EV Leasing Offers

I just saw an offer from Genesis on their GV70 Electrified SUV (similar size to Tesla Model Y, but much more luxurious interior.)

$499 month for 13 months and 10,000 miles with $3,966 due at lease signing.

I don’t think $10,500 is going to cover the first 13 months of depreciation on that verhicle.

intercst

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$804 a month for that car is ridiculously high! I can’t imagine many folks doing such a short lease.

I agree, but it’s probably preferable to buying one and suffering the first year of depreciation.

I wonder how many 2022 Tesla buyers wished they leased? Surely leases written at that time weren’t based on 50%, 2-year depreciation.

intercst

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I’m of two minds regarding that. One, could have leased my Tesla and definitely incurred less depreciation, probably about $6-8k less. However, I’m not selling my car right now, so I’m not sure how that depreciation affects me in any way. Two, had I leased, it would have ended in a few months and then I would need to replace it (Tesla doesn’t offer buyouts at end of lease) with a new car. That means I would have to pay sales tax again, and that sales tax alone amounts to nearly $4k. And I usually buy my cars, so it would be perhaps $50k. Now, I could buy a 3 year old used Tesla instead, but I know that I wouldn’t have done that - for various reasons including battery technology, vehicle improvements, safety improvements, and my tendency to keep my cars for 10 years. If I buy a 3-year used car, I would only have it for another ~7 years. So spreading depreciation over 10 years is essentially negligible anyway, so I don’t worry about it too much. The only issue would be if a new car comes out that has a “must have” feature, I don’t know what that would be, but it is possible.

I’ve purchased vehicles both new and 2-3 years old used (best time to purchase if you look at a typical depreciation curve) and have been mostly satisfied each time. When I bought new, most of the time, that vehicle didn’t exit in used versions because it was too new. For example, in 2021, there were VERY few used Teslas and they were nearly as expensive as new, so my obvious choice was to buy new.

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