I'm aware leasing is not financially the best option but it suits my present circumstances. The money factor is high from Tesla/US Bank. Has anyone found alternative leasing options that can be substituted for what Telsa charges? I tried my credit union and they said they don't do leases. It's difficult to borrow the correct loan amount when the residual isn't disclosed.
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Tesla Y leasing options
- Thread starter rbw11831
- Start date
Snow Drift
[Off-Road Assist] Activated
I leased from Tesla. Per my lease agreement, the assumed residual value is 65.5% after 36 months.
Usually, only manufacturers offer leases, with a few third-party options, but I'm not sure if they do Tesla.
The money factor is higher than usual, but I am still saving $200/month vs. our old financed Model 3.
Usually, only manufacturers offer leases, with a few third-party options, but I'm not sure if they do Tesla.
The money factor is higher than usual, but I am still saving $200/month vs. our old financed Model 3.
Thanks. That is an outstanding residual. I'm used to low 60"s with the inflated German vehicles.
You can always reverse engineer the money factor based on the payment calculator. The money factor for MY Long Range AWD for 12000 miles per year is 0.002019 and residual value is 65.5348%.
I do not compare the money factors as that is dependent on each manufacturer/dealer. The way I usually compare a Tesla lease with an ICE lease is to include all rebates, fees, title, taxes, cost of gas/electricity, accessories needed for example in case of Tesla you might need a Level 2 charger, unless you exclusively plan to use superchargers exclusively
The only thing is Tesla MY and M3 leases don't let you buy the vehicle at the end of lease term, if that is important to you.
I do not compare the money factors as that is dependent on each manufacturer/dealer. The way I usually compare a Tesla lease with an ICE lease is to include all rebates, fees, title, taxes, cost of gas/electricity, accessories needed for example in case of Tesla you might need a Level 2 charger, unless you exclusively plan to use superchargers exclusively
The only thing is Tesla MY and M3 leases don't let you buy the vehicle at the end of lease term, if that is important to you.
Mo City
Active Member
Money isn't an issue for me but I just can't stomach leasing a Y knowing it's such a poor financial decision. Old habits are hard to break.
I'm placing the order on the 28th/29th to make sure it's not a part of the Q4 closing rush. Might change my mind by then.
I'm placing the order on the 28th/29th to make sure it's not a part of the Q4 closing rush. Might change my mind by then.
Can you all clarify a little for me? I am picking up on Wednesday and can pay cash or lease. I've never leased in my life but for some reason I'm tempted. It would cost about $24k for the 3 years. That seems like a lot of loss in value, I'm assuming that is the residual? I do worry that the market and batteries in specific could change substantially in the next couple years, which could kill the value of these cars.
If I did lease I would likely get another Tesla after.
If I didn't lease I would probably sell after 5.
Anyhow, would love some feedback.
If I did lease I would likely get another Tesla after.
If I didn't lease I would probably sell after 5.
Anyhow, would love some feedback.
This has been discussed a number of times on this forum, lease vs buy is a personal choice and I am not getting into that debate. Also my personal take is the car technology landscape five years from now will be entirely different and who knows what the car prices will be then. This is again a long debatable topic which I wont get into.
The total cost of leasing i.e. $24k you are mentioning includes interest and taxes. Technically you lose $17,578 from the base price, the rest is all financing costs and taxes. Whichever way you look at it, if you have $50k in cash to shell out you will always do well.
To make the calculations self explanatory following is a reverse engineered breakdown for a base model Y
MSRP - 49,990
Destination charge -- 1200
Residual value after 36000 miles - $33612 -- This is the price the bank expects you to pay if you buy the car on lease end
Assuming you are putting down standard $4500 down, which is again another whole topic of discussion which I wont get into
Monthly rent charge -- $366.06
Monthly interest -- $162.63 -- There is a whole discussion in itself that it is too high which I agree, but then the residual value for the car is also high compared to an ICE car which balances in the end
Taxes - I have assumed $0 -- This depends on your state/country
Der Kaiser
Österreicher
I'm leasing a car for the first time in my life. I thought about it a lot and money is no issue but made the decision to lease on a few factors:
1. as @hakunamattata mentioned in 3 years the landscape is probably totally different and I may want to trade the MY for a newer version with more range, features, etc
2. I'm semi-retired and don't drive much anymore and the 10K miles a year should be enough.
3. New to the electric car scene and I want to check if it is a fit over the next 3 years. I had a demo MY over a weekend and was hooked.
I'll take delivery of a 2021 MY LR AWD MSM 19" next Wednesday and also get the year free of SC. It's been a long time since I'm excited to get a new car.
1. as @hakunamattata mentioned in 3 years the landscape is probably totally different and I may want to trade the MY for a newer version with more range, features, etc
2. I'm semi-retired and don't drive much anymore and the 10K miles a year should be enough.
3. New to the electric car scene and I want to check if it is a fit over the next 3 years. I had a demo MY over a weekend and was hooked.
I'll take delivery of a 2021 MY LR AWD MSM 19" next Wednesday and also get the year free of SC. It's been a long time since I'm excited to get a new car.
going in today to get my car. Was also on the fence about leasing but couldn't pull the trigger. Paying for most of it but taking loan out on 15k because it's so cheap.
Leasing is almost never the wise financial decision. Buy a car, keep it 10 years, and you will have more money to invest and spend. But, if you like having a new, probably improved vehicle every 3 years, want to get into something you wouldn’t normally buy because of the cost, and are either in a situation where the money isn’t needed or the vehicle is more important than the other uses, then leasing is the choice. There are many sites that provide information that assists in understanding the process.
I've exclusively leased my vehicles, not because I can't afford the car but because I know my way around a lease and how to negotiate a car that has a good lease rate. Leasing has it's advantages if you own a business for example or if you want a new car every 24 or 36 months and don't want to deal with maintenance or any potential issues that may come up in the future. A lot of those very same people go and buy new cars which is the worst thing you can do financially because cars are depreciating assets that lose 20% of their value the second it comes off the lot. Anyone that tells you leasing isn't a smart financial decision doesn't know what they're talking about, but that's just my opinion. You can negotiate a lease so that you walk away with a profit if you were to buy the car out and sell it.
Leasing is not for everyone but anyone who says it isn't the smart financial thing to do doesn't know how to work a lease. There are certain cars that are cars that are great lease cars like BMW, Mercedes and Audi and then there are cars that you just don't lease, like Porsche.
I leased my Tesla because I know with the 4680 batteries coming along with the new upcoming changes to the Model Y, I'm anticipating that it is going to take a major hit in resale value. I'm also anticipating the cost of manufacturing to drop in the next three years which in turn will reduce the cost of to the consumer.
Work the numbers, look at your financials and see which route benefits you the most. If you need any questions with leasing or want more information on when to lease, please let me know. I spent about eight years in the automotive industry and will be happy to provide you with the information/experience that I gained while I was there.
Leasing is not for everyone but anyone who says it isn't the smart financial thing to do doesn't know how to work a lease. There are certain cars that are cars that are great lease cars like BMW, Mercedes and Audi and then there are cars that you just don't lease, like Porsche.
I leased my Tesla because I know with the 4680 batteries coming along with the new upcoming changes to the Model Y, I'm anticipating that it is going to take a major hit in resale value. I'm also anticipating the cost of manufacturing to drop in the next three years which in turn will reduce the cost of to the consumer.
Work the numbers, look at your financials and see which route benefits you the most. If you need any questions with leasing or want more information on when to lease, please let me know. I spent about eight years in the automotive industry and will be happy to provide you with the information/experience that I gained while I was there.
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I am not sure where you got this information, my lease executed on 12/22 still states "No Purchase Option at End of Lease Term"
Tesla's website says you MAY be able to purchase at lease end, IF your contract says so - so obviously, you can't. It's already in S and X leases.... Since my VIN has been issued - I have a call in to ask about it. I will let you know.
Snow Drift
[Off-Road Assist] Activated
I signed the contract last week for the Model Y. The contract distinctly says you will not have the option to buy out at the end of the lease unless they changed it in a week.
And yes, the Tesla site says 3 and Y you are not able to purchase at this time unless it's through a 3rd party dealer. So just X and S right now.
Upgrade to a New Tesla
Tesla products get better over time with over-the-air software updates and our newest cars come with all our latest options—including faster acceleration, longer range, dual motor all-wheel drive and enhanced interior styling.
Once your current lease has ended, contact us to learn more about your upgrade options.
Purchase Your Tesla
You may be eligible to purchase your leased Tesla. Review your lease agreement to see if you qualify.
Upgrade to a New Tesla
Tesla products get better over time with over-the-air software updates and our newest cars come with all our latest options—including faster acceleration, longer range, dual motor all-wheel drive and enhanced interior styling.
Once your current lease has ended, contact us to learn more about your upgrade options.
Purchase Your Tesla
You may be eligible to purchase your leased Tesla. Review your lease agreement to see if you qualify.
Anyone care to opine on when Tesla may start allowing for the purchase of the Model Y at the end of the lease? Curious why they don't allow this option now.
I'm ready to pull the trigger if they allowed that option. Thinking is something like this: EV tech, especially Tesla, is still advancing very rapidly. If I lease the Model Y, I get to drive for 3 years for less monthly than if I were to purchase it. If something better is available then, I give the car back and get a newer Tesla. If the leased Y has panel gaps or other issues that bug me I give it back. If I love the car and am happy with it, I buy it at the end of the lease. If I'm two years in and way over the 10,000 miles per year, and love the car, then I just buy it at the end of the lease.
Seems like a win-win scenario. For me it's a don't care that the lease-then-buy route might cost $X more than if I just purchased outright. Having the option to return the Model Y after 3 years is more important to me than the $X. My Model 3 has been a dream car with zero issues for 3 years now, and its anyone's guess whether a specific Model Y works as well.
Was thinking about doing this after I get my second shot, as a reward for surviving the pandemic. If the option to buy after the lease period is available, I just may get rewarded earlier. Delayed gratification is way overrated...
RT
I'm ready to pull the trigger if they allowed that option. Thinking is something like this: EV tech, especially Tesla, is still advancing very rapidly. If I lease the Model Y, I get to drive for 3 years for less monthly than if I were to purchase it. If something better is available then, I give the car back and get a newer Tesla. If the leased Y has panel gaps or other issues that bug me I give it back. If I love the car and am happy with it, I buy it at the end of the lease. If I'm two years in and way over the 10,000 miles per year, and love the car, then I just buy it at the end of the lease.
Seems like a win-win scenario. For me it's a don't care that the lease-then-buy route might cost $X more than if I just purchased outright. Having the option to return the Model Y after 3 years is more important to me than the $X. My Model 3 has been a dream car with zero issues for 3 years now, and its anyone's guess whether a specific Model Y works as well.
Was thinking about doing this after I get my second shot, as a reward for surviving the pandemic. If the option to buy after the lease period is available, I just may get rewarded earlier. Delayed gratification is way overrated...
RT
Snow Drift
[Off-Road Assist] Activated
They want the lease returns for robotaxi (which is lightyears away from reality).
I like your thinking, except, I rarely see the benefit in buying out a lease, the price is always high. You could just get a new shiny car w/ better tech/styling/features in 3 years.
Cleo-n-Company
Member
My best guess is that Tesla does not have enough resale data to determine accurate residual % for the 3 and Y. The 3 is probably closer to hitting the lease-to-buy option since it's been on the road a few years already.
If they estimate residual too low at start of lease - they lose money.
If they estimate too high - they lose money.
I'm not capping on Tesla at the moment (though I do quite a bit...) but resale on my older S is horrible.
I understand that the quick pace of product improvement has a lot to do with that.
So keep that in mind as far as long-term ownership decisions.
The S and X have more of a track record of course.
