Changing Model S from Lease to Finance

[el_tlatoani]

A little bit of background; I got a Model S back in March of 2018 in a lease for 2 years and 15k miles (30k total). Coming in to the first year and with over 13k miles, I want to see if it is possible to change it from a lease to a finance. I want to move into a new place and having lower payments (currently $1343/mo) would be fantastic and a huge help!

Has anyone done this in the past? What were the steps you followed, any ETF's?

Thanks in advanced!

 

[whitex]

Out of curiosity, what makes you think finance payments will be lower? Unless you finance it over a long time, they probably won't be.

The way you transition from lease to loan, you buy out the current car at whatever you owe at this point (residual + about 2/3 of the cap cost half way through the lease), then you finance that amount as a used car. Car is not eligible for the federal tax rebate either (leasing company already took it). At this point in your lease (1 year into 2 years) you owe more than the car is worth, so be prepared to put down some cash to get a good loan interest rate. Best thing to do is to call your bank which has your lease and ask them, they can probably help (and you can avoid having to pay sales tax twice) - tell them you would like to buy the car out and wish to finance it.

 

[pinball_player]

They do not call it a 'fleece' for nothing.

The best option is to keep the car until the end of the lease, and then buy a new one. The residual cost will be more than the car is worth, and if you buy a new one you will get a new car.

 

[jeffro01]

Not going to be a cost effective idea... You can't "change" from lease to finance you have to buy out of the lease completely and then refinance the car and both of those actions aren't going to be cheap. Especially the lease buyout...

Tesla leases are expensive, your best bet is to ride this out as is.

Jeff