I was wondering if there is going to be a leasing option in the US. I might consider that over purchasing then buy one once the tech has settled a bit.
I'm would assume there will be a leasing option, since those are generally in the car dealer's favor. I've considered leasing one as well for the same reason you stated. I'll probably just purchase one anyway though.
If asked will there EVER be a lease option for a Model S I’d think the answer would be yes. Not doing it would limit your buyer range for no reason. However, will they do this from the start? I think not. Financially it makes no sense to offer a lease option at this time. You have approximately 10,000 people willing to pay full price for a vehicle. A lease gets you a handful of individuals committing $18,000 - $23,400 (assuming $500 - $650 payments) for 36 months. Then you run the risk of having S’s that need to be resold as “used”. That’s an unnecessary marketing spin that I’m sure Tesla isn’t inclined to deal with in a 3 year time frame.
What’s more likely to happen sooner rather than later are Model S’s hitting rental places. I can see them being offered in “select” regions for those looking to take a classy, eco friendly spin around town. (and those possibly on the fence about purchasing or unable to purchase) This would allow them to get the S shown on the roads yet put the duty of resale on shoulders of the rental establishments. It won’t be viewed as “Tesla has too many vehicles being returned”… more so it’ll just be the cars need to be sold as they’ve run their course as a rental model. (for the next Tesla vehicle of course)
Again, I don’t even see that being an option within the first 3 years. There just won’t be a need for it.
Sudre.....In my mind the question of leasing a Model S was one of the most important factors in considering it at all. Not because I couldn't afford to purchase it, but for several reasons I prefer leasing ...which I've done for the past 25 years for at least 6 different cars. I've spoken with two Tesla reps by phone and a 3rd by email. All three assured me that leasing will begin once they start getting to the 60 kWh and 40 kWh Production models.
Like Alan mentioned, it won't be done at the start, but you also won't have to wait for 3 years. I was told that sometime during the 4th quarter of 2012 Tesla will have determined the residual value. They also told me that leasing will either be through the Bank of America (like the Roadster), or a "financial branch of Tesla". However, the viability of a Tesla finance corp. is unknown at this time and may be wishful thinking on their part. But before I plunked down my $5K I was assured that leasing would "definitely" be available way before they came to my number (#6687). I tend to believe them regardless of what other forum members have indicated......Dan
They just announced a leasing program in Europe: http://finance.yahoo.com/news/tesla-motors-athlon-car-lease-140800503.html .
This is not the same as leasing in the US, but I think I heard that they are working on it.
I thought the FAQ page for the S had a question about leases. And they said something like "a full complement of financing options will be made available." I also recall leases specifically being mentioned as an option "approx. 6 months" after launch.
jomo25, that was true for an earlier version of the FAQ page. I cannot attach a date to it, but since the new version of the "Facts" page was released, together with the "Features" page IIRC, there was no more mentioning of leasing and financing.
Here is the official press release by Tesla (no real news):http://www.teslamotors.com/en_GB/about/press/releases/tesla-motors-and-a...
Alan Askew. Re: Leasing…
Sorry to disagree. Leasing has far reaching benefits for TM and their customers. Leasing will allay the fears of early adapters concerning: battery technology, electronics, a new company, etc. The leasee can buy the “S or X” at lease end or not. Leasing also gives TM an opportunity to sell/lease a new Tesla every 36-48 months to their customers, rather than once every 10 years + or -.
I have 7 years of auto sales and leasing experience and I promise you, TM dealers will love having ‘lease return’ (pre-owned) “S”s to resell. Imagine a new car customer who wants an “S” but can’t afford $75K for a new one but can buy a pre-owned one from TM for under $50K- with a great warranty. My crystal ball says demand for the “S” may be so great that you either buy a pre-owned ”S” or wait a year or two for a new one.
I believe TM will find selling pre-owned “S and X” and ICE cars to be an important part of their business. Trade ins and pre-owned sales are traditionally VERY profitable for a dealership- Especially warranties! I find it hard to believe that a customer would buy a pre-owned “S” from a non TM dealership.
Reading the forum, many “S” reservation holders have “a great need for speed.” Imagine what the performance (4x4) may be in 48 months! AND… some “S” reservation holders bought stock knowing the market gains will pay for the car or many of the upgrades. Leasing may allow them to drive an “S” and keep the stock.
Personally I prefer leasing. My annual mileage is under 15K and in 3-4 years I am ready for something different or at least a different color. At the end of the day (to me) it comes down to how much $$ down and how much is the monthly payment.
I have been on the fence of going through with my model s reservation. The model x just makes more sense for my situation and owning both does not really make financial sense. However, I think the model s is an amazing car and I am very impatient (2 more years is a long time).
The lease option would work well for me. I could lease an s until the my x arrives. The problem is I am not sure I will be willing to give up the S when the time comes. Regardless, it's a win win. I agree with petero on this one.
very persuasive. I tend to think the up-front delay is for "data gathering" so the terms can be set rationally.
I know a couple who just reserved a Model S yesterday. They likely may have done so sooner had a lease option been available. Contributing to their decision to reserve now was the idea that by the time their number comes up in a year or so a lease option is more likely to be more available than it is now. Speaking for myself, I very much like the idea as well.
"Reserving" and leases don't seem to fit together. Waiting months or a year or more for access to a rental car seems fundamentally wrong, somehow. >:-P
@Brian H, Maybe it doesn't seem to fit together or it seems fundamentally wrong to you. Not everyone thinks or feels the same way you do. You have your opinion. Others have theirs. Who are any of us to judge others?
Oh, well. Never leased a car, though I've rented them short term. I guess there's a significant difference.
I have never leased. I've always wanted to own my cars but that is because I always kept them until they drove no further. A car is a means to get me from point A to B to me.
A Tesla Model S is a lifestyle for enjoyment to me.
I am now weighing what I think I will enjoy for how long and trade in values. If I buy a car and in 3 years the touch screen is outdated along with battery range and speed then I will want a new toy for enjoyment.
Lets make it easy. I buy the car for $50k or lease it for $18k for 3 years.
In 3 years the battery range on the new Model S's is 500 miles and the touch pad is completely hands free because of a new chip set not in mine. My car is not as fun as the new ones. Time to upgrade.
I go to trade in my car and the Tesla dealer offers me $30k for it, he'll be lucky to sell it for $35-40k.
I should have leased and saved the $2k.
Sudre. We agree about the leasing. I suspect you will see a greater ‘saving’ between leasing and purchasing than $2K. On a high tech car like the “S” buying an expensive, extended warranty is probably a must (not necessary on a lease).
I believe, TM will build better, faster, longer range cars and CUVs in the future, with more options and technology. We may not see a lower MSRP but we will get more vehicle. I see TM assuming a market position akin to BMW not Nissan, Chevy, or Ford.
I also believe, TM’s future cars will even more exciting to drive. We all will want the personal license plate “IGOT2HV” (I got to have). Can you imagine the variations available on the Gen III platform?
Generally I own cars for a long time, but like many here, I really am interested in the Gen 3, but think the S must be successful to get there. I don't need a 7 passenger vehicle. I suspect gen 3 will be even more fun to drive with the battery improvements and smaller footprint. For that reason and only that reason, I would consider a lease for this car, though I don't expect it to be possible/available.
Could you elaborate on what "touch pad is completely hands free" means? That sounds like just a screen to me.
I'm just throwing out an example. Think Star Trek type functionality or Knight Rider.
Me, "Car, can we make it to LA."
Car, "At your current average speed we should make it to LA with 20 miles to spare. There is a charger 90 minutes outside of LA you can stop at if you prefer."
In short it doesn't even need to be a touch screen since the local language will be completely understood. Heck it could even translate for you. In an on-line game I once played there was a player that was writing an app that would respond to questions thru an avatar. It used Google to translate different languages too. It could be advanced to speak and listen rather than just text.
The processor speed might need an ungrade or there may be a special chip set for it thus an upgraded touch screen may be needed. At the rate of Tech the touch screen will be obsolete by the time we get the car. Lol
On Friday during the Model X reservationist event, I interviewed Model S and X Product Manager Ted Merendino. I asked him about U.S. Model S leasing starting at 13:08 into this video:
@engle: Thank you hugely for taking the time and making the effort to record and post your video(s) and pictures. Incredibly informative. Absolutely outstanding. I for one am very grateful.
Yesterday I received a long awaited answer to my question if there would be financing and leasing for the US Model S like there was for the Roadster since the Tesla website under Buy/Lease only pertains to the Roadster.
This is what I was told by my Product Specialist/Configuring Specialist:
"We do plan to offer all standard forms of leasing and financing for Model S, but I cannot yet speak to the exact timeline or availability until a partnership has been established, and the program fully developed."
A Bank of America associate informed me that Leasing is supposed to be available for the Model S now. This was a simple in browser chat session with I'm sure a call center rep, so take it with a grain of salt. It sounds to me like the lease option is available NOW though.
Shoot. I need to make a phone call then. If this it true I changes my car a lot.
Might be confusing it with the roadster.
Get a contact for that BofA person! I got an email from my Tesla rep saying no lease option until mind 2013
A bank etc. always has the option of buying the car and leasing it to you. Mfr. sees full price up front, either way.