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Model 3 Lease Available
- samcampbell 7y ago>> Please note, customers who choose leasing over owning will not have the option to purchase their car at the end of the lease, because with full autonomy coming in the future via an over-the-air software update, we plan to use those vehicles in the Tesla ride-hailing network.
- Ecko123 7y agoI like the confidence of self driving capability though
- Animats 7y agoOh, come on. Reality: it's a price increase. "Model 3 Standard Plus used to cost $37,500, plus $3,000 for the Autopilot option. It now costs $39,500, with Autopilot included." No $35,000 Tesla.
- AndrewBissell 7y agoBait and switch secured.
- WillPostForFood 7y ago* it's a price increase. "Model 3 Standard Plus used to cost $37,500, plus $3,000 for the Autopilot option. It now costs $39,500, with Autopilot included."* $37,500 + $3,000 = $40,500. Isn't that a price decrease if the price is now $39,500?
- jakobegger 7y agoNot if a significant fraction of buyers decided to skip autopilot after seeing Youtube videos of AP driving into stationary objects. Keep in mind that Tesla just started selling lower priced models in the US. Buyers of the base models are much more cost concious, so I assume that a lot of them would forego the AP option.
- ABeeSea 7y agoThere is no way any of these model 3s end up in an autonomous ride share. Especially with only cameras and no LIDAR. I guess it does give them cover for not offering the option to buy at the end of the lease. Wouldn’t be surprised if they reverse this in 2-3 years.
- kylecordes 7y agoSometimes I wonder if the much-ballyhooed short-sellers actually work in the Tesla marketing department :-) I know that companies get a lot of flak for saying hedged things. But Tesla could really benefit from some hedging. This pronouncement in absolute terms that there will be no lease-end buyout is ridiculous. It depends entirely on future factors unknown today (to us or Tesla), whether they will give customers the option of buying out when the lease and actually arrives, and they know it. So why not just say so? How about: “Tesla leases do not guarantee the right to buy-out at lease end, because we hope to use some of the after-lease cars for a future ride hailing network.” Sure, it's a few more words to parse. But it would be one less thing for people to complain about. And it would be true and forthright. It is very good to be seen as true and forthright when asking customers to spend tens of thousands of dollars on something.
- pkulak 7y agoThat doesn't make customers think that FSD is Any Day Now so they'll spring for the option when they order.
- ec109685 7y ago> It depends entirely on future factors unknown today (to us or Tesla) How can you be so sure?
- londons_explore 7y agoThe buy-out price at the end of the lease is set by the lessor. If they don't want to sell, they could just set the price very high. No need to announce that now - in fact, doing so will simply reduce sales.
- 7y ago
- Waterluvian 7y agoSo how much is a lease?
- AndrewBissell 7y agoWith no financing partner in place this is a major cash-negative move for Tesla. Some shorts have been predicting Musk would do this to try and clear out inventory and improve demand optics before filing for bankruptcy. https://twitter.com/whistlerian1834/status/1096584893482463232?s=19 https://twitter.com/whistlerian1834/status/10965848934824632...
- monochromatic 7y agoWhy bother inflating the stock price before filing for bankruptcy? I don’t see the point.
- burlesona 7y agoIt seems like it’s more about making the long-term forecast look better and getting rid of cash on hand which would otherwise be owed to creditors. Not saying I buy the argument, but that’s how I understand it.
- AndrewBissell 7y agoYes, and to not head to into bankruptcy with huge lots full of unsold inventory cars scattered about the country. Although I doubt that this leasing option will do much to move inventory.
- stevenwoo 7y agoI do not know what to make of it but these short researchers seem to have found a lot of unsold Teslas. https://www.latimes.com/business/autos/la-fi-hy-tesla-short-sellers-musk-20190408-story.html?utm_source=pocket-newtab https://www.latimes.com/business/autos/la-fi-hy-tesla-short-...
- reasonablemann 7y agoRidiculous argument that Tesla wouldn't be able to offload the leases and receive cash up front.
- aerovistae 7y agoUh, wait. They're taking the Model 3 Standard off the menu....so.....that means the $35k version just got stopped? Sigh. It's a bit sad for me because I have been a bigger fanatic for this company than almost anyone, for maybe 9 years now, and my passion is fading. I recognize how hard the thing they're doing is, and how they're doing everything they can...but the repeated dishonesty is just very off-putting to me. I don't believe the ends justify the means, and many things could have been done better. Over and over Elon's PR has been profoundly deceitful.
- jonfw 7y agoThey will still sell you a model 3 standard if you want it, but it's just a software limited version of the standard plus, where you have to pay to access the full capabilities of the car.
- bagels 7y agoIt's not on the website anymore. Do you have a source?
- deleted 7y ago[deleted]
- jedberg 7y agoThe linked page says "As a result, Model 3 Standard will now be a software-limited version of the Standard Plus, and we are taking it off the online ordering menu, which just means that to get it, customers will need to call us or visit any one of the several hundred Tesla stores."
- TheSpiceIsLife 7y agoSo they can pressure you in to spending more.
- jonfw 7y ago
- hhs 7y agoAccording to the website, it looks like a Model 3 base (i.e., with Standard Plus Rear-Wheel Drive; Solid Black Paint; 18" Aero Wheels; All Black Partial Premium Interior; Autopilot) would have a purchase price of $39,500. This would have an estimated lease payment of $504/month, with $3,000 down, 36 months, 10,000 miles. And then estimated savings would be added depending on one's respective EV state rebates. At the end of the page, it says that there's a Destination & doc fee of $1,200, so that may need to be adjusted into the lease price.
- deleted 7y ago[deleted]
- abtinf 7y agoWhat is the reasoning to put money down on an auto loan or lease?
- AndrewBissell 7y agoTo stave off a Tesla bankruptcy for another 2 weeks or so?
- xeromal 7y agoLots of leases have down payments.
- bob_theslob646 7y agoThis article does a great job of explaining. https://www.edmunds.com/car-leasing/should-you-make-a-down-payment-when-you-lease.html https://www.edmunds.com/car-leasing/should-you-make-a-down-p... In summary, when leasing, put as little down as possible. When buying(loan) it depends. Obviously every person has a different financial situation, ( which also determines at which interest rate you are allowed to borrow money), but in general or ceteris paribus , that advice holds in general.
- ksherlock 7y agoIf you expand the lease details, it's $3000 downpayment but $4199 due at signing. plus taxes and fees.
- dzonga 7y agoThese guys snake oil, like never before. Full Autonomy coming soon, when they can't even detect simple things on the road. Dear ancestors help us!
- mandeepj 7y ago> Model 3 Standard Plus used to cost $37,500, plus $3,000 for the Autopilot option. It now costs $39,500, with Autopilot included It's just $1000 cheaper now. Good for Tesla as they will get more data.
- tschwimmer 7y agoI think the title of this submission should be changed to 'Tesla removes 35k Model 3 option' or similar. Their cheapest option is now a bit under 40k USD because they're including autopilot as standard.
- usaphp 7y agoOut of all of the people I know who own tesla, I have yet to meet anyone who bought one without autopilot. I don't understand why would you decide to purchase tesla over other electric cars if it was not for autopilot. If you want electric without autopilot - there are better options than tesla, so maybe the reason why they removed it was because a vast majority of people were purchasing the autopilot model, and offering the lower priced version was slowing down their prodution somehow (adding options is always time consuming).
- danhak 7y ago> I don't understand why would you decide to purchase tesla over other electric cars if it was not for autopilot. Supercharger network? Safety? Performance? Cargo Space?
- yeahitslikethat 7y agoYou forgot they don't waste money on qa.
- twiceaday 7y agoBecause they look better and carry a better brand image. If I were to buy one I will buy one without auto-pilot.
- pilingual 7y ago> If you want electric without autopilot - there are better options than tesla Please do tell me these better options as I had been considering a Model X but do not want to be forced to buy autopilot. I just looked into Audi eTron after reading this update and it only has 200 miles of range. Everything else about Tesla is the best - range, UI updates, supercharger. What other electric car is a “better option?”
- hbcondo714 7y agoThe HN profile of the user who posted this is "currently working at Tesla" Edit: removed my comment about insider information per the link provided in replies.
- make3 7y agoit's literally at the top of https://www.tesla.com/blog https://www.tesla.com/blog maybe it wasn't when you wrote your comment
- hbcondo714 7y agoNo, it wasn't. Thanks for mentioning; I updated my comment.
- arturogarrido 7y agofor the record, it was public on Twitter and the blog by the time I posted it here. See https://twitter.com/Tesla/status/1116533838627262466 https://twitter.com/Tesla/status/1116533838627262466
- cjbprime 7y agoHuh? It's a public blog post on Tesla's website. It doesn't matter who posted it.
- gaogao 7y agoSharing a press release is absolutely not insider information. I don't know what you're getting at.
- xkcd-sucks 7y agoWell, now it's public information
- jakobegger 7y agoI assume this means that the promised 35k Model 3 will never come to Europe, just as all the sceptics predicted. I preordered a Model 3 on launch day, but I requested a refund when I saw that the car costs 60000€ instead of 35000€ to 40000€ that I had hoped for. It's unfortunate -- I love the Model 3's minimalist interior design (judging from pictures) -- but this is not a car I can afford to buy right now.
- bob_theslob646 7y agoWhat's incredibly interesting is that you are required to put a minimum of a $3000 dollar down payment. What was also interesting is that you forgo your right to buy back the car if you lease it, which is also odd.
- xkcd-sucks 7y agoDoesn't that make it a rental instead of a lease
- copperx 7y agoLeasing and renting are synonyms; I've always seen them used interchangeably.
- dragonwriter 7y agoThe only reason “rental” and “lease” aren't the synonyms they usually are in auto land is because “rental” is used when the period is very short term, and “lease” is used for a period, generally, of a few years.
- maxdo 7y agoif tesla 3 with all that pricing failed to lure customers, then 3 or 4k will not help them at all. It's very sad but looks like nothing going to save Tesla. With this level of income, their valuation is a bubble.
- jakobegger 7y agoSo to summarize: - Tesla launches 35k Standard model along with 37,5k Standard Plus Model - Tesla raises price of Standard Plus Model to 39,5k - Tesla discontinues Standard Model So Tesla just increased the base price of the Model 3 from 35k to 39.5k, but tried to do some marketing tricks to make you feel like it's a great deal.
- dragonwriter 7y agoThe Standard isn't discontinued, it's just rejiggered to be a software-limited version of Standard Plus (because logistical simplicity saves more than the reduced bill of materials) and pulled from the online catalog so that you have to go to a showroom (remember when they were going to dump those?) or call on the phone to order one.
- jakobegger 7y agoThat's what they are saying, but we all know the option will disappear quietly in a few weeks, just like all the low cost Model S options.
- dragontamer 7y agoThere's a fine line between "Loss Leader" and "Bait and Switch". Its pretty clear that Tesla sales-reps are going to be VERY strongly trying to upsell their customers away from the $35k model. I dunno where the line will exactly be drawn for "Bait and Switch", but Tesla is getting closer and closer to that line.
- bryanlarsen 7y agoContrary to the standard short story, there must still be significant demand for the 3 if Tesla is raising prices rather than lowering them. Yes, the $35k model 3 is still technically available, but obviously they don't want to sell them. If there was little demand, they would rather sell a $35k 3 at no profit than idle their factory.
- reitzensteinm 7y agoI feel like this is a bit of a strawman. If there's a "standard" short story, it's that the demand for high end Model 3s is too low, and the company can't profitably be run on the margins of SR/SR+ or even MR alone. I'm not sure I believe it (Sandy Munro for instance seems pretty optimistic that a competent manufacturer could profitably make the $35k M3), but misrepresenting the argument does nobody any favors.
- dragontamer 7y ago> (Sandy Munro for instance seems pretty optimistic that a competent manufacturer could profitably make the $35k M3) Its pretty clear what Sandy Munro is doing however. He's trying to sell his consulting services to Tesla. His whole shtick is pointing out issues with their design and trying to demonstrate that he knows how to save them lots of money. It doesn't seem like Elon is biting however. Munro's video was about unnecessary welds, and how various shapes could have been made more cheaply. Only IF Tesla implements those changes (and probably the other changes Munro was thinking about) could they save money. Not that I don't trust the guy, but you gotta keep in mind what pays Munro's bills. He's selling his expertise.
- londons_explore 7y agoI feel like both Tesla and Munro can point to those savings now... It's a real expert who could point to those savings back at the design stage. Simple things like "these parts could have been combined into one cheaper simpler part" don't take into account the fact that by making them separate parts they are easier to contract out, easier to modify one without the other, and easier to correct issues when yield is poor on one.
- gordon_freeman 7y agoI love Tesla and Elon Musk for what he's doing for the humanity but paying $21,144 ($3000+36*$504) for 36-month, 10K miles/year lease is insanely costly. I can think of buying a Tesla but can not think to lease it at this price point.
- burfog 7y agoIt always feels like Tesla owns the cars anyway, having that data connection to do whatever they feel like doing. Leasing makes it legit.