I wanted to try and do an apples to apples comparison between a few different leasing scenarios on a Tesla Model 3 lease and the cost of financing. To do this, I’ve created a Google Sheet (link below) as well as used the Tesla website’s lease calculator and the Leasehakr calculator. I understand the depreciation on a 36/10k lease to be 58%, but had to reverse-engineer the money factor so the numbers would match. Based on the numbers I’m getting on the Tesla Website for a “zero down” lease, that comes to 0.001083333333 or 2.6%APR. Using this, I was able to get my numbers to line up on my own calculator, the Leasehacker Calculator and the Telsa Calculator.
Here’s the problem. When I start adding down payments, the monthly payment starts to drift from what Tesla calculates. It’s only a few dollars, but I’d really like to get this consistent. For the sake of my comparisons, I’ve had to nudge the money factor on my Google Sheet for each different scenario so the final monthly payment matches what Tesla is telling me.
Am I missing something that is throwing these payments off?
***Please note that I’m not inviting a discussion on if this is a good deal or not. I know it’s an expensive lease, but it’s the car I want. *** . Based on my comparisons, I’m having a hard time justifying the cost of purchasing since chances are I won’t likely keep the car for more than 4 or 5 years.
google sheet:
hackr calculator:
(note - when you select Tesla on the calculator it automatically factors in a fed tax credit that is no longer available. this needs to be fixed)
Their website configurator starts with a down payment, if you 0 it out there is still $1230 DAS on the stripper Model 3. I don’t see that in your spreadsheet.
Thanks or responding, yes, that is on the spreadsheet. All of the due at signing expenses are on the lower section. A more accurate number would be closer to $1877 which includes not only the first month’s payment and aq fee but also CA registration and upfront taxes. There could be other fees I’m not aware of (doc fees etc) but I have not sat down with someone yet to get hard numbers.
The answer is that you can’t make sense out of Tesla lease numbers lol. I kid, but I really did a ton of mental gymnastics to try to make the numbers justifiable. Could never get there, unfortunately. To each his own though.
Imagine if they actually had a good leasing program? Sales would increase a good bit, I’d bet.
You can’t do an apples to apples comparison when financing a 40K vehicle and leasing one. Here is why:
Tesla leases are incredibly poor. Not many people will pay $535.00 per month on a 40K car.
Financing (or owning) a vehicle is always more expensive in the beginning, because you are paying towards ownership, not towards borrowing. To find the benefits of financing, you should extrapolate your calculations to 6 years, your cost of ownership will be cheaper than leasing for another 3 years.
Financing model for 5 years: ~45K @ 3.5% for 60 months = $819/mo. Total paid after 60 months, $45,000 vehicle + $4,118 interest. Final Cost = $49,118. Sell Vehicle for 20K. Total Cost: $29,118.00
Leasing model for 5 years: $535 x 60 months (assuming you sign a 2 year if thats possible after the 3 years). = $32,100.00
The beauty of leasing is to obtain a vehicle that would otherwise, not even be comparable when financing. The beauty of financing is to obtain a vehicle that would otherwise, not lease well.
Some people finance and keep their vehicle for many years, which ultimately is cheaper, no mileage restrictions and no wear and tear possibility.
Some people lease because they are sure they will get rid of it.
They don’t need help there: they couldn’t even deliver all the “promised by EOY” sales.
In short. The Model 3 is a shitty car to lease and a great car to buy and resell when you’re bored with it. Just make sure you don’t go too crazy on the options: near base cars seem to be holding their value best.
Tesla MF translates to a little over 5%
The Mode 3 you cannot buy at the end of the lease. Musk wants them all back. The only way to keep one past the lease is to buy it from the beginning
This is the first year of lease expiration and i’m sure we will see Tesla changing the terms and allow owners to buy out. What else they going to do with them? They are not ready to be robots and storing them until they are ready will be expensive.
With sales tax credit that’s $54,000 approximately (still taking a loss, but not bad)
Tempting? Sure. But that only puts us into a LYD with AP (FSD extra…)
Premium compared to what…a Corolla? a 3 Series? a bicycle?
electricity is not free in most cases but still way cheaper than gas in the was majority of the states. In CA where most of them are sold is not even close.
Many people pay $535/month for a $40000 car…not on leasehackr, but in the real world, yes. It’s shocking when I look at my friends leases…I would argue that $535 is actually below average for many of them (in terms of price/value).
One thing you ignore when buying is the 9.5% (LA) tax hit you take when you sell your car. You’ve paid an extra $1900 in taxes when you sell that car. Include that, plus the hassle of selling (and possibility that you don’t get the full amount), and it’s maybe a $1000 difference total over 5 years $32100 - 29118 -1900).
I’ll pay $200/year, or much more, to have a new car, no warranty issues etc…I’d imagine most others on this site agree.
