Forums

Tesla Leasing Option?

Tesla Leasing Option?

Aaarrgh! Decisions.

I just came accross a really good local investment opportunity.
In order to invest, I would need to spend the extra $100,000 I had put aside to pay the difference between my deposit and the final purchase price.

Do I bow out now - when the car is so close that I can taste it?
Or do I take the financing option?

I have never financed a car. I have only bought cars that I could afford to pay up front.
Has anyone run the numbers on the "lease" payment?
What is the assumed interest rate that the lease payment implies?
What is the remaining lump sum that you need to pay to keep the car at the ned of the 3 years?

eric.zucker | 29/09/2015

I'm not of fan of leasing. Everyone I know, financial advisors, bankers, all advised to avoid leasing if you can.

My advice is just to wait until tonight's event - and a good night's sleep on it - before you make up your mind. The world won't collapse before then - hopefully.

geemoney3135 | 29/09/2015

My accountant did the numbers for an estimated $90,000 car and found that after 3 years the costs were basically the same for leasing versus owning.

If you are an independent Contractor instead of an employee at your company, leasing, historically has been a much better option as you can write off a larger portion of your expenses for the car.

If you plan to own the car longer than 3 years, I can't offer any advice on costs. When I made my reservation, a 3 year lease was the only lease term they were offering. Does anyone know if they are offering longer lease terms now?

Thanks.

DriverZ | 29/09/2015

@eric.zucker: "My advice is just to wait until tonight's event"

Well, yes. I am definitely going to wait until tonight's event. If the car is a big dissapointment with a lot of hype, then that makes the decision easy.

But I am assuming that the car will be fabulous. In which case the choices are to:
A) Find a way to still buy the car without having to put that much more money down until I earn some more
B) Pass on the Sig reservation for which I have been waiting 3 years, and then buy a production one after I earn some more.

paradis | 29/09/2015

I've pretty much decided to lease. The main reason is that I expect major improvements in the MX over the next 3 years and, historically, each significant improvement reduces the value of the older models without it (e.g the "D", autonomous driving, 90, etc.) By leasing, I don't have to worry about excessive depreciation. Three years from now I can choose to buy my current car, turn it in and get a new one or bail completely (highly unlikely). Monthly payments are significantly lower with leasing and it's less hassle to get a new one. Also, the Tesla lease comes with a 3 month bail-out (with a modest penalty) so if, for instance, they announce a 110kwh battery early next year, you could bail and get the new one without a huge depreciation hit. Just my opinion FWIW.