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

[TMC Staff]

Tesla is already offering Model Y leases. How do they compare to rivals? The Tesla Model Y is currently available in two “trim” levels: The Long Range and Performance. They both come standard with two motors and all-wheel drive. The Long Range starts at $49,990 after a recent price reduction. The Performance carries a starting...
[WPURI="https://teslamotorsclub.com/blog/2020/07/20/tesla-model-y-lease-deal-499-month/"]READ FULL ARTICLE[/WPURI]

 

[Pilot1226]

The big question is can you buy it out at the end of your lease for the residual?

 

[Protect1989]

The big question is can you buy it out at the end of your lease for the residual?

No. You can not. Says it in the fine print at the bottom of the page.

 

[hakunamattata]

The big question is can you buy it out at the end of your lease for the residual?

Assuming it is same like the Model 3, most likely you may not be able to purchase it

 

[SOULPEDL]

All theory here, but my instincts say no, you can't convert a lease to ownership. There's more value in keeping within the Tesla Network (Rideshare) 3 yrs from now; it will help fill coverage on the demand map to get it primed.

Buy or don't buy could be a budget question for many, pure and simple. Buy or Lease opens more doors. Maybe lease now and get a better one in 3 yrs with 1.24M mile battery. Did Tesla just increase cash-flow by nudging those on the fence with a lower risk option?

 

[MikeTX]

This is not a great financial move. You will pay over $22,000 over the 36 months, including the down payment for a $50,000 car. Given the slow depreciation, the car would lose less than that in depreciation over that period.

 

[Snow Drift]

This is not a great financial move. You will pay over $22,000 over the 36 months, including the down payment for a $50,000 car. Given the slow depreciation, the car would lose less than that in depreciation over that period.

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.

 

[anon125110]

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.

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.

 

[Threader]

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.

 

[CapeOne]

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.

I don't think it has anything to do with being "trapped in ICE world" as ICE leases are often able to be customized/modified for higher mileage (over 15k miles/year) terms. Tesla may not do that but there probably aren't too many Tesla customers that drive more than 15k miles/year anyway. Most three year old Teslas that come up for sale appear to have less than 45k miles (less than 15k miles/year average), sometimes much less. Plenty of EV owners drive only 10k miles/year or less.

 

[BreatheEasier]

Does Tesla share the residual value? If it is not possible to purchase at lease end, not sure they do this, and I feel it must be relatively low. In the BMW world of leasing, the reason why their leases are generally good is because their residuals are typically high. However, their EVs/PHEVs - like many ICE manufacturers - have very low real-world resale values. For those of us who leased one of these in the past 3-4 years, we make out great. When I turned in my X5 xdrive40e, the residual was almost $10k more than resale value. With a good discount off MSRP, lowering my money factor, zero down payment, and 15K miles/year/36 mos, my lease payment was only $100 more than the 0 down, 15K lease for an MY, and my sticker was over $73K for the xdrive40e.

 

[Darren Donovan]

Another factor to consider is you pay tax on the full purchase price, whereas with a lease you don't.

 

[hakunamattata]

Does Tesla share the residual value? If it is not possible to purchase at lease end, not sure they do this, and I feel it must be relatively low. In the BMW world of leasing, the reason why their leases are generally good is because their residuals are typically high. However, their EVs/PHEVs - like many ICE manufacturers - have very low real-world resale values. For those of us who leased one of these in the past 3-4 years, we make out great. When I turned in my X5 xdrive40e, the residual was almost $10k more than resale value. With a good discount off MSRP, lowering my money factor, zero down payment, and 15K miles/year/36 mos, my lease payment was only $100 more than the 0 down, 15K lease for an MY, and my sticker was over $73K for the xdrive40e.

Tesla legally has to share their residual values and money factors, so yes they disclose it. One way to get that is contact Tesla sales and ask them for the details of the quote, they will send you a screenshot of what they see. My guess is the residual values will be very similar to M3, just the money factor might be lower given that the interest is low these days. Based on what I know for M3, for a 10K lease the residual value is 66.75% however the money factor is high i.e. 0.002367. You can always use calculators such as one on Leasehackr to reverse engineer things.

 

[Gwgan]

Another factor to consider is you pay tax on the full purchase price, whereas with a lease you don't.

Tesla does not offer a lease in Maine and sales taxes are levied here with no discount for trade-in value.
https://www.maine.gov/revenue/salesuse/IB20LeaseandRentalTransactions09162019.pdf

 

[DBV1]

This is not a great financial move. You will pay over $22,000 over the 36 months, including the down payment for a $50,000 car. Given the slow depreciation, the car would lose less than that in depreciation over that period.

I get tired of hearing that. Will people that don’t like leasing just stay away when there is a leasing post. Leasers don’t care about your posts about why not to lease. I have plenty of money and still always lease.

I always lease, my wife always pays cash. Why do I lease? Because, I like a new car every two to three years and in warranty too.

Sure depreciation seems good today, but who knows in three years, when the EV market gets so competitive with our luxury brands. When I have purchased and traded it out in two to three years, I rarely have been ahead. The only time was on the Mercedes GLS Diesel when they first introduced.

So, for me it is a good financial move. Don’t want to go back and forth either, as get tired of that. For some they like to own and for other they like to lease like me. The original post was about leasing, lets keep it that way. If people want to talk about buying and its benefits then please start another post, but please lets keep this about leasing.

 

[CapeOne]

Based on what I know for M3, for a 10K lease the residual value is 66.75% however the money factor is high i.e. 0.002367.

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?

 

[ArizonaP85]

Can we change the thread title to $624 (or more) per month? $499/mo is deceptive because it relies on $4500 down.

$4500 divided by 36 months is $125 per month, even if you assume $125 three years from now has the same value of $125 today.

 

[hakunamattata]

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?

That is based on the value shown my lease agreement for Model 3, from what I can tell there is no padding shown on the contract.

 

[CapeOne]

Can we change the thread title to $624 (or more) per month? $499/mo is deceptive because it relies on $4500 down.

$4500 divided by 36 months is $125 per month, even if you assume $125 three years from now has the same value of $125 today.

I wouldn't necessarily call it deceptive as many lease "promos" include a down payment and Tesla is no different. The blog article also mentions the $4,500, although incorrectly states "due at signing" when $4,500 is really only the down payment portion. The actual due at signing is $5,694. Plus taxes, registration, etc.

A $0 down payment Tesla lease on same car with same terms would be $633/month with $1,328 due at singing. Plus taxes, registration, etc.

 

[CapeOne]

That is based on the value shown my lease agreement for Model 3, from what I can tell there is no padding shown on the contract.

Any padding probably wouldn't be obvious or appear as a line item. Back when there were federal tax credits, instead of deducting from cap cost Tesla would add it to the lease residual. For example, if there was a $3,750 tax credit and the car's price was $40,000 and residual was 58% ($23,200) it would actually show as $26,950 ($23,200 + $3,750). Not only did it give a misleadingly high residual but made the cars that much more expensive to buy at lease end (where that was an option).