Leasing vs Buying a Tesla. Why leasing is the better option. #Tesla
Channel: Juan Carlos LTO
Date: 2021-07-28

Should you buy or lease your next Tesla vehicle? (this is my sincere opinion and it may be different to yours, at the end of the day, we should do what makes us sleep tight at night)
We financed our Tesla Model Y. We made our choice based on our current situation and decided to buy it yet here I am telling you that you should lease your next Tesla vehicle not buy it. Some of these reasons are not exclusive to Tesla Cars but to other electric vehicles as well.
I don't keep vehicles longer than, on average, 3 years, and I don't put excessive mileage on any of my cars, and I hardly ever customize them. Yet, I have only leased one car in my life, all of my other cars have been either purchased outright or financed for 48 months or longer and here is the hard reality: I have never kept a vehicle for the duration of the finance term. NEVER. On paper I would be a perfect candidate for leasing.

This decision should be personal and based on the needs of each individual.

Many financial advisors will tell you never to lease a vehicle as you never actually own it and you go from one new car to the next without ever owning the title to a vehicle. In the long term, this can get very expensive. A simple search with the question "How long do people keep their cars?" yielded the following: 8.4 years. The warranty on the battery is for 8 years. So unlike a traditional internal combustion engine car, which loses very little capabilities in 8 years,  electric vehicles lose range. 
In the case of a Tesla, you are on your own after 8 years, and if you consider that the vast majority of Tesla vehicles on the road today were sold after 2012, we are barely seeing the first cases of Tesla vehicles driven with their batteries fully out of warranty that can be bought for way less than the cheapest new Tesla available today which is the Tesla Model 3 Standard Range Plus. 
In a prior video I said that I don't expect our Tesla Model Y to age gracefully, meaning that I think that it will depreciate greatly the longer we keep it. One reason is the life cycle of the battery.
On average, a new gas engine car depreciates over 50% in the first 5 years. Depending on the brand, a 5 year old car has many miles left worth of use granted it is maintained properly. But in the case of a Tesla, my concern is that as the battery gets closer to the end of its warranty, the car will depreciate even more as its range is affected as the battery becomes tired and since the electric cars coming off the factory keep getting more efficient with better battery packs, it only makes sense to steer clear from older electric vehicles.
Gas engine vehicles can be preserved for years and lose minimal or no capabilities as they age. I don't believe this will be the general case of electric vehicles... Then why hold on to a depreciating asset?
I understand that leasing is not for everyone but doing so has advantages and disadvantages. 
I believe the Tesla Model Y to be the best Tesla to date for many reasons. It's basically a raised Model 3. That turns it into some sort of an SUV and SUV's are the hottest vehicle types in the market. Tesla offers another SUV, which is the Model X but at almost $100000, it doesn't offer enough substantial differences to the base Model Y which is listed in the mid fifties. 
a decade ago, nobody had taken EV's seriously but in the last year, all other major car brands have started to roll out their EV offerings and these are great alternatives.

This is just my opinion, I wish I had a crystal ball to know where the market is going to be in a few years. I hope I'm wrong so that people that believe in alternative energy vehicles get the most out of their investment. Last year Elon Musk said that he believes Tesla cars being bought today are an appreciating asset but I truly don't believe that to be the case, especially in the long term.

Articles referenced: 
https://www.iseecars.com/how-long-people-keep-cars-study
https://www.currentautomotive.com/how-much-does-a-tesla-model-3-battery-replacement-cost/
https://www.consumerreports.org/buying-a-car/leasing-vs-buying-a-new-car/

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