Total lease costs?

[Dan203]

If you factor in the gas and maintenance savings it looks a little better. I figure I will save ~$10k over 4 year in fuel and maintenance vs. ICE based vehicle.

Based on my calculations I should save about $1000/year just for the difference between the expensive premium gas that my current car requires and the relatively low electricity rate in my area.

Maintenance isn't really a thing for me since BMWs include free maintenance for the first 4 years anyway. Or at least did when I bought. I think I saw somewhere that they got rid of that recently.

 

[RScottyL]

Another good option can be a used 3 now. Let someone else take the worst part of depreciation. On the other hand viable deals rarely pop up for now...

Possibly, but I would compare pricing!

Since the older Model 3's were bought for a higher price, they may be selling for higher than what a new one would cost!

 

[Dan203]

I just got the final paperwork for my lease. They have the residual value set to $39,698.50. That's 68.2% of the original value. After 3 years/30k miles.

This is why I did the lease. No way it's still worth that much in 3 years. My current car is 3 years/19k miles and it's worth about 50% what I paid for it and less than 45% MSRP. I know the Model S held it's value well but I just don't think that's going to happen with the 3. There are going to be a ton more of them on the road and they're cheaper cars to begin with.

But I guess we'll see in 3 years whether I'm right or wrong. No option to buy so they're getting it back either way.

 

[hybridctr]

Possibly, but I would compare pricing!

Since the older Model 3's were bought for a higher price, they may be selling for higher than what a new one would cost!

They may be asking a higher price based on old pricing but just like a stock if you buy high no one cares and will adjust for what the current market is.

 

[jjrandorin]

I just got the final paperwork for my lease. They have the residual value set to $39,698.50. That's 68.2% of the original value. After 3 years/30k miles.

This is why I did the lease. No way it's still worth that much in 3 years. My current car is 3 years/19k miles and it's worth about 50% what I paid for it and less than 45% MSRP. I know the Model S held it's value well but I just don't think that's going to happen with the 3. There are going to be a ton more of them on the road and they're cheaper cars to begin with.

But I guess we'll see in 3 years whether I'm right or wrong. No option to buy so they're getting it back either way.

What model 3 are you getting and whats the MSRP with whatever options you are buying?

 

[Petrocelli]

If there is no option to buy, the residual is of little practical use.

 

[jjrandorin]

If there is no option to buy, the residual is of little practical use.

Thats not actually true, since the residual is what is used to see how much of the car you are paying for. Higher residual = less of the car paid for when "rented" = lower payment... so the residual is absolutely 100% important in a lease. Its actually one of the most important things.

 

[holmgang]

I just got the final paperwork for my lease. They have the residual value set to $39,698.50. That's 68.2% of the original value. After 3 years/30k miles.

That's kinda amazing (for you as the lessee). Typically residuals are 55% or so for cars of this class. Obviously sometimes people get discounts off list price packed into the lease, but assuming the list price here of Tesla is fair -- which for many people it clearly is -- thats an amazingly generous capitalized cost for the lessee.

As is the fact that they do not provide a buying option. If they mis-judge the residual, offering the option is of no risk/loss to Tesla. So does Elon really want to get all the cars back in his hands??

 

[jjrandorin]

That's kinda amazing (for you as the lessee). Typically residuals are 55% or so for cars of this class. Obviously sometimes people get discounts off list price packed into the lease, but assuming the list price here of Tesla is fair -- which for many people it clearly is -- thats an amazingly generous capitalized cost for the lessee.

As is the fact that they do not provide a buying option. If they mis-judge the residual, offering the option is of no risk/loss to Tesla. So does Elon really want to get all the cars back in his hands??

Here in the US, most Residuals for the german brands (BMW / Audi / Merc) for a car similar to the model 3 in each portfolio are normally set somewhere between 59% and 64% so you are right that the RV on the tesla seems to be abnormally high. Thats actually why I asked what the MSRP was as it seems so high I was wondering if @Dan203 calculated it correctly, although its easy to calculate RVs. @Dan203 sounds experienced with leasing but I am definitely surprised... I doubt the model 3 will actually have a RV that high after 3 years.

 

[Petrocelli]

Thats not actually true, since the residual is what is used to see how much of the car you are paying for. Higher residual = less of the car paid for when "rented" = lower payment... so the residual is absolutely 100% important in a lease. Its actually one of the most important things.

Yes and no. There are a lot of numbers that Tesla can monkey around with. Example:

I recently leased a Mercedes with a sticker price of $51,000, and a sale price of $46,000. The lease price was $615, with maintenance included.

The lease price I got from Tesla with the same amount down was $595. This was on the most inexpensive Model 3, that cost around $40,000. There is no logical way you can charge that much for a $40,000 car, uncles some number is phony.

I expect Tesla sets the residual simply to get to $595. In essence, it reverse engineers the residual to get to $595. That should be a very low residual. But since you can't buy the car, the number is academic. It can be $1 and it wouldn't make a difference, expect your lease payments will be higher than they should be.

 

[Dan203]

What model 3 are you getting and whats the MSRP with whatever options you are buying?

Performance, no FSD. $58,190 total price

 

[Dan203]

Here in the US, most Residuals for the german brands (BMW / Audi / Merc) for a car similar to the model 3 in each portfolio are normally set somewhere between 59% and 64% so you are right that the RV on the tesla seems to be abnormally high. Thats actually why I asked what the MSRP was as it seems so high I was wondering if @Dan203 calculated it correctly, although its easy to calculate RVs. @Dan203 sounds experienced with leasing but I am definitely surprised... I doubt the model 3 will actually have a RV that high after 3 years.

I didn’t calculate it. It's listed on the paperwork.

 

[Dan203]

Yes and no. There are a lot of numbers that Tesla can monkey around with. Example:

I recently leased a Mercedes with a sticker price of $51,000, and a sale price of $46,000. The lease price was $615, with maintenance included.

The lease price I got from Tesla with the same amount down was $595. This was on the most inexpensive Model 3, that cost around $40,000. There is no logical way you can charge that much for a $40,000 car, uncles some number is phony.

I expect Tesla sets the residual simply to get to $595. In essence, it reverse engineers the residual to get to $595. That should be a very low residual. But since you can't buy the car, the number is academic. It can be $1 and it wouldn't make a difference, expect your lease payments will be higher than they should be.

You got a bad quote. Before tax the lease payment is only $625 for my maxed out $58k Performance.

 

[Petrocelli]

You got a bad quote. Before tax the lease payment is only $625 for my maxed out $58k Performance.

How many miles? How many years?

And my lease payments are quoted with tax, which is about 10% in California.

Edite:

The lease quotes above are for3 years, 15,000 miles per year. They each include about $60 tax.

 

[jjrandorin]

I didn’t calculate it. It's listed on the paperwork.

Yeah it calculates out to 68.2% which is... amazing. Of course residual is not the only thing that matters as @Petrocelli says.. other numbers are part of the equation, but that is an extremely high RV.

 

[Dan203]

How many miles? How many years?

And my lease payments are quoted with tax, which is about 10% in California

10k/year. 3 years.

 

[Petrocelli]

You got a bad quote. Before tax the lease payment is only $625 for my maxed out $58k Performance.

10k/year. 3 years.

Just to compare apples to apples, on a Model 3 which costs $55,950, with no money paid for cap reduction, and 10,000 miles, the lease would cost $717 plus tax. So in California, you would pay about $780.

If you increase the mileage to 15,000, the payment would be $776 a month, plus tax. So in California, you would pay about $850 a month.

So I assume you are putting some money down to reduce the payment.

 

[Dan203]

Just to compare apples to apples, on a Model 3 which costs $55,950, with no money paid for cap reduction, and 10,000 miles, the lease would cost $717 plus tax. So in California, you would pay about $780.

If you increase the mileage to 15,000, the payment would be $776 a month, plus tax. So in California, you would pay about $850 a month.

So I assume you are putting some money down to reduce the payment.

Seems a little high. I only put $3,500 down which reduced the price to about $1,000 less that you say and the base payment before tax is $625...

 

[Petrocelli]

Seems a little high. I only put $3,500 down which reduced the price to about $1,000 less that you say and the base payment before tax is $625...

View attachment 458011

First, congratulations on your car. If I had a Tesla, that is the exact car I would buy. Great sports car color.

I usually try to put no money down on a lease. If your cap reduction is $3,500, you have paid about $100 a month up front.. So you are paying about $725 a month before tax. That's consistent with my $717 number above.

Well worth it. Enjoy!

 

[MrFusion]

Just as a data point here’s my breakdown for AWD, white/black, 18”:

Car price: 49,190
Down: 3,500 + tax

Other fees due at delivery:
Acquisition Fee: 695
Uniform Fee: 150
Tire Fee: 4
Registration/Transfer/Titling Fees: 74

Monthly lease payment: $501 + tax

24 month lease, 10k miles per year