I want a Tesla Model 3. Like this guy How to determine car loan length as a function of how long I plan to keep a car I (using his words):
...plan to keep for 3 years (see below for why)
I am buying a piece of technology on wheels...and as such it's future value is highly unknown, given the pace of tech
I am an early tech adopter and since tech moves so fast, I am going to want the latest and greatest version of that model after this one. That's why I plan to hold for a short period of time. (3 years)
HOWEVER, unlike that poster I am fully open to leasing. I am trying to decide lease vs. buy in my case given the above factors.
The lease money factor is not favorable relative to other non-Tesla leases (it's .002133), however the lease does specify a residual value of 64% (car price is $56,190, residual of $36,200) - I think it would be highly optimistic to think I cold sell that car for $36,200 after 3 years of ownership - so the lease protects me against this uncertainty, which as I stated earlier I feel that future price uncertainty is higher with a Tesla than other cars.
So, looking at lease vs buy:
I configured a no-money down lease (except for 1st payment and fees), 36 months, 15k miles a year (this is more than enough, I am keeping an existing car), car as configured is $56,190, residual of 64%, payments of $812 per month. Since Tesla lease there is no option to buy but as I said my plan is not to keep longer than 3 years anyway.
60 month loan @ 2.74% with $15k down results in the same monthly payment as the lease.
UPDATE: Possibly a more succinct way to express this:
Given that my plan is to keep the car 3 years, an easy way to look at this choice is one of total cost over that period.
Lease: $30,086 (yes, $10k of this is interest, however, we are looking at total financing [lease vs loan] cost over the period only)
Loan: I configured a loan to arbitrarily result in the same monthly cost as the lease - about $812. The car with taxes, fees, etc. is $60.5k. At a 5 year loan and a rate of 2.74% with $15k down that gets me to $812 per month.
Loan scenario 1: assume same resale value after 3 years as lease has for residual - $36k (64%) - I consider this highly optimistic. Results:
Down payment: $15,000 36 months of payments: $29,340 Remaining due on loan: $19,013 Resale amount: $36,000 Net spent over 36 months: $27,353
Loan scenario 2: assume $30,000 resale value after 3 years. Results:
Down payment: $15,000 36 months of payments: $29,340 Remaining due on loan: $19,013 Resale amount: $30,000 Net spent over 36 months: $33,353
Loan scenario 3: assume $25,000 resale value after 3 years. Results:
Down payment: $15,000 36 months of payments: $29,340 Remaining due on loan: $19,013 Resale amount: $30,000 Net spent over 36 months: $38,353