Able to purchase leased Model Y in three years?

[EmbersDC]

Tesla, outside of 1-2 areas of the country, does not permit the purchase of your leased Tesla after the term is over. This is vastly different than all other car companies. I've leased my last five cars and this Tesla and one I'd consider purchasing after the lease is over. However, as of now the Model 3 and Y are not for sale after lease.

Anyone believe in three years this will change? I read you are able to purchase leased Teslas in CA.

 

[Tedkidd]

I'm watching for Tesla to change it's leasing terms to allow buyout and early termination.

 

[EmbersDC]

Tesla permits their vehicles overseas to be bough out at the end of the lease. I'm hoping in 36 months they will allow the option in NA. Else, if I choose to continue with a Tesla I need to order another one for lease or purchase in 24 months. Would be much easier to just purchase the leased vehicle.

Another good sign is the new Model Y factory in Texas. Once it's up and running the amount of supply for Ys should increase drastically. Hopefully in two years purchasing your lease will be an option.

 

[mrwug]

I wouldn't count on it. Not looking to rain on anyone's parade but with where car prices appear to be heading, much would have to change for that to happen.

 

[EmbersDC]

If the Texas factory is able to manufacture Model Ys quick enough 2-3 year is a long time away. That's plenty of time for Tesla to catch up in production. And based on news it's strictly a Model Y center. That's why in Asia and EU leassors can buy their Teslas. There's enough cars being manufactured there already.

 

[Tedkidd]

If the Texas factory is able to manufacture Model Ys quick enough 2-3 year is a long time away. That's plenty of time for Tesla to catch up in production. And based on news it's strictly a Model Y center. That's why in Asia and EU leassors can buy their Teslas. There's enough cars being manufactured there already.

It might not be.

Austin will build what, 1m Y per year?
What price/supply intersection will that provide?
What if at $50k, demand is 3m per year?
What if demand is 5m per year?

And remember, Tesla is still not delivering worldwide...

 

[jjrandorin]

Tesla, outside of 1-2 areas of the country, does not permit the purchase of your leased Tesla after the term is over. This is vastly different than all other car companies. I've leased my last five cars and this Tesla and one I'd consider purchasing after the lease is over. However, as of now the Model 3 and Y are not for sale after lease.

Anyone believe in three years this will change? I read you are able to purchase leased Teslas in CA.

There is a bit of mis information here in your post.

Tesla does not allow anyone leasing a MODEL 3 or MODEL Y to purchase them at lease end, currently, anywhere in the US (including in CA).

Tesla does allow people to buy model S and X at least end.

Tesla does not currently even allow third party dealers to buy tesla model 3 and Y leases ( as of the end of October of this year). Whether this will change or not is anyones guess, however the contract that anyone leasing signed says "no, you cant buy it" so thats what you should expect.

 

[Corndart]

I wouldn't count on it. Not looking to rain on anyone's parade but with where car prices appear to be heading, much would have to change for that to happen.

The only people that think current inflated used car prices are here to stay are used car salespeople. The bubble will burst.

 

[jjrandorin]

The only people that think current inflated used car prices are here to stay are used car salespeople. The bubble will burst.

Selling more than new? Sure, no @#!$% way that can go on forever. Model 3s and Ys did pretty well before this crazy market though, as well. I personally dont think "robotaxis" or anything like it will be here any time soon, but I wouldnt lease a tesla "Planning" on them changing that rule. They might, but planning for them to do that (vs "hoping") would be a mistake.

Anyone leasing should just plan to ride it out like normal, kick the can down the road 3 years, and figure out what they want to do when that three years is up (get another tesla, go with another brand which might finally be out and purchasable, etc).

 

[EmbersDC]

There is a bit of mis information here in your post.

Tesla does not allow anyone leasing a MODEL 3 or MODEL Y to purchase them at lease end, currently, anywhere in the US (including in CA).

Tesla does allow people to buy model S and X at least end.

Tesla does not currently even allow third party dealers to buy tesla model 3 and Y leases ( as of the end of October of this year). Whether this will change or not is anyones guess, however the contract that anyone leasing signed says "no, you cant buy it" so thats what you should expect.

Yes, that's correct. CA does not permit it. Only Asia and EU are permitted. That said, I still believe in 2-3 years there will be enough Model Ys in America where they will allow lessees to buy their cars. If not, I'll just order a new Model Y 9 months prior to my lease expiring. Not a huge hurdle.

 

[EmbersDC]

The only people that think current inflated used car prices are here to stay are used car salespeople. The bubble will burst.

Only reason used cars are in major demand is due to lack of parts from overseas. I've leased my last five vehicles. Current one is Model Y. I just sold my prior lease to a local dealer and made $4000 profit. I had $29,000 buyout amount on my lease. They bought it for $33,000. Why? It was a 2019 white Acrua RDX and it's one of the highest demand cars out there now. So, I made $4000 off my lease and got into a Telsa Y.

This scenario will be gone in a few years once ports settle down.

 

[BGOwner]

Tesla does not currently even allow third party dealers to buy tesla model 3 and Y leases ( as of the end of October of this year). Whether this will change or not is anyones guess, however the contract that anyone leasing signed says "no, you cant buy it" so thats what you should expect.

Actually, from what I hear, its a new thing that a good number of Car Manufacturers are not allowing 3rd party dealers to buy out the lease. This seems to be due to the big demand for Used cars, they are trying to get thier cars back for resale. https://cars.usnews.com/cars-trucks/lease-end-options-restrictions

 

[Corndart]

Only reason used cars are in major demand is due to lack of parts from overseas. I've leased my last five vehicles. Current one is Model Y. I just sold my prior lease to a local dealer and made $4000 profit. I had $29,000 buyout amount on my lease. They bought it for $33,000. Why? It was a 2019 white Acrua RDX and it's one of the highest demand cars out there now. So, I made $4000 off my lease and got into a Telsa Y.

This scenario will be gone in a few years once ports settle down.

Being slightly pedantic, that is certainly one major contributor but its not the "only" reason and the ports are a single dimension in the "Out of Everything Epoch".

Approach a lease they way they were intended to function, which is to lower your car payment and put you in a car that you otherwise likely wouldn't / shouldn't be able to afford. The other angle is a business expense, where (not an accountant or tax person) it's probably simpler to track and compute than dealing with a long term depreciating asset.

 

[Corndart]

Actually, from what I hear, its a new thing that a good number of Car Manufacturers are not allowing 3rd party dealers to buy out the lease. This seems to be due to the big demand for Used cars, they are trying to get thier cars back for resale. https://cars.usnews.com/cars-trucks/lease-end-options-restrictions

It makes sense, they're trying to capture revenue lost due to volume constraints. There really is little to no downside for them IMO - if the buyout is greater than current market value, which has often been true, leasees won't exercise the purchase option anyhow.

 

[EmbersDC]

Being slightly pedantic, that is certainly one major contributor but its not the "only" reason and the ports are a single dimension in the "Out of Everything Epoch".

Approach a lease they way they were intended to function, which is to lower your car payment and put you in a car that you otherwise likely wouldn't / shouldn't be able to afford. The other angle is a business expense, where (not an accountant or tax person) it's probably simpler to track and compute than dealing with a long term depreciating asset.

Lack of parts to build new vehicles is the reason used car value is high. The reason can be spread from COVID, lack of production overseas, imports, whatever. End of the day this would not occur in 2019 because there wasn't a lack of part to build cars. Right now there is so used cars are highly sought after.

I've leased my last five cars. All company owned. I know how leasing works. Dealers are taking advantage of selling used cars for significantly higher right now due to very low supply of new cars. My 2019 white Acura RDX with Advance Package is the #1 selling car in my area. Told to me by three dealers. I had SIX MONTHS remaining on my lease and they offered to buy me out with an additional $4000 of profit. That's how much dealers are making off used cars.

 

[mrwug]

The only people that think current inflated used car prices are here to stay are used car salespeople. The bubble will burst.

I chose my words carefully. I didn't write "where car prices appear to be heading". I do not believe that the upwards price pressure (on everything) is going to stop anytime soon. Price of a new Model Y has gone up over 10% since mid-summer. While the rate of increase won't be so great, I don't expect that trend to subside any time soon. If the MSRP on a 2024 MYLR is in the 65-70K range, how will price of a used 2021 MYLR at that point compare to the residual value of the lease? The bubble can burst with the leasing companies still cleaning up on the sale of leased vehicles.