Those who lease: thoughts on Model 3 Lease (details included)
For those who are well-versed and experienced in leasing and the structure of deals, what do you think of the Model 3 lease? Below is a snapshot of the details from the Tesla website - I don't know how to reverse engineer the math to see what the MF is, etc. Tesla does not seem to let you play with this and I'm not sure if you can negotiate if you go into the dealer..?
Here's some of my math:
https://cimg6.ibsrv.net/gimg/www.clu...ca9cd4d413.jpg |
The down payment here seems to be 6.5k including the “order payment”. A down payment in any lease simply pre-pays/buys down the lease payment, in this case to the tune of 180 per month. Tesla leases usually aren’t great, and this one doesn’t look like it’s going to change that. As a general rule leases ought to be zero down for myriad reasons (covered in the lease thread in the sticky topics above)
In cases like this it really just boils down to how much you like and want the car. |
very interesting analysis, and i'm glad you factor in current 'older' car costs as many people seem to consider their older cars 'free' once paid for.
maybe you don't get the fed tax credit because you don't own it? given how fast things are changing (including every other day with tesla, lol) i think you're smart to lease. i think 3 year old teslas in 3 years are going to be considered like an iphone 4. :D despite musks claims they'll be used in self-driving fleets - maybe by tesla who will retrofit newer hardware... new versions of the onboard computers in their cars continue to come out with 'leaps' more computing power than older ones... which again, makes ownership tricky. i think most who buy a tesla though, like most 'exotic' purchases don't think about any of that, which is fine of course, they like the quiet/electric drive, the cool factor, etc. i can see my next vehicle being electric, but thankfully i've got a couple of years to wait, during which no doubt there will be lots of new stuff happening! |
The $3750 federal tax credit goes to Tesla in this case, not the lessee.
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Originally Posted by swajames
(Post 10496123)
The down payment here seems to be 6.5k including the “order payment”. A down payment in any lease simply pre-pays/buys down the lease payment, in this case to the tune of 180 per month. Tesla leases usually aren’t great, and this one doesn’t look like it’s going to change that. As a general rule leases ought to be zero down for myriad reasons (covered in the lease thread in the sticky topics above)
In cases like this it really just boils down to how much you like and want the car. The $6.5k you reference isn't correct from what I can piece together. Tesla makes it a bit hard to understand, but the "due at signing" of $3,922 is order payment + $695 acquisition fee + 1st month payment, so the $2,500 "order payment" is already factored in. Does that make sense? |
Note you also have to include sales tax, and the way that is applied varies by state. Here in Washington, it is added to each lease payment. So, at 10.8% sales tax, your $727 becomes $806.
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Yes that does make sense. You may well be able to get the residual and/or MF from websites like leasehackr. If you have one you can calculate the other. I’d guess the residual here is set fairly low and the MF set fairly high - both up the payment of course, never mind the Federal credit also going to the lessor. Does the lease quote not have a residual/buyout number? Maybe they just show it on the actual paperwork.
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Originally Posted by bitkahuna
(Post 10496125)
very interesting analysis, and i'm glad you factor in current 'older' car costs as many people seem to consider their older cars 'free' once paid for.
maybe you don't get the fed tax credit because you don't own it? given how fast things are changing (including every other day with tesla, lol) i think you're smart to lease. i think 3 year old teslas in 3 years are going to be considered like an iphone 4. :D despite musks claims they'll be used in self-driving fleets - maybe by tesla who will retrofit newer hardware... new versions of the onboard computers in their cars continue to come out with 'leaps' more computing power than older ones... which again, makes ownership tricky. i think most who buy a tesla though, like most 'exotic' purchases don't think about any of that, which is fine of course, they like the quiet/electric drive, the cool factor, etc. i can see my next vehicle being electric, but thankfully i've got a couple of years to wait, during which no doubt there will be lots of new stuff happening! No matter which way you slice it, you almost always lose money on cars. In this case, it's interesting that I'm seeing I may only lose about $10k over the course of 3 years over the cost of keeping my current LS. If I have to replace control arms and have a brake actuator issue like 2007-2009 models are prone to, it could very easily become almost a wash to lease a Model 3. |
Originally Posted by JDR76
(Post 10496153)
Note you also have to include sales tax, and the way that is applied varies by state. Here in Washington, it is added to each lease payment. So, at 10.8% sales tax, your $727 becomes $806.
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Originally Posted by swajames
(Post 10496155)
Yes that does make sense. You may well be able to get the residual and/or MF from websites like leasehackr. If you have one you can calculate the other. I’d guess the residual here is set fairly low and the MF set fairly high - both up the payment of course, never mind the Federal credit also going to the lessor. Does the lease quote not have a residual/buyout number? Maybe they just show it on the actual paperwork.
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Funny I just plugged in some average numbers in a lease calculator and came up with the exact payment you have (not including sales tax) using a 50% residual and a 3% interest rate (0.00125 MF). Not totally out of bounds.
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From my experience, you can easily lease a $50k vehicle like RX or ES for about $500 per month with $0 down.
This model 3 lease is a HUGE ripoff. If you really like the car, it will probably be better to finance it. Also I don’t see the cost of charging the model 3 in your analysis vs what your currently spending on gas. |
Originally Posted by RNM GS3
(Post 10496194)
From my experience, you can easily lease a $50k vehicle like RX or ES for about $500 per month with $0 down.
This model 3 lease is a HUGE ripoff. If you really like the car, it will probably be better to finance it. Also I don’t see the cost of charging the model 3 in your analysis vs what your currently spending on gas. |
Originally Posted by RNM GS3
(Post 10496194)
From my experience, you can easily lease a $50k vehicle like RX or ES for about $500 per month with $0 down.
This model 3 lease is a HUGE ripoff. If you really like the car, it will probably be better to finance it. Also I don’t see the cost of charging the model 3 in your analysis vs what your currently spending on gas. |
Originally Posted by RNM GS3
(Post 10496194)
From my experience, you can easily lease a $50k vehicle like RX or ES for about $500 per month with $0 down.
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