Tesla Model S Leasing Just Got A Lot Cheaper; 90 Day Returns

OCT 27 2014 BY JAY COLE 28

Thanks To A New Leasing Program You Can Now Get A 85 kWh Model S For Less Than What A 60 kWh Version Was Last Week!

Thanks To A New Leasing Program You Can Now Get A 85 kWh Model S For Less Than What A 60 kWh Version Was Last Week!

It was no secret that leasing a Model S in the past was…well, not such a great deal – a side effect of Tesla bankrolling its own EV leasing program.

However, that all changed over the weekend as Tesla CEO Elon Musk announced (full statement below) that US Bank had signed on to back new vehicle leases in North America, and as such the Tesla Model S just got a lot cheaper.

While Tesla still promotes the “gasoline savings” in lease advertising (which we find annoying), what had been a $1,051 minimum payment on a new 60 kWh Model S is now $777.  The 85 kWh version now starts at $956, while the uber-performing P85D will set you back $1,461.   (All payments include the federal credit applied, and about $6,500-$7,000 due at signing)

You can configure and price out your own Model S here.

In addition, a new ‘you can return it’ 90 day guarantee has been put in place.

Popular Tesla Model S Trim Levels With Their New Lease Costs

Popular Tesla Model S Trim Levels With Their New Lease Costs

Significantly Improved Leasing for a Tesla with US Bank

Tesla is pleased to announce that US Bank, which has a much lower cost of capital than us, is now offering very compelling leasing for Tesla buyers in the United States. This will lower monthly lease payments by as much as 25% on a new Model S. Detailed info here.

Leasing now also comes with the Tesla happiness guarantee. If you don’t like our car for any reason in the first three months, you can just return it and your remaining lease obligation is waived. The only catch is that you can’t then immediately lease another Model S. Upgrading early is no problem if you want to do that, but there is a pass-through fee to cover the new vs used value difference.

As always, leasing a car with Tesla involves no signatures or paperwork, unless required by your state DMV. You just read the super simple terms & conditions on the center screen, tap once and it is done.

Also, there is no need to come to a Tesla store to order our car. It takes less than 5 minutes to order a Model S at the TeslaMotors.com website, just like any normal buying experience on the Internet. You enter your info, specify when you want the car to arrive and it will be delivered to your local Tesla service center for pickup. If one of our service centers isn’t conveniently close, we will deliver it directly to your home or business location anywhere in the United States.

– Elon

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28 Comments on "Tesla Model S Leasing Just Got A Lot Cheaper; 90 Day Returns"

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$777 to lease a Model-S? While I still can’t afford that, I can see how this will boost sales, especially for customers who were considering a luxury car already.

There is also the matter of $6k+ down on the lease, and the fact this surely excludes TTL. So an extra $12k over the payments in the 36 months or ~$300 a month.

It is still an improvement from before.

I know I’m not comparing apples to apples here and appreciate taxation and incentives differ but in the UK the 60kwh Model S is £998 ($1600) a month over a six year lease. This is the CHEAPEST lease of a Model S. So when I read $777 it makes me feel we are yet again being ripped off somewhere along the line in the UK.

Among industrialized nations, the US has by far the cheapest cars and cheapest gas.

The explanation in two words: lower taxes.

Whether people elsewhere are “ripped off”, is really a matter of POV.

In the broad view, personally I’d rather be ‘ripped off’ for car and gas prices, and have a free/cheap healthcare for all, and an education system that doesn’t require parents to constantly “fundraise” (read: pay out-of-pocket and bilk more $$ from family and friends), and go nearly totally bankrupt come college time. This, if you can even afford it.

If you are in the parts of society where “school fundraising” is a joke and college a remote dream, your kids are pretty much consigned to poverty at birth. OTOH your cars and gas are more affordable 😉

Right on about healthcare and education. Our only plus are cheap cars and cheap gas (ok, cheap guns too).

I wouldn’t call cheap guns a plus…

A small chunk of finely machined steel and polymer for $500+ is not cheap.

This really has more to do with the banks than it does Tesla… Notice that this lease offer is thanks to US Bank

Here’s my theory: With some preliminary data on depreciation, and Tesla introducing autopilot and AWD, the US Bank actuaries have come up with a higher residual.

I think autopilot was important. In 2018, if all 3-year old Teslas lacked it, they’d collectively take a big hit in resale value.

But the residual value is guaranteed by Tesla, right? So, if the car is returned, Tesla has to buy it back at those prices.

We could all see these coming down the pipe, as Tesla struggles to deliver 13000 cars this quarter. I’m not a Tesla fan, but still feel tempted to try it out for 3 months!
$777/mo is cheaper than renting a cheap compact gas car.

Tesla isn’t on the hook until month #39, and it will be at a price that is still a good 20-30k south of the current market. The new lease deals are “real” leases (not “buy backs”), AFAIK (where the banks assume title). I think Wall Street analysts also treat them as they would the other auto-maker’s leases.

RE: 13000 units. Haven’t we talked a lot about manufacturers not releasing improvements too early, out of concern for sales? Tesla wants to move 1,000/wk this quarter. They’ll have auto-pilot, but how many buyers are going to sit and wait for AWD (Q1 2015)?

These lease rates imply a residual that’s a bit higher than what the RVG promises.

MSRP is $71k, so after down payment and tax credit, net capitalized cost is ~$59k. Using a loan calculator w/ 4% interest, I find that paying $777/mo leaves $37k of principle after 36 mo, which is a bit over 50%. But maybe I’m just nitpicking.

In any case, banks weren’t offering a traditional lease before, and I suspect it was because they didn’t want to get burned with assets depreciating too fast to back the loan, even with the RVG. The RVG new features likely allay that fear a bit.

The Model S 60kWh is 775€ with 10% (6.500 € ??) down. So i think this is just temporary that high in UK. Sometimes they need one or two days to adjust values in other regions.

(3 Years, 15k km/a)

Forgot the country. This is the german price…

I expect the UK price includes VAT. Correct me if I am wrong. The US price never includes sales tax because it varies so much. There are places you may zero and others where it could be over 10%. States, counties and even cities can have their own sales taxes.

… Oh and a down payment/deposit of £8000 ($12,874) too certainly rubs salt into the wounds.

Good I can’t wait for Tesla to take trade-in Teslas, I will upgrade to P85D

Tesla will take your trade in, but in virtually all scenarios you are better off selling it privately or even selling to CarMax.

Actually, the P85D just got a lot cheaper. It went to 105k, from 120k, in minimum configuration. Buyers can drop previously required, air, tech and the 21’s. They also now credit $3,500 back, if you select textile seats.

This is big to those who don’t want air, but I wonder if adjustable suspension settings (shock valving??) will still be possible? At least, I hope they offer a cockpit adjustment. Touring, and doing “3.2’s”, are kind of at cross purposes…

Interesting! I figured they could force P85D customers to buy all that without any loss of sales, but I guess Tesla sees marketing value in having it start from $105k when the reviews come out.

…follow up, since I called Tesla. Perhaps its printed someplace else, but “normal”, “sport” and “insane” are likely only to amount to throttle-mapping changes. This is sort of like the Volt’s ‘S’ and ‘D’ modes, but with a wee bit more progression. No other “P”, or “S”, has this yet.

So much has been written about “coil” vs. “air”, on the Tesla’s, with sports drivers (me) wanting to accept firmness in exchange for giving up the softer, less connected, feel of air. That’s why I hoped Tesla would consider valve settings, or basically adjustable shock absorption for “normal”, “sport” and “insane”. Porsche’s PASM does this, and it works relatively well. Since they don’t, the fear would be the fixed spring and damper rate could be too stiff.

On the one hand, people want their touring cars. On the other, all that power has to be safe in the middle of a turn, when someone punches it and then the suspension wants to travel.

When you have a low center of gravity, the suspension doesn’t want to travel much at all.

If the center of mass was low enough, you could actually get reverse body roll, i.e. pitching up when braking.

AFAIK, the Model S has very low roll. So it would be more about “feeling connected” than roll.

Given the apparent asking prices of used Teslas, US Bank is not going to loose any money.

used tesla prices are killer right now

P85’s fully loaded in the 80’s

and 85’s fully loaded in the 70’s

deals are insane

Where are you finding fully loaded 85’s in the 70’s? On Cars.com they all seem to be in the 80’s. All the cars seem to be selling for retail after the tax credit.

I think those are negotiable prices. These listings stay there forever, as the asking prices are too high.
I believe, the loaner cars at Tesla service centers are better deals. You get all the rebates + tax credits + full new car warranty, and a very reasonable discount.

Tesla sure does like getting cutesy with its naming conventions. Satisfaction guarantee = happiness guarantee, unlimited miles = infinite miles, etc. 🙂

Word of caution: US Bank is not nice to deal with at lease return.

Our Volt is through US Bank, and I’ve read lots of horror stories of lessees being nickel and dimed for standard wear-and-tear. By contrast, the leasing arms of most auto manufacturers (e.g., Mercedes-Benz Financial Services) are far more lenient and do not charge for any damage that can be hidden behind a credit card (aka the “credit card test”).

Hopefully the lease return process does not leave lessees with a bad impression of Tesla. US Bank hires third-party inspectors rather than using a dealer or manufacturer.