I never lease, but I keep cars a long time. At 10+ years depreciation is irrelevant .

@frankcoffey

27 күн бұрын

I always did that with gas cars but EV technology is moving fast. I would not buy a EV with a CCS port for example I would at least wait until they have NACS ports. And by then the car you want may change and will better. However, I'm so glad I didn't lease my 2017 Malibu because in 2022 I was able to sell it for more than I paid for it! That will never happen again but it was very nice. We used the money we got for that car to make a down payment on our Model 3. We ordered it in Jan or 2022 just before Tesla prices got out of control.

@bbgator1

22 күн бұрын

The past few years have been anomaly. A big bubble, first cars were over priced due to Covid and now bubble burst. On average you spend less by keeping a car a long time. There are cases like his where leasing is better but those may only be one or two times in a lifetime. If car makers lose money on a lease, then they will charge more next time.

@frankcoffey

22 күн бұрын

@@bbgator1 For EVs I would take advantage of the lease deals now and then give it back and buy the next version of the car with the NACS charge port.

@tinycmo

21 күн бұрын

Bingo. When I own a car for 12 to 14 years..getting a few k is like a bonus

I think Coletons situation is very different than most of us normal car enthusiasts. He's in the car business and a business owner so he can expense some of the leasing stuff and make videos on cars. For the rest of us, leasing in majority cases doesn't make financial sense. If you're buying a car, it should last 10 years without major expenses otherwise you bought the wrong car. Of course, this is very hard to do for car enthusiasts 😂

I was really tempted to lease a Rivian, but at the end of the day, it would still be more expensive than buying. At least with a purchased Y, I have a pretty good idea of what my resale value will be in a couple of years so I know I'll have equity. Even if the payment was the same (it's not, my financing on the Y is sub $500/month) I'd have $10k+ in equity at the end, where the lease would have nothing. Leasing makes sense in certain circumstances, especially those when it's a car that's new to market, maybe not so great a car (like the ID4 lol), and you plan on getting a new one in the next 2-3 years anyways. Just gotta work it out for yourself, there's no one-size-fits-all.

I never leased before and I was always against it but couple of months ago I leased a new model 3 after running all the numbers it just made sense for my use case which I needed a second car in the house for errands around town so not a lot of milage and for $16k that this lease will cost me the alternative was a used car that would be nowhere near as nice and most likely wouldn't last as long without putting more money into repairs and maintenance. My only concern with it is being locked in for 3 years with same terms so I'm glad you are letting people know about those terms and potential issues.

I capitalized on this depreciation when I got my 2020 Chevy Bolt. Between Xcel EV rebates, Xcel home charger rebates, Federal tax incentives, & the Colorado Vehicle Exchange Program I got my 2020 Bolt & a Charge Point Home Flex installed for $10,000!!! I do not miss my POS ‘97 Jeep Grand Cherokee with all it’s flaws & 14 MPG.

So I leased a Model Y Performance in 2022 third party as we didnt have a Tesla dealer in our province at the time. When the prices were at the peak. I didnt read the fine print on the lease and long story short, when I drop the car off in a couple months, I have to hand in a check for $18-$20K to cover the loss in market value. Big fan of leasing - however read the fine print LOL!

In Tesla Financials the percent subject to Lease Accounting is always 1-2% ... This video kinda explains why

The 10k accounts for the residual value which may have changed since the lease was taken out as they dropped the prices. The original value is likely to be guaranteed when the lease contract expires naturally as the costs are factored in for September. Had the Tesla been worth more than the 36k residual value placed on it 3 years ago, they would be in profit. 😎😇

BMW leases don’t have early termination charges and have a fixed buyout option.

I'm from the UK, and we generally have a market where you lease new and buy used. However you can get some real deals on EV's when a manufacturer has to meet their EV quota. So in October - November there will be some discounts off sticker price.

9:00 I loved hearing Coleton's OOS Origin Story.

Nissan lets you pre buy miles at lower cost during lease up to 30 days prior to lease end. Something new they started. Even tell you projected miles vs contract miles. Not sure when they started this but great lease feature. Leading EVs makes complete sense to me until the EV market is stable.

I’ve leased over a dozen vehicles. At least two were MB convertibles with market values higher than residual, so they were purchased at end of lease and sold at a good profit. Waiting nearly a year for a 2021 model S, Tesla let me extend a 2017 lease by 6 months and there were no fees for very low tire tread. Sadly, I bought the 2021 Tesla so now am responsible for massive depreciation instead of the leasing company.

@stevenichols4639

27 күн бұрын

You didn’t sell it a profit you sold it for more than you paid at lease end. the lease costs more than took away your profit.

@johnpoldo8817

27 күн бұрын

@@stevenichols4639 Agree with you, but did you consider many leases are paid by a company so pretax money is funding it. Leasing allows people to use capital on investments producing a high rate of return.

I'm leasing a 2023 VF8 Plus. After the trade in of my old car and a $200 deposit, I pay $280/month after taxes (roughly $9/day). When the 3 year lease ends, I can buy the VF8 Plus for $29K, or I can lease another Vinfast model like VF7 or VF Wild. I was told for the 2023 VF8 Eco, you would pay $19K if you wants to buy the EV after the 3 year lease ends.

I didn't look at leasing my 2022 MYLR, paid $60K, best guess at today's value $39K? Did I get $20K of use over the 22K miles? Probably due to lots of road trips. For my style, not wanting to fool with all the lease issues, I'm fine with the car even with value under paid price. New MYLR today $39,490 including $12,500 Fed and CO incentives, not including the Tesla estimate of $6K gas savings over 5yrs. So that's a straight swap for the cost of driving it for 2.5yrs. I didn't expect it would be a free ride by the time I sell it so, again I'm fine with it.

WIth all the purchase incentives Tesla are trying in order to increase sales, one has to wonder if they will start looking at current leases and give people a way out of their lease with the sale of a new Tesla. It would be easy for Tesla to look and see which lease vehicles have reached or are about to reach the lease mileage cap and offer those customers a way out as long as a new Tesla is purchased/leased.

‪I feel bad that he’s so underwater on his ID.4. But that’s the same car that recently got me into my 1st EV. That giant depreciation and qualifying for the used EV tax credit. It was a no brainer. I love the car for basically $21k. ‬

Turning in the car now for the same $1400 instead of keeping it two more months means you can remove the car insurance and save 2 months of full coverage insurance payments which is probably close to $400.

Not sure how was it in 2021, but as of this writing.. Tesla doesn't provide you a copy of their current lease agreement for review until they have pocketed your non-refundable order fee! Tesla advisor, I contacted, stated that it's the sole responsibility of the lessee to pay in full the difference owed - contingent on the average (taken from carvana, kbb, etc.) of the then market value of the vehicle - upon maturity of the lease. In this case, Tesla puts his Model 3 value at $25,700.00. So, I'd think Tesla would choose to collect close to $9K-ish from Mr. Guerin upon his return of the Model 3 to Tesla this September.

I hate Tesla, but in this case there is no "gotcha", Colton went into the deal incredibly ignorant about how leases inherently work, and also admittedly jumps in and out of cars impulsively with little care about overall financials -- so it's the least surprising thing in the world that it ended badly for him. Unlike your clickbait title, nothing hidden about it. And your profound nuggets of wisdom like "your money, your choice" are particularly absurd. Obviously people have the right to waste their money, but as a so called expert/advisor this "do whatever you feel like" advice isn't at all helpful

It is Possible that because they show the "vehicle value", they are buying back the lease and it has depreciated so much you have to pay the difference. Tesla lease doesnt allow you to buy the car at end like normal dealers also.

Are these returned leases sold as used from the Tesla inventory and are they overpriced?

@rmkep

27 күн бұрын

Yes and no ...

@terrancecloverfield6791

22 күн бұрын

I think they're overpriced. I see some 2021 MYLR for $33k, with no bells/whistles. I dunno about you but I wouldn't touch it for $33k with 42k miles, which sounds right for the end of lease value. So knowing how fast the tech is advancing...would you buy that?

Tesla’s lease fine print is ridiculous. Do they get crazy with damage inspection and fines too? I do agree that ultimate people should make the choice that works best for what they want, both in terms of lease/buy and how much to spend. A car decision doesn’t have to necessarily be solely based on what makes the most financial sense. I spend more than I should on my car payment but I consider part of it as an entertainment expense because I enjoy the car.

Thank You Francie and Coleton for All that you are doing for our Planet Earth.... Peace.. Shalom.. Salam.. Namaste 🙏🏻 😊 ✌ ☮ ❤

I personally do not want to be making car payments forever. So the idea of my vehicle (2020 Tesla Model 3 SR+) losing value over time is irrelevant. As long as it runs well I will be happy. I do plan to own my car for truly as long as it will run. If anything I am just hoping Tesla (or some third party) offers battery upgrades in the future. Getting more range is the only thing that will probably ever make me consider trading in my car. I bought what I could afford at the time and getting a bigger battery in my same car was the thing I saw as the lowest probability of happening in future. I've got CCS retrofit so I don't HAVE to go to Tesla to charge on trips. This was a huge worry once 2021+ cars had compatibility by default and Tesla initially had no mention an option would come to older cars. Now I can shop charging price if I want. Now that everyone is moving the J3400 it was even more important I was able to get the retrofit since that also allows me to charge at those stations once they become available. I got FSD and v12 is showing that HW3 can handle what they are aiming for in future. Starting the sweat with pace of progress from v9 through 11. Got the auto lift gate trunk retrofit (though it is having issues, to be fixed eventually. Sadly out of warranty). At this point I would say my car is not missing anything from newer models that are important to me or inconvenient not to have. I agree 1,000% that as a customer, trying to get a hold of someone at Tesla to talk through stuff or ask questions is miserable.

The problem is that Tesla’s released back in 2001 with the assumption that they would appreciate value they have massively depreciated because Tesla dropped the price of the car. Your problem is that the residual value of your car is $24,000 the residual value of your lease is $34,000. That’s where the $10,000 is coming from, Tesla and other people think everybody’s having the same problem right now

There is no fine print hiding of the T's & C's of Leasing a Tesla. I did two 2021 Leases (M3,MY) and the no lease buyout option, and significant early return penalties were made very clear on the main lease pages. I have since returned both Vehicles and purchased a used Model X and a new Model 3 as the replacement vehicles. Tesla's lease return process can be expensive if you attempt to return early and the contract clearly states this, it is not obfuscated and is plain as day in BOLD print on the leasing documents. If you are buying or leasing another new Tesla they tend to be forgiving of any early return penalties. With my Wifes Model 3 LR they allowed us to return 2 months early waiving the 2 final lease payments and giving a $500 credit on any vehicle damage and waiving the standard the Lease return fee ($375). These terms are only misunderstood by those who can't or don't read the relatively simple contract terms and I have little sympathy for Coleton and this click baitey Podcast.

@tazeat

27 күн бұрын

I don't think there was a misunderstanding in how leases work so much a little bit of a bewilderment they would charge so much over the full remaining cost of finishing out the lease to just return it early. You'd think it would be in Teslas interest to get the car back sooner with the full lease already paid for which imo is what the early return fee should be. Instead it will just sit until that time. No big loss on Coletons side.

Leasing is about the most expensive way to not buy a car. most people who lease are buying a car they can’t afford to get any other way and the reason they get the good deal on it because it’s not a good deal for them but it is for the company. I buy cars out right and hold onto them until they die. I had my last two cars for 25 years and 16 years.

@terrancecloverfield6791

22 күн бұрын

For a Honda or Toyota, absolutely. They'll last. For EVs, the tech is evolving too quickly to really be comfortable with it.

Everyone I've known who had a lease on any car had to pay penalties for getting out of the lease early. That $10k buyout with only 3 months left on the lease sounds very fishy. I would contact your state Attorney General office. AG's love suing Tesla.

Before EVs, there was an old joke about how much a new vehicle depreciates the moment you drive it off the lot. It's very rare that it pays off to buy a car for investment.

I love how Tesla shows a breakdown of prices but don't explain the buyout price at the end.

@Charlesbjtown

27 күн бұрын

It's because there is no buyout.

@MrTekniqs

27 күн бұрын

@@Charlesbjtown The price noted is Adjusted Lease Balance - Vehicle Value + Disposition Fee and Tax. 722 a month over 3 years = 72 * 36 = 25,995. This is a crazy rip off. at these prices he might as well have bought the car. He basically paid 42487 to drive this car for 3 years. the initial price of the car is 52440. At that total Due price he should be able to own the car out right.

"I'm very impulsive with buying cars" - ooh my, that's the root of the evil, eh? 😅

An early termination clause is nothing new, or just by Tesla. The idea is that you pay them for lost interest, or you pay your insurers to keep the car, and then you still will have an open OR closed end loan. If the lease car has a residual value higher than predicted, they may be to terminate early and take the extra profit. If the residual value was set too low, they want you to keep paying. All vehicles, not just Tesla.

Early Adopters always pay the price. I’m in that camp with my 2018 M3p and accept the reality of it. While the physical hardware may be outdated as technology advances, the continuous periodical Software updates keep the car relevant with new features when not hardware limited.

AI in action :-) we will be seeing more and more of this craziness

Tesla just isn’t into used vehicles. Now that the retail prices have dropped, your used Tesla is worth less than they thought when they leased it to you. It’s just business…they will lose money on your old Tesla, and they don’t want to do that anymore than you want to lose money on your old Tesla.

First of all Coleton, you say that you have so many other cars to drive. Well you should be watching your lease mileage for any car you drive and use all those other cars to keep your mileage within the contract. So that should not be an issue. Right now, I have a lease with Tesla and I still have 29 months to go. To get out of my lease right now the info shows that I would owe 10,000and some change. However the remaining 29 months of lease payments show that I would owe over 18,000. Actually I would keep 8.000 by getting out of the lease now. Leases are based on time and mileage. Then you get the best deal you can negotiate. These are all things within your control. But with Tesla, there are no negotiations. But you know all of this and you know mileage and time is within your control.

I think your priorities changed as your life changes. When I was in my 20’s in the 70’s, I got on a Camaro kick. Chevy was building some really fast cars. I was making pretty good money at the time and I was trading for a new Camaro every new model year. Now, in the last few decades, we have kept each car for 10 years or more. The only exception to that is the Nissan Leaf I just bought as a second car. I will be trading it as soon as I can afford a used Model X.

The thing is for people who can’t afford to purchase the car or finance it. So they lease and they run around thinking they’re really special because they’re driving around and a new Tesla which they don’t really own at all. I never think leasing is for losers unless you own a business and you can write it off as a tax right off otherwise leasing is for losers, who want a car that they can’t afford?

@terrancecloverfield6791

22 күн бұрын

Me. I like driving a car I know will be outdated as battery tech matures and suffer no negative equity by it. I'm hoping by the time my lease ends, either PHEVs really mature or that breakthrough battery tech emerges and we have 600+ mile ranges.

I have a leased 22 Bolt EV The residual is 22k and my lease expires next May. I can buy the same exact vehicle for thousands less right now and also get the 4k tax credit. gM leasing will not negotiate the buyout. Insane. This is the second time I have leased in 55 years of car ownership. It will be the last. I leased because I knew technology would leap forward over the three year lease and it has. Looking to replace this with the new Bolt but it likely wont be available by next summer and GM will only extend the lease for one month By the way, the mileage limit remains the same so any miles you put on the car over 36k in that extension month cost you 25 cents a mile

If a M3P trips ur trigger in 12 maybe nuts production begins th roadster 2.0 IT WILL MF HOVER. !!!!!!!!!

@sparkysho-ze7nm

27 күн бұрын

In 12 months

Tesla does not sound like a good company to have a lease with especially when you're coming to the end of it some shenanigans going on in regards trying to get hold of the right person on the phone sounds a bit like when you want to get out of yourself phone contract or you Internet contract, Certainly wouldn't want to be buying the Kia at the end of the lease used 2022 are selling between 24,000 to the 32,000

@nguyenbinhACG

27 күн бұрын

You are ok🎉

@MrLwhiteford

27 күн бұрын

Easy . The Tesla fan boys will come for you. Can't saying anything bad about daddy Elons company

@sirgardensalot

27 күн бұрын

😂

@verynick

25 күн бұрын

This is normal in general not only Tesla. Paying $10k to get off the lease on $3k left payment does not make sense but….there’s a thing called residual value that you sign at the beginning of the lease and it doesn’t matter no much you owe. The payoff amount will still be the same. That’s why 2-3 years ago you’d able to get $3k-$5k back when you sell back your non-Tesla cars

Yes tesla does suck and they are very greedy, and won't sell the car to you at the end of the lease.

@terrancecloverfield6791

22 күн бұрын

Thats always been odd to me. But if their goal is to depreciate their own assets by flooding the market with used Teslas every year, oh well I suppose.

Click bait

@matt45540

27 күн бұрын

So you think $10,000 to get out of a 3-month lease at $700 a month is a good deal?

@jameswilliams5921

27 күн бұрын

​@matt45540 it will hurt they stock price if you treat people right

@Radchadrok

27 күн бұрын

I think the video title is misleading, aka click bait. Colten even explained in the video he knew what was involved with the contract. I’m not defending Tesla at all.

@TuneupMagic

26 күн бұрын

@@Radchadrok You are absolutely correct; early termination has very little to do with it. Not sure how was it in 2021, but as of this writing.. Tesla doesn't provide you a copy of their current lease agreement for review until they have pocketed your non-refundable order fee! Tesla advisor, I contacted, stated that it's the sole responsibility of the lessee to pay in full the difference owed - contingent on the average (taken from carvana, kbb, etc.) of the then market value of the vehicle - upon maturity of the lease. In this case, Tesla puts his Model 3 value at $25,700.00. So, Tesla will collect $9K-ish from Colten upon his return of the Model 3 to Tesla this September.

Maybe you could work fewer hours each week if you weren't so car poor.

What a ridiculous basis for a vid. There’s no actual business issue with his “complaint”. A waste of time.

They must pay this guy well. He loves playing the genius. You know why Tesla asked them to make this, lease terms getting updated soon.