Well despite my trepidation with the I-Pace, I did really like driving the loaner that they gave me and was planning on taking home the one that I ordered. However, after my dealer gave the the lease deals, I may have to walk away. The monthly price is about $350 more than a similarly built Model S. I can’t quite stomach that lost money over the life of the lease. They don’t seem to be able to anything from the dealers end to make it more competitive. Any suggestions?
Lease Price May be the Nail in the Coffin
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JLR doesn’t control lease rates like BMW can because they don’t have their own financial arm. However, some dealers are giving huge discounts on purchasing. Someone recently got 10% off MRSP and 0% interest. That along with the Federal tax credit is huge savings over any Tesla
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It is financing.
I'll pick a cheap Model S which is discounted right now. Standard 270 mile range, grey, 19" base wheels, tan interior, adaptive + steering assist = $86,200. Put $10,000 down, drive 10k mi a year, and it's $985/m for 36m or $45,460 to rent a car for 3 years or 30,000 miles and pray no wear and tear fees. You do get whatever state and utility credits apply after the sale.
That's $1.50 a mile for the ~base Tesla S. (to buy it, $10,000 down, $1,184 for 72 months, and fed rebate is $3750)
Now I picked the fully loaded grey First Edition on 20" wheels. It's $87,500 because it has way more features. Say you still need to put the $10,000 down. It's $77,500. After fed credit, $70,000. 0% for 60 months it's $1167/m. But you get 5 years under warranty, 60,000 miles, and get to sell it at the end.
Why more a month? Because one is 10k miles a year, and the other is 12k miles a year.
And assuming you sell the car for $30,000 at the end (you are rough on cars and enjoy off-roading) it's ...
$0.67 a mile for the I-Pace First Edition.
Some cars have great lease deals. The I-Pace is not one of them.
To be honest, neither car is a wise financial investment. That's why I chose the I-Pace and don't regret it. I love the car, and I enjoy driving it.
I would definitely purchase if it were a better decision but I get tax incentives with a lease so it ends up knocking off about 30% of the lease payment. Btw the lease payment they showed me was with 10k down and a monthly payment of 1400 (MSRP 85K) and a 10K mike allowance. I can stomach 1-2 hundred more a month but the price they are quoting feels like gouging.
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I configured one online for purchase, not fully loaded but not a stripper either. The monthly payment calculator came in just above $1100/month IIRC with $0 down, 0% financing and no trade-in. Your numbers seem a bit high with $10K down.
For that I would say I was more interested in the 60 month zero % financing and other dealers are taking $3,000 to $5,000 off the sticker.
You still get tax deductions on the purchase. Although the $7,500 federal credit could be limited by business use. I just take a mileage deduction on mine. Although my purchase was late 2018 and will be put into business use in 2019.
You still get tax deductions on the purchase. Although the $7,500 federal credit could be limited by business use. I just take a mileage deduction on mine. Although my purchase was late 2018 and will be put into business use in 2019.
You would think that's the case, but in this case the $7500 came off the "drive off" (downpayment) figure. Plenty of room for misinterpretation and financial shenanigans to the un-indoctrinated, which is just about every first-time EV buyer.
Oddly the above ad offers a discount to "financed" purchasers, too, although not as much as to lessors. Presumably *that* is unrelated to the $7500 EV tax credit. I read elsewhere in this forum someone was offered a choice: (a) $3k off OR (b) 0% financing.
Seems like JLR is using Whack-a-Mole tactics to boost sales... or maybe it's just some dealers getting antsy since these are NOT high margin cars for them? Either way I get the feeling such promotions are de-celerating sales as prospects are incentivized to wait for the next (better) offer...or next (newer) EV!
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JLR subtracted the $7,500.00 federal tax rebate from MSRP for the lease, which is correct.
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