jimboski93
Active Member
- First Name
- Jim
- Joined
- Jun 4, 2025
- Threads
- 6
- Messages
- 30
- Reaction score
- 20
- Location
- Parker, CO
- Vehicles
- R1S
- Thread starter
- #1
Hello all,
Thought I'd post the full details on lease math below, as this isn't readily available and I had questions on money factor and residual, that you really don't see until you get the lease to sign. My delivery is June 20th, and this morning (June 18), I completed the last Task of sending payment. Within an hour, I had an e-mail with the lease documents to sign, containing this detail. This is a 36 month lease with 12,000 miles.
A quick note: trading in my Tesla Model Y, so I get the $3,000 electric refresh credit. I also wanted a Dual Max, and even though the current promotion is $5,000 off for Dual Large + Performance Upgrade, my guide applied the $5,000 credit on a Max + Perf Upgrade. Those discounts, the EV lease credit of $7,500, and the large trade-in value are why you see the total monthly lease payment so low.
I added a schedule at the bottom as to how I'm thinking about an immediate lease buyout, as I was following another another post on this topic. Would love any feedback - I think the math is the Total Rent Charges divided by the three year lease is my annual "interest expense". Divide that into the Residual that I'd have to pay now (additional capital), and that gets my the implied return on this investment of 4.96%. In other words, could I do better than 4.96%, after tax, by using this cash on investments? The answer there is likely "Yes", but not by much if you assume equities earn ~8% annually, pre-tax. By buying out early, I also lose optionality - if this residual ends up being too high three years, I've done worse by buying out now. So my thinking is that I will not buy this out - I could probably do a bit better using this cash to buy SPY and I keep optionality to return this vehicle after three years.
Thought I'd post the full details on lease math below, as this isn't readily available and I had questions on money factor and residual, that you really don't see until you get the lease to sign. My delivery is June 20th, and this morning (June 18), I completed the last Task of sending payment. Within an hour, I had an e-mail with the lease documents to sign, containing this detail. This is a 36 month lease with 12,000 miles.
A quick note: trading in my Tesla Model Y, so I get the $3,000 electric refresh credit. I also wanted a Dual Max, and even though the current promotion is $5,000 off for Dual Large + Performance Upgrade, my guide applied the $5,000 credit on a Max + Perf Upgrade. Those discounts, the EV lease credit of $7,500, and the large trade-in value are why you see the total monthly lease payment so low.
I added a schedule at the bottom as to how I'm thinking about an immediate lease buyout, as I was following another another post on this topic. Would love any feedback - I think the math is the Total Rent Charges divided by the three year lease is my annual "interest expense". Divide that into the Residual that I'd have to pay now (additional capital), and that gets my the implied return on this investment of 4.96%. In other words, could I do better than 4.96%, after tax, by using this cash on investments? The answer there is likely "Yes", but not by much if you assume equities earn ~8% annually, pre-tax. By buying out early, I also lose optionality - if this residual ends up being too high three years, I've done worse by buying out now. So my thinking is that I will not buy this out - I could probably do a bit better using this cash to buy SPY and I keep optionality to return this vehicle after three years.
| RS1 Dual | $83,900.00 | ||
| Max Battery | $6,000.00 | ||
| Performance Upgrade | $5,000.00 | ||
| Forest Green Paint | $2,500.00 | ||
| Sound + Vision | $2,500.00 | ||
| Vehicle Subtotal | $99,900.00 | ||
| - Electric Refresh | -$3,000.00 | ||
| - Goodwill | -$5,000.00 | ||
| Vehicle Subtotal Net of Credits | $91,900.00 | ||
| Destination Fee | $1,800.00 | ||
| Gross Capitalized Cost | $93,700.00 | ||
| Gross Capitalized Cost | $93,700.00 | ||
| - Capitalized Cost Reduction | $34,140.01 | ||
| Adjusted Capitalized Cost | $59,559.99 | ||
| Residual Value | $56,952.00 | 57.01% | Residual to Vehicle Subtotal |
| Depreciation | $2,607.99 | Adj. Cap Cost - Residual | |
| Rent Charge | $8,472.45 | ||
| Total Base of Monthly Payments | $11,080.44 | Depr + Rent Charge | |
| Lease Payments | 36 | ||
| Base Lease Payment | $307.79 | Total Base / # of pmts | |
| + Sales/Use Tax | $15.39 | ||
| Total Monthly Lease Payment | $323.18 | ||
| Capitalized Cost Reduction: | |||
| Trade-in | $26,140.01 | ||
| Deposit Credit | $500.00 | ||
| EV Leae Credit | $7,500.00 | ||
| Capitalized Cost Reduction | $34,140.01 | ||
| Money Factor: | |||
| Rent Charges Ă· 36 | $235.35 | ||
| (Adj. Capitalized Cost + Residual) | $116,512 | ||
| Money Factor | 0.00202 | ||
| as APR (Mult. by 2400) | 4.85 | % APR | |
| Due at Signing: | |||
| First Month Payment | $323.18 | ||
| Taxes | $1,774.25 | ||
| Acquisition Fee | $895.00 | ||
| Documentation Fee | $450.00 | ||
| Title & Registration Fees | $7.20 | ||
| Down Payment | $26,140.00 | ||
| Due at Signing | $29,589.63 | ||
| Buyout Lease Immediately? | |||
| Rent Charge | $8,472.45 | ||
| Annualized Rent Charge | $2,824.15 | ||
| Residual + Purchase Option Fee ($0) | $56,952.00 | ||
| Implied Return | 4.96% |
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