GM Volt Forum banner

1 - 20 of 22 Posts

·
Registered
Joined
·
1,003 Posts
Discussion Starter #1
I would love to have a Tesla S, but know I couldn't justify the payments on a purchase of even a RWD with the 75 watt battery... so just for giggles I checked on leasing. The payment per month is less than $50 cheaper on a 15K mile a year lease then it would be to just buy the damn thing! Unless lease deals are only aimed at loaded out top of the line cars? Let me check: Ummm, leasing a fully loaded Tesla S on a 15K mile a year lease costs $205 a month MORE than purchasing the car....

Am i taking crazy pills?

Keith
 

·
Registered
Joined
·
6,664 Posts
Have you considered a CPO Tesla? They just added over 100 to their web site and many are in the FIFTIES. I'm out shopping for Metalliac Green S85 CPO and told my Sales Advisor my limit was $55K. They have many S60's but I want an S85
 

·
Registered
Joined
·
1,936 Posts
What is the length/term of the financing vs the lease?
Frankly, leasing isn't a good deal normally, especially with luxury cars.

The benifit is that you don't need to be concerned about the rapid growth of the technology, resale value, or battery life. Same as with any other EV.

While there have historically been some killer lease deals for many EVs, that is not the case with Teslas. But if you compare the leases to other luxury vehicles, they aren't that far out of line.
 

·
Premium Member
Joined
·
14,156 Posts
Doesn't Tesla have a guaranteed buy back program? Is that what you're comparing this to? IOW take the purchase price, subtract the buy back price, and then divide by the number of months. The numbers should be similar.
 

·
Registered
Joined
·
1,003 Posts
Discussion Starter #7
All my numbers came from the Tesla "custom build a Model S" page with the financing Tesla uses on purchases and Leasing through Tesla...

I really don't understand leasing of luxury cars if this is "normal" in the luxury segment. Driving force to lease for less expensive cars is a lower payment for a nice car at the expense of having zero equity in the vehicle when it is time to return the lease vs having equity in a vehicle if you sell it and purchase a new vehicle at the end of paying off the loan. Sounds like with luxury segment cars there would be zero benefit to leasing vs purchase.

Keith
 

·
Registered
Joined
·
1,340 Posts
The only way I see leasing as an option for the Model S is that if you are using it for business purposes and can write off the lease payment. Other than that it doesn't seem to make sense.
Also, believe it or not, some people lease Teslas because their tax burden isn't high enough to get the full tax credit.
 

·
Registered
Joined
·
1,003 Posts
Discussion Starter #9
Have you considered a CPO Tesla? They just added over 100 to their web site and many are in the FIFTIES. I'm out shopping for Metalliac Green S85 CPO and told my Sales Advisor my limit was $55K. They have many S60's but I want an S85
Unless things have changed (and they may have, been a while since I looked into expensive used cars) it is hard to get anything over 48 months financing on a used car... so figure in tax and interest on the loan itself you are looking at minimum of 60K in payments over 48 months... $1250 a month. If you get a new RWD 75 kWh battery Model S (30 miles less range than the CPO you are looking for) the cash price would be (before taxes) 71,500 so for round figures say 80K with tax and financing charges that can be spread over 72 or 84 months. For 72 months that is $1,100 a month and 84 months gets you down to $952 a month. Still out of my price range... but less per month than buying a CPO...

If you can get long term loans on expensive used cars now, let me know... an S60 CPO may be within my budget.

Keith
 

·
Premium Member
Joined
·
14,156 Posts
Buy back program has expired
I didn't know that. I guess that tells you something about the depreciation and the used market for Teslas.

If you can get long term loans on expensive used cars now, let me know... an S60 CPO may be within my budget.
Given the (lack of) reliability and the cost of repairs, you might spend more on a used one than on a new one. In that sense leasing a new one gives you the most risk protection. You pay for it but the risk is well defined.
 

·
Registered
Joined
·
1,340 Posts
I didn't know that. I guess that tells you something about the depreciation and the used market for Teslas.

Given the (lack of) reliability and the cost of repairs, you might spend more on a used one than on a new one. In that sense leasing a new one gives you the most risk protection. You pay for it but the risk is well defined.
The guaranteed buyback value program was put in place because the resale value of the Model S wasn't well established. It gave some people peace of mind if they wanted to have the option of selling it in ~3 years. Now that the resale values are known, it's no longer needed.

And sure, plenty of people perpetually lease because they never want to have an out-of-warranty vehicle. You can also do what I did and buy the extended warranty (b2b) up to 100k miles and 8 years. That means I'll be driving a warrantied Model S for several years after it's paid off. No need for years and years of lease payments to get that.
 

·
Registered
Joined
·
6,664 Posts
Unless things have changed (and they may have, been a while since I looked into expensive used cars) it is hard to get anything over 48 months financing on a used car... so figure in tax and interest on the loan itself you are looking at minimum of 60K in payments over 48 months... $1250 a month. If you get a new RWD 75 kWh battery Model S (30 miles less range than the CPO you are looking for) the cash price would be (before taxes) 71,500 so for round figures say 80K with tax and financing charges that can be spread over 72 or 84 months. For 72 months that is $1,100 a month and 84 months gets you down to $952 a month. Still out of my price range... but less per month than buying a CPO...

If you can get long term loans on expensive used cars now, let me know... an S60 CPO may be within my budget.

Keith
PFCU and my local military CU all offer 60 to 72 month financing on any pre-owned vehicles. Suggest you shop around. With my trade (equity of my 2013 Volt) a $55K Tesla could cost me about $39K OTD. Easily affordable at $668/month
 

·
Registered
Joined
·
475 Posts
Unless things have changed (and they may have, been a while since I looked into expensive used cars) it is hard to get anything over 48 months financing on a used car... so figure in tax and interest on the loan itself you are looking at minimum of 60K in payments over 48 months... $1250 a month. If you get a new RWD 75 kWh battery Model S (30 miles less range than the CPO you are looking for) the cash price would be (before taxes) 71,500 so for round figures say 80K with tax and financing charges that can be spread over 72 or 84 months. For 72 months that is $1,100 a month and 84 months gets you down to $952 a month. Still out of my price range... but less per month than buying a CPO...

If you can get long term loans on expensive used cars now, let me know... an S60 CPO may be within my budget.

Keith
You can get 72 month financing on used cars now.*

*Source: Me. I bought a used car two weeks ago.
 

·
Registered
Joined
·
1,003 Posts
Discussion Starter #15
You can get 72 month financing on used cars now.*

*Source: Me. I bought a used car two weeks ago.
That is a pretty good source :) Like I said, it has been a while since I bought an expensive used car... also going to be a shock to me when I buy a house... last one I purchased was pre-housing bubble and all the new rules that are an attempt at preventing another bubble going into effect. I am just glad I purchased my current home pre-bubble...

Keith
 

·
Banned
Joined
·
7,289 Posts
Those people don't usually speak up, but I know of two (and neither of them are me).
For that to be true....they would be leasing a car that is worth more than their annual income.

I hope they are retired, otherwise..... =/
 

·
Registered
Joined
·
5,431 Posts
For that to be true....they would be leasing a car that is worth more than their annual income.

I hope they are retired, otherwise..... =/
Leasing a car worth more than the annual income is common and possible if the lease is covered by company expenses. My wife had a leased turbocharged Volvo that was worth more than both of our incomes, but her position as a Regional Manager allocated her a 100% coverage of all vehicle expenses (including gasoline), and at no cost from our salaries. When she left the job, she just returned the lease. We bought the present 2009 Chevy Equinox for her after that, and I paid it with only my income.
 

·
Registered
Joined
·
1,936 Posts
All my numbers came from the Tesla "custom build a Model S" page with the financing Tesla uses on purchases and Leasing through Tesla...

I really don't understand leasing of luxury cars if this is "normal" in the luxury segment. Driving force to lease for less expensive cars is a lower payment for a nice car at the expense of having zero equity in the vehicle when it is time to return the lease vs having equity in a vehicle if you sell it and purchase a new vehicle at the end of paying off the loan. Sounds like with luxury segment cars there would be zero benefit to leasing vs purchase.

Keith
On the default (70D) the 15,000/year lease is showing a monthly payment about 5% less than the loan.
The loan is actually a 78 month loan, vs the 36 month lease.

In general, high mileage leases are expensive. If someone is planning on 15k/year, I'd recommend buying.
The 12k or 10k leases are less.
 
1 - 20 of 22 Posts
Top