Hello All,
I am looking to pickup an inventory car that is priced at ~$87,800 and am trying to determine if I should lease the car or buy it with the Resale Value Guarantee. I spoke to Tesla finance and they said that the best 60 month loan rate is 2.25%.
The lease residual if I wish to buy the car at the end of the lease is $52,875 at the end of 36 months. I am trying to compare the following 2 lease vs buy scenarios and buying with RVG ends up being the right decision. From my estimation,it makes no sense to lease the car.
Can the collective hive mind spot any mistakes in the scenarios below that would switch the decision from buy to lease even if I plan to be in the car for only 36 months and no more. Even if I decide to buy the car, it is cheaper to buy it with the RVG.
Scenario 1 : Lease the Car
Down Payment and first months's payment = $7,000
Monthly Payment for 35 months (12K miles) = $1,049
Total Payments over 36 months = 7,000 + (1,049 * 35) = $43,715
1a: If I decide to buy the car at the end of the lease, the total cost of the car is = 43,715 +52,875 = $96,590
1b: If I decide to walk away, I have spent $43,715 for the joy of driving a Model S for 3 years.
Scenario 2: Finance the car with Tesla's Resale Value Guarantee (RVG)
Down Payment = $15,000
Amount Financed=$72,800
Interest Rate=2.25%
Loan Term= 60 months
Monthly Payment =$1,284
Destination Fee =$1,170
Tax Credit = $7,500
Sales Tax = $0 in WA state
Total Payments over 36 months = 15,000 + (1,284*36) + 1,170 -7,500 = $54,894
Tesla RVG at the end of 36 months = $42,000
Outstanding loan balance at end of 36 months = $30,105
2a: If I decide I want to keep the Model S, I will pay off the car and the car will have cost me= $54,894 + $30,105 = $84,999.
2b. If I decide to walk away from the car at 36 months and give it back to Tesla, I will use the RVG to pay off the outstanding loan of $30,105 and walk away with (42,000 -30,105) $11,895. So the 36 month cost to own the car will have been (54,894 - 11,895) $42,999.
Are there any mistakes in the analysis above?
Thanks for your help guys and gals.
I am looking to pickup an inventory car that is priced at ~$87,800 and am trying to determine if I should lease the car or buy it with the Resale Value Guarantee. I spoke to Tesla finance and they said that the best 60 month loan rate is 2.25%.
The lease residual if I wish to buy the car at the end of the lease is $52,875 at the end of 36 months. I am trying to compare the following 2 lease vs buy scenarios and buying with RVG ends up being the right decision. From my estimation,it makes no sense to lease the car.
Can the collective hive mind spot any mistakes in the scenarios below that would switch the decision from buy to lease even if I plan to be in the car for only 36 months and no more. Even if I decide to buy the car, it is cheaper to buy it with the RVG.
Scenario 1 : Lease the Car
Down Payment and first months's payment = $7,000
Monthly Payment for 35 months (12K miles) = $1,049
Total Payments over 36 months = 7,000 + (1,049 * 35) = $43,715
1a: If I decide to buy the car at the end of the lease, the total cost of the car is = 43,715 +52,875 = $96,590
1b: If I decide to walk away, I have spent $43,715 for the joy of driving a Model S for 3 years.
Scenario 2: Finance the car with Tesla's Resale Value Guarantee (RVG)
Down Payment = $15,000
Amount Financed=$72,800
Interest Rate=2.25%
Loan Term= 60 months
Monthly Payment =$1,284
Destination Fee =$1,170
Tax Credit = $7,500
Sales Tax = $0 in WA state
Total Payments over 36 months = 15,000 + (1,284*36) + 1,170 -7,500 = $54,894
Tesla RVG at the end of 36 months = $42,000
Outstanding loan balance at end of 36 months = $30,105
2a: If I decide I want to keep the Model S, I will pay off the car and the car will have cost me= $54,894 + $30,105 = $84,999.
2b. If I decide to walk away from the car at 36 months and give it back to Tesla, I will use the RVG to pay off the outstanding loan of $30,105 and walk away with (42,000 -30,105) $11,895. So the 36 month cost to own the car will have been (54,894 - 11,895) $42,999.
Are there any mistakes in the analysis above?
Thanks for your help guys and gals.