[Mike]

Leasing a car is usually not a wise financial decision. However, I many people say that leasing a Tesla is the way to go.

In addition to lower payments, they cite that technology is moving fast so if you own the car, it’s likely to be obsolete in just a few years.

What do you say?

[Dave]

I wouldn’t buy anything that has the slightest association with Elon Musk, so I’m out.

[Amy]

I leased my jeep because of my income I couldn’t get rebates on a loan but with a lease I got 15k in rebates and I paid off my lease in 4 months.

[Kyle]

Trying to figure out what’s obsolete… It’s 62yrs old… Runs, drives, has no real issues besides a speedometer cable that needs replaced.

Yet a car one buys today with cash is going to be obsolete in a few years?..

Crazy to even think that way!

Only reason a lease is okay is if it’s for a business, even then it’s iffy at best

[Bethany]

The technology in my Tesla gets updated often with downloadable updates.

I’d say that buying a used Tesla is the way to go. Elon has devalued his own brand.

[Dustin]

The used market for Tesla has completely collapsed. If you really want a Tesla it’s the best time to buy one. Don’t lease.

[Brian]

I’ve had two Teslas (Model S) and feel it’s the opposite. The car is software and the software is updated all the time so a five year old Tesla can have the same software as a brand new one.

Complete mind shift from typical combustible engine vehicles that can easily have aging technology.

Agree with post stating to buy a used Tesla or just buy one and drive it for 10 years always having the most current software.

My bigger fear has always been the need for a new battery in an older model no longer under warranty!

[Milas]

I’ve leased multiple cars and they were a good financial decision for me each time. When factoring in expected depreciation and the hassle that selling a used car entails, along with required maintenance once the warranty expired, it worked out for me.

I’ve learned that nothing in life is an absolute, you should do a cost/benefit analysis for everything, sometimes you’ll find that the standard talking points blurted out and regurgitated by everyone all the time without context may not apply to every situation.

[Bryon]

From what I have seen, typically leasing a car is the most expensive way to purchase a car.

In my opinion, a car begins depreciating the minute you drive it off the lot thus buy with cash and hang onto it for a minimum of 10 years.

[Wendy]

Well, we leased two EVs while waiting for the model 3 to come out. I dunno if it was the smartest thing we’ve done but it wasn’t horrible either.

Politics and quite frankly the ability to buy your way onto the political scene aside, we do love the car.

We’re nomadic and have put over 100K miles on it. It’s still holding up well and it’s saved us a bucketful in gas.

[Shaun]

I personally wouldn’t have an electric car, way too expensive, short life span on the batteries and therefore too much hassle in my opinion.

I tend to keep cars until they die. I have 2013 Toyota Sienna with 260K miles on it, only repair bill has been $1700 for AC Repair.

I also have 2013 Chevy Silverado 2500HD for towing my boats. Not having to buy a car every 3-5 years helped me get to FIRE.

[Christine]

It all depends on your budget and situation
One of my relatives just leases cars and changes them out frequently for the reason you stated, the tech keeps changing

Another one changes out his bought cars every two years for the same reason and once the warranty is up

They both don’t care about owning a vehicle as an asset since they are older

Many of my business friends are the same because they use the cars for business

[Chris]

I’ve never shopped for a car based on the “tech”. The purpose of my car is to go from point a to point b, reliably, every time, in any terrain and weather.

Car makers would love it if we all shopped based on software features.

Buy an older Landcruiser or Lexus and never look back.

[Chris]

My bro leased a Leaf for $99/m and used it just for commuting saved him a ton. He didn’t want it to be a ‘real vehicle for him and his kids.

He has an old truck and land cruiser for that.

My buddy did a lease for a model 3 and felt like it was a good deal for him. He wanted to test it out, wait for battery tech and software to continue to improve and make the buy.

He bought it under his business though.

[Mike]

Ok this misinformation about leasing has to stop. Leasing a car allows you to write off the payment, insurance, gas, maintenance, and mileage on your taxes if you own your own business or if you are a 1099 contractor.

It completely negates major maintenance costs since the lease duration coincides with the full factory warranty. Plus, you have the option to buy it out afterwards if it makes sense.

Now regarding Tesla: I like their cars. But it really depends where you live, your use case, and the available charging infrastructure around you.

I would never have a fully electric car as my only household vehicle but I wouldn’t be opposed if it was my wife’s car or our second family car. In general, Teslas have horrendous QC.

Panel gaps you can fit your hand through. Very few shops to work on it. Maybe in 5 years, but not today.

[Soosol]

Tesla owner here. Everyone keeps talking about the SW updates like those are most important. They are important but it’s the battery life and battery degradation that are what’s worrisome about buying one and more important than SW updates.

Mine is 2019 and while it has low mileage and I take care of it, I do wonder what I’ll do when the battery fails or just can’t keep a charge.

I can’t bring myself to lease anything just because it’s makes no sense financially.

Maybe look at a used Tesla but know that the lifespan is unknown at this point.

[Jackie]

My friend owns a tesla. They have frequent software updates. So, she’s had her for a couple of years now and it all still applies.

Whoever said leasing a tesla is better must not own a tesla lol

[Chia]

The only reason Tesla lease is less disadvantages because the tax credit can be applied regardless of your income level.

However remember that at end of the lease you are not eligible to buy the car with its residual value.

[Lisa]

I would like to add an additional benefit to leasing. If you have an accident, as long as you fix it, at the end of the term you can just hand the keys back and no issues.

But if you own the car that could depreciate your car even worse than normal and you will have a ding on the Carfax report and may have trouble selling it.

I leased a new Lexus and on the third day I had the car somebody rear-ended me and it was $15,000 in repairs and the car never drove the same again.

When the three year lease was finally up, I happily turned it in and moved onto a new one.

To me, this is a huge benefit of Leasing.

[Andrew]

Leasing a car makes the most sense to me, because a car is just a car. It takes you from a to b. Owning a car isn’t really owning a car because you still have to make payments on it and you have to deal with maintenance and road tax.

And if you want to switch out to a newer model every few years you have to deal with reselling the car. Why bother?

I’d rather lease it and turn it in at the end of three years and get a new car.

[Anindita]

Previous Nissan and Honda owners.
Now we have a tesla and a Hyundai top of the line 7 seater. Love them both for different reasons.

I do like the Tesla more sometimes due to the drive experience.

[Chia]

Unless you have money to burn, intent to switch cars every 3 years or you have a business, generally speaking leasing a car is not a good financial decision.

[Michael]

I’m sure there are people who can do this successfully and still reach FIRE status, but in general it still sounds like someone who is spending frivolously, in love with the latest toys, and more concerned with the monthly payment than the actual cost.

We all have our passions, but those things don’t usually line up well with the FIRE goals.

You’d have to save a LOT on gas and maintenance to make the monthly lease payment a more financially sound decision than outright owning a reliable, inexpensive, efficient used car from a reputable brand.

Despite what some people want you think, living without a car payment is a pretty easy financial goal

[Christina]

I have a 2017 MS and 2024 MX, of course the new one drives better but I don’t think it has to do with technology nor did I buy them for technology.

I stil enjoy driving both.

[Author]

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