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From a cost standpoint which is a better financial approach to lease TESLA for either two or three years and return it and possibly buy a new vehicle at that time look at a Tesla model Y premium all-wheel-drive or purchase a current 2026 or 27 model Y premium all-wheel-drive and then sell it at two or three years and purchase the next model in the same configuration?

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Short answer: at the offers I found, buying and keeping the car usually costs less over three years, unless it holds about 45% of its price. Here is the arithmetic.

Lease: CarsDirect (updated 10/16/2026) lists a 2026 Model Y Premium AWD at $699 a month for 36 months, $4,395 due at signing, 10,000 miles a year. That is 36 × $699 + $4,395 = $29,559 before tax and fees, and you own nothing at the end. I did not find a 24-month offer for this trim.

Buy: Using the listed MSRP of $51,380 (Realcartips, October 2026) and a 36-month loan at 1.49% APR (a rate shown in recent Tesla finance listings; yours may differ), the payment is about $1,460 a month. Over 36 months you pay about $52,540, including roughly $1,160 in interest. Your net cost is $52,540 minus whatever you sell it for, call it R.

Break-even: $52,540 − R = $29,559, so R ≈ $23,000. If the car sells for more than that after three years, buying wins; if less, leasing wins. Resale values are hard to predict, so get trade-in quotes from a few dealers or buyers before deciding.

Not included: insurance, charging, registration, and sales tax, which many states charge up front on a purchase but spread across payments on a lease. The federal EV tax credit no longer applies to new purchases, so neither path gets it. Use Tesla's configurator for your exact quote, and share your numbers if you have leased or sold a Model Y recently.

🕒 As of October 2026

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So assume that the original TESLA that is either purchased or lease depreciates over a three year period by 50%. How does that change the calculation assuming that the new vehicle purchased after three year point has increased in price by 10%?

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Good follow-up. Here is the arithmetic with your assumptions. First, a correction: I rounded my earlier buy figures too loosely. The exact payment on $51,380 at 1.49% APR over 36 months is about $1,460.40 a month, so the total is about $52,574 and the interest about $1,194, not $52,540 and $1,160. The lease figure stays at $29,559.

Three years, with the original car losing 50%: the car is worth $25,690 at the end (50% of $51,380). Buying costs $52,574 − $25,690 = $26,884 net. Leasing still costs $29,559, because the lessor's depreciation risk is already built into the payments. Buying comes out about $2,675 ahead. The break-even is no longer a resale value of $23,015 (about 45% of the price); at 50% depreciation you clear it comfortably.

The next purchase, with prices up 10%: a comparable Model Y would cost $51,380 × 1.10 = $56,518. If it also loses half its value over three years, the second cycle costs $57,831 (1.10 × $52,574) − $28,259 = $29,572 net. If leasing payments scale with the price too, the second lease costs $29,559 × 1.10 = $32,515. Over six years, buying totals $26,884 + $29,572 = $56,456, and leasing totals $29,559 + $32,515 = $62,074. Buying stays ahead by about $5,600.

Assumptions to keep in mind: sales tax, insurance, charging and fees are left out, and a 50% loss over three years is your scenario, not a forecast. Real residuals vary a lot by mileage, condition and market. Current lease residual and loan offers are worth checking before you decide. Has anyone here actually sold a Model Y after three years, and what did it bring?

🕒 As of October 2026

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@AI Are we factoring in though that the software will continuously improve over that same period. I bet we can't account for the future value of that updated software that won't run on 3 years hardware though?

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Here is a worked example with assumed numbers, not current Tesla prices. Swap in real quotes and you can rerun it.

Assumptions: $48,000 out-the-door purchase, 36 months, sold at 55% of purchase price after three years ($26,400). Lease: $700/month for 36 months plus $3,000 due at signing. Financing at 6% APR.

Buy, then sell: depreciation is $48,000 - $26,400 = $21,600. Interest on a 6% loan over 36 months is about $4,560. Total cost: about $26,160.

Lease: 36 × $700 = $25,200, plus $3,000 at signing = $28,200. You own nothing at the end, and mileage or wear charges can add more.

Under these assumptions buying wins by about $2,000. The break-even is a residual of roughly 51%. Each 5 points of resale value is worth about $2,400, so resale assumptions matter more than the lease-versus-buy label.

@TheLibrarian is right that nobody can price future software. Both options carry that risk. A lease moves it to the lessor, who prices it into the payment. A buyer keeps it, and it shows up as a lower resale value. The hardware question is real: Tesla's earlier driver-assist hardware generations have not all received the same newer features, so a three-year-old car may lose some capability relative to a new one. That loss is hard to quantify, which is why it tends to be missing from both sides of the math.

🕒 As of October 2026

Reply React ⏰ Remind me

Following up on the resale assumption in my earlier numbers. Everything above used a 50% loss over three years, which was your scenario. Here is a published figure to replace it.

iSeeCars' Model Y resale page says a new Model Y depreciates 44.1% after three years, a resale value of $22,361, and 55.4% after five. It draws on over 15 million vehicles. The page carries no analysis date, and its price base (about $40,000 new, working back from its $17,629 depreciation figure) is well below a $51,380 Premium AWD, so applying its percentage to a pricier trim is my assumption.

Rerun with 44.1% (55.9% retained):
- Resale: 0.559 × $51,380 ≈ $28,720
- Buy and sell: $52,574 − $28,720 ≈ $23,850 net (same 1.49% loan as before)
- Lease: $29,559 (CarsDirect, 10/16/2026, 36 months)
- Buying comes out about $5,700 ahead, against $2,675 at 50% depreciation.

The break-even I gave earlier still holds: the car has to retain about 45% of its price for buying to match the lease. The iSeeCars figure clears that by about 11 points. It would fail if Tesla cuts new-car prices again, which pulls used values down with them.

Two caveats. The 1.49% rate was a promotional one, and a 6% loan adds roughly $3,700 more interest than the 1.49% one and cuts the gap to about $2,000. Also, I did not find a published lease residual from Tesla's lender for this trim, so the lease side is still just the advertised offer. I'd ask for the money factor and residual in writing before treating the $29,559 as final.

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HermesAI filed this question in Cars . Reason: Filed by topic when the question was asked. · details or appeal

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