Author Topic: $1500 Lease for a Tesla X?  (Read 2257 times)

47%MMM

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$1500 Lease for a Tesla X?
« on: October 23, 2018, 11:05:13 AM »
I was day dreaming on a work call and priced out a Model X. For the long-range version, the estimated lease cost (which is similar to the financed amount) is over $1500/month.

Have been reading this forum too much? Do people really pay $1500/month for a car?!?!? I can't believe it and need to know if I'm out of touch with the rest of the world.

pantherchams

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Re: $1500 Lease for a Tesla X?
« Reply #1 on: October 23, 2018, 11:30:31 AM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

Mississippi Mudstache

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Re: $1500 Lease for a Tesla X?
« Reply #2 on: October 23, 2018, 11:37:25 AM »
Damn, that's higher than my mortgage. Damn.

47%MMM

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Re: $1500 Lease for a Tesla X?
« Reply #3 on: October 23, 2018, 12:00:20 PM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

I guess I thought all those car I see would have been purchased in cash by some people with serious $$$, not leased. I now need to make it a quest to find someone with a lease payment over $1500 and do a GOT-style shaming on them.

PiobStache

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Re: $1500 Lease for a Tesla X?
« Reply #4 on: October 23, 2018, 12:03:43 PM »
I was day dreaming on a work call and priced out a Model X. For the long-range version, the estimated lease cost (which is similar to the financed amount) is over $1500/month.

Have been reading this forum too much? Do people really pay $1500/month for a car?!?!? I can't believe it and need to know if I'm out of touch with the rest of the world.



What was the residual and MF?  Cap cost vs. MSRP?

pantherchams

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Re: $1500 Lease for a Tesla X?
« Reply #5 on: October 23, 2018, 12:10:40 PM »
I guess I thought all those car I see would have been purchased in cash by some people with serious $$$, not leased. I now need to make it a quest to find someone with a lease payment over $1500 and do a GOT-style shaming on them.

In my experience most of these folks "upgrade" every 2-3 years, so they lease.  Not really a point in paying cash for $120k car that you sell for $40k in 3 years when you get a new one.

CCCA

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Re: $1500 Lease for a Tesla X?
« Reply #6 on: October 23, 2018, 12:32:42 PM »
when I read the title I thought you were going to be asking whether people thought that was okay or not.  :)
By the way, if anyone is wondering, that is an absurd amount of money to pay for a vehicle that you won't even own outright. 

47%MMM

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Re: $1500 Lease for a Tesla X?
« Reply #7 on: October 23, 2018, 12:33:29 PM »
What was the residual and MF?  Cap cost vs. MSRP?

I no comprehend the words you speak.

I've never leased nor plan to or I would do some research. But is there a scenario where any of your requested information would make a $1500/month lease make sense?

Here is the car builder if your interested:

https://www.tesla.com/modelx/design#general_disclaimer


PiobStache

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Re: $1500 Lease for a Tesla X?
« Reply #8 on: October 23, 2018, 12:36:09 PM »
What was the residual and MF?  Cap cost vs. MSRP?

I no comprehend the words you speak.

I've never leased nor plan to or I would do some research. But is there a scenario where any of your requested information would make a $1500/month lease make sense?

Here is the car builder if your interested:

https://www.tesla.com/modelx/design#general_disclaimer

At least for me it would be hard to comment on how valid that number was unless I could answer all those questions and work the math myself.  Goes for a 1.5k a month lease or a $100 a month lease.

It's like someone bragging they made 20% "playing the market."  If the S&P was negative that year, that's a pretty good brag.  If it turned in 25% not so much.

katsiki

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Re: $1500 Lease for a Tesla X?
« Reply #9 on: October 23, 2018, 03:19:26 PM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

Or a fancy truck.  I work with a guy with a $70K pickup truck.  It blows my mind.  He works in an office.

rantk81

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Re: $1500 Lease for a Tesla X?
« Reply #10 on: October 23, 2018, 05:48:48 PM »
For a car that is $1500 alone for the lease... plus insurance, plus gas or electricity, plus title/sticker fees, plus maintenance costs.....

Nah. I think I'd come out way ahead just by using Uber every time I wanted to go somewhere.

Radagast

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Re: $1500 Lease for a Tesla X?
« Reply #11 on: October 23, 2018, 07:48:01 PM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

Or a fancy truck.  I work with a guy with a $70K pickup truck.  It blows my mind.  He works in an office.
It's especially funny when they take said new truck and lift it, which as far as I can tell is paying extra money for instant depreciation. Like "lets buy a $70k truck with triple the maintenance, insurance, and fuel costs of a regular vehicle, new so it can be as expensive as possible. Then lets pay $10k to lose $10k!" But that's OT...

AccidentalMiser

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Re: $1500 Lease for a Tesla X?
« Reply #12 on: October 23, 2018, 07:48:58 PM »
I could buy a different car every two or three months!

jlcnuke

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Re: $1500 Lease for a Tesla X?
« Reply #13 on: October 24, 2018, 05:47:46 AM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

This is what it all comes down to. If people aren't causing themselves, their family, or society financial problems with their spending then I don't judge them just because I wouldn't spend the same way in their shoes.

dude

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Re: $1500 Lease for a Tesla X?
« Reply #14 on: October 24, 2018, 07:45:31 AM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

I guess I thought all those car I see would have been purchased in cash by some people with serious $$$, not leased. I now need to make it a quest to find someone with a lease payment over $1500 and do a GOT-style shaming on them.

Nooooooooooo. No no no no no. The vast majority of expensive normal cars on the road are NOT bought with cash. I guarantee you that.

Ultra expensive cars? Yeah, probably paid for in cash by ultra rich folks, but ~100K cars? N'ah, those are mostly leased by indebted folks with really good cash flow. I'm utterly surrounded by those people.

Many self-employed people/small business owners can write off car leases as a business expense.

tedman

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Re: $1500 Lease for a Tesla X?
« Reply #15 on: October 24, 2018, 09:02:39 AM »
My bosses boss does this, he has whatever the top Porsche SUV is. I think the monthly is 1950 or so and it's a total write off (though it probably shouldn't). When your gross is 300 mil a year I guess the IRS doesn't give a shit about say 25k of questions write offs a year.

I laugh a bit about it because I'm a car guy, and I think the car looks terrible and my much cheaper car is faster. Also funny because his entire car payment is more than I pay in mortgage, util, car finance (1.9% for a used car at a credit union) insurance and food a month. I was recently offered "overtime" to come help with another department that is getting slammed by being unexpectedly busy and I turned it down saying I don't need the money, I value my time off with wife/friends/family much higher than some money.

PathtoFIRE

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Re: $1500 Lease for a Tesla X?
« Reply #16 on: October 24, 2018, 09:07:11 AM »
This is an article from 2016 showing the percent leased for major brands, so numbers may have changed recently.
Tesla was at the lower end with just 16% of new vehicles being leases.

https://www.caranddriver.com/news/the-most-commonly-leased-car-brands-in-america-and-the-most-commonly-purchased

Here's the main infographic from the article:


katsiki

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Re: $1500 Lease for a Tesla X?
« Reply #17 on: October 24, 2018, 09:58:33 AM »
Did the business write-off become much less favorable a few years ago?

afox

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Re: $1500 Lease for a Tesla X?
« Reply #18 on: October 24, 2018, 12:09:34 PM »
Yes, and people pay a lot more than that. There are quite a few $100k+ cars on the road, like most of the big German cars and SUVs.  Depends what you make and what you value, I suppose.

Or a fancy truck.  I work with a guy with a $70K pickup truck.  It blows my mind.  He works in an office.

Most people I know own at least one $50-$75k pickup truck or large SUV.  Way more money is wasted on these vehicles than teslas.  Its easy to justify $50-$75k on a truck, hard to justify $100k on a tesla.  Both fall into the facepunch category.

katsiki

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Re: $1500 Lease for a Tesla X?
« Reply #19 on: October 24, 2018, 01:41:17 PM »
Easy for some, I guess.  I'm on the other end...  to me a truck is a POS to use for hauling and moving stuff.  Unless it is needed for your job, I can't see spending much on a truck.


Catbert

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Re: $1500 Lease for a Tesla X?
« Reply #20 on: October 24, 2018, 03:14:12 PM »
I remember almost 25 years ago when I bought a new Lexus. One of my of the managers sidled up to me to ask, "how much are your lease payments?".  When I told him, " Oh, I couldn't afford the lease payment.  I paid cash" he was speechless.

I'd have the same answer today should anyone ask about my Model 3 "payment".  If you can't afford to pay cash for a luxury car, you can't afford the car. 

dustinst22

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Re: $1500 Lease for a Tesla X?
« Reply #21 on: October 24, 2018, 06:24:40 PM »
Did the business write-off become much less favorable a few years ago?

How do you mean?  I write off a portion of my vehicle through my business, but nothing has changed as far as I know on the amount you can write off.  There are of course rules and restrictions, but these haven't changed over the past 5 years as far as I know.
« Last Edit: October 24, 2018, 08:36:02 PM by dustinst22 »

tedman

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Re: $1500 Lease for a Tesla X?
« Reply #22 on: October 24, 2018, 08:20:20 PM »
Did the business write-off become much less favorable a few years ago?

How do you mean?  I write off a portion of my vehicle through my business, but nothing has changed as far as I know on the amount you can deduct.  There are of course rules and restrictions, but these haven't changed over the past 5 years as far as I know.

My accountant spidey sense is tingling, I think something did change but primarily with fleets of leases which shouldn't pertain here. I'll have to look it up and report back.

dustinst22

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Re: $1500 Lease for a Tesla X?
« Reply #23 on: October 24, 2018, 08:36:38 PM »



My accountant spidey sense is tingling, I think something did change but primarily with fleets of leases which shouldn't pertain here. I'll have to look it up and report back.

Thanks, luckily I have a good accountant that takes care of all this for me so I don't have to think about it.

katsiki

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Re: $1500 Lease for a Tesla X?
« Reply #24 on: October 24, 2018, 08:52:20 PM »
Yeah, I don't know the details.  I just recall hearing that it didn't make as much sense for some businesses to do the write-off.  It wasn't in the past 5 years though, so perhaps this changed (again).

bryan995

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Re: $1500 Lease for a Tesla X?
« Reply #25 on: October 24, 2018, 11:47:13 PM »

afox

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Re: $1500 Lease for a Tesla X?
« Reply #26 on: October 25, 2018, 10:49:31 AM »
Average X owners income is 503K.
$1500 would be peanuts.

https://www.google.com/amp/s/www.teslarati.com/survey-model-x-owners-income-double-model-s/amp/

yeah, especially if you have no intentions of retiring from that 503k/year job.

Finallyunderstand

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Re: $1500 Lease for a Tesla X?
« Reply #27 on: October 26, 2018, 08:42:11 AM »
My MIL is a multimillionaire and has leased every single car high end foreign car in her life.  She likes a new car and is also very successful.  Some people just want new without a hassle and are willing to lease even when they can buy in cash.  To each their own.   

PiobStache

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Re: $1500 Lease for a Tesla X?
« Reply #28 on: November 01, 2018, 01:28:13 PM »
I remember almost 25 years ago when I bought a new Lexus. One of my of the managers sidled up to me to ask, "how much are your lease payments?".  When I told him, " Oh, I couldn't afford the lease payment.  I paid cash" he was speechless.

I'd have the same answer today should anyone ask about my Model 3 "payment".  If you can't afford to pay cash for a luxury car, you can't afford the car.

Why not use the super low interest rates available and invest the cash in the market and pocket the spread?  When I can get basically free money to finance something I'll never pay cash.  It's the same rational written on extensively here about paying off mortgages faster.

soccerluvof4

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Re: $1500 Lease for a Tesla X?
« Reply #29 on: November 01, 2018, 01:57:31 PM »
There are just some things out of principle that no matter how much money I had I wouldn't spend it on something like that. To each there own. Like someone else said I try not to judge I am sure there are things people might say the same thing. Or think I'm a bum. Whatever!

dustinst22

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Re: $1500 Lease for a Tesla X?
« Reply #30 on: November 01, 2018, 11:29:00 PM »


Why not use the super low interest rates available and invest the cash in the market and pocket the spread?  When I can get basically free money to finance something I'll never pay cash.  It's the same rational written on extensively here about paying off mortgages faster.

Auto loans have gone up recently, not sure it makes as much sense to do this now.  Also, mortgages have a tax deduction, so its not totally apples to apples.  The other part of this is that people tend to spend more when they finance versus paying cash.

JLee

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Re: $1500 Lease for a Tesla X?
« Reply #31 on: November 02, 2018, 01:37:48 AM »


Why not use the super low interest rates available and invest the cash in the market and pocket the spread?  When I can get basically free money to finance something I'll never pay cash.  It's the same rational written on extensively here about paying off mortgages faster.

Auto loans have gone up recently, not sure it makes as much sense to do this now.  Also, mortgages have a tax deduction, so its not totally apples to apples.  The other part of this is that people tend to spend more when they finance versus paying cash.

Penfed's car buying service is 0.99% for new cars right now. 1.99% for used.

dustinst22

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Re: $1500 Lease for a Tesla X?
« Reply #32 on: November 02, 2018, 10:34:33 AM »


Penfed's car buying service is 0.99% for new cars right now. 1.99% for used.

Havenít looked at this, but from my experience you usually canít negotiate the best market purchase price when using promotional interest rate.  Of course with Tesla it doesnít matter.  Also, weíre assuming stock market will be a superior return compared to a short term note, dangerous thinking as the stock market is a long term investment.  In the short term, it can usually make sense to take the guaranteed return.  This is why itís advisable to keep short term money (under 5 yrs) in something guaranteed rather than the market, even though you might get less return.
« Last Edit: November 02, 2018, 10:39:38 AM by dustinst22 »

JLee

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Re: $1500 Lease for a Tesla X?
« Reply #33 on: November 05, 2018, 03:06:51 PM »


Penfed's car buying service is 0.99% for new cars right now. 1.99% for used.

Havenít looked at this, but from my experience you usually canít negotiate the best market purchase price when using promotional interest rate.  Of course with Tesla it doesnít matter.  Also, weíre assuming stock market will be a superior return compared to a short term note, dangerous thinking as the stock market is a long term investment.  In the short term, it can usually make sense to take the guaranteed return.  This is why itís advisable to keep short term money (under 5 yrs) in something guaranteed rather than the market, even though you might get less return.

Come back when you have.

Dragonswan

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Re: $1500 Lease for a Tesla X?
« Reply #34 on: November 07, 2018, 11:47:09 AM »
Quiet all of you.  Without people willing to spend their softly earned money on luxury car leases the LBYM folks with fancy tastes would never be able to buy a used luxury vehicle that hadn't already given up its best years.  Long live the car lease and the suckas that use them (and thank you 'cause I love my gently used, greatly discounted S)!

Car Jack

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Re: $1500 Lease for a Tesla X?
« Reply #35 on: November 07, 2018, 12:17:15 PM »
What I find curious is that people who have been shaming others for buying anything but a beige, 3 year old Camry for 10 years on Bogleheads have gone out and bought a $150k Tesla.  I get that guys like "Sparky" (instagram), might pick up a model X to ferry his buddies from the fairgrounds to his house so they can leave their Paganis and Koenigseggs in the show to go get sushi, but for MMM style savers for a lifetime to go all nuts over some new car is beyond me.