Finance/purchase vs lease the M3

Discussion in 'Model 3' started by GoingofftheGrid, Apr 1, 2017.

  1. GoingofftheGrid

    GoingofftheGrid New Member

    Joined:
    Mar 26, 2017
    Messages:
    7
    Location:
    New Jersey
    For many (me included as I have a later reservation and will wait additionallyfor the AWD), the federal tax credit will be unlikely available, I'm considering the decision between financing vs leasing the M3. Of course there are many other factors - I'm posting this to inquire what others may suggest are factors to consider, to help determine what is more appropriate for me. Hopefully this thread will be helpful for others as well.

    Pros to finance:
    Potential federal tax credit $7500 for first 200,000 sold , then drops by 50% Etc - although unlikely able to capitalize on this
    Plan to keep the car longer then 3 years
    Freedom to sell the car down the road or trade in for newer model
    Tesla offers guaranteed trade in value (I believe) - based on some parameters
    Less anxiety on when/if to upgrade/trade in as no (lease) deadline and no max allowance on mileage
    Lower car insurance cost

    Cons to finance:
    Likely need to sell/trade in before battery warranty is up (?? 8years)
    Potential delays in repairs if needed (depending upon service centers)
    Depreciation (i.e. Decreased value)
    Slightly higher payments than leasing (typically but also dependent upon down payment and interest rates)

    Ultimately, I presume if I fall in love with the M3 it seems to make sense to finance it rather than lease but I wonder if I should be considering other factors given this is an EV and a tesla (is there some magic additional benefits I'm missing to sway me one way or the other)?

    Lastly, if I enjoy the M3 , I will likely trade my current GMC Acadia for the Model Y - and be fully off the grid as a family (planning for tesla solar and power wall... Soon).

    Thanks for reading and any feedback.
     
  2. Hovscorpion12

    Hovscorpion12 New Member

    Joined:
    Apr 7, 2017
    Messages:
    18
    Location:
    Massacusetts, USA
    On a personal level, I always swayed away from lease. I leased my last car and I never got to enjoy it because I never drove it. I had to baby it to the max. My OCD put a car cover ever single time. Everyday at work, I get out and cover the car. Same when putting in the garage at home. Another note is that I lost any money I put into the car. At least you can use the car as part of the down payment on a new car when you finance.
     
  3. GoingofftheGrid

    GoingofftheGrid New Member

    Joined:
    Mar 26, 2017
    Messages:
    7
    Location:
    New Jersey
    Thanks for the response/feedback. I do anticipate I'll be keeping the model 3 for more than a few years, so I am also leaning towards financing it. Thanks again - good luck with your future '3' if that's where you are heading as well.
     

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