Is the cost worth the vehicle?
Buying new is expensive, buying used can be risky. Do your research thoroughly and you’ll be able to decide what fits what you NEED (and that answer may easily be a used ICE vehicle instead)
This is one of the rare cases where, at least for right now, leasing a new vehicle may make more sense financially than purchasing outright. For one thing, many more cars are eligible for the $7500 federal tax rebate when leased instead of purchased. For another, used electric vehicles seem to lose their value a lot more than ICE vehicles. This is a combination of newer, better cars being released at lower prices than previous vehicles and consumers being unsure of the capacities of older battery packs. The latter is seeming to be less of an issue than feared based on preliminary data, but we really only have long-term results for a few models. The former is much more volatile from the market, though. Elon Musk single-handedly tanked used car values when he dropped prices on model 3 and Y vehicles, and it happens every time they cut prices, but Tesla is not the only electric manufacturer that’s been cutting prices on new cars. While manufacturers would love to sell for high prices, the reality is they need a larger market to be profitable from economies of scale, so as they reduce costs there’s been a general trend to cut prices too, either by cutting prices on existing models or introducing new, less-expensive models.
All of that is to say, it looks like the leasing companies aren’t factoring in enough depreciation on current leases. A lease is essentially you paying for the depreciation of the car. If you’re paying for a $50,000 car to be worth $35,00 in two years but it actually ends up being worth $25,000 in that time you’ve come out ahead, especially compared to if you bought it and tried to sell it yourself.
This is one of the rare cases where, at least for right now, leasing a new vehicle may make more sense financially than purchasing outright. For one thing, many more cars are eligible for the $7500 federal tax rebate when leased instead of purchased. For another, used electric vehicles seem to lose their value a lot more than ICE vehicles. This is a combination of newer, better cars being released at lower prices than previous vehicles and consumers being unsure of the capacities of older battery packs. The latter is seeming to be less of an issue than feared based on preliminary data, but we really only have long-term results for a few models. The former is much more volatile from the market, though. Elon Musk single-handedly tanked used car values when he dropped prices on model 3 and Y vehicles, and it happens every time they cut prices, but Tesla is not the only electric manufacturer that’s been cutting prices on new cars. While manufacturers would love to sell for high prices, the reality is they need a larger market to be profitable from economies of scale, so as they reduce costs there’s been a general trend to cut prices too, either by cutting prices on existing models or introducing new, less-expensive models.
All of that is to say, it looks like the leasing companies aren’t factoring in enough depreciation on current leases. A lease is essentially you paying for the depreciation of the car. If you’re paying for a $50,000 car to be worth $35,00 in two years but it actually ends up being worth $25,000 in that time you’ve come out ahead, especially compared to if you bought it and tried to sell it yourself.