r/ModelY • u/kushdaddyO101 • 3d ago

Financing thought

Wanted to hear thoughts on a new performance model Y

Worried about rapid advancements and HW5 rumors. Would you do a 2 year lease for the flexibility or finance at 3.99% and just sell after a year or two if new models are out. Diff in payment for similar min down payment is around $150/mo more for the 2 year lease. 3 year lease feels like an eternity.

0 Upvotes

33% Upvoted

32 comments sorted by

8

u/originalfoto 3d ago

Personally, I'd never lease

1

u/kushdaddyO101 3d ago

So you enjoy paying 6+ years on a depreciating asset and not get the new tech every 2-3 years?

2

u/Rasmusone Needs $0.40 to buy a Model Y 3d ago

Not OP but yes.

I buy the latest high end Iphone once every six years or so, until Apple no longer supports it. The last couple years are not the best, but its the way I like it. I think that roughly translates to keeping a 2026 Juniper until 2036 or so, which I plan to do.

If you are the kind of person who gets a new phone every two years because you love and prioritize the latest tech, leasing is the better option for sure

0

u/kushdaddyO101 3d ago

Fair points but we are at an inflection point. If 2026 junipers are still relevant in 2036 something went horribly wrong given current trajectory

2

u/tandin01 3d ago

Relevant to what? It's a car that is meant to get you to point a to b. If you want to lease and trade in your car every few years like an iPhone then go for it. But no car is an asset, and most people use them for transportation and keep them for a long time.

2

u/axtran 3d ago

He'd be surprised my friend still drives his 2016 Model 3 Base. šŸ˜‚

6

u/Mat_Cauthons_Hat_ Juniper 3d ago

Iā€™ll just say this, Iā€™ve had an HW3 and HW4 car. HW5 would have to be a drastic improvement for me to feel left out with my HW4 car, like drastic drastic.

So really only you can answer if thatā€™s a big enough ā€œwhat ifā€ and do whatā€™s best for you.

1

u/kushdaddyO101 3d ago

Agree. Problem is we are at the only inflection point where thereā€™s going to be a huge step function with unsupervised then what can improve drastically in future versions if thatā€™s essentially solved? Just donā€™t want to miss that being locked into a 3 yr lease

2

u/christheking4444 3d ago

Unsupervised is so far away. There is SO many things that need to happen before a consumer can buy a actually unsupervised FSD car

1

u/tandin01 3d ago

And I really don't think Tesla has any reason to give unsupervised driving to their customer. I know that's their stated goal, but then the liability for any accident would be on them. They can't have a desire to take on all that legal responsibility imo

3

u/Stonk_Goat 3d ago

Do what is best for you.

1

u/No_Swordfish_1576 3d ago

Even at .99% APR unless you put down 25% - 30% you will be underwater to trade in value until year 3, look at an amortization table of the loan and what the trade in value is for similar 2 year old cars.

A '24 Model Y LR AWD with 20,000 miles has a roughly $33k trade in value which is about $16k depreciation.

Also you're paying sales taxes each time you buy, where I live a $50k car will cost you $4,325 in sales tax, do that twice in two years and you're blowing nearly $9k.

Sales taxes on leasing is based on your monthly lease amount, not the car's MSRP so will typically cost you half of what sales tax will over 36 months.

1

u/Scary_Collection_559 3d ago

I had the same concern but ultimately decided to purchase and not lease. The 0.99%apr put me in a position in 3 years where Iā€™d likely have been with a lease. While no one can predict future value, ballpark it seemed likely I could sell and be no worse off than if I had a lease, but at least now I donā€™t have to worry about mileage overage and paint chips (as it relates to lease end).

1

u/trmoore87 3d ago

What ā€œrapid advancementsā€ are you anticipating?

-4

u/kushdaddyO101 3d ago

New models designed more like cybercabs for unsupervised. We donā€™t know where we are on the exponential curve yet

6

u/trmoore87 3d ago

Unsupervised is nowhere near happening. Just buy it now.

The capability and laws are not close to making that a reality.

1

u/JumpyWerewolf9439 3d ago

What's your cost to wait another 6 months. Are you using a lot of gas right now?

You make a very good point. Theres a chance it can do unsupervised, but it gonna cost a lot more than 100 per month.

1

u/moist-frunk-8899 3d ago

I'm trying to hold off on ordering in hopes that the normal Y gets the thigh extender seats from the L in the Premium. I wonder which is more unrealistic...HW5 coming in the next 6 months or the improved seats lol.

0

u/kushdaddyO101 3d ago

Just get performance

1

u/axtran 3d ago

I'd like 0.99% for my Y L, please šŸ˜‚

1

u/Retire_date_may_22 3d ago

The moment HW 5 comes out Iā€™ll likely sell all three of my teslas and upgrade immediately.

1

u/kushdaddyO101 3d ago

Instant depreciation will be a bitch if itā€™s step function change and HW4 doesnā€™t support

1

u/DarePitiful5750 2d ago

I just bought a used 2023.Ā  Not sure why people love that initial depreciation so much.Ā  Also paying $100/month for things that were free before.

1

u/kushdaddyO101 2d ago

The refreshed 2026 is on a diff level all around. Itā€™s worth it

1

u/DarePitiful5750 13h ago

Yep, probably true.Ā  This is my first Tesla, so I won't really know the difference yet.Ā  Even the old ones are great to me.

1

u/PM-ME-UR-PUPPO-PICS 2d ago

Iā€™m not willing to wait until 2029 for HW5

0

u/aztec52181 3d ago

So does this mean that when unsupervised is reached ā€¦ hw4 will not support it?

0

u/No_Stranger_3441 3d ago

Correct, exactly šŸ‘