Tesla now allowing for lease buy outs. Another demand lever.

[cgoats21]

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[dweyant]

Interesting. Does that change the equation on lease versus buy.….

 

[dweyant]

Did some quick Thanksgiving morning math .
If you Finanace at 5.9% for six years with $1000 down your payment is $1297
Lease payment is $1214 for three years and 15,000 miles per year

At the end of three years you owe about $42,000 versus a buyout of $52,000.

So you are basically paying $10,000 for the option of walking away in three years. Might make sense for some people, and if you can write it off for business then of course that chances things, but for me at least $10,000 is a pretty good chunk of money for hopefully an unlikely secenario. I generally keep vehicles 10+ years.

-Dan

 

[jookyone]

Define "sound financial decisions" so that everyone can judge you

 

[Mini2nut]

It will be interesting to follow what demand levers will be pulled in 2025.

 

[YDR37]

It will be interesting to follow what demand levers will be pulled in 2025.

It's quite possible that the demand levels will be pulled hardest in 4Q 2024 -- so right now.

Through the first three quarters of 2024, global Tesla sales were down relative to the first three quarters of 2023. There is a real possibility that full-year sales in 2024 will be lower than those in 2023 -- in other words, negative growth. This is not the narrative that tech investors want to hear.

To prevent this, and to catch up with 2023, Tesla needs blowout, record-breaking sales in 4Q 2024. That's why there are so many incentives happening right now, including:

- inventory discounts on S3XY models (not Cybertrucks)
- increased referral discounts ($1000 for 3/Y, $2,000 for S/X/CT), if you can manage to find a referral code
- $1,000 military discounts to active duty, veterans, and spouses
- 0% APR on 3/Y
- 3 months of free FSD and Supercharging (all models)
- FSD transfer (which is an incentive for current Tesla owners to replace their old vehicles)
- lease buyouts (as discussed above)

I would actually expect fewer incentives after the end of the year, because the push for 2024 sales will be over. For example, to get the 3 months of free FSD and Supercharging, you specifically have to take delivery by December 31.

If you are in the market for a new Tesla, it might not hurt to wait until mid-late December 2024, to see if they dial up the incentives even more as the end of the quarter approaches.

 

[YDR37]

If you are in the market for a new Tesla, it might not hurt to wait until mid-late December 2024, to see if they dial up the incentives even more as the end of the quarter approaches.

For example, on December 1, 2023, Tesla discounted the 3/Y by $3,750 for buyers who accepted delivery by December 31. On December 22, 2023, they ratcheted the discount up to $7,500, and threw in 10,000 miles of free Supercharging credits.

The 3 months of free Supercharging currently on offer might sound like a good deal, but it could be better. If you buy a Model Y in Europe by the end of the year, you get a full year of free Supercharging.

 

[zachsmith]

The lease numbers on the website don’t make much sense to me or just lack details

It defaults to $7500 down but then says ~$12k due at signing. Is the $7500 covered by the tax credit making $4500 due at signing? What if I want to buyout early, what’s the penalty and what would my total out of pocket expense be? I think they want the $250 deposit to get all these details.

 

[zachsmith]

The lease numbers on the website don’t make much sense to me or just lack details

It defaults to $7500 down but then says ~$12k due at signing. Is the $7500 covered by the tax credit making $4500 due at signing? What if I want to buyout early, what’s the penalty and what would my total out of pocket expense be? I think they want the $250 deposit to get all these details.

Btw, I’m cross shopping with the Rivian R1S Tri and the lease transparency problem is the same- $500 deposit required to get all the details. I never thought I’d consider Rivian but the R1S might just be more practical for my needs, especially car camping. Im test driving Saturday.

 

[shopaholic]

Btw, I’m cross shopping with the Rivian R1S Tri and the lease transparency problem is the same- $500 deposit required to get all the details. I never thought I’d consider Rivian but the R1S might just be more practical for my needs, especially car camping. Im test driving Saturday.

I am in the same boat, test drove R1S duel max pack, felt more “truck like” compared to CT. The seats were more comfortable in the CT. Charging will be a pain with the Rivian port placement! Interested to hear wha you think after the test drive.

 

[zachsmith]

I am in the same boat, test drove R1S duel max pack, felt more “truck like” compared to CT. The seats were more comfortable in the CT. Charging will be a pain with the Rivian port placement! Interested to hear wha you think after the test drive.

I’ve tested driven the CT and it’s great but like a lot of people, I only need a truck maybe once a year. Here are my considerations. For anyone reading this whose owned both vehicles, please chime in:

The R1S is almost 2 feet shorter with obviously way more usable interior space. Turning radius is presumably similar because of CT 4ws.

The price/efficiency/range are all similar.

Rivian maybe has a 50% chance if going bankrupt in the few years, from what I understand. That’s definitely concerning.

Having no fsd would suck because I’m so used to it from driving Teslas. Any Rivian gen 2 owners care to comment on current/future autonomus capabilities?

I car camp several times a year so the Rivian is way better in that respect.

Decisions decisions…

 

[shopaholic]

Rivian maybe has a 50% chance if going bankrupt in the few years, from what I understand. That’s definitely concerning.

Having no fsd would suck because I’m so used to it from driving Teslas.””

Agree 100%, one of my main reasons to keep in Tesla ecosystem. Between VW and Biden gifting my tax dollars, they will be OK for few years ?

 

[zachsmith]

Rivian maybe has a 50% chance if going bankrupt in the few years, from what I understand. That’s definitely concerning.

Having no fsd would suck because I’m so used to it from driving Teslas.””

Agree 100%, one of my main reasons to keep in Tesla ecosystem. Between VW and Biden gifting my tax dollars, they will be OK for few years ?

the Rivian test drive was ok. I see why they are struggling while competing mainly with Tesla. I have even less faith now re: the company’s solvency.

compared to the CT, the R1S felt clunky. The 2.9 0-60 in the tri requires launch mode so it actually feels slower to me than the awd ct. initially, the screen froze which took almost a minute to resolve, so the salesperson said the car was ‘tired’??. Big red flag!

maybe if it was $50k but not for $100k+! The form factor is great and very practical but it’s a heavy vehicle and feels like it!

now that fsd 13 is rolling out, I’m sticking with Tesla.

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