Article: Slate will offer full loan financing at ~$400 a month. LA, San Francisco, and Seattle are top three markets

[Doctors Do Little]

A podcast mentioned that you currently can lease a Tesla for $329/month so I searched for that and found this:

Presumably there's a catch.

There usually is a limited time…

 

[FlyHappy]

A podcast mentioned that you currently can lease a Tesla for $329/month so I searched for that and found this:

Presumably there's a catch.

No catch.
but its $4,024 due on delivery. 36mo / 10k miles per year.

for an otherwise $37k cash purchased car.

I've never, nor would ever, lease anything, so I leave it to y'all smarter folks to decide what this means.

 

[Rocks]

4024+(36×329) = $15,868
15868÷36 = $440.78/mo net

You'd be out of pocket more than the depreciation of a purchase, but not outrageously so. The 10K mi/yr might be the real killer for a lot of people.

 

[FlyHappy]

4024+(36×329) = $15,868
15868÷36 = $440.78/mo net

You'd be out of pocket more than the depreciation of a purchase, but not outrageously so. The 10K mi/yr might be the real killer for a lot of people.

It's actually three hundred twenty nine dollars less, as the first lease payment is included in the delivery cost.

Personally, I think the millions of folks who lease are nuts, but I get that many people like always having a new car to drive.
I'm just not wired that way, i don't care how "low" that monthly cost might appear. The idea of renting a car that is really not my own is foreign to my value system.

 

[Rocks]

Personally, I think the millions of folks who lease are nuts, but I get that many people like always having a new car to drive.

Someone once explained it to me with "I'm never going to be free of a car payment, so why not get a new one every three years."

It's their money and their priorities. They can do as they please.

 

[E90400K]

Someone once explained it to me with "I'm never going to be free of a car payment, so why not get a new one every three years."

It's their money and their priorities. They can do as they please.

And they can also be not financially astute.

 

[kotaKat]

Lease mileage is a killer when you get into the rural sticks. 70 miles a day round-trip adds up quick in a lease allotment. I can blow through 10,000 miles in less than half a year. I'm projecting around 20k this year already on my current setup just to get to and from work, and we're not even taking care of errands yet...

My local dealers love to advertise stupid cheap sub-$300 lease deals with only 8000-10000 miles available and I'm glad people only have to drive their massive SUVs only two miles or so a day to be able to afford it, apparently.

Carvanas soft pre approval is crazy. I’ve got a 780 credit score and looked just to check and it’s also 12.5%…

Hah, interesting. The only reason I'd considered the pre-approval logic was CVNA's funny short seller takedown (https://hindenburgresearch.com/carvana/).

Like if people are under 18, you can’t give them a loan no matter what. Various other stuff like that. We actually approved 100% of applicants we didn’t decline for compliance reasons. And the way we managed risk was through down payment…

 

[Doctors Do Little]

Lease mileage is a killer when you get into the rural sticks. 70 miles a day round-trip adds up quick in a lease allotment. I can blow through 10,000 miles in less than half a year. I'm projecting around 20k this year already on my current setup just to get to and from work, and we're not even taking care of errands yet...

My local dealers love to advertise stupid cheap sub-$300 lease deals with only 8000-10000 miles available and I'm glad people only have to drive their massive SUVs only two miles or so a day to be able to afford it, apparently.



Hah, interesting. The only reason I'd considered the pre-approval logic was CVNA's funny short seller takedown (https://hindenburgresearch.com/carvana/).

Leasing would not make sense for higher mileage use in your case. You would be forced into some unpleasant financial decisions at month 35.9.

Save some jack, max out your down payment and come in lower on monthly loan payments- then pay it off and own it, knowing you are free to mod it out at your own pace.

Signed, Gen X (made every financial mistake in the book 30 years ago)

 

[danielt1263]

No catch.
but its $4,024 due on delivery. 36mo / 10k miles per year.

A 20 mile commute, one way, five days a week is over 10k miles... Just saying.

 

[TPL]

This news encourages me about Slate's financial viability. The in-house loan arms of existing automakers are basically banks that print money for them. Hopefully Slate can get in on that racket too.

24% interest sounds about right for "we actually approved 100% of applicants."

I've never leased, but I have considered doing it someday if I'm ever rich enough. Or financially astute enough to be able to figure out when it would be advantageous.

 

[FloppaEnjoyer8067]

This news encourages me about Slate's financial viability. The in-house loan arms of existing automakers are basically banks that print money for them. Hopefully Slate can get in on that racket too.

24% interest sounds about right for "we actually approved 100% of applicants."

I've never leased, but I have considered doing it someday if I'm ever rich enough. Or financially astute enough to be able to figure out when it would be advantageous.

Leasing is advantageous if you’re only ever going to keep a car for a few years, and you are going to buy new cars. It also is made more valuable if you’re going to drive a car with maintenance costs (Porsche, Mercedes, etc).
The exact crossover point of value for short term purchase vs lease depends on too many variables.

 

[AeroWolf]

Just for some perspective. I have excellent credit so that get's me a 5 % interest rate on new vehicles from my credit union. Only financing $20K (20% down + the des and TTT and any accesories). For the 4 year bumper-to-bumper warranty period came out to $440-$460 a month. Assuming Google AI is not missing anything.

 

[Doctors Do Little]

This news encourages me about Slate's financial viability. The in-house loan arms of existing automakers are basically banks that print money for them. Hopefully Slate can get in on that racket too.

24% interest sounds about right for "we actually approved 100% of applicants."

I've never leased, but I have considered doing it someday if I'm ever rich enough. Or financially astute enough to be able to figure out when it would be advantageous.

It would take some interest-ing (pun intended) arbitrage to build a case that you would make money on the margin, presuming the opportunity costs were appreciating asset investments, etc. Those are the typical arguments ("why borrow for depreciating assets vs renting?").

 

[kotaKat]

Save some jack, max out your down payment and come in lower on monthly loan payments- then pay it off and own it, knowing you are free to mod it out at your own pace.

That's also why I think Slate might also take 'less' of the financing cut (and offer lower interest rates than others) knowing they can take the full vig off the after-sale accessories in later years and make more profit on the accessories in the backend of the sale than off the financing of the truck itself.

Take a couple thousand off the one-time financing profit and slide it over to the recurring profit from the same customer after-sale on the wraps and plastics.

 

[FlyHappy]

That's also why I think Slate might also take 'less' of the financing cut (and offer lower interest rates than others) knowing they can take the full vig off the after-sale accessories in later years and make more profit on the accessories in the backend of the sale than off the financing of the truck itself.

Take a couple thousand off the one-time financing profit and slide it over to the recurring profit from the same customer after-sale on the wraps and plastics.

I am not sure Slate has ever had any ability to "get a cut" of financing from a lending partner. Not out of the gate, with so many unknowns.