TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Early lease termination questions

Discussion in 'Model S: Ordering, Production, Delivery' started by Skipdd, Mar 20, 2017.

  1. Skipdd

    Skipdd Member

    Joined:
    Dec 30, 2015
    Messages:
    225
    Location:
    Silver Spring, MD
    Have searched and read other postings that I can find and would be interested in getting additional input.

    My situation: leased an S85D Midnight Silver, all options (except last row), panoramic roof, MSRP $101k. Will be at 45k miles at 2 yrs of ownership, which is fast approaching. Window to consider changing to S100D seems optimally to be just before 50k miles (assuming I Were to buy extended warranty at 50k). So, I've asked for a buy-out price from Tesla. My lease is with Tesla, and can be terminated early. I asked an OA if I could roll the remaining months into a new lease and was told Tesla doesn't do this.. My estimate is that I will be at 50k miles with about 10 months left on the lease, best case 9 months.

    Would be interested if others have trod this path already and if so, what was your experience? Did you step out of the lease into a new car, or just finish it out and pay the overage? Also curious if the buyout (outside of mileage overage) was a lot more than the remaining lease payments (I will have that number soon enough and will be happy to share my data point for the next person).

    Thanks.
     
  2. Nosken

    Nosken Member

    Joined:
    Jan 15, 2015
    Messages:
    372
    Location:
    Lincoln, CA
    I recently terminated my lease 13 months early, to purchase an AP2 car. Mine was a high mileage car like yours, I was at 54,000 miles, and it appeared that I would cost approximately $10,000 at the end of the lease due to mileage. I had originally calculated that into all of my numbers, but make sure you take that into consideration when you're looking at what the offer is.
    I had one further extenuating circumstance, the rear deck lid, trunk, had damage that needed to be repaired by replacing the entire trunk. I had already purchased the extended warranty, since I was slaving over 50,000 miles. Everything I read says that I will get a refund on the unused portion. Nothing yet.
    Make sure you get solid information from Tesla finance, since the amount I was initially told differed greatly from the final amount I got from Tesla finance. My lease was direct with Tesla also.
    Ultimately, I had to pay, almost the entire remaining value of the lease. Again, repair of the trunk was between five and $6000, so that affected the price.
     
  3. Skipdd

    Skipdd Member

    Joined:
    Dec 30, 2015
    Messages:
    225
    Location:
    Silver Spring, MD
    @Nosken thanks for sharing. I will follow your advice:). One more question - you said you purchased... your AP2 car, am assuming you meant actual purchase vs lease correct? I'm leaning towards that myself, based on miles driven and likely price to get out, but am not there 100% yet. Thanks again.
     
  4. Nosken

    Nosken Member

    Joined:
    Jan 15, 2015
    Messages:
    372
    Location:
    Lincoln, CA
    Yes, I purchased this one, because I really hated the constant $.25 per mile every time I started driving the car. Even though I had calculated that into all of my figures, it just took away the fun of driving, when "frugal me" always worried about the $.25 a mile.
    I found the perfect car, Titanium Metallic with AP2, and was able to do a new inventory purchase, so that I get unlimited Supercharging. I downgraded from a P85D to a 90D. I love that I've got almost 300 miles of range.
     
  5. Skipdd

    Skipdd Member

    Joined:
    Dec 30, 2015
    Messages:
    225
    Location:
    Silver Spring, MD
    Yep, I understand your logic. If I leased again, I'd likely be on another 2 year clock, and then I'd have to decide again what to do. I think 335 mi range is all I need, and could probably be happy with the 100D for many years..so purchase is looking more appealing now.
     
  6. chillaban

    chillaban Active Member

    Joined:
    May 5, 2016
    Messages:
    1,636
    Location:
    Bay Area
    Just to play devil's advocate (and note that I financed my current Tesla, and believe in the merits of both financing and leasing):

    The number I see thrown around here a lot is $1 per odometer mile for a trade in appraisal. I believe this comes from the Tesla CPO formula, but at any rate, $0.25/mi for leasing may sound like a lot, but at the same time it's never "free"/unlimited to load miles onto a car if you plan on trading or selling at the 2 or 3 year mark! You might find yourself getting lowballed for worse than 0.25/mi.
     
  7. Nosken

    Nosken Member

    Joined:
    Jan 15, 2015
    Messages:
    372
    Location:
    Lincoln, CA
    Yes, I agree that $.25 per mile is very reasonable considering that if you were to lease a much less expensive car, that would be the same rate. It just is something about my thought process when every time I get in the car, and I look at a counter, it is costing me money. Yes and the one I purchased, depreciation for the mileage will be much higher, but it has less affect on me, because it seems to be more esoteric. That financially smart no, but, it's how my mind works.
     
    • Like x 1

Share This Page