Any news on upcoming leasing options for the Model 3?
I would bet that alliance would offer leasing in the near future
Tesla says only cash or financing will work, nothing about leasing. That is discouraging, as technology advances, why get stuck with a 5 year old car? Anyway, I saw that the monthly for an S is $1,700, I must have read it wrong. The highest BOLT is $385 with $3,00 OOP, $43k to buy. Does anyone have any idea about leasing the 3 as time goes on?
According to Tony Seba, one of the main contributors to the steadily declining residual value of ICE based direct competitors to Tesla Model 3 is the incessant reliance upon fleet leasing. There will certainly be lease options available some day, but I would not expect them to have particularly 'attractive' or 'affordable' terms for quite some time. I'm sure Cadillac would happily lease an ATS to you, just as Buick will lease a LaCrosse in a heartbeat -- but those companies are destined to have several thousand of their cars rotting away on the lots at 'independent franchised dealerships' for the next three years. So they will do anything to get rid of them. Tesla will have no such problems.
I just found out, the 75 S base is $69,500. To lease for 15k per year, 36 months, it would be $2,500 on order, around $7,000 on pickup, then around $950 per month. These numbers are crazy. If you buy it would be the $69,500 less $7,500 and $2,500 in NY. The point, doing fast math, I think that many people who thought they would be getting a Tesla at $35k and leasing it at standard numbers (my Honda Accord Plugin 2014, a $43,000 list, lease was $316 per month) are going to be very disappointed the car will just not be close to being affordable. I guess supply/demand rules!!
@rh lease prices through tesla are indeed crazy, they are close to the same price as purchase.
But you can always finance it and resell if you don't want to keep it long, though when you do this you pay tax on the entire initial price, vs just the price-residual when you lease. You are absolutely right tesla won't lease at anything close to what we can get in other cars. I'm leasing an Avalon now and with $0 out of pocket the lease came out at $360/month for 36 months with 10k/year and $.15/mile overage. I know there's no way in the world a tesla will be nearly so cheap, even if I got the base and threw some hefty tax credits into it.
If leasing does ultimately become an option, I'd caution against it for the simple fact that you WILL drive this car more than you think. You WILL drive it more than you drive your current car.
Our Model S is not yet 3 years old. It'll probably be 53k miles by then. Its regular daily commute is under 15 miles!
My Hyundai, which has the longer commute (about double) doesn't even have 40k miles on it after nearly 5 years. You'll never choose to take the gas car if you have a Tesla, which means putting a lot more miles on it than you expect to.
There will be a market for used Tesla's. It's one of the most important pieces to making it affordable for everyone. Leasing makes no sense for Tesla. Why bother trying to resell 500k cars in 3 years. Let the market do the work for them.
In general, leasing makes no sense. For people who wish to 'keep up with the Joneses' or maintain an appearance of status or achievement in life, it may be 'worth it' from their point of view to drive a 'better car' with monthly payments that are closer to what they could buy a lower cost vehicle. Some feel it is a good idea to have a specific 'Sunday Go to Meeting' car, or something that is only used to show off their supposed 'wealth' or prosperity. To those people, who are rather illogical anyway, it is more important to them what they can 'get' than what they can afford. To those running a business, leasing a vehicle may have some beneficial effect on tax reporting, but that may be counterbalanced by the effect of depreciation on vehicles they buy instead.
@ReD I lease because it's a financially superior way to buy the car. The interest rate is close to 0%, and then I have the option to dump the car later on if I want, having only paid tax on the purchase minus residual. There is literally not a single downside of leasing the way I have done it for almost a decade now. If I keep the car I can finance it at a 2.5% interest rate. Anything about mileage overage, condition etc. is irrelevant because if you buy a car you never have the option to turn it in anyway and, if you keep the leased car, those topics don't apply. When you lease you know the residual exactly and have that option to buy it or not, then pay the remainder of sales tax.
@Shock - Relatively few cars are better financial deals than leasing. Math.
My Hundai Genesis Coupe lost a boatload of value, and the lease *might* have been a better deal.
My Scion? No way in hell. Paid $18,400 and got $15k for it 5 years and 50,000 miles later. Just get 0 or low interest loans and pay them off ASAP. Trade that car in for your next new car after 3 years, save the sales tax (in PA anyway) on the trade-in portion and take another low or no interest loan on the balance. And so on...
Prior to my Tesla, my only other two brand new cars were both paid in full within the calendar year following the model year. So a 2008 purchased in late 2007 was paid off in 2009. My 2012 purchased in late 2011 was paid off in late 2013.
Model S breaks this trend of course; that zero financially smart purchase will take the full 7 years of the loan...
But Shock you are not buying the car you are RENTING it.
Plus you have a set deadline in which you have to replace it. I have lost count of the number of posts by people talking about trying to line up their deliveries for when the present lease is up or otherwise they will be with out a car or have 2 car payments to contend with. Ya, that's a smart way to go about it.
@Jordan I lease because I don't want to keep the same car that long. Why should I deal with the hassle of selling when I can just give it back and not have to worry about it? Sure model 3 deliveries might not line up for some people, and I might be one of those people, but it's really not a big deal. i'm sure some people will have 2 cars at some point even if they are selling a current vehicle when they get their 3. This way I don't have to bother with it, worst case is I rent a car for less than my current monthly payment until my 3 delivers. Haven't paid for an oil change these past 3 years either.
Leasing is a superior way to rent a car, not buy one.
Leasing is a superior way to rent a car, not buy one. The superor way to buy a car is to let someone else lease the car, paying for years of depreciation, then buy it used. That is how the vast majority of vehicles are sold in the U.S. each year.
"as technology advances, why get stuck with a 5 year old car?"
Which is why you should buy a Tesla. Over the air updates mean you are never driving a 5 year old car.
" I lease because I don't want to keep the same car that long. Why should I deal with the hassle of selling when I can just give it back and not have to worry about it? "
Sure. And you should be prepared to pay the price for that convenience.
Thank you kindly.
"Sure. And you should be prepared to pay the price for that convenience." - well DUH
The whole leasing thing is really a preference I guess. Lots of pros and cons. I hope they come up with a lease plan before my turn comes up. My wife's car, which I bought, does all the heavy lifting with kids and vacations and driving everywhere. The model 3 will just be for fun and to drive back and forth to the train station everyday. The train station conveniently has a free charging stations on the roof... I usually lease my own car and buy my family car maxed out. I don't use my car a ton and never come close to the lease mileage cap.
@red, leasing is a great option when you are able to lease it under your business and you can write off the entire lease payment. This might pertain more to the S than the 3, but the same concept applies. In the U.S., the tax code practically subsidizes lease payments for luxury vehicles.
Leasing gives the commitment phobe (me) a lot more options and with BMW's included maintenance a total cost of ownership with NO (or very few) unknowns. No residual risk! Swap-a-lease.com creates a market to enter and exit leases at will. I leased my i3 via swap-a-lease as a one year EV experiment and am hooked on EVs. A lot less risk than buying a can and being unhappy. The i3 has a $55k sticker and a $426 lease rate...hard to beat. If I want to own a car long-term, yes, I'd buy a used car. Now let's hope Tesla implements a reasonable lease program.
Do you truly own a car if it is financed? Miss payments and what happens?