The people who can afford most of the Model S that have that kind of power are people who most likely have been used to buying luxury cars with an over abundance of power.
I’m referring to the articles I’ve read over the years about people riding in Model s cars with autopilot on and not taking control Of the vehicles when they are about to impact other objects like dry van trailers.
Factors that add to higher insurance costs:
over all cost of vehicle components
number of insurance claims and amount paid out
historical accident precedence (ties to the one above)
I love Tesla but in retrospect this lease is a terrible deal and only makes sense for a business who’s able to deduct the payments. Anybody else is better off claiming the tax credit and financing it.
I’ll remain optimistic that they’ll improve rates but they plan to buy these cars from the finance company for ~ $25,000 to use as robotaxis so I doubt we’ll see a better lease anytime soon.
I’m assuming since the residuals and money factor are so high that it’s still done through a third-party. The finance company Tesla used last year was having issues funding leases due to an increase in volume:
I’m an engineer in the transportation industry and we are projecting fully autonomous vehicles in 15-20 years, at a price point the majority of people can afford.
We’re getting insurance quotes for my dad’s forthcoming Model 3 SR. AAA wants 40% more than they’re charging for his current i3.
Also having to get a third-party loan is a huge pain, compared to leasing a car from a dealer where everything is handled for you. So much paperwork and documentation to submit to the credit union. Tesla’s rates are horrendous: 3.99% APR on a purchase, or 6.5% APR on a lease.
The conventional shopping experience from a dealer on LH is way easier. I’m getting anxiety reading about all the QC issues and the need to care for the fragile paint and bodywork. With a lease, none of that really matters, since the rate of depreciation is set, and you simply return the car when you’re done.
Tesla is aware of the inflated third-party insurance rates and plans to launch their own in-house insurance this month. Theoretically Tesla’s vehicles should be significantly cheaper to insure due to their safety tech.
Unfortunately there’s really no way to hack a Tesla lease other than finding a showroom/test drive car with an adjustment.
They decided not to make the base interior so it’s a software-locked Standard Range Plus. If you can live without Autopilot, fog lights, and immersive sound you’re still saving almost $100/month.
We’re estimating our Model 3 SR will cost $320/month in depreciation and finance charges over six years (financed at 3.99% and assuming resale value of $15,000 and 9.5% sales tax), after incentives. Can’t think of a better car for that money.
