Lease Comparison Thoughts- Tesla Model S vs Mercedes EQS

2022 Tesla Model S Dual Motor AWD
MSRP $94,900
36 month term
10K miles/yr
DAS: $9502
Payment: $1307

2022 Mercedes EQS 450+
MSRP $105,500
48 month term
10K miles/yr
Incentive: $7500 rebate, $1000 dealer discount.
DAS: $7745
Payment: $1283

On the surface the Mercedes seems to be a better deal, except the EQS 450+ is RWD so perhaps not a fair direct comparison to Model S. I haven’t been able to get a realistic quote on an Mercedes EQS 580, which adds the 4matic but jacks up the MSRP further.

When you look at these from a TCO perspective, I suspect the math will swing back with the Tesla. MBFS is using a 44% residual at 48 months for the EQS, which would be terrible for most EVs. Where-as, actual market value on a Model S is closer to 70% after 48 months. If the EQS value tracks closer to the Model S, there will be significant positive equity in both leases upon term completion.

I would never lease a Tesla (always buy)

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This!

10char

Model S lease is not restricted like a Model 3/Y lease. My intention, with either vehicle, is to buy out the lease in 2 years to realize positive equity. What’s your issues with Model S lease? It will have a lower TCO vs a loan for my period of ownership.

What’s the mf on the model s lease? Tesla lease terms tend to be really rough.

Pretty sure the EQS quality will far surpass that of Tesla.

I’m not a Tesla fan, so my opinion is biased.

I’m not impressed with the interior quality and paint on any Tesla I’ve been in.

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This is a no brainer IMO, buy the Tesla. While the EQS is cool, my thesis is that Mercedes S level cars (cls, s class, etc) drop in value like a rock after a few years, inversely you can still see 5+ year old p100ds going for 60% of their original value with normal miles.

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Probably any car right now is going for 60% of original value. As more and more Tesla’s are coming to market I wouldn’t bet on having as much positive equity in 4 years. Why not Taycan?

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Model S MF at 38mo is .0018
EQS MF at 48 mo is .0015 and could be reduced with up to 10 MSD.

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How much of your DAS on the EQS is MSD? Trying to get an idea of if this is apples to apples.

For .0003 more points, the Tesla is overall approx. 5k cheaper to lease over both periods.

Are you comparing the cars based on projected/assumed market values after 2 years?

If you’re intention is to realize equity, just finance, hardly makes sense to me to lease to finance as you’ll likely pay less in interest on the finance than with the current lease programs.

That’s 4.3% APR vs potentially as low as 1.24% if you financed it.

Is there an acq fee?

No sales tax benefit to leasing as its 0 tax either way.

You’re paying roughly 4.4% interest on the Model S lease, plus, if you plan on buying it at the end you’re going to pay taxes on the residual. That down payment is more than I’d ever recommend doing on a lease.

The $7,500 rebate on the Mercedes is that the federal rebate? If so, are you sure they pass that along to the customer?

Tesla has proved it’s equity value over the years. Mercedes with the EQS hasn’t. Also, speculating on equity 4 years down the road shouldn’t be something to take into consideration. Look at what it’s done in the past as you and I both know from the market we are in now you cannot ever predict the future. Telsa 100% in this scenario.

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If you’re financially able to drop $1500+ a month on a car rental, then just get what you want…it is no longer about value or practicality.

I’m not suggesting to get fleeced by the dealer, but if you’re dropping $1000 more a month for transportation than one “needs”, the extra money shouldn’t really be a factor.

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5 year old s classes are definitely not. Probably like 40-50%ish with normal miles.

No MSDs are included in the EQS calculation presently. 10 MSDs can be applied to bring down the MF. This may make the EQS more attractive.

Yes, I am focused on TCO over a 2 year period. I believe both vehicles will outperform the residual values of their respective leases.

The payment is significantly higher if I finance, except over the longest of terms, like 84 months, and with such a term a 1.24% rate is not possible. My best finance options are 1.24% at 60 months (DCU) or 1.99% at 84 months (CarolinaCoCU).

No sales tax on electric vehicles in NJ.

Yes, it is the federal rebate for which the EQS qualifies. I have confirmed they pass it along as a reduction of the sales price.

If you look at the TCO of the Tesla Model S over 2 years, where we have real world data to reference, the actual effective payment is substantially less after considering the positive equity which is returned upon buyout and resale.

MBFS seems to predicting the same trend for the EQS but this amount of depreciation never made any sense to me. Is the EQS going to be an outlier???

People buying cars today thinking they’ll hold their value in the near future may be in for a huge shock down the road.

My neighbor bought a Tesla S (used) for his kid a few years ago for about 25K…

This entire pandemic/post-pandemic economy is making predictions even more worthless than before…we have no clue what car makers will do 12-48 months out, nor do we know what the global economy will be like. Cars (non-collectible, obviously) have been dreadful “investments” for 100+ years…except for the the last 12 months. That’s a big trend to buck.

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A. Zero information to make an informed decision about the TCO of an EQS.

B. That doesn’t mean anything. That just means you overpaid for the lease and got a little of it back.

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That’s the issue; used cars are going to take a nosedive for 2024.

They’ll float for another year or so, but stock and inventory is already starting to replenish for new cars.

The model s maintained high values previously due to musks cult following and being one of the only serious electric cars on the market. That was before COVID. In a post-COVID world there is a lot of electric car competition from the traditional manufacturers. I think people will look to Lucid, Porsche, Mercedes, Audi, and Cadillac for future electric cars needs.

This will impact Tesla values in the long run. I think immediately, the EQS will tank in value like other S class vehicles do.

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That’s like going back in time saying Hyundai (1986) and KIA (1992) coming to the United States is going to impact Toyota (1957) values in the long run. That is most certainly not the case and throwing the “Musk cult” jargon in there hints to me that you maybe slightly bias against Tesla’s success.

The Model 3 is the highest selling Tesla model. Most people who are in the market for the M3SR+ will most likely not be in the Lucid, Porsche, Mercedes, Audi or Cadillac market.