Tesla Model Y Lease Question

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All, new to leasing and had a question on leasing a Tesla Model Y.

I’m not eligible for the tax credit due to income limitations, so began exploring a way to capture the incentive through a lease.

I understand that there is no buy-out option for Tesla, but I’m simply trying to understand if leasing is more cost effective than buying over three years. Tesla seems very vague as to how the 7,500 credit is actually applied to the lease, and I didn’t get much further when I called in to ask.

In general, taxes included, total lease payment would be ~400 with total at signing ~6100. Total over three years ~20.5k.

Given the vehicle cost is 42k, and out the door cost is 47k, it seems the only question is whether, after three years, I could sell the vehicle for around 27k (47k less the 20k I paid over the lease term).

I’ve tried to do some research, and in general, I think a three year used car with original price of 42 would be worth less than 27k, making the lease option a better deal. However, it’s unclear if Tesla will depreciate more/less than a standard vehicle, and with looming technology updates, I feel there is a good chance this car depreciates a lot in three years.

For what it’s worth, I’m an accountant and have always just assumed that leasing is usually a bad way to go, but given the lease incentive loophole, it seems this may be one of the exceptions.

Given the community here is more well versed on leasing than I will ever be, wanted to get your all’s thoughts.

Thanks!

**As a follow-up, I also asked them if it was possible to just pay the full lease up front to reduce the monthly payment, given I’m sure there is an applied interest rate in the lease payments. They seemed to not have that answer.

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Then you’ll have to choose something else if that’s your goal. You’re not capturing any incentive with a Tesla lease.

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Leasing is bad if you don’t know what you’re doing and paying MSRP. That’s why there is LH. Look at this one - SIGNED: 2022 RS E-Tron GT $158k MSRP. $9925 one pay for 12/10k ($827/mth effective)

Selling price is $110,950 (plus tax and fees) and the residual is $112,180. Basically, he’s just paying interest on the ~$112k.

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Doing the math, I think they probably aren’t applying the $7500 credit - they just say it’s included so people stop asking

Don’t forget that a base LR was $66k + destination/fees/TTL last year at this time.

on their online calculator, that does not seem to be an option. looks like they limit down payment to around 11-12% of the total car cost.

shameless plug, PM me if you need a Tesla referral for 3 months of free supercharging :slight_smile:

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Tesla claims otherwise beginning end of last month. But it seems they may just be claiming the 7,500 is included in lease, and they are refusing to provide details as to how it is included.

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Understand there are deals to be had and one-off situations to take advantage of. Personally only exploring this option to capture the tax incentive reduction, if possible.

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Not possible on the Model Y since you can’t buy it out. If you are set on the Y, just pay cash. But since the Y is losing the full credit in 2024 (except the performance), Elon just might do another price cut, so it might be worth waiting a month or two to see what will happen to prices.

Even with the $7500 lease incentive, the Model Y lease is expensive compared to competitors. For around the same effective lease payment, you can get an BMW iX, which is just nicer, since you’re getting a discount on the Bimmer, whereas you don’t get a discount on the Tesla. But for purchase, the Model Y is obviously cheaper. As far as depreciation on any car, you need a crystal ball for that.

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