000 miles would be better.
 
You are better off buying the Y and selling it in 3 years. The other person already did the math for you... and using your numbers. You are better off having bought the 3 to now trade in. You lose more money via Lease after 3 years than buy and sell after 3 years even with your numbers.
Well, again you don't know what technology will exist then. Imagine buying a Model S before the camera system and then boom, there's EAP functionality on the new ones.

Plus, my monthly cash flow will be higher by leasing and my future risk is lower as I get to put back the car to Tesla in 36 months. I don't have to worry about the actual resale value.

I bought the Model 3, but I prefer to lease depreciating assets.

Why are EV leases trapped in ICE world lease restrictions?

10,000 miles is not enough for a mode of transportation that costs less to run and wears out much less than an equivalent ICE.

Call me crazy but a base EV lease should have at a MINIMUM 16,000-20,000 miles.
You can get 10k, 12k or 15k. Just click the 10,000 and it offers the other choices. I just filled out the paperwork for 12k.

Did you collect at $7500 tax credit? How about state incentives?
Yes. $7,500 Fed Credit and $2,000 POS Rebate from NYS. So about $46,500 if you will (I don't have EAP). Still worth less today... and a brand new M3 w/ AP is cheaper.
 
Well, again you don't know what technology will exist then. Imagine buying a Model S before the camera system and then boom, there's EAP functionality on the new ones.

Plus, my monthly cash flow will be higher by leasing and my future risk is lower as I get to put back the car to Tesla in 36 months. I don't have to worry about the actual resale value.

I bought the Model 3, but I prefer to lease depreciating assets.

I dont think you understood what I said. With the numbers that were being floated around, you can finance the car for 3 years, own it, re-sell it, and make out with more money than you would have by leasing. In the end you end up paying less. So your depreciating asset depreciated less through the sale.

If you lease, well then its the exact same thing, except you lost more money when you dropped it off at Tesla in 3 years.

To be clear. In both cases you own the car for 3 years.

Now, this is specifically for this case. Lease is advantageous in some cases, Ive leased a ton of non Teslas and ended up making a few grand on each one of them by selling my lease right before it expired. (this calculation is made before the lease by looking at KBB value of the same car that is 3 years old). But since Tesla does not give you an option to take over the lease after 3 years, then it doesnt apply here.

Why do you think they dont let you buyout the car after it? Because you paid way more for it through the lease than it depreciated. So not only did Tesla make a bunch of money from you via the 3 year lease, they also make a grip when you return the car, because they can resell it for more than you would have owed on it.
 
Why do you think they dont let you buyout the car after it? Because you paid way more for it through the lease than it depreciated. So not only did Tesla make a bunch of money from you via the 3 year lease, they also make a grip when you return the car, because they can resell it for more than you would have owed on it.

This all depends on what the market is like in three years. If the value of a 2020 MY ends up being 55% of original MSRP, for example, then leasing would've been better.

2020 MY LR AWD
$51,190 leased for three years with $0 down payment = $633/month or $22,788 + $695 fee = $23,483.

$51,190 financed for three years @ 2.49% APR with $0 down payment = $1,477/month or $53,172 less "current" value of $28,155 (55% of $51,190) = $25,017.

In this example, you would've paid over $1,500 more to finance the car than lease.

Leasing provides protection against unexpected drops in value.
 
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@Duxa
I get what you are saying but it’s dependent on assuming the resale value, which you don’t know.

The buy-out is usually more than the resale value making it less compelling to sell before the end.

We also haven’t considered the possibility that your car gets into an accident, it’s repaired, but the car fax still shows the accident so the resale value is less than expected. The lease would allow you to walk away without any downside besides the cost to repair. Owning means paying the cost to repair and still having the resale discounted bc of the known accident.
 
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This all depends on what the market is like in three years. If the value of a 2020 MY ends up being 55% of original MSRP, for example, then leasing would've been better.

2020 MY LR AWD
$51,190 leased for three years with $0 down payment = $633/month or $22,788 + $695 fee = $23,483.

$51,190 financed for three years @ 2.49% APR with $0 down payment = $1,477/month or $53,172 less "current" value of $28,155 (55% of $51,190) = $25,017.

In this example, you would've paid over $1,500 more to finance the car than lease.

Leasing provides protection against unexpected drops in value.

Id use at most 2.2% APR for today, thats what I was offered on MY, but ended up just paying cash. But this also assumes zero down payment. Add those in and run the math again. Also consider what happens after 3 years. You still need a car right? You now need a new lease or financing (and if economy is recovered probably at a much worse rate than today, versus being locked in at a good rate).

@Duxa
I get what you are saying but it’s dependent on assuming the resale value, which you don’t know.

The buy-out is usually more than the resale value making it less compelling to sell before the end.

We also haven’t considered the possibility that your car gets into an accident, it’s repaired, but the car fax still shows the accident so the resale value is less than expected. The lease would allow you to walk away without any downside besides the cost to repair. Owning means paying the cost to repair and still having the resale discounted bc of the known accident.

Sure, cant argue that. But also is an edge case. Do you get into accidents a lot? Ive been driving for over 20 years, never been in an accident, and I drive So Cal rush hour. Neither has anyone in my family, all of whom have been driving for at least 20 years, some for 40+.

As Ive said, Ive leased numerous times. Always only if it would ended up breaking even with financing or if I would make money on it. yes its a bit of a gamble because you assume that 3 year old version of the same car lost same % as your new car will in 3 years (according to KBB). With Tesla we dont have this history, so cant really use that. So its a bigger gamble.

But I would not even consider leasing Tesla because there is no option to buy it out after lease end. This means Im a perpetual leason with no way out.

As far as tech changing. Yes there are always improvements. But look at Model S/X from 3 years ago. Are they crap? Nope. If you are going to not buy because you are afraid of new tech coming in, well then you are in for a life of leasing.
 
I never lease. Even if I save $1-2000 over the period of the lease isn't worth the hassle for me. Most of the time I get tired of a car after 2 years, in a lease you are stuck. Also I like to modify the car- whether it be changing the wheels, installing a built in radar detector, wrapping the car- with a lease I would have to return the car in the original shape otherwise they can charge you. For me- I'm out.
 
Id use at most 2.2% APR for today, thats what I was offered on MY, but ended up just paying cash. But this also assumes zero down payment. Add those in and run the math again. Also consider what happens after 3 years. You still need a car right? You now need a new lease or financing (and if economy is recovered probably at a much worse rate than today, versus being locked in at a good rate).
The difference between 2.2% APR and 2.49% APR is not significant and would only lower the finance payment around $6/month to $1.471/month.

While things may be unknown in three years as far as the economy and interest rates, by leasing you would've been able to save $838/month (the difference between $1,471 finance payment and $633 lease payment) which is more than $30,000 over the three years and could be applied towards any new or used car of your choice.

One criticism some have with leasing is that you don't build equity in the car but what they don't consider is that nice cash reserve you can build with the money saved by the lower monthly payments versus financing.
 
This lease is a bad deal if the Y holds its resale value as well as the 3. Model 3 depreciation was 10.something after 3 years.

The other part of this which is no good for the consumer is the fact you have no option to buy the car after the lease.

Tesla Model 3 resale value is over five times better than industry average: study

It's very unrealistic to expect an M3 (or MY) to be worth 90% of its MSRP after three years, especially if Tesla continues to do price reductions as they have. There have been plenty of M3s listed for sale at less than ONE year old with asking prices already below 90% of original MSRP, and trade/wholesale numbers would be even lower.
 
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It's very unrealistic to expect an M3 (or MY) to be worth 90% of its MSRP after three years, especially if Tesla continues to do price reductions as they have. There have been plenty of M3s listed for sale at less than ONE year old with asking prices already below 90% of original MSRP, and trade/wholesale numbers would be even lower.

But of those, how many owners received the $7500 tax credit (or even the lesser ones). That credit made-up for the price drops so it isn't fair to use the depreciation numbers in those cases because the owner collected that money to offset the reduced resale price.
 
I wonder how the comparison of lease vs buy works out in NJ, where we don't pay sales tax and get $5000 credit no matter whether lease or buy...

In three years time a second hand buyer won't get the credit, so if credit is still being offered in 3 years (who knows), buyer is more likely to buy new (you get a $5K discount). But if no credit, then we're better of buying now and selling because second hand buyer is more likely to buy second hand... (Hope that makes sense)
 
It's very unrealistic to expect an M3 (or MY) to be worth 90% of its MSRP after three years, especially if Tesla continues to do price reductions as they have.

It’s not expectation, it’s documented based off data. Model 3 only loses a little over 5% after the first year. Compare that to a BMW 3 Series which is over 30%

Of course you will see model 3 selling cheaper. But those cars may have been in accidents, salvage titles, lemons, poorly taken care of or a quick sell.

Sure Tesla could lower prices again, so could BMW or Ford.

It’s not expectations, but the data, which states that resale is amazing for the 3. The Y has the same opportunity to hold its value.

This is why Tesla’s lease is a bad deal for a consumer. You’re better off buying with these numbers.
 
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@Duxa people get hit all the time. Whether it’s on a parking lot or on the road. Any damage repair on car fax will hurt your resale.

Anyway, we seem to understand each other’s points

I will say that by going to a lease (the M3 is financed with a CU) I am saving over $2k per year to drive a comparable car with more cargo space. I’ll take it.
 
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