Has anyone sold their leases Model 3 to a dealer? [as of 10/28/21 not possible any longer]

[Rang1730]

Hello,
I am currently leasing a 2019 Model 3. After doing some math, I have determined that I’m in a decent position to sell the car and purchase one instead, given the residual value and value of the car.

I know it says in Tesla’s leasing FAQ page that buyouts are not a thing unless a dealer is buying the car.

So my question is…has anyone sold their leased Model 3 to a dealership successfully?

 

[CapeOne]

I realize used car values are high right now due to chip shortage and some other factors but I'm surprised your "math" shows that it is still worthwhile to try to sell at this point. There will be dealers willing to buy but between remaining payments, residual, sales tax, etc. I would think you'd take a notable loss.

 

[BrianBigNFun]

Tip- have them appraise the car before they get your buyout

 

[mikeclimbs]

Figured I'd post this since there isn't much out there with actual numbers. I have a 2019 Model AWD with FSD I'm considering turning in early. I picked it up in June 2019 and mileage is way low thanks to covid. My lease is 3/36k but my actual mileage is under 14k. Here are the turn-in #s Tesla gave me. I traded in an old car at the time of purchase so I put 6k down. I also generated a sell-to-dealer quote and the numbers were the same with an additional $3,400 in sales tax.

• Gross Cap Cost
  $61,341.73
• Principal Portion of Payments Made
  - $10,464.00
• Cap Cost Reduction
  - $9,079.66
• Adjusted Lease Balance
  $41,798.07
• Vehicle Value
  - $45,300.00
• Residual Early Termination Cost
  $3,074.51
• Base Lease Payoff
  $0.00
• Property Tax
  $0.00
• Account Balance
  - $0.66
• Disposition Fee
  $395.00
• Tax on Disposition Fee
  $33.08

• Total Due​

  $0.66​

 

[itsel3ctric]

Did you get quotes for Carvana/Vroom? Would be interested to see how the Tesla car valuation compares.

 

[digitalboi]

How do you even figure out what you'd get for the car? I never considered selling our M3 lease to a dealer before but if we could get some extra $$$ back in our pockets that could be worth it for sure

 

[megansblonde]

I just sold my leased Corolla to carmax and made 7k. I think its worth checking out. They make it easy to. Fill out the info you get a price, they check the car and they usually honor the price you were originally given.

 

[Scrannel]

I'm also looking at this as a way to unofficially "buyout" my lease.

 

[jjrandorin]

Unless one has a dealer friend that is in the industry, thus willing to make almost no money on the transaction, I dont see how this will work for anyone attempting to skirt the rules of not buying out your car.

A dealer will get the buyout price (whatever it is) because every lease has a residual value. Just because they buy it at RV, that doesnt mean they need to sell it to anyone, for anything close to that RV. They will want to sell it at market rate, or even slightly higher, to the original person leasing the vehicle, unless one has a long standing relationship with them.

For everyone else its a "used tesla, we have no idea how the battery was used" to the person who leased it, its a "leased tesla, where I know where every mile came from" so the car is worth MORE to that person than to anyone else, and car dealers absolutely know this.

Everyones best bet is to hope tesla changes its stance on letting the original purchaser buy the car at lease end. "Planning" on a dealer buying it, then selling it back to you, and having that transaction actually make any sort of financial sense over buying a new one, or buying a DIFFERENT used model 3, is likely going to be an exercise in frustration.

 

[holeydonut]

Unless one has a dealer friend that is in the industry, thus willing to make almost no money on the transaction, I dont see how this will work for anyone attempting to skirt the rules of not buying out your car.

A dealer will get the buyout price (whatever it is) because every lease has a residual value. Just because they buy it at RV, that doesnt mean they need to sell it to anyone, for anything close to that RV. They will want to sell it at market rate, or even slightly higher, to the original person leasing the vehicle, unless one has a long standing relationship with them.

For everyone else its a "used tesla, we have no idea how the battery was used" to the person who leased it, its a "leased tesla, where I know where every mile came from" so the car is worth MORE to that person than to anyone else, and car dealers absolutely know this.

Everyones best bet is to hope tesla changes its stance on letting the original purchaser buy the car at lease end. "Planning" on a dealer buying it, then selling it back to you, and having that transaction actually make any sort of financial sense over buying a new one, or buying a DIFFERENT used model 3, is likely going to be an exercise in frustration.

If someone sells a vehicle under lease to Carmax in California, do they have to file the tax impact themselves? Normally if a person does a lease buyout directly with the dealer/bank they're leasing from, they would have to pay sales tax on the buyout portion (the non-leased portion) of the lease.

Is it up to Carmax or up to the original car owner to report the "lease buyout and sale" to the California Department of Tax and Fee administration? Considering what a lease is, it seems unlikely to me the original lessor can simply sell the car to Carmax directly since the original lessor doesn't own the vehicle.

 

[megansblonde]

If someone sells a vehicle under lease to Carmax in California, do they have to file the tax impact themselves? Normally if a person does a lease buyout directly with the dealer/bank they're leasing from, they would have to pay sales tax on the buyout portion (the non-leased portion) of the lease.

Is it up to Carmax or up to the original car owner to report the "lease buyout and sale" to the California Department of Tax and Fee administration? Considering what a lease is, it seems unlikely to me the original lessor can simply sell the car to Carmax directly since the original lessor doesn't own the vehicle.

Just sold my Corolla to them before the end of my lease and I got all the residual in a check. No taxes or buyouts etc. Depends on the dealership though that it was leased from beause some do charge penalties for ending the lease early. Carmax pays the taxes like anyone else who were to buy a car.

 

[jjrandorin]

Just sold my Corolla to them before the end of my lease and I got all the residual in a check. No taxes or buyouts etc. Depends on the dealership though that it was leased from beause some do charge penalties for ending the lease early. Carmax pays the taxes like anyone else who were to buy a car.

You are attempting to equate a corolla lease to a tesla one and they are not the same. Tesla doesnt allow a person to buy a model 3 out, where as i am sure your corolla lease had no such provision, as a start.

 

[Scrannel]

As far as working with a dealer in a "loop" transaction: yes, I have dealers who are friends and would do this for me. It would, of course, be easier if Tesla just let us buy out our leases.

 

[digitalboi]

Does anyone know how it works if you are trading in a lease that has gone over the milage? Like if i was to trade in our lease to a dealer but we are over on milage do we still owe the .25 per mile overage?

 

[Kairide]

Don't trade it in early with the used car market the way it is. You've got $3500 in positive equity in the car, Tesla is taking the equity in the form of an Early Termination penalty. Just get a 3rd party payoff quote in the app and sell it to Carvana, CarMax or Vroom. Pocket the positive equity instead of giving it to Tesla.

 

[VWang1111]

Leased model 3 was able to be sold to CarMax without issue. Carmax offered $35k for a 27,000 miles SR+ with a small dent in the door, scratched front bumper, and a small crack in the window. Tesla lease buyout with 11 months remaining was $30.5k. Carmax was able to cut a check for the positive equity on the spot. Overall a seamless experience.

 

[digitalboi]

Leased model 3 was able to be sold to CarMax without issue. Carmax offered $35k for a 27,000 miles SR+ with a small dent in the door, scratched front bumper, and a small crack in the window. Tesla lease buyout with 11 months remaining was $30.5k. Carmax was able to cut a check for the positive equity on the spot. Overall a seamless experience.

Were you over or under your milage?

 

[VWang1111]

Were you over or under your milage?

Under but I don't think it would matter. The Tesla buyout quote didn't ask for mileage.

 

[tleubner]

Does anyone know how it works if you are trading in a lease that has gone over the milage? Like if i was to trade in our lease to a dealer but we are over on milage do we still owe the .25 per mile overage?

It wouldn't matter if you are over the mileage if you are trading it in.

 

[sdorn]

Just wanted to follow up here and see if anyone has actually done a lease turn in to Tesla or sold to Carvana, CarMax or Vroom and how that played out? I'm buying a new Model S and trying to figure out the best way to deal with my existing super low mileage Model 3 lease. It has less than 4k miles on it 18 months into the lease (thanks COVID). There isn't a buyout option though since it is a Tesla lease.