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Who is Leasing their P85D?

Discussion in 'Model S: Ordering, Production, Delivery' started by model_s, Dec 23, 2014.

  1. model_s

    model_s Member

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    My P85D is going to be ready for factory pick up on the 31st! Very excited!

    As I am staring at the balance due, I am starting to lean towards doing a lease for a reasons because I am a small business owner and will be using the car for work mainly.
    Also I think 3 years may be a good life of ownership may be a good choice considering I may really want the X in a few years (currently an SUV driver). And bigger batteries should be available then.

    Is anyone else leasing their Model S? Any big cons other than not getting the $7,500 tax credit and no equity and mileage constraints?

    But I was wondering since I am pretty sure my car will not have the next gen seats installed at time of delivery do I still pay for the seats the months that I do not have them? I did not care when I was planning on "buying" to get them installed later but leasing changes that.
     
  2. Terapin

    Terapin Member

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    I am leasing. When we did the math, the cost at the end of year 3 was virtually the same, leasing to financing. Also, the residual was almost identical, so I figured if I loved the car and wanted to keep it, I could choose to purchase it at the end of the lease. And if I didn't want to, I could turn the car in and move on to something else.

    In Ontario we still get the rebate as long as the lease is 3 years or longer, so that is nice. I am also self-employed and can write off much of the lease.

    Initially I was going to put 45k down and finance the rest. But then I decided I didn't want to finance 100k. Even with 45k down that left a huge balance to finance, and I didn't want to put down more than that, and couldn't swing cash for the whole thing. With the lease there is not much down, and my total financial commitment was much less. I have a large family (5 kids ages 7-16) and need to buy a minivan this spring for family trips and Costco runs - I want to buy that cash.

    I also decided to go for 20,000 kilometres a year. When we did the math it was cheaper to buy the extra kilometres than to choose a mileage rate from the beginning. I don't have the figures at hand but the leasing amount difference between 20k and 25k kilometres a year was more than 5k km x the per kilometre overage rate. Strange but true.

    Re: the equity: You also don't have the liability. In Canada it seems preferable on a credit report to have a lease than a loan. And seeing the huge drops in the equity of the 85s in only a year or two, there would be negative equity for the first couple of years it seems.

    Anyhow, these were my thoughts on it.


     
  3. model_s

    model_s Member

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    Yeah as much I would like to pay it all off in cash I just don't think it's the best use of 130k right now.
    I think enjoying the car for 60k for three years (and writing off a good chunk of that) is a better idea! :)
    We have an option for 12,000 miles or 15,000 miles here in the states. Does anyone know how much they charge for even more miles above 15,000, even prior to lease or when the car is returned?
     
  4. jweinstein

    jweinstein Member

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    It's $.25 for each excess mile.
     
  5. ArtInCT

    ArtInCT Always Learning

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    #5 ArtInCT, Dec 24, 2014
    Last edited: Dec 24, 2014
    I did the math on a lease for a P85D $138,000.
    When all was said and done, the cost per mile for 3 years and 45K miles came out to $1.76
    The per day cost was $73.54
    The per month cost was $2,206
    The yearly cost was $26,473 or $79,418 for the three years
    The residual buy out at the end of 36 months was $76,500
    The above figures are based upon a 3.84% lease interest rate, your rate may vary.

    State/City/Property Taxes, Insurance and Registration fees are not factored in the above figures and would be additional.
    The $7500 US tax credit is lost to you or your business should you lease, outside the US this may be different.
     
  6. sandpiper

    sandpiper Active Member

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    I am. In Ontario you get the 8500 credit even if you lease. And if the vehicle is held by a business, leasing makes more sense than buying for sure.
     
  7. bigdomer

    bigdomer Member

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    Terapin is correct. When I did the analysis of buy/buy with resale guarantee/lease I concluded that the latter two options were a wash at 36 months (even considering the tax credit on the purchase side). Granted, I could have saved some money with the super low interest rate at Energy Fed Credit Union, but I didn't want any downside risk. No regrets on lease given that the D was announced a week before I took delivery of my P85.
     
  8. jstepy

    jstepy Member

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    Just picked up my P85D last Saturday with the business lease... as a small business owner like you leasing was the much better option for tax purposes. Yes you lose the $7,500 Fed Rebate but to depreciate a luxury car of this cost would take a lifetime. I have always leased my BMW's etc. and the Tesla lease was just as painless. Nothing on my personal credit all done in the business... rent a car for three years... if it's worth more then I owe in three years a little bonus... if not no biggie I walk away.

    In terms of the whole Next Gen seat debacle I too was concerned about essentially renting seats for months that I do not even have... in the end the extra $25-30 a month right now wasn't enough to make me hold off on my lease. I am enjoying the performance seats right now and my awesome P85D... hopefully it isn't like the center console :)

    Not sure if you noticed but a few weeks ago leasing prices adjusted and dropped. Ended up paying about $150 bucks less a month then originally quoted which was a nice surprise.
     
  9. la3553

    la3553 Member

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    I'm doing a business lease for my P85D.It's a great option in my opinion and you get to run it through the business.
     
  10. model_s

    model_s Member

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    You guys are making me really happy! I was worried that Leasing would be a bum deal and be lots more expensive.
    I have never leased a car for my business because I always went the "conservative" route and bought cars that were not that expensive to begin with, and usually used!
    This will be my first "new car" and it will be the most amazing car!!!

    What interest rate have you received on the lease?

    I had some after market mods in mind prior to considering leasing that I was planning.

    It included, window tinting and putting after market bigger wheels on the car (currently have 19's), and to possibly put a wrap on the car to make it look cool and protect the paint.

    Now that I am leasing I am considering not getting the wheels or the wrap unless.....it is really a good idea to protect the paint because Tesla will charge a lot when returning the car with small scratches and if I can take off the wheels when the lease is up and put them on another car easily? Which I assume would be no problem if I move into another S, Model X, or would the wheels work on any other car that would accept 21" wheels?

    Window tinting is a must so I have no problem tinting and removing when the lease is up.
     
  11. svp6

    svp6 Member

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    I am doing a personal lease. Buy is cheaper only if you keep the car after 3 years - which I don't think I will, I leased my last 6 cars.... If you think you may replace your car after 3 years, you pay ~ 700 more + the lease fee (and presumably the return fee at the tail end - unless you get another Tesla); the tax credit is rolled into the residual, so you don't have to finance that part. I figured I will lease the current p85d, then likely buy the next generation Tesla model S with the long range battery and all quirks sorted out.
     
  12. model_s

    model_s Member

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    That sounds like a good plan @svp6!
    I wouldn't see why a new Model S in three years wouldn't go 500 miles, have 4G LTE, automatic frunk opener and closer, cool new colors, great visors, lighted vanity mirrors, and maybe even "next gen auto pilot"!
     
  13. Luclyluciano

    Luclyluciano Member

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    In Canada, when you purchase, you pay 13% sales tax up front. On a loaded D that's about $20,000. On the lease you only pay the tax for the lease term portion. If you don't keep the car long term Ina finance you are out the full $20,000 tax plus depreciation.
     
  14. Terapin

    Terapin Member

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    Interestingly, the lease is with Tesla Canada ULC, not a bank. Hasn't shown up on my credit report yet, and there doesn't appear to be a credit enquiry. Interesting. Would be nice to keep the lease off my credit score :)
     
  15. PatD

    PatD Member

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    Can you guys doing the "business lease" give a little more info? I've seen Tesla talk about their business lease for a while, but really haven't found many details, other than it's now in PA (Which is wasn't initially.) I've never leased a vehicle. . .
     

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