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What Would You Do?

Discussion in 'Model S' started by smilepak, Jun 24, 2017.

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See Above Question

Poll closed Jul 1, 2017.
  1. I Pick #1 above

    53.3%
  2. I Pick #2 above

    46.7%
  1. Skipdd

    Skipdd Supporting Member

    Joined:
    Dec 30, 2015
    Messages:
    576
    Location:
    Silver Spring, MD
    It's been a couple of months since I discussed it with them, so I could have misremembered, but I'm actually re-leasing not buying the 100D. Thought it was a buy-out transaction first, then purchase - essentially a paper transaction that results in new car being leased. If I've misunderstood or there is a better way, I'm interested. I understand I could just purchase and still trade-in at some future point. But lease vs purchase is as much a religious discussion as it is financial. There are intangible reasons for one vs another as well as financial..
     
  2. whitex

    whitex Active Member

    Joined:
    Sep 30, 2015
    Messages:
    4,935
    Location:
    Seattle area, WA
    If you are buying it out only to turn around to trade it in, consider any sales tax costs (I am not sure how it works in MD). It may be cheaper to return it and pay the penalty, then buy the new car brand new. Consider this:
    1. Let's say your lease buyout price is $60K and your current trade-in value is $50K. So to return it, you have to pay $10K+tax. If you are buying a new car, Tesla may be even able to melt that difference into a new loan or lease.
    2. If you buy it out, then you pay $60K+tax, then trade it in for $50K. Now if you get sales tax credit on the $50K trade-in value, you break even vs. scenario #1, but if there is no sales tax credit, you pay tax twice on $50K.

    If you are just trading the car in btw, it is just like returning it early, and the mileage matters. If you were buying it our (to keep it), mileage doesn't matter. If you turn around and try to trade it in, mileage matters again. I don't know what your details are, but the reason someone told you mileage mattered could have been because you were talking trade-in.
     
  3. talhas3

    talhas3 Real Estate Investor

    Joined:
    Jul 2, 2014
    Messages:
    109
    Location:
    Edison NJ
    Curious as to what you ended up doing. Its July 2018 and your lease was ending this month... :)
     

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