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Tesla Lease Buyouts Deep Dive

I wanted to dive into the latest on Tesla leasing because there's a lot more going on than you might think. If you're considering getting a Tesla, now could be a fantastic time with all the incentives and options available. Let's break it down.

Tesla's Pulling Out All the Stops

Tesla seems to be going all-in to boost sales globally, especially in the U.S. Here's what's on the table:

  • Double Referral Credits: Tesla has doubled the referral bonus. If you need a referral link, here's mine!
  • Federal Tax Credit: Might be the last chance to snag the $7,500 federal EV tax credit, especially with potential policy changes looming.
  • Amazing Lease Deals: Leasing discounts as low as $299 a month on the Model 3 and Model Y.
  • Freebies: Get 3 to 6 months of free Supercharging and Full Self-Driving (Supervised).
  • 0% Financing: Financing options available for up to 72 months at 0% interest.
  • Inventory Discounts: Up to $8,000 off selected models in certain locations.
  • Lease Buyout Options: The big topic for today!

Why Leasing Might Be Your Best Bet Right Now

There are some solid advantages to leasing a Tesla:

  • No Resale Hassles: At the end of your lease, you don't have to worry about selling the car or haggling with dealers.
  • Lower Payments: Down payments and monthly payments are generally lower than financing. Sometimes, the monthly payment is about half!
  • Tax Credit Eligibility: You get the federal tax credit even if your income is above the usual limits ($150k single, $300k married). Plus, you benefit even if the vehicle isn't typically eligible, like the Cybertruck or certain Model S and Model X versions.
  • Flexibility to Buy Out: If you decide you love the car, you can buy it out—even as soon as a week into your lease.
  • Option to Adapt: With the EV market changing rapidly, leasing lets you pivot more easily if newer models or more affordable options come out in the next few years.

But It's Not All Sunshine and Rainbows

Leasing does have its downsides:

  • Fixed Terms: You're locked into a set period, which might not align with your future plans.
  • Customization Limits: If you love customizing your car, leasing can be a headache. You'll need to return it to stock condition or face extra fees.
  • Potential Extra Charges: Wear and tear like curbed wheels or minor dents can lead to additional costs when your lease ends.
  • No Equity: Unlike buying, you don't build equity in the car, which might make you feel like you're on a treadmill.
  • Availability: Leasing isn't available everywhere. If you're in KY, NE, NH, OK, SC, or WI, you're out of luck.
  • High Residual Values: Tesla's lease residuals assume low depreciation, which might not reflect the actual market value in a few years.

Crunching the Numbers

I took a closer look at some lease deals, and here's what I found:

  • Long Range Rear-Wheel Drive Model 3: After the federal tax credit, the net cash price is $34,990. The lease buyout price after 2 years is $31,594—only about a 9.7% depreciation, which is less than the average car's 30-35% over two years.

  • Performance Model Y vs. Long Range RWD Y:

    • The Performance Model Y costs about 17% more to buy outright but has double the lease payment compared to the Long Range version.
    • If you're eyeing the Performance model, it might make more sense to finance or buy it outright rather than lease.

Lease Deals That Stand Out

Some leases are particularly attractive right now:

  • Long Range RWD Model Y: $299 a month
  • Long Range AWD Model Y: $399 a month
  • Long Range AWD Model 3: $349 a month

On the flip side, some deals aren't as hot:

  • Long Range RWD Model 3: Only $50 less per month than the AWD version but with fewer features.
  • Performance Models: Higher monthly payments that don't proportionally match the increased purchase price.

Final Thoughts

There's a lot to consider, and it can get a bit complicated. The key is to figure out what best fits your needs and budget. With all these incentives and options, it's tempting to upgrade or switch models, but make sure it aligns with what you really want.

Also, keep in mind that things could change soon—federal tax credits might shift, and new policies could come into play with a new administration. If you're thinking about getting a Tesla, acting before 2025 might be a smart move.

Let me know what you think! Did I miss anything? Share your thoughts in the comments.