Tesla’s Little Known Leasing Gotchas You Need To Know About! EV Leasing 101

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While there are some really good values out there with respect to leasing some EV's, I explain why you should be cautious about leasing all cars in general; but especially Tesla's. I believe that information is power, And knowledge is king. Let me show you all the ins and outs of leasing language secrets so you can be a better informed consumer when the time comes to decide if you should buy or lease your next EV. At the end of the day, be sure you don't overpay for a Tesla lease payment and consider financing as an option even if the payment may be higher. From time to time, Tesla may subsidize their lease programs with attractive low payments per month. I am making this video so that for any vehicle you lease, knowing the numbers and what you are contractually signing up for over a long period of time is super critical. Best of luck to you finding, and either leasing or buying your favorite EV!
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27 июн 2023

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Комментарии : 236

@tominfoengnet 4 месяца назад

Need to update this, because I just leased a Y and Tesla not only applied the $7500 tax credit to my deal, they offered a $2500 price reduction and a $1000 referral bonus for having a Cybertruck on order. As for not being able to buy the car at the end of your lease, why would you? The whole point of leasing is dumping it after the warranty expires, and all sorts of maintenance and wear and tear comes due, as well as the exponential growth in technology in EVs.

@jrich5682 2 месяца назад

can you tell me more about the $1000 cybertuck bonus? how did you go about that? and the 2500? Im going in soon to get one

@tominfoengnet 2 месяца назад

@@jrich5682 You need to have a Cybertruck on order to receive the $1000 referral bonus. At least that was the case back in March, along with the $2500 price reduction for the Model Y. These promos change monthly, so given it's mid-May, there's no telling what the current offer is.

@jrich5682 2 месяца назад

@@tominfoengnet ok thanks. I do have the cyber truck on order actually. As far as the 2500 did you negotiate that or it was just a seasonal promo?

@tominfoengnet 2 месяца назад

@@jrich5682 There's no negotiating with Tesla. If you elect to do so, even picking up your vehicle can be completely done without human contact. Like I said in my prior response, "these promos change monthly", so you need to check online for inventory in your area and current promos.

@Geniere10 Месяц назад

Yep and in EVs after 3 years the battery performance goes down!

@NickWindham 9 месяцев назад

Tesla now DOES distribute the $7,500 tax credit across your lease term.

@NormalShock 5 месяцев назад

I wondered about that. Last night the website said that and I got the impression it divided the amount by term and applied that against the payment. Yes/No?

@aefewfk5091 4 месяца назад

Yes they apply it now.

@Baer991 3 месяца назад

how does it work. I was curious but the employee couldn't explain it. I really want to receive the federal credit on the lease

@NickWindham 3 месяца назад

@@Baer991 they subtract it from how much you owe on the car at delivery. If you’re leasing, you’re paying the difference between the price you’re buying it for and what they think it will be worth in 3 years plus interest. So instead of starting at $47,500, for example, you’re effectively paying the difference $40k and their $27,500 residual value estimate. So, you’d be financing leasing $12,500 plus interest instead of $20,000 + interest. The interest rate on a lease is called a money factor. Money factor times 2,400 gives you the interest rate equivalent to the money factor. Despite high rates on their leases and less than great residual values, their leases are still decent you subtract the $7,500. If financing, your loan amount would be $7,500 lower If cash, the amounts owe at delivery is $7,500 less

@Mis_guidedz 3 месяца назад

@@Baer991it’s already pre calculated on price

@markchadwick77 5 месяцев назад

Great explanation. Thanks. One factor that seems unique to this point in time: In three years, there will be many more offerings for EV's and battery technology seems to be improving at a rapid rate. This may cause a 2024 Tesla to lose value at a faster rate than normal. Maybe it's better that Tesla owns your 2024 car in 2027 instead of you.

@jamesrobinson7586 5 месяцев назад

100% agree with you on this, which is why I leased my 2021 M3LR and will lease again in June for three more years.

@johnpoldo8817 Год назад

Thank you, Dave. I’ve done at least a dozen car leases and still learned more.

@bc10822 Год назад

Thank you for the information. That was the best demonstration of the usefulness of leasing on an EV and what factors go into the actual lease price. KUDOS!

@diz354 Год назад

Your breakdown of finding the lease payment and money factor is spot on! That’s the exact formula I used in purchasing my Audi and my wife’s Car as well.

@avaughs Год назад

One of your BEST informative Videos. Thank you Dave!!

@cartiercameronj9247 Год назад

I never had the dad to explain all of this to me, thank you Dave, youre the best!

@jasonsolomonides Год назад

Dave - thank you for the great video and explanation! I discovered some more detail regarding the 'wacky leasing' "money factor" calculation of 2400. It is actually the product of 3 consecutive unit conversions (1/2 * 1/12 * 1/100) to convert from an interest rate to a money factor. 1. The APR and finance charge is on the value of the ENTIRE car (not the depreciation). 2. The straight line depreciation (or linear deprecation) is a key. i. The AVERAGE VALUE of the ENTIRE car is equal to (Cap Cost + Residual Value) / 2. ii. The 12 is there only because APR is related to a year and "money factor" quoted by the car company is used to calculate the monthly fee. iii. The 100 is there in order to express the APR as %.

@tonireedagency5006 Год назад

Outstanding content Dave!!! Thank you for sharing the knowledge Big Guy😅

@bumpskier6840 Год назад

Thanks for the content, it helped quite a bit in understanding how leases work and also how the tax credits could be applied.

@donaldlohouse1334 Год назад

Well done Dave, thank you for the information.

@paulwharton1850 9 месяцев назад

So unbelievably helpful - So clear & easy to understand - I learnt a lot. Many thanks......All the way from London ! ( We pay 20% sales tax over here ! )

@scotthucks7966 10 месяцев назад

Great job! This really helps me when making a decision.

@scottbreseke716 Год назад

Calculate the costs on Tesla's order page. The loan option makes more sense than the lease option.

@ericm4840 Год назад

Good job, Dave. Thanks!

@drjoint1 7 месяцев назад

Thank you very much. Excellent explanation and very informative. I appreciate what you do

@TalismanPHX Год назад

Dave, thanks for the masterclass in Tesla leasing. I've leased a couple of ICE cars over the years, and have never found that leasing was monetary advantageous. One leased car was severely hit in the rear, but insurance refused to total it because the car was only a few months old. Being prepared for every scenario is important 😮

@ebolds4918 11 месяцев назад

Very Useful Info! Thanks 👍🏽

@aaronalter2000 10 месяцев назад

Thank you for the great video!

@jsellitto Год назад

Hi Dave. This was one of the best videos I've seen explaining the way leasing works. I developed my own spreadsheet back in 2012 when my son was leasing his first car. and it's very similar to yours with one big difference. I'm not sure if the difference is due to the fact that we live in NY or that the Hyundai/Kia dealerships we leased from do things diffently. But my calculations have always been within a penny of the actual lease payment, so I'm confident it works. So the way I've calculated the finance charge is to apply the money factor to the sum of the net capital cost (negotiated price less all capital cost reductions including any rebates) and the residual value. This has worked for me 100% of the time (so far). Also, I've learned that the reason Tesla doesn't pass the Federal Tax Credit on under a lease is because Tesla doesn't qualify for it. Tesla is not a dealership, they are the manufacturer, and as such do not qualify for the tax credit. I found this out during a phone call to Tesla. Anyway, your videos are very insightful, so keep doing what you're doing. Thanks.

@petetoemmes6673 9 месяцев назад

I do believe the (monthly) Finance Fee is based on the (Net Cap Cost + Residual) x the Money Factor.

@rickmcdonald7075 Год назад

Great explanation, thanks!

@mjmellock Год назад

Thanks Dave!

@arcanernz Год назад

4:50 to be clear the reason Tesla was able to qualify all their cars for $7500 (even the ones with Chinese materials) is cause the change how the calculated foreign materials based not on the particular car but on the entire fleet of cars averaged out. This only works if you have enough cars that are made in the US to offset the cars made with foreign materials.

@issiewizzie 19 дней назад

In the UK, with Tesla, we have the PCP option, which is currently interest-free, with the ability to buy the car outright.

@mikescott58 Год назад

Wow, thanks for a very informative video. I never considered the fact you lose the down payment in the event the car is totaled. My main reason for leasing my Model 3 was the fact that technology is changing so fast, especially for Tesla. I got mine in September 2021 and the hardware is already obsolete, Infotainment CPU, FSD hardware (v3 not v4), CCS compatibility. Who knows what other goodies will be standard when the time comes to lease another vehicle. These cars are more like computers. At the time I leased, the federal tax credit for Tesla had expired so it didn't matter. I wonder if Tesla will change course on this in the future.

@mousepad3000 Год назад

Awesome summary, Dave. I bought an Ioniq 5 through lease to get the $7500 tax credit back in March. It was the first time I've used a lease since I'm pretty much the opposite of you in that I tend to keep cars for years. If you had done this video 4 months ago you would've saved me days of research trying to understand how leases work :)

@ontheboat8444 Год назад

The leasing company is the owner of the car and they will be claiming that $7500 tax credit. You cannot. Unless you got the $7500 deducted from the cost of the car at the time of the lease, don't try to claim it a tax time, or uncle sam will come knocking at your door later.

@Grandmasterjord Год назад

@@ontheboat8444That’s how they do it. They take the $7,500 of the car at the time of purchase for a lease. That’s how Hyundai and Kia do it at least.

@samuelweiner5382 Год назад

I leased a car once. That was it for me. Never again. The mileage limit was a money disaster for me. I went over the mileage limit which cost me. The dealership didn’t want to work with me. I got screwed, mainly because of my own ignorance, so I blame myself. Live and learn. If you like to drive a lot and don’t want to think about how many miles you drive, don’t lease a car. Buy it.

@doomsday9973 Год назад

Yep leasing is not for those who drive a ton. You can always get out of the mileage overages by selling the lease, but it depends on how much equity you have in the car

@johnross6314 Год назад

I think I missed out (no inventory?) on “leasing” Model S where in the company, Tesla lowers cost cap on lease. PLUS the big discount and free supercharging. I am not a payment kind of buyer for business or personal. However, this Qtr bundle on the lower this year price for model S is attractive. Good education video for those who may not understand what you discussed is good deal for them.

@presw2pw123 Год назад

Thanks for the info! Couple tiny things. In NY and some other states, the tax is due upfront, not taxed on each payment. You can finance the tax. Also you didn't mention that cap cost reduction is taxed. Some states also have a property tax on cars. I would like to download your lease calculator spreadsheet if possible. Thanks again

@dianemar2093 11 месяцев назад

Good show, mate! I was not aware that in 2024 the $7500 will come off the MSRP. I am waiting on the EV Equinox, Fisker Ocean, and Volvo XC 30 in 2024. In the meantime, I'm soldiering on in my '18 CR-V (36 MPG) and '13 Volt (122 MPG). Can't touch dis!

@trpblr Год назад

a few things to add based on personal experiences with leasing. First it is not a hard and fast rule that you can't build equity with a lease, if you just do your term and hand over the keys at the end then yes that's true. I have sold three cars that were leases for a profit, as the residual or buy out of the lease was less than the current value be it trade or outright sale. So yes it is a pain because you have to pay off or buy the car from the leasing company, wait for them to send you the title, then wait for your state to issue you a new title before you can sell it. But I've made anywhere from $1,500 to $6,000 by purchasing then selling a leased vehicle. Second we just leased a 2023 BMW iX, As you mentioned this is one of those vehicles that would not qualify for the federal tax credit if we purchased it, nor would we qualify for that tax credit even if the vehicle did, but we did get the $7,500 cap reduction from BMW by leasing it. The only downside to leasing with BMW, or at least our local dealer is they do have a fee at the end that as Dave describes is waived if you purchase or lease your next vehicle from them. At the end day I've decided that I like getting into a new vehicle every 3 years, and generally speaking to do that in a purchased vehicle will cost you quite a bit more than it does to lease it for 3 years.

@ReelDeckGaming 3 месяца назад

I got the $7500 on my lease today. Just an FYI. I know the video was 9 months ago but as of right now leases do get them.

@user-wp2xm9yn8e 7 месяцев назад

Hey Dave 'outstanding Video' Period. for some of them it will be a finance class but I have leased so many cars since 2009 till today. 3 MDX, 1 TLX , 2 Maxima, 2 vans, all of the cars I leased with excellent money aspect ratio and no money down ( 0 ) just my expansive signature, which is close to 0% APR and I used it, abused it and I get to keep the depreciation. Also one very important note on Property tax you were talking, I never paid property tax to leasing company as they can not force me to pay, yes it use to stay on my account till the end and when I went to lease another one, I told the dealer, " I will lease another one but you have to take my current leased vehicle based on what is current value, because my payoff also include those 3 years property tax, that way I got crafty and saved 1400. well enough of me bragging . I did that so far as I hate car breakdown, maintenance etc. but now my MDX which is coming out of lease, I am deciding to either buy it for 27K OR sell it for 30K ( I have offers from Honda dealer) and buy Y as if I had to buy my MDX for 27K the payments is going to be around 600+ a month OR put 10K down and pay EMI of 500+ VS buy a Tesla Y for 52K, put 4500 down, payment is 720 approx and get the 7500 tax credit and also some saving from Milegae ( gas VS charging) what you think Dave?

@randallsmith7885 Год назад

Love this video. I have never understood leasing and the way I see it, the auto industry is as opaque and dishonest about leasing as they are their sales practices. Note, for example, that when you added the $7,500 tax incentive as a capital cost reduction, the interest component on the lease did not change, even though the amount financed went down by $7,500. This implies a healthy increase in the interest rate paid for the use of the money during the term of the mease. Auto dealers = crooks.

@TassieEV Год назад

Here in Australia they have what is called a Novated Lease which you lease a car through your employer and is all pre-tax so reduces your income tax amount and it includes everything including fuel, insurance, registration, servicing and a set of tires for the term of the lease and my lease company that I do it through doesn't have a limit like that. I did a 5yr lease for affordability, my next lease I think I'll go 4yr instead as my current lease ends early next year(1st quarter).

@netaverse7694 8 месяцев назад

That sounds amazingly convenient but I’d assume more costly. No?

@richardblevins4657 Год назад

Dave - could you add your spreadsheet for reference. I think it is a great tool

@telerye Год назад

good video!

@miker3454 11 месяцев назад

States vary in their calculation methods. In Texas, for example, the money factor is applied against the total of the net cap cost (negotiated price) plus the residual (not the net cap cost plus the MSRP). Makes a good bit of difference ... in this case, it would yield a final payment amount of $738.75 vs $794.20.

@netaverse7694 8 месяцев назад

Thanks for adding this

@andrewlawrence7589 Год назад

Hi Dave I just wanted to say that you make Tesla sound like they are the only ones that do not allow a buyout at the end of the lease. My understanding is that there are a few others and more looking at the same model for future leasing. A fan and friend from Canada Andrew

@willaleman7385 Год назад

Dave what a great video and insight into this crazy leasing world. This is by far one of the best videos I've seen on explaining both the risk and more importantly how the lease terms work for the majority of the world (minus Ford). I've thought about leasing many times and love spreadsheets, but after your video so glad I am more of a traditional buyer when the car is a good value. Enjoy watching your videos. I'm actually renting a Tesla through Hertz for the next week for a 4th of July trip with the family and that video has placed me more at ease on what to actually expect. Please keep up the great work and thank you for always sharing your car knowledge. Best - Will (PS my wife and I bicker the same as you and yours and how I don't listen...16 yrs thus far and many more to go - cheers)

@greggalletta8679 Год назад

You’re right about Ford leases being weird. The Connecticut property tax is added to the monthly payment. Everybody else just bills the tax to you annually. The problem with the Ford lease is that the tax charge stays the same for the life of the lease even though the value of the car is less each year.

@TreeHugger826 Год назад

Thanks! I've never leased and now I never will!

@jeromehebert3184 Год назад

yea i've noticed whenever buying a car how they justify using that fabricated number to do the calculations ie never made sense to me. But this is a good explanation as how they are computing numbers.

@sunflowerkidworld 8 месяцев назад

Thank you, Dad!

@austinpowers1999 Год назад

Thanks Dad

@daber2000 8 месяцев назад

thanks for this! i'm taking delivery in a few days, is there a way i can see the final lease breakdown before paying the first payments (taxes+fes and all that)?

@MrJgibo1 Год назад

FYI Dave. No one has to report to Carfax. Geico told me they don't and my body shop said they don't either.

@bichhang381 9 месяцев назад

I think Tesla pass on the $7500 Tax credit now

@rays8346 Год назад

After being in the car business I will say leasing is the way to go specially all this new cars with allot of electronics

@nishantthaccker1173 4 месяца назад

Yes but only issue is how much they will deduct for damages when you return a lease ?.. Otherwise seriously from peace of mind perspective it's very clean. You may spend maybe 100/150 bucks more (per month when you do all the calculations over lease terms) but don't need to worry about major maintenance issues plus a new car every 3 years!

@ronfladell5648 Год назад

Dave, I believe the finance charge is the the Cap Cost + Residual Value * Money Factor?

@Dp-hc2yn Год назад

nice

@normanbutler5134 Год назад

Can you go over how long will my battery last if my car is parked for a week while parked at the dock while on a cruise not plugged in.

@raymondtrippy3610 Год назад

Dave, that was an amazing amount of info and explained extremely well. I didn’t intend to lease my Tesla and now know for sure I wouldn’t do it. Very much enjoy your videos, thank you much and look forward to your next where hopefully your wife will be joining you too. 👍

@lindenlee3705 8 месяцев назад

Hi, Dave, thanks very much for the detailed explanations of leasing terms. Actually, we are considering buying or leasing a model Y soon, end of the year or early next year, but can’t decide which. This video was posted a few months back, now that Tesla will pass some of the tax credit to the buyers by lowering the monthly leasing payment, which makes leasing more attractive. But we have never leased cars before and a little nervous about doing it. The reason why we are considering lease this time is that we know we want a Tesla model Y, but we also know now it’s a tricky time to buy one for a couple reasons: 1. The range. The long range version has a useful range about 200 miles considering the recommended battery charging state of 20-80%. We would really like it to be in the 300 miles range like model S; 2. The rumored model Y update (Juniper) is in the works and would really like to buy the new version (like Model 3 Highland). But it doesn’t seem it will be released anytime soon. We are thinking by the end of the 3 years lease term, it should be out. Pretty sure by then everything will be updated including the battery range, we would really love to buy the Juniper version. If we buy the model Y now, the value of it would likely take a significant hit, or on bar of leasing one. So we are in this dilemma whether to buy or lease one now. Your input would be greatly appreciated! BTW, my wife and I love watching your channel, you and Kathy. We learned a lot from you guys about Teslas. Oh, congratulations on your new red model X😀

@Jen-fs5lp 8 месяцев назад

What did you end up doing?

@lindenlee3705 8 месяцев назад

@@Jen-fs5lp We ended up buying a MY and took delivery a couple of days ago, so we are now the proud new owner of a Tesla, and more to come for sure. Actually before buying the MY, we had second thoughts and were considering a MX as an alternative. The reason being there is no upcoming MX refresh and it should stay pretty much the same. This way we could own a MX for 2-3 years, by then, we could trade it in for a newly updated MY probably for the same amount of money or something close. We were planning to schedule a test drive of MX and MY side by side since we've never driven a MX. Then the Thanksgiving came along, I was browsing Tesla inventory and spotted one that was $2500 below the regular price, and that did it... Other thoughts about the MX, when we were considering MX, one thing we had reservation was the falcon doors. Although cool to look at, we felt they were somewhat not that practical. I am sure there is a lot of engineering of those doors, but also heard a lot of complaints about them too. In addition we felt the roof over second row passengers is severely blocked due to the design of these doors. Prefer the huge glass roof of MY. Also installation of roof racks is impossible on MX. If MX could use sliding doors similar to minivans, we would definitely getting a MX. I am sure a lot of MX owners love it the way it is, but for us we prefer it differently.

@jyom3371 11 месяцев назад

Dave, can you make your spreadsheet public so we can just plug in our numbers? Google shared sheet?

@lesterng5748 Год назад

The problem with leasing is keeping the mileage low I know someone who lease a fiat 500e he had to stop driving it after one year because he was acumalating to many miles on it and tire ware. While I bought a spark ev for 13k dollar with 0% interest unlimited miles and still have the car still gets epa millage and over 80k miles on it

@caseystone5101 6 месяцев назад

Could you share your excel calculator you used in the video?

@garygorgo3600 Год назад

Excellent video, you just talked me out of leasing a Model 3 Tesla. Thank you very much!!!

@LearningFast Год назад

With the massive depreciation Tesla vehicles are seeing right now I wouldn’t want to buy it at the end of the lease. Not being able to buy the car at the end of the lease isn’t a bad thing anymore.

@doomsday9973 Год назад

@@chriswhobrey9424 That was true in the past but I get his point. If you bought a Tesla last year before the price cuts then you've seen a MASSIVE depreciation in just a few months of ownership.

@dfwinspear Год назад

The Tesla Model 3 still holds nearly 90% of its value after 3 years, per my insurance company.😊

@LearningFast Год назад

@@chriswhobrey9424 have you checked the value of a used Tesla vehicle lately? You couldn’t be more wrong if you tried. The Tesla price cuts have OBLITERATED the resell values.

@bob8606 Год назад

Is there anyway to get a copy of your spreadsheet Dave?

@marcfontana1454 Год назад

This is very helpful - Thanks. I want to create my own spreadsheet. The 4th comment line in the upper right corner of your spreadsheet is a bit confusing - Wouldn't a 10k miles per Year limit increase the residual value?

@dconner9 Год назад

Yes

@chrish6332 Год назад

Some of us do not owe taxes so the way to get the 7500 dollars off is to lease. We always get money back and never owe

@LifelongMusicJunkie Год назад

Did you ever see Mars Attacks? My head is about to explode like the little Martians did when country music played!! Cheers!

@stephenbrader5785 Год назад

Dave as always great informational and entertaining video as for leasing I always leases my cars for the past 15 years my 21 M3LR is leased and is up in 10 months at which time I will lease a Y or the refreshes 3 not sure. Because I always lease I don’t care that I can’t buy however we leased a 2018 RAV4 4 hybrid limited for my wife she loves the car and it only has 35k miles so I actually bought that and will keep it till it dies. I like low payments and new cars which I know you can relate to. Thanks again

@Redadunes 6 месяцев назад

Great explanation of a car lease. Thank you. One thing I want to remind you of, is the acquisition fee. That fee has to be paid upfront it can't be added to the monthly payment. It's usually between $600 and $700.

@dekepgreen Год назад

Dave, great video for folks wanting to critically evaluate actual cost. Helps from a practical perspective as well.

@MarkTomeh 6 месяцев назад

I’m trying to decide if I should lease or buy new model 3. I can’t decid. I’m not sure how long I wanna keep the car. What if I’m keeping it 3 years. If I lease I would’ve spent like 26k for 3 years for nothing to show for it. If I buy I can trade it in and get some of that money back. What ends up costing me more?

@proteinfart5017 11 месяцев назад

I dont understand, if you lease a Model 3 what happens to the $7500 federal tax credit? is it something that must be reported on taxes to take advantage of? ive seen a couple videos and have heard contradictory points, thank you if anyone can help.

@captainron7904 Год назад

placed my order a month ago for MY still waiting it just says June July

@roselapierre9575 3 месяца назад

I got the credit off the msrp when I leased my model y a few weeks ago so this is no longer accurate information. Add in Tesla insurance and I’m paying less per month than I was on leasing my Honda accord. Crazy!

@apollo1464 7 месяцев назад

I had a few incentives to get a Tesla at year end. Tried to set up a lease on a model Y and trade in my Prius. Ended up cancelling it out. Too much finance voodoo so decided to wait. I’m on the Cybertruck list and probably get it in 2026 I think. Not going to lease it.

@Yanquetino Год назад

I have a Tesla! Don't want another, however. I'll buy something else in the future.

@victorsuarez3 8 месяцев назад

Why not?

@darklen14 8 месяцев назад

As of right now, when you lease a Tesla they will use the $7500 tax credit towards the lease and your payments will be lower. They want to incentivize to get more people in an EV. Also keep in mind they utilize about a dozen lenders so it is not just Tesla themselves.

@ksheerasagarakella5975 7 месяцев назад

Yes I just leased a Tesla and this is accurate, the $7500 credit did get applied. It is shown quite clearly in the Details of the lease agreement.

@tazeat Год назад

There are situations where I think leasing makes sense, but if you can only afford a vehicle by leasing it, I'm really not sure that's the best situation for you. Live within your means. You probably shouldn't even be looking at electric at all imo.

@iggykonrad8368 Год назад

I won’t worry about leasing because according to the Tesla website buyers in MI can not lease a Tesla.

@Theundisputedtruth 10 месяцев назад

Struggling to grasp all this. I apologize. Sonif i understand the 7500 is only good to write off. If your makinf money. , so no benefit if i have a small income snd want to get money back , its only in thr from of a deductuon or write off correct ?

@peterfriedman3745 Год назад

We are in a strange time. With 7500 cap cost on a lease. I was looking at an EV6 for this purpose. I can lease then buy for about 56k. 2k less than MSRP. Buying it is 65k if you finance.

@tommysts1920 Год назад

But, you have to look out for what you paid to lease every month for 3-4 years also. I'm not crazy about leasing, because at the end of the lease, you end up with an older vehicle and it is still not that cheap to purchase it if you like it. I have always saved up money, so I can purchase the car with cash. I have really got some good deals doing that and they added more accessories on it too. Never deal with a salesman that keeps running back and forth to the boss. if you don't get what you want, walk off. Believe me, you probably won't make it to the front door and you will get your offer. Also, always research before buying. and remember money talks and bullshit walks.

@peterfriedman3745 Год назад

@@tommysts1920 Im not crazy about leasing either. I have bought my last 4 cars and had equity each time that I could use toward my next purchase. I would have no intention of keeping the car, but I am going to put 10K per year so the car should have equity vs the buyback at lease end. It's really all about getting the lowest selling price you can right now, and getting the 7500 off the top via a lease makes sense at this point in time. Normally that would not be the case.

@doomsday9973 Год назад

@@peterfriedman3745 FYI, I leased my last several cars sold those leases and made a profit off the equity on each one, im some case thousands. You can absolutely cash in on your lease equity and skip all the turn in fees etc.

@bryanlinares3475 9 месяцев назад

What if i wait for 2024 to get not a credit, but 7,500 off the cars price upfront?

@joshuarosen465 Год назад

The reason to lease an EV is to get the Fed credit if either the car or the person wouldn't qualify if you bought it. If Tesla isn't passing it along as a cap cost reduction then there is zero reason to lease a Tesla. The Tesla lease has always been a bad deal compared to everyone else's lease because there is no buyout at the end, this makes it even worse.

@raypabs5374 8 месяцев назад

According to this video, Tesla will not do a $7500 capital reduction on the msrp lease but does that mean I will instead get the $7500 federal tax credit when i fill my taxes?

@williamsloggy5144 Год назад

WOW. I did not know that about the tax credit. They just pocket it for themselves! I thought I could lease one and use the credit to cover the downpayment. no I can't.

@dougfox5312 Год назад

Thanks for the info straight up at the beginning of your video. Sometimes I have time to watch your entire video but glad to get that bomb at the beginning!

@rhbruning 8 месяцев назад

Be Careful if you lease in NY!!! At the end of lease, if you don't release from Tesla, You only can return your vehicle at an approved location. These are in the NYC area or OUT OF STATE. Yes, that is true as of 11/28/2023. I live in Rochester, NY. They happily dropped my lease off at my house three years ago. My lease concluded and I am instructed to drop off my vehicle in Mechanicsburg PA and write them a $1000 check. This is 5 hours drive (275 mi) each way. The second option offered was Mt. Kisco, NY - north of NYC and 350 mi away - 6 hours w/o traffic. How do I get home? Rent a car? I'm not driving over 12 hours in a day... Hotels? bus? Reading between the lines, Rochester has Tesla service centers. Sales are online. Their logic mixed with NYS law is you can't (or Tesla wont accept) lease drop offs at service centers...only sales locations. The automated menus and the app will run you in circles. If you find a a human, they will be young and have to get a manager. The manager will humor you until you are tired. It is what it is. T.S.

@Tesla-w2d 11 месяцев назад

Come to the point

@radiioman46 Год назад

Great information from a great teacher. I've never leased a car, or used a loan, to buy a car, after I obtained my common sense. It's better not to buy, if you don't have the moolah. Sad, but true. BTW, it took me about 6 years to get out of college, but more than that to obtain my common sense.

@normt430 Год назад

If you are in a similar situation as the Out of Spec crew or independent contractor you could deduct vehicle expenses on your taxes.

@DavidKinnear3 Год назад

When the $7500 tax credit is applied to the lease, would that not also reduce the interest component of the lease? After all, you are paying off a smaller amount of money.

@outofspecdave1554 Год назад

I believe you are correct

@DavidKinnear3 Год назад

@@outofspecdave1554 My guess is that you would need to deduct $7500 from both the MSRP and from the negotiated price before calculating the interest component. That would make the monthly payment considerable lower.

@JulyOverland 7 месяцев назад

Yep another victim here, took my 250 bucks loss and went straight to Jeep and got me a nice Rubi

@doomsday9973 Год назад

It is BS Tesla dosent give the 7500 for lease virtually every other EV/PHEV manufacturer is doing it right now especially those that don’t qualify for the made in USA purchase 7500. Also I don’t believe this was mentioned but (Tesla being the exception of course) you can sell your lease and pocket the equity (you also don’t have to worry about disposition fees etc). I never turn my leases in, the last several I had I sold leases and pocketed thousands in some cases. Only wrinkle is it’s become more difficult since COVID and you really have to sell through a broker now

@paulbelletiere Год назад

I’m sorry Dave but I leased a 2017 bolt for the three years and I did not receive that credit in my leasing contract. They pacifically told me that I wouldn’t be going to get that credit so I don’t know where you’re going information that GM would takeoff that $7500 in the leasing program

@dconner9 Год назад

That’s a used car. Of course they would not give you the $7,500 as a cap cost reduction

@normt430 Год назад

GM specific manufacturer tax credit ended end of March 2020, when it was down to $1,850. I know as I picked a a 2018 CT6 2.0E plug-in nee with 575 miles then and got the tax credit. You could file an amendment for the full $7,500 if you qualified in 2017 lease.

@karlengle Месяц назад

According to Tesla they work the 7,500 incentive over the lease period. So I don't understand why you are saying that.

@treborheminway3814 Год назад

Thank you. I have never leased before, but you brought up several issues that could make it attractive. I feel learned up now!

@haroldrich7118 Год назад

Always enjoy your expertise. Would like to know your opinion…. Yoke or Wheel for Model S. I like both but I have to make a decision. Thanks

@dconner9 Год назад

Wheel 1,000%

@scottbreseke716 Год назад

Do a test drive with both, then decide. After my test drive I didn't mind the yoke.

@jimpatten7952 Год назад

Educational video.

@Superman-xr1oh Год назад

I won't even bother considering buying a car unless i can buy it with cash outright.

@hankjost8151 Год назад

Nice video, however, Edmunds calculates the interest component of the lease payment differently. They take the sum of the capitalized cost (after down payments/rebates) and the residual value and multiply that by the money factor. That makes a little more sense versus adding the MSRP and the sales price as you do. I believe carsdirect does it same as Edmunds. I tried a couple auto lease calculators and those produced yet other lease payment amounts for interest. Looks like the same money factor yields different lease payments depending on the leasing company and how they do their calculations, further confusing the consumer.

@chrisb321 5 месяцев назад

This does now need updating

@victorespiritu3431 7 месяцев назад

They dont pass it to you but they apply it to the cost

@MarkTomeh 6 месяцев назад

Tesla is passing down the $7500 tax credit they’re getting to you if you lease right now. Should that make a difference?

@jakegevorgian 11 месяцев назад

Dave, this was the most comprehensive lesson I've ever heard on leading a vehicle. Thank you so much for this masterclass! I've a question---let's say I found a Tesla model Y that is sold or possible to lease at a dealership, will the "non-Tesla" leasing company be able to apply the $7500 cap reduction?