Does Tesla let you pay off your lease in full?

[jeremymc7]

Reminder my totaled 3 was paid out for more than purchase price due to insurance comps. They said I would not get purchase price even with low months and hardly any miles. They said it was 100% based on comps. ALL comps for used cars that were older and more miles that were closest to mine were MORE than retail. Insurance paid me more than I bought car for due to comps.

Likewise I looked at Tesla CPO, rental used cars, and several used car sites and all were so close to retail that’s why I bought a new car.

So I strongly support that Model 3 currently and historically has very low depreciation.

 

[CapeOne]

Have a look at a 2018 M3 with 16K miles... 2018 Tesla Model 3 - Carvana

That car was probably about $43K when new, currently selling for almost $39K and yes, I'm comparing retail to retail, not retail to wholesale.

It not be 10% but is not 40% or 50% which is usually what the leases assume the depreciation to be.

My point is simply that comments suggesting new M3s will only depreciate 10% in three years are completely misleading to anyone, such as the OP, who is seeking advice about buying or leasing one now. It is unreasonable to expect a new M3 purchased/leased today to depreciate that little when there have already been M3s less than one year old depreciating more than 10% even just to used retail/asking price levels.

As EV competition increases and future Tesla products see more significant improvements/updates/redesigns, depreciation of former models will likely only get worse. As it is now, people who bought loaded M3 Performance models for $75k or so less than two and a half years ago are now seeing trade values around 60% to 65% even after factoring in a $7,500 fed tax credit.

 

[AlexP]

My point is simply that comments suggesting new M3s will only depreciate 10% in three years are completely misleading to anyone, such as the OP, who is seeking advice about buying or leasing one now. It is unreasonable to expect a new M3 purchased/leased today to depreciate that little when there have already been M3s less than one year old depreciating more than 10% even just to used retail/asking price levels.

As EV competition increases and future Tesla products see more significant improvements/updates/redesigns, depreciation of former models will likely only get worse. As it is now, people who bought loaded M3 Performance models for $75k or so less than two and a half years ago are now seeing trade values around 60% to 65% even after factoring in a $7,500 fed tax credit.

And my point was, that it does not make sense to lease a car that will not depreciate as much as the lease assumes it will, particularly when there is no option to buy it at the end of the lease. If you could buy it for the residual value, the it may make sense, as the car will be worth more by whatever percentage. If at the end of the lease the car is worth less than the residual value, then it makes perfect sense to lease it and return it.

 

[CapeOne]

And my point was, that it does not make sense to lease a car that will not depreciate as much as the lease assumes it will, particularly when there is no option to buy it at the end of the lease. If you could buy it for the residual value, the it may make sense, as the car will be worth more by whatever percentage. If at the end of the lease the car is worth less than the residual value, then it makes perfect sense to lease it and return it.

With such volatility anticipated in the EV market in the coming years, I still wouldn’t rule out leasing as a reasonable option to protect against unexpected additional resale drops including with the M3. On top of that, there are budget factors (lower monthly payments) that can still make leasing attractive for some.

Anyway, I just think there are too many myths still floating around out there regarding things like Tesla resales. Suggesting M3s will only depreciate 10% in three years is only going to set people up for disappointment.

 

[jeremymc7]

I think what we're saying is the lease depreciation is quite high and without an optional buy-out close you take pretty large, but known loss. Think Lethal Weapon's Leo Getz famous line... I can't really quote it here due to language if you don't know what it is. Substitute "Tesla" for "Drive-Through"

On the other hand, yes past performance (10% or not) is no guarantee of future performance; like much of life. However this is at least a hedged risk. There's a fair chance (or some chance) you could save thousands (or more) over a lease. Worst case I would think you break even. But at least to have a chance of keeping more of your money.