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Lease application
- Thread starter LoudOne
- Start date
ATPMSD
Active Member
First that delivery date is likely to change, and there is no rush. It only takes a day or two to process a lease or a loan. Tesla lease?
You have probably already read up on Tesla leases but in case you haven’t….they are a horrible deal. Artificially low residual, high money factor (interest rate), and you can’t trade it in or buy out the lease. It’s a terrible deal but some folks still choose to do it and that is their decision.
Kevin Glode
Member
ATPMSD
Active Member
Go to your credit union or bank for a regular loan, you will likely find the payments are less than what they would’ve been for a lease. At the end of three years there will still be a balance due on the loan. Often that balance due is the value of the car so you can buy and sell, or the value of the car may be more than payoff in which case you make a profit, or a balance may be slightly more than the car is worth in which case you’ll have a slight loss, or you just keep the car because you love it. Once the loan is paid you have an asset!
This is great advice! Also, if you look at an auto loan calculator that shows amortization you may find that the total amount you pay over three years with a loan will be slightly lower than the lease even if the lease payment is lower than a loan payment.
The only downside is you can walk away from a lease and with a loan you are responsible for the residual value after three years (if it’s more or less than the loan balance). With Tesla though historically the worst depreciation has been about 10% over three years (Model 3). Model S and X are a little different. Model Y has actually increased in value.
ATPMSD
Active Member
Nope. You must make all remaining payments. BTW with a loan there is no residual, just the remaining balance as with any loan.
I meant at the end of the term
. Provided of course there is no excessive wear and tear and you aren’t over mileage.I should have said resale value as that would be the proper term for a non leased vehicle. It’s basically the same as the residual in a lease. The residual value should reflect what the resale value of the vehicle is after the leasing term (though Tesla is extremely low which makes them more expensive to lease). With the lease you are simply paying for the depreciation over the time and mileage and then your paying the finance fee (aka rent charge).
In the case of Tesla the low residual and the higher money factor (interest rate) make them more expensive to lease than they should be.
Zer0Her0
Member
It also depends on how much you're putting down. At the time, I didn't want to put too much down but if I had, I would have to had down at least 7-8K in order to get to the same financing vs lease payment. Hindsight, given the value, I wish I had just forked it over but que sera sera
I'm happy with my lease payment and terms. The car's issues is another thing altogether...
I'm happy with my lease payment and terms. The car's issues is another thing altogether...
