End of Lease Buy-out: Am I getting ripped off?

[nataschaaa]

Hi! First time poster here.

I have a 2016 Model S 70D with 21K miles and rear seats added on.

I've considered buying a newer Model S (I didn't like the Model 3), but I actually really like my current car and feel no overwhelming desire for a new one.

US Bank has quoted the buyout at $59K. I was about to buy it, but wanted to make sure it's not a total rip-off.

What do you guys think?

 

[dk10438]

that's based off of residuals at the time of the lease. Since then, prices have gone down considerably and you could probably buy a new car for not too much more..

 

[VikH]

Not a good deal. Used 70Ds on EV-CPO are going for $40s. You can get a brand new 2018 MS 100D for $70s

If you really like your car, I believe some people have given their lease car back and waited for it to show up on Teslas used site. Then re-buy at a lower price. Risky, but may be a good option.

 

[RandyS]

Right from the Tesla website, a new Model S is $88K + tax for long range model, 19" silver wheels, blue paint and oak wood interior. That's $95,000 here in California with sales tax and doesn't include destination and license. So about $97,000 out the door...

 

[LN1_Casey]

Lease buy outs, as a rule, tend to be not good deals. First you're paying the company to borrow their car for a number of years, with limitations, and then you're paying the company to take the used car off their hands. But that's true for all car companies, not just Tesla.

You can easily get a brand new one for not much more than that, with the possibility of a lower interest rate, and all the neat things like AP 2.5/3, faster screens, sentry and better batteries. Certain new ones even come with unlimited super charging, as you had with your original.

You may be able to negotiate a lower buy out, since it's not a new purchase but an end of term, and they'd otherwise have a old car they'd have to find a buyer for, but I've heard doing so is difficult with Tesla. Worth a shot, especially if you can find similar vehicles for sale for less on the Tesla website.

 

[nataschaaa]

Lease buy outs, as a rule, tend to be not good deals. First you're paying the company to borrow their car for a number of years, with limitations, and then you're paying the company to take the used car off their hands. But that's true for all car companies, not just Tesla.

You can easily get a brand new one for not much more than that, with the possibility of a lower interest rate, and all the neat things like AP 2.5/3, faster screens, sentry and better batteries. Certain new ones even come with unlimited super charging, as you had with your original.

You may be able to negotiate a lower buy out, since it's not a new purchase but an end of term, and they'd otherwise have a old car they'd have to find a buyer for, but I've heard doing so is difficult with Tesla. Worth a shot, especially if you can find similar vehicles for sale for less on the Tesla website.

They're unwilling to negotiate... I tried. Those of you who said I could get a brand new one for not much more... I'm not sure what I'm missing because the lowest I seem to get to $91K-ish (after adding the rear seats, which cost $4K and are a must have for me).

 

[1375mlm]

They're unwilling to negotiate... I tried. Those of you who said I could get a brand new one for not much more... I'm not sure what I'm missing because the lowest I seem to get to $91K-ish (after adding the rear seats, which cost $4K and are a must have for me).

It seems you're comparing your older car to a newer one from Tesla's website.
If you shopped used, there should be no 2016 Model S of any kind in the 90k range
59k isnt terrible, but you could find a better deal plus another a couple grand with negotiation.
The only advantage I see here with purchasing your old car is if you value keeping same car and not having to go through car search, negotiation, potential shipment, etc.

 

[LN1_Casey]

They're unwilling to negotiate... I tried. Those of you who said I could get a brand new one for not much more... I'm not sure what I'm missing because the lowest I seem to get to $91K-ish (after adding the rear seats, which cost $4K and are a must have for me).

Well, that's unfortunate they're not willing to negotiate.

Are you talking about the trunk pop up seats? I didn't think they even made those anymore. I thought they died off back in the 2014-ish range. If you need the added seating, maybe a Model X would be better suited.

But for the prices, we're speaking of existing inventory, or the most basic one. I priced out a Model S 75D, and the basic edition is 75k without the tax incentives or the state taxes/delivery fee, etc. For existing inventory, there's an 100D 2019 with unlimited for 81k (Los Angeles, CA). For the used section, there's a 2016 S70 for 43k (San Fransisco). That's just off the Tesla website, there is other services that have different price ranges.

I know you paid more than the 15k-25k difference your 2016 when new (compared to the 75k above) cost over the last three years to what they're pricing you now, but hey. It's a lease. They're meant for ease, not savings.

 

[dk10438]

a similar thread which goes through why finance companies usually don't negotiate on lease returns. Worth a perusal
Tesla lease buyout - crazy penalty or error?

 

[LN1_Casey]

Oh! Thought process. Return the car at the end of the lease, then come back in a week to buy the car back at the much reduced price. xD

 

[glide]

Terrible deal. Buy a CPO (used) and you’ll get far more bang for your buck.

 

[dk10438]

no such thing as a CPO Tesla and the Tesla used car buying process is pretty inconsistent (or maybe I should say consistently bad). That being said, he might be able to pick his car up after he turns it in

 

[azjohn]

I would only buy a car at the end of a lease is if I could sell it for a profit and lease another. IMO leasing is the best way to buy a Tesla

 

[Watts_Up]

Hi! First time poster here.

I have a 2016 Model S 70D with 21K miles and rear seats added on.

I've considered buying a newer Model S (I didn't like the Model 3), but I actually really like my current car and feel no overwhelming desire for a new one.

US Bank has quoted the buyout at $59K. I was about to buy it, but wanted to make sure it's not a total rip-off.

What do you guys think?

Can you remove and keep the rear seats?

- So if you buy back your own car you can put them back.

- Or if you buy another Model S, can you then install those seats?

 

[Bridor]

I'm in quite a bad situation with my leased 2016 Black Model X 60D that comes off lease in October, 2019 - I am 90K miles over the allowed mileage. I think I am going to have to pay the residual and keep the vehicle...

Brent

 

[whitex]

Just wanted to answer the original question in the headline. Lease residual/buyout price is always present in the original paperwork, so every lessee should know exactly what the buyout it from the beginning, other than if tax rate changes. So, you are not getting ripped off OP, unless they are asking for more than what was in the contract at the inception of the lease.

 

[whitex]

Can you remove and keep the rear seats?

- So if you buy back your own car you can put them back.

- Or if you buy another Model S, can you then install those seats?

Fyi, trunk seats also require re-enforced rear bumper to protect the occupants.

 

[AMPd]

I'm in quite a bad situation with my leased 2016 Black Model X 60D that comes off lease in October, 2019 - I am 90K miles over the allowed mileage. I think I am going to have to pay the residual and keep the vehicle...

Brent

And I thought me being 35K miles over was a lot.....

 

[TJtv]

The way Tesla structures the leases it's never a good deal to buyout the car at the end of the lease. This is because Tesla takes the MSRP and a percentage to calculate the residual, and then ADDS the value of the tax credit to the residual. And the buyout price = the residual. So you're effectively giving up the tax credit when you buyout the car after a lease.

 

[whitex]

The way Tesla structures the leases it's never a good deal to buyout the car at the end of the lease. This is because Tesla takes the MSRP and a percentage to calculate the residual, and then ADDS the value of the tax credit to the residual. And the buyout price = the residual. So you're effectively giving up the tax credit when you buyout the car after a lease.

That, and leases have higher interest rates, and you are paying off the balance to residual and not to zero, so overall pay significantly more interest.