Approaching end of four year lease - options?

[MarkoJ]

Here is my situation. Early 2016 S 70D with 140,000 km and will be around 150,000 km come lease end of February 2020 with a buyout of $45,500.

- Is it possible to somehow execute another re-lease? Maybe two years with a $20,000 buyout or similar?

- Does anyone finance traditional buyouts at a reasonable rate?

- Would it be possible to find someone to buyout out the lease right at the end? My thought here is if I buy it out then I need to pay 12% tax and if I go resell then that buyer needs to pay 12%, again. In the event someone bought it out I would finance a brand new base model 3. Also, not sure if I could get $2,000 or $3,000 out of a buyer as $45,500 seems a tad under market? High km but great shape, no accidents.

- Returning it is not an option due to massive excess of km over the 20,000km/year limit.

- I can pay cash but prefer to keep money in the company.

Any advice? Keeping the car versus getting a new base Model 3 are pretty much equivalent in terms of driving preferences with small bias to keep the Model S (I like it more, but obviously no warranty). If going with Model S plan would to be to unload the Model S before the 8 year mark at which point it would have 300,000 km.

 

[TLej]

I just bought out my S, my lease was due to end Dec 2 but I bought it out at the end of October. $55k was my buyout for my 90D, which seemed fair to me. I'm at about 94,000 km so I was going to have overage fees but nothing too dramatic.

There was an option to extend for a month or two, but not multiple years. I decided to just buy it out in cash rather than deal with financing it again, so I didn't get too far into finance rates or look for anyone else to buy it out.

I don't think mileage is as important on an EV as on an ICE, but I don't think the average buyer has figured that out yet so I'd be surprised if you got more than the buyout amount for your car if you decided to sell it.

I decided to stick with my S instead of go with a new S or a 3 because so far my car has been good to me, and it seemed like the devil I know is better than one I don't. Also, I don't care about many of the features the new cars have (although the 600 km S is compelling) - I have the metal roof, no autopilot, coil suspension, etc. so most of the features the new S has have no value to me, and a 3 would be more expensive than my S for no more (and possibly less) range and performance and comfort and interior space. I will likely trade it in for a Y once they're out, unless that new VW wagon is as good as it looks (not likely as the non-Tesla charging situation in Alberta leaves a lot to be desired).

Warranty-wise, I figure not having car payments for a year will cover whatever repair items come up and still leave a surplus, so I should come out ahead both short- and long-term.

Best of luck with your decision, I agonized over my choice for six months before making it but I feel like it was the right choice for me.

 

[MarkoJ]

I just bought out my S, my lease was due to end Dec 2 but I bought it out at the end of October. $55k was my buyout for my 90D, which seemed fair to me. I'm at about 94,000 km so I was going to have overage fees but nothing too dramatic.

There was an option to extend for a month or two, but not multiple years. I decided to just buy it out in cash rather than deal with financing it again, so I didn't get too far into finance rates or look for anyone else to buy it out.

I don't think mileage is as important on an EV as on an ICE, but I don't think the average buyer has figured that out yet so I'd be surprised if you got more than the buyout amount for your car if you decided to sell it.

I decided to stick with my S instead of go with a new S or a 3 because so far my car has been good to me, and it seemed like the devil I know is better than one I don't. Also, I don't care about many of the features the new cars have (although the 600 km S is compelling) - I have the metal roof, no autopilot, coil suspension, etc. so most of the features the new S has have no value to me, and a 3 would be more expensive than my S for no more (and possibly less) range and performance and comfort and interior space. I will likely trade it in for a Y once they're out, unless that new VW wagon is as good as it looks (not likely as the non-Tesla charging situation in Alberta leaves a lot to be desired).

Warranty-wise, I figure not having car payments for a year will cover whatever repair items come up and still leave a surplus, so I should come out ahead both short- and long-term.

Best of luck with your decision, I agonized over my choice for six months before making it but I feel like it was the right choice for me.

Do you happen to know if you extend the lease by a few months if the lease buyout drops as well?

Agonizing decision here too. For me I also love the pano roof which I have open on a daily basis 8+ months of the year and nither the model 3 or new model s offer that.

Warranty-wise I've already felt the pain.....$4k for a new MCU but as you say monthly payments can cover a lot of work.

 

[TLej]

Do you happen to know if you extend the lease by a few months if the lease buyout drops as well?

Agonizing decision here too. For me I also love the pano roof which I have open on a daily basis 8+ months of the year and nither the model 3 or new model s offer that.

Warranty-wise I've already felt the pain.....$4k for a new MCU but as you say monthly payments can cover a lot of work.

As far as I know, yes, your extension counts towards lowering the buyout price (just as my buying it out early increased the buyout price in line with the number of months I was early).

 

[DMC-Orangeville]

As far as I know, yes, your extension counts towards lowering the buyout price (just as my buying it out early increased the buyout price in line with the number of months I was early).

Yes it does. I extended my lease for 6 months after initial expiry, in 2018....then bought it. The residual reduced by about $5,000.