Buy or leases Tesla Model Y?

[miasoldman]

I am really keen to get a Tesla Model Y for when my XC90 lease car goes back at end of Feb. I am trying to work out whether it is better to buy or lease a model Y. Anyone looked into this , if so i would appreciate your feedback. I am leaning towards buy based on what I have read about residual value.

[Mr E]

If you can lease at vaguely sensible rates via salary sacrifice I’d seriously consider it (it’s what I’m trying to do).

If it’s personal and post tax, a buy outright probably makes sense - with an acceptance of risk that either a step change in tech or Elon self combusting on twitter might significantly hurt residuals.

[J1990]

It all depends on your personal financial position. As noted above, if you're able to go via a salary sacrifice or if you're able to purchase via an Ltd then the net cost is fantastically low for a higher rate tax payer.

If you're stuck doing it the traditional way then I personally found the GFV on the Model Y to be alarmingly low, meaning huge monthly payments and the expectation that you'll have significant equity in 2/3/4 years when you come to move it on. My issue here is how quickly the technology could change and therefore that low GFV may end up being accurate, at the same time if it's anything like the Model 3 then prices for 3 year old cars now are around the same as when purchased brand new.

[ajap1979]

J1990 said:

If you're stuck doing it the traditional way then I personally found the GFV on the Model Y to be alarmingly low, meaning huge monthly payments and the expectation that you'll have significant equity in 2/3/4 years when you come to move it on. My issue here is how quickly the technology could change and therefore that low GFV may end up being accurate, at the same time if it's anything like the Model 3 then prices for 3 year old cars now are around the same as when purchased brand new.

A friend has recently got one and sorted the PCP via Santander, rather than going with Tesla. The GFV, was far more realistic, as like you say, Tesla's is comically low.

[OnionBhaji99]

Residuals seem very good on all Tesla models. I'd go for outright purchase rather than lease.

[miasoldman]

Thanks all. To add more clarity , I don’t have the opportunity to do this via a limited company or a salary sacrifice scheme , I wish I did….

So I am looking at either the options to buy outright or a lease. I didn’t think the Tesla loan interest rates were that good tbh but may look at Santander which someone suggested.

Any more feedback from others who have looked would be appreciated

[plfrench]

J1990 said:

It all depends on your personal financial position. As noted above, if you're able to go via a salary sacrifice or if you're able to purchase via an Ltd then the net cost is fantastically low for a higher rate tax payer.

If you're stuck doing it the traditional way then I personally found the GFV on the Model Y to be alarmingly low, meaning huge monthly payments and the expectation that you'll have significant equity in 2/3/4 years when you come to move it on. My issue here is how quickly the technology could change and therefore that low GFV may end up being accurate, at the same time if it's anything like the Model 3 then prices for 3 year old cars now are around the same as when purchased brand new.

Salary Sacrifice doesn't seem to be anywhere near as good as it was a year ago... the lease companies involved haven't had to try as the vehicle availability is so limited, so the prices have just gone skywards. The same model Q4 I ordered through salary sacrifice is now 54% more than it was when I was first quoted in Nov last year and 46% more than i agreed to when I placed my order in Jan this year.

Hopefully when supply becomes available then the competition will increase between the lease companies - as it is, they must be making a killing!

[miasoldman]

Thanks all. To add more clarity , I don’t have the opportunity to do this via a limited company or a salary sacrifice scheme , I wish I did….

So I am looking at either the options to buy outright or a lease. I didn’t think the Tesla loan interest rates were that good tbh but may look at Santander which someone suggested.

Any more feedback from others who have looked would be appreciated

[z4RRSchris]

Just ordered via salary sacrifice works out £619pm inc:

No deposit, 3 years, 24,000 miles total.
Lease
Insurance
Tyres
Maintance - whatever that means
Breakdown
Free charger + install
Some free charging, again what ever that means.
insurance that pays off the lease if i decide to leave

Ordered last week, arrives October / November

Edited by z4RRSchris on Tuesday 12th July 20:26

Edited by z4RRSchris on Tuesday 12th July 23:02

[miasoldman]

Wow that’s a good deal.

[plfrench]

miasoldman said:

Wow that’s a good deal.

Assuming salaray sacrifice at 40% tax bracket, then it's not really that good compared to where things were about a year ago - I can currently get a Model Y with 27,000 total over 3 years for £584 with all the bits included above through Zenith, but when I started looking at salary sacrifice last Nov, a model 3 long range (Y wasn't available at that time) was coming out a something like £380 and I think that was with 14,000 per annum mileage. That's a big old jump. Clearly vehicle prices have risen, but not by that much - the only explanation can be the lease companies not needing to try. Hopefully some competition will return to the market one day...

[miasoldman]

Wow that’s a good deal.

[miasoldman]

Wow that’s a good deal.

[Smiljan]

z4RRSchris said:

Just ordered via salary sacrifice works out £619pm inc:

No deposit, 3 years, 24,000 miles total.
Lease
Insurance
Tyres
Maintance - whatever that means
Breakdown
Free charger + install
Some free charging, again what ever that means.
insurance that pays off the lease if i decide to leave

Ordered last week, arrives October / November

Edited by z4RRSchris on Tuesday 12th July 20:26

Edited by z4RRSchris on Tuesday 12th July 23:02

£23k over 3 years is a lot. Is that net or gross and what spec is it?

[z4RRSchris]

That is the net figure to me,

It’s the £57k model, LR dual motor, black with the 19’s

I’m currently spending 500pm running a 06 range and a 03 Z4 (assuming nothing breaks again) so consider this stress free motoring.

[Smiljan]

Fair enough it’s just the salary sacrifice schemes aren’t anywhere near as good as they were even 6 months ago.

I’ll have a look at our Tusker scheme and see how it compares later. I guess as the car list price has increased so rapidly the monthlies have to follow.

Are you keeping the other cars as well or is this now found to be your only one?

[Smiljan]

That’s for me on same mileage and length as you so looks like that is a good price after all! Prices really have shot up.

If I do 4 years same miles per year it’s £715 net a month - crazy expensive.

[z4RRSchris]

Smiljan said:

Fair enough it’s just the salary sacrifice schemes aren’t anywhere near as good as they were even 6 months ago.

I’ll have a look at our Tusker scheme and see how it compares later. I guess as the car list price has increased so rapidly the monthlies have to follow.

Are you keeping the other cars as well or is this now found to be your only one?

Interest rates have gone up, but the salary scheme companies know how to play the insurance cost which is where they are making their cash.

getting rid of the range rover (4.2 supercharged, currently about 70p a mile in petrol alone), might get rid of the z4 too

[Mr E]

I guess if you can ‘sell’ every car you can acquire, prices go up?

At 40% tax rate, that’s well north of 1k pm.

Mine at 12k miles for 3 years is ~£510 post tax. I thought that was punchy, but man maths made it work.

[Smiljan]

z4RRSchris said:

Smiljan said:

Fair enough it’s just the salary sacrifice schemes aren’t anywhere near as good as they were even 6 months ago.

I’ll have a look at our Tusker scheme and see how it compares later. I guess as the car list price has increased so rapidly the monthlies have to follow.

Are you keeping the other cars as well or is this now found to be your only one?

Interest rates have gone up, but the salary scheme companies know how to play the insurance cost which is where they are making their cash.

getting rid of the range rover (4.2 supercharged, currently about 70p a mile in petrol alone), might get rid of the z4 too

Might be a good time to keep something tasty but thirsty if you're going to do most of your miles in the Y. Enjoy the cars Chris