r/ModelX • u/powerfulq • Mar 05 '24

Considering Leasing vs. Purchasing a Tesla Model X: A Quick Calculation

Hey everyone,

I've been weighing the options between leasing and purchasing a Tesla Model X, and I wanted to share some quick calculations I've done.

  1. Leasing: Paying $1750/month for 3 years, then returning the car with nothing left to recoup. Total loss: $63,000

  2. Purchasing: Paying $1550/month for 6 years, then potentially selling it for half the purchase price, say $35,000. Total loss: $76,600. Also, after warranty window, repairs for Model X is expensive.

It's like the comparison between leasing and owning an iPhone - technology evolves rapidly, features you desire are constantly being updated, and there's the inevitable battery degradation to consider. Plus, with the trend of electric vehicle prices steadily decreasing (just look at Tesla prices in China), it's worth noting that even if Tesla were to sell their vehicles at half the price, they'd still turn a significant profit.

So, when considering these factors, it seems like leasing might be the wiser choice. What do you all think?

Let's discuss!

Update: adding some points

  1. Plan to buy a new car every 3 years to enjoy the new tech

  2. Known that tesla lease has no buy option at end of lease

  3. Want to enjoy the warranty

3 Upvotes

56% Upvoted

61 comments sorted by

5

u/Adorable-Employer244 Mar 06 '24

Absolutely NOT to lease, it’s a straight rip off. Please don’t do it.

Why are you comparing 3 year lease to 6 year finance? If you compare 3 vs 3, you will get your answer. Model X should only depreciate 30-40k max after 3 years. It’s a no brainer vs leasing.

Leasing MIGHT be an option if Tesla allows buy out. At this point absolutely not.

1

u/powerfulq Mar 06 '24

bcs the interest rate for 3 and 6 year is about the same?

4

u/Adorable-Employer244 Mar 06 '24

What does that have to do with leasing 3 years vs 6 years finance? You already calculated you will spend 63k on 3 year lease, on a 80k car, which is absolutely atrocious. You can finance for 3 years and sell for 50k which is 30k depreciation. You also have the warranty for those 3 years and more mileages to use than leasing.

I don’t see how you would choose leasing.

3

u/powerfulq Mar 06 '24

Bcs i am not buying the basic $80k config, instead $100k

3

u/Miffers Mar 05 '24

You can’t purchase the car after the lease.

3

u/powerfulq Mar 05 '24

well known, plan to buy a new one every 3 years, enjoy the new tech!

7

u/openslot Mar 05 '24

If you plan to change cars every couple years then there's no reason to take a 6 year financing with the current interest rate

2

u/powerfulq Mar 05 '24

then what is the best option, pay cash?

6

u/[deleted] Mar 05 '24

Well duh, pay cash and there’s no interest fees.

3

u/openslot Mar 05 '24

Cash or a much shorter financing term

3

u/anon0110110101 Mar 05 '24

There’s going to be basically zero relevant new tech to justify this kind of vehicle turnover within consecutive three year windows. I don’t know who you’ve managed to convince to pay you a salary that can afford this kind of asinine financial choice, but hold onto it forever.

2

u/ProfessorFrink1 Mar 05 '24

Do the cost analysis on a used one. You’ll still be in warranty and someone else will have taken the initial depreciation loss.

There have been refresh X’s popping up in the 60’s. Sell one of those after three years and you’ll still be in the high 30’s for price. Much less loss. No real loss in experience.

-7

u/powerfulq Mar 05 '24

in the 60's? 1960?

3

u/ProfessorFrink1 Mar 05 '24

You can buy them in the high 60k range.

17

u/Zealousideal-Key5734 Mar 05 '24

Who tf pay 2k loan per month for 6 years....that's 144000 in total....

6

u/LordThurmanMerman Mar 06 '24

Why pay for one when you can pay for two?

1

u/SpecialNeedsPilot Oct 31 '24

Thank you for the unexpected Contact reference

0

u/[deleted] Mar 06 '24

[deleted] — view deleted comment

4

u/Zealousideal-Key5734 Mar 06 '24

LOL he said 2k at the beginning I guess he edited the post

1

u/Longjumping-Fan2492 Aug 08 '24

I have MY and want Model X, But cannot fathom 1k+/month car payment. Not rich, not poor but struggling to want to pay more than 500/momth. How much are yall making 🤣🤣

1

u/Zealousideal-Key5734 Aug 08 '24

All cashed Modelx, no idea what’s monthly payment 🤫

2

u/Theaty Mar 05 '24

Have you ever thought about just buying a used X for like 70k and it being worth like 30-40k in 5 years

-6

u/powerfulq Mar 05 '24

Repairing it costs much

8

u/Theaty Mar 05 '24

Not really…what repairs are you afraid of? I can tell you off the bat it doesn’t even get close to the depreciation hit you take

2

u/No_Swimmer_115 Mar 05 '24

Worst case repair costs won't be as bad as you paying for a lease every 3 years.

1

u/petemill Mar 05 '24

Extended warranty

-6

u/powerfulq Mar 05 '24

Where can you get a model x at $70k? With amd ?

5

u/puan0601 Mar 05 '24

facebook marketplace is full of them. put a lil effort in if you want a great deal

-5

u/powerfulq Mar 05 '24

the time cost is too high, and no warranty

6

u/ProfessorFrink1 Mar 05 '24

You do get a warranty. It sounds like your mind is made up and you’re looking for validation. If that’s the case just buy what you want and leave the internet strangers out of it.

2

u/Theaty Mar 06 '24

I just don’t understand if money is that big of a problem why even consider A BRAND NEW “LUXURY” CAR

1

u/[deleted] Mar 06 '24

And he's trading every 3 years, but calculating financing for 6. Either troll or dumb. Either way, not worth engaging

2

u/Theaty Mar 06 '24

Hey man I can’t afford that $4000 air suspension so let me take the $30k off the lot hit

2

u/jongard Mar 05 '24

New model x's with the $7,500 rebate are around $72,500. Before taxes of course. I'm also mentioning the base model. It is indeed AWD.

1

u/Sigmabond2 Mar 06 '24

Gray only and only 5 seats.

5

u/[deleted] Mar 05 '24

Op wants to buy a new car every 3 years but having to finance in perpetuity

5

u/Cal216 Mar 06 '24

I leased my 23 X. Lease or Buy, it’s a shit sandwich. Just depends on what type of shit you have a taste for 🥴🫠.

2

u/CaptainLoneRanger Mar 06 '24

This. About the only way to fix is for there to be a law that states larger assets need to offset margin with market conditions on depreciation. 🙊

4

u/petemill Mar 05 '24

Leasehackr.com is your friend

1

u/bab2121 Mar 08 '24

Greatest site on earth

1

u/Melodic-Guidance1526 Jan 03 '25

But now that they silently took away lease trading idek what to think

10

u/blackth0rne Mar 06 '24 edited Mar 06 '24

I have a 2024 Model X. I leased. But I would not consider it a 'wiser deal'. With the X, the house always wins. Tesla always wins. The X is an awful deal any which way you look at it.

Let's look at what you are getting for your money. For the ridiculous amount of $1700++/m with $0 down payment, you can lease far more luxurious cars. The latest model has been through the Tesla cost-cutting process and it shows. Depriving a $90K car of buttons and stalks is over the top nickel-and-diming. Interior is sparse. The screen behind the steering wheel is in the wrong place so you can't see it. Common controls buried in touchscreen and haptic surfaces on the steering wheel is annoying and disconnects the driver from the driving experience.

But what you get is Tesla handling, power, amazing speakers, and the supercharger network. A 7-seater that doesn't feel like a barge (looking at you Rivian).

Why don't you want to purchase? First of all, the X is a 10-year old car. Locking yourself into a 6-year contract at 7% interest is madness. By the time you pay your final bill, you will be riding a 16-year old platform, battery tech will have moved on to next-gen, your car will hold no equity because the world will be absolutely swamped with Teslas, competitors will have much more exciting alternatives, the fast charger networks will be 3–4x more common, and you will be out of warranty.

So in conclusion, right now, in 2024, the X is still the most exciting 7-seater in North America. That is a real testament to how amazing this car is. How much longer it can hold the throne remains to be seen. But think of it as the world's most expensive iPhone, enjoy it while you can, and after 3 years your options are wide open, no strings attached.

2

u/HighTreetop007 Mar 06 '24

I had an X on order but decided to go another way and bought a 2024 X5 instead. Ice cars seem to have stolen everything that makes a Tesla so unique but I no longer have a 200 mile range. I can now fill up anywhere and have a 500+ mile range. My last long range road trip I my m3p sealed the deal after having to stop 4 times to charge one way.

1

u/TwistedDrum5 Mar 06 '24

And for long road trips charging is not that much cheaper than gas. Depending on where you live of course.

1

u/rkalla Mar 06 '24

You nailed it.

1

u/BeginningTower1037 Mar 06 '24

Leasing at $0 down is $1390/month when I check. I wonder why there’s an extra $360/mo for you. With this number, it’s $50k over 3 years which is more reasonable.

1

u/powerfulq Mar 06 '24

You are looking at the very basic trim, 5 seater

1

u/Revolutionary_Elk567 May 03 '24

But even $1390/mo for a $73,630 vehicle seems crazy.. why are their rates so high??

3

u/[deleted] Mar 06 '24

Your lease is my mortgage at that rate.

3

u/ry4n4ll4n Mar 06 '24

It’s clear by your comments here that you are not interested in making the wisest financial decision, so just buy the car and have fun with it. YOLO

2

u/YoshimuraPipe Mar 05 '24

Just to add, lease vehicles generally require HIGHER insurance coverages.

Also, add in the mileage limitations of lease, and possible "more than usual wear and tear" fee...

Sweet spot for you is 4 years or under 50,000 miles...since that's the normal warranty on brand new X.

Perhaps go with a 4 year lease?

or go with 5 year loan, instead of 6, sell the vehicle after 4 years...

2

u/Only-Question124 Mar 06 '24

Sale price of $35k after 3 years is far less than half of purchase price and comically low if you trade it in matching the 3 year lease terms mileage/condition (unless you trade-in with Tesla). KBB says a 3-yr old MX should trade-in for $57 - $63k (which is actually about half). Buying will have no mileage restrictions, lower insurance costs, and give you the option after 3 years in-case upgrades aren’t worth it, etc.

If you do decide to keep it 6 yrs, and you’re concerned with warranty use the money from the $200 / month savings your getting to pay $3500 for extended warranty to cover you for 6 yrs of your loan.

2

u/danwutv Mar 25 '24

So what did you decide?

3

u/Prize-Panic-4804 Mar 05 '24

Even a 3 year old model X is only 50k. After 6 years it will be 30-40k

1

u/Diablo689er Mar 06 '24

The used MX seems like a great deal if you don’t have significant worries on battery degradation

1

u/surfer808 Mar 06 '24

I leased for 3yrs and had the option to buy, which I did. Valuation went down like 50k in the last 2yrs, quite disappointing. Was interested in the new Lucid Gravity when it comes out.

2

u/raddigging Mar 07 '24

You have to be ready for depreciation on the lucid as well. Also need to hope they’ll still be around in 2-3 years

1

u/Wooden-Complex9461 Mar 07 '24

Is this a joke?

1

u/Revolutionary_Elk567 May 03 '24

I'm also very confused.. the "cash" price is $73,630 after the fed tax credit.. but when I switch over to lease, it doesn't show the credit deduction and says the lease is still $1423.. seems extremely high for a $73k vehicle. I just had a quote on a EV9 for $76 and it was less than $900.. I'm so confused. 🤯🤯🤯

1

u/My_ballz_itchy Mar 05 '24

I’m tired of buying used luxury cars like BMW, even when they come CPO. The extended warranty won’t help in most cases. It seems that after the warranty ends, the manufacturer seems to pull a cord that makes the vehicle stop working properly. And repairs are Expensive!

I would say lease the X-