Leasing A Tesla Is Not The Move According To This Experience | Episode 178

[@chriswestenskow5202]

Only a fool would put money down on a lease. If something happens to the car, you lose all of your down payment.

[@PeteCorp]

1st mistake is not paying cash. Can't afford it = don't buy it. I will never ever take debt on a car.

[@kylecordes]

Breaking news: depreciation is brutal on new cars, regardless of whether you pay cash, finance the purchase, lease, etc. (Grumble grumble, not-even-old-yet man yells at cloud, 'kids these days' 🙂 )

[@LearningFast]

Why doesn’t Coleton just rent his old Tesla out on Turo or do Uber with it? Instead of just letting it sit there make use of the 6,000 miles he has left on it.

[@madlucio70]

Also don't forget the significantly higher insurance costs for any EV. I assume that it is the same in the states, but in Canada we get hit hard for EV's and PHEV's when it comes to insuring vehicles.

[@ultrastoat3298]

Tesla's are .... disposable? The heck am I listening to here?

[@godofdun]

12:30 I think we all kind of hem and haw about an ev being an "appliance" or "disposable" too much. Almost all cars are an appliance at the end of the day, it's only the more rare enthusiast vehicles that aren't. The power train being electric or gas doesn't change that.

[@DblOSmith]

Whatever happened to "accelerating the transition to sustainable..." Whatever? The best way to do that is STILL to buy a car then drive it until the wheels fall off which is what everyone should do. The reason I didnt lease is because i want to fart in MY car, not Teslas car, and I put almost 40k miles per year on it and love to travel. So no lease.

[@LearningFast]

I am sorry but the advice given in this video is terrible. Tesla resell values have been obliterated because of the price drops. If Coleton had purchased the car he would be more than $10k underwater on his car. He wouldn’t be able to get out of it anyway. Now that Tesla passes the full Federal tax credit on with leases that is the best way to get into a Tesla in most cases. The lease protects you from the depreciation of the car. If it depreciates a huge amount then you can simply hand it back at the end of the lease and let the financing company take the hit instead of you. I have sympathy for Coleton’s situation but this video completely misleads people about getting out of a loan vs. getting out of lease. If you buy any Tesla except for the CyberTruck it is going to depreciate massively. If you take out a loan on it you are going to be severely underwater. You can’t build equity in a severely depreciating vehicle with a loan or with a lease.

[@godofdun]

Yeah, generally the best way to get into an ev right now is lease new or buy used. With exceptions of course.

[@azorglub]

Lease is great if you expect values to go down and then Tesla takes that risk on. If one expects that price decreases are over, then buying may make more sense.

[@LearningFast]

@@azorglub even if prices stayed flat the car would still have severe depreciation. Wholesalers have black listed Teslas because they took such a beating on them before. You wouldn’t curb the depreciation unless they stopped production all together.

[@trpblr]

exactly, if you purchased a Tesla even 4 months ago you would be loosing your ass now with the cost breaks. Also the tax credit isn't available to everyone so a lease is the only way to get the extra 7500 off for some people.

[@kylecordes]

It feels like this video has gone down the path of saying the word Tesla to get clicks. The challenge with the lease being discussed, that it is expensive to get out early, is because it was leased at the peak of the market. If he had leased another vehicle at the time, paying a heavy markup, and then wanted out of the lease now with values down, the situation would be the same. It's just more transparent with Tesla, because the price changes were public instead of finding out about them when you arrive at the dealer.

[@gchetail]

Maybe a 2-year lease is better for people who like to change cars often.

[@johnpoldo8817]

I’ve leased several vehicles, putting zero $$ down. It makes good sense as a business deduction, but only for low mileage drivers. I like it because every 3-4 years I get new tech features.

[@billybobbob3003]

just get a rav4 or crv hybrid and call it a day it wont lose half its value right away like a tesla model ''SHITBOX'' vehicle.

[@ChicagoBob123]

Coleton, that is what happens with all cars but just Tesla. The Covid situation and parts shortage was an aboration. Cars always dropped thousands when you left the showroom.

[@CAINtheBULL]

Darwin Award car version. Coleton you’re up.

[@tomthenavyveteran89]

another quick thought. I would suggest doing some research on multiple vehicle, manufacturers, leasing programs and compile information about all of them and do a video on why you shouldn't please and when it's a good time to buy rather than leasing a vehicle, and what vehicles you should never lease and what vehicles you should lease before you buy if any are applicable, I personally don't believe in leasing at all I think leasing is a waste of money beca yes many auto makers still allow you to purchase the vehicle if you're going to lease but it seems like many Auto makers are starting to switch away from that and require the lease vehicles to be returned so if that happens across the board will no longer be something anyone should do. I'm sure many people still will but it's a waste of money. I would rather buy a vehicle and own it and have it as long as I can then to just throw away money at something that's never gonna be mine. It's a waste of money just like paying for a porn site or a hooker. You're basically throwing money out the window for a quick release of endorphins to get you all happy and then it disappears. That's like promising your child, an ice cream cone and buying them a candy bar because you maybe didn't have enough money for the ice cream or whatever the case may be.

[@tomthenavyveteran89]

so at this point, I'm a little bit more than halfway through the video and I have read a handful of comments and I want to cover a few bases here for one. Yes it is very annoying that Tesla has no longer allowed people to buy out their lease at the end of the lease term. However, I feel this was done because of the value of the used car market in retrospect however, Tesla should make leasing more affordable and much lower in price considering the company gets the tax credit when you lease a vehicle as opposed to you getting the tax credit, which is only applicable if you purchase the vehicle. Also, as far as putting money down on a lease it's a necessity with certain vehicles because it keeps the monthly payment down which is what a lot of people don't want to endure. Most people would rather have a two or $300 payment each month rather than a seven or $800 payment it's mentally feasible even if they can afford it. With that being said more than 98% of the entire world can't afford an EV because people who go from gas or diesel vehicles to a completely electric vehicle don't factor in the amount of money they had spent on maintenance and fuel, and everything included in taking care of a gas, powered or d for example when you have a gas vehicle you have to flush all the fluids at certain times you have to change your oil every 3 to 4000 miles or 3 to 4 months wh the bullshit and that is to people in this world. Who do I know many of us here understand common sense and have it. On top of this aside from maintenance and fuel costs, there are certain parts on an EV that are built differently and better than parts on your average gas or diesel vehicle that most people don't replace this is why most people shouldn't be driving gas vehicles and should switch to EV because the amount of maintenance you are supposed to do on a gas vehicle, such as quarterly oil, changes, yearly, or bi-yearly Fuel system services changing suspension parts at 50,000 miles or within the first 4-5 years and other engine and internal engine components that less than 1% of the population actually perform necessary maintenance on are also highly important to proper vehicle maintenance because realistically, if someone properly maintains a gas or diesel vehicle, it will last a lifetime electric vehicles however, currently do not outlast gas powered or diesel, powered vehicles, and much of that is due to battery degradation. Current EV batteries, including Tesla are not designed to take, the amount of abuse that the average consumer put on their vehicle in terms of mileage and stress because most people work multiple jobs and utilize their daily driving vehicle for literally everything going to work going on vacation going to the store etc. and with the ever-growing "gig-work industry" such as Uber/Lyft and DoorDash among many other app work options people are putting more miles and more use on their vehicles. Therefore, regardless of how amazing and electric vehicle can be Tesla being number one at this point currently if they cannot create a battery system that is lightweight energy efficient and can go over, and maintain that and minimize degradation, regardless of how the vehicle is charged and used electric vehicle will never out-perform or outwork a gas or diesel vehicle. However, in closing if you are just commuting daily to a job and traveling once or twice a year which is the average use of a vehicle in today's consumer market than an ev will be much more cost efficient long term than a gas or diesel one. however if you are a workaholic and traveler or are always on the road than an EV might not be a good choice for you because it may need more immediate service in a shorter period over it's gas and diesel counterparts and you might find yourself replacing a battery pack or 2 in a 10 year period as opposed to not replacing anything for over 10 years when the ev is driven conservatively. Just some food for thought.

[@Fuentes6544]

6k for a down payment is wildddd and getting caught trynna get out of it, is crazyyyy 10k 😮‍💨👎. And just imagine the insurance 😮‍💨😮‍💨

[@lplt]

Don’t ever put any money down on a lease, instant loss, you can lease transfer to others

[@darinbrazil5496]

When is Kyle going to get his hands on a dual motor large and Max Pack R1T to do a range test?

[@TezEV]

The best value on a model 3 right now is getting a used one, especially if you can get state+federal credits.

[@billybobbob3003]

the best model 3 is rav4/crv hybrid

[@Johan87577]

I've leased 1 fossil car and now an EV. Been great so far. But sounds like leasing might be working differently in the US compared to Sweden.

[@OutofSpecPodcast]

Thanks for watching. Sweden may be quite a different set up from here. Do you enjoy the balance of a fossil car and an EV?

[@viplav76]

Looking at the curve of prices… ?

[@jordanlevitt6639]

Leases pretty much just work that way. That's why there is such a thing as Gap insurance.

[@MrLogansimmons]

I wonder if you could make a deal with Tesla. If you offer them more money than they can sell the car for, they might play ball. I'm not sure how financially prudent that would be vs paying the lease termination fee or over mileage fees (looks like Coleton might owe some of those at the end).

[@guccisasha]

Ty.

[@bigdougscommentary5719]

Don’t listen to this MORONIC discussion of leasing. No one has the “right” to exit a lease if they didn’t contract for that OPTION in the lease agreement. EVERY car is a commodity unless you are buying collectible vehicles. AND, if you are ADHD and have to move from vehicle to vehicle that’s on you. Who is obligated to compensate for your inability to own a car for more than a year? Should Tesla operate as a charitable organization and be the savior of foolish decisions? You SIGNED up for NOT purchasing the vehicle at the end of the lease. That’s WHY your lease payments were so low as opposed to purchasing the vehicle. I could go pound by point by point, but I’ve got other things to do. Bottom line, if you’re thinking about leasing, do your research, READ the find print and understand what you’re signing.

[@benjamindbarr]

I love new stuff too... but my cars are not an area where i can afford to do that. We buy our cars and drive them for quite a long time... i very much dislike the range of my 2015 leaf but its also almost free to drive allowing me to go on vacations and do other things. EVs are meant to save money, swapping them out all the time is a receipe for losing money, if you got the money to do it, but complaining that a company is really trying to protect itself feom losing money as a bad thing... is kind of crazy.

[@Shelbyj13]

The bottom line is he overpaid for the car. Its not about the lease per say, its about how the value of the car has changed so much because telsa changes prices so much. You bought high and are trying to sell low. It sucks but you have to live with it unfortunately.

[@Weezedog]

You shouldn’t currently lease a Tesla because Tesla does not pass on any of the tax credits to the customer. On a lease, all tax incentives go to the company leasing the vehicle not the customer, and Tesla pockets all the incentives themselves while you lose the drop in residual value as a result of the incentives. Other EV makers choose to pass on the tax incentive savings to the customer as cash down on the lease, but Tesla just pockets it as extra profit. Now that car bubble has popped and prices are returning to normal and cars are once again a depreciating asset, it’s a lose/lose situation to lease from Tesla while there are tax incentives.

[@LearningFast]

This is incorrect. Tesla recently started passing the full $7,500 on to the consumer for Model 3 and Model Y vehicles. It says it right on their website.

[@Weezedog]

@@LearningFastit must have been pretty recently then, as the Tesla website details section on the tax incentives still says “Only for eligible cash or loan purchases” though in the new lease details section they do now show they are passing on the $7500 as a lease incentive. However they make effort to explicitly say that it’s distributed across the entire lease term rather than upfront, so they may be playing some shenanigans and I’m not sure they give you all the incentive amount if you trade in early.

[@LearningFast]

@@Weezedog yes it was recently that they started passing it on to you but they definitely do it now. Yes it is distributed across the full lease but you essentially can’t get out of the lease anyway so it doesn’t really matter. With a Loan you don’t even get the money until next year. With the lease you start getting some benefit from it right away.

[@Weezedog]

@@LearningFast It does appear however that they are not passing on state tax incentives and are still pocketing them. There's no mention of Colorado's $5000 EV incentive and it does apply to leases.