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

[CreoUCLA]

It is really getting ridiculous. I ordered a M3P to replace an Audi Etron. The buyout vs. market value were about the same. $72K trade in quote from Tesla as well as CarMax. Audi quoted a "market" value buyout to both Tesla and Carmax at $86K which is ridiculous since its above MSRP for the 1 year old Etron with 10K miles. So I have been through the ringer with Audi to buyout the lease. Took 2.5 weeks after I sent a check for $72K to Audi to get the title. Covid was the excuse. Now I have to wait another 2 to 3 weeks to get the title from the county because of Covid. I had to delay my M3P and now scheduled for Feb 24-28. I will be lucky if I'm able to offload the Etron in time.

The experience from Audi Financial has been atrocious to say the least.

Audi FS never even sent the third party payoff quote to CarMax when I tried to get out of my 2018 Audi S4 lease a couple months early at the beginning of 2021 (to capture ~$2,500 in equity). I tried pushing Audi FS for several weeks, and I would just get the runaround (i.e. it was sent, it was requested again, etc.),. I gave up after a while since I ended up making my last payment. I heard from an associate at CarMax that the same thing was happening with other brands as well (Toyota Financial, etc.).

It's just the sign of the (strange) times, as I had previously sold leased Audis and BMWs to CarMax with equity without any issues pre-pandemic. Due to the inventory shortages, Audi desperately wants the leased cars back so they can CPO/resell them and earn a profit that way.

 

[Scrannel]

No, the lawsuit is over the fact that people leased Teslas when they said you COULD sell to 3rd party, then Tesla "changed their minds." It's happened with a lot of makes, Tesla included. If the lawsuit succeeds, then Tesla will likely have to allow 3rd party sales again. That's the point.

BMW X3 Owner Sues Carmaker After It Refused To Let Him Sell Off-Lease SUV To Toyota Dealer | Carscoops

BMW X3 owner Allen Ozeran wanted to sell his BMW X3 to a Toyota dealer for a $4,000 profit

www.carscoops.com

 

[jjrandorin]

Im not going to allow thread bumps with the exact same stuff that was already posted previously in this thread.

 

[MP3Mike]

No, the lawsuit is over the fact that people leased Teslas when they said you COULD sell to 3rd party, then Tesla "changed their minds." It's happened with a lot of makes, Tesla included. If the lawsuit succeeds, then Tesla will likely have to allow 3rd party sales again. That's the point.

BMW X3 Owner Sues Carmaker After It Refused To Let Him Sell Off-Lease SUV To Toyota Dealer | Carscoops

BMW X3 owner Allen Ozeran wanted to sell his BMW X3 to a Toyota dealer for a $4,000 profit

www.carscoops.com

No, it is about limiting which dealers you can perform a buy-out at. (And Tesla isn't even mentioned in the suit.) Tesla doesn't allow a buy-out at all, only an early lease termination.

 

[Scrannel]

No, it is about limiting which dealers you can perform a buy-out at. (And Tesla isn't even mentioned in the suit.) Tesla doesn't allow a buy-out at all, only an early lease termination.

First there is more than one suit, each slightly different, but the one quoted here claims that California law in general prohibits any such restriction. Period. I am not a lawyer, but if successful that would likely mean ANY maker trying to restrict sale to a dealer during lease, in California, would be forced to allow that sale. But there is another, directed specifically at Tesla, which claims they have been changing terms of their contracts without informing the buyer/lessee. For instance, I specifically asked Tesla if -- as was stated on their web page -- I could sell my leased car to a dealer and they sent me an email saying, yes. Does that mean they are now violating their contract? I'll bet in California it would be seen that way. But I am not a lawyer.

 

[Gulfcoaster]

Late to this thread but I have leased for 20 years or more, but not again. Lease companies or lease contracts have made it utterly impossible to get out of a lease by trading or selling early. And if you are able to sell it, you can only sell it to the authorized dealer of that manufacturer. For example....I leased a 2020 Audi SQ5 and I called and got my payoff from Audi Financial and using whole numbers my payoff was $40K. I took it to Carmax and the payoff they received was $48000 AND, they weren't even allowed to buy it and pay off Audi Financial. I had to sell it to the local Audi dealer for $38K.

NO MORE LEASES FOR US

 

[p4594spa]

The original leases could not be bought it. Has Tesla changed it policy and now allow buy out on those old leases

 

[jjrandorin]

The original leases could not be bought it. Has Tesla changed it policy and now allow buy out on those old leases

No.

 

[OJM3SR]

Hello Tesla Pros;

I understand that Model 3 leasing doesn't have a buyout option at the end of lease term. But I wanted to ask if Tesla provides a market value upon the return of the vehicle or not? For example in normal leasing terms you can sell your leased vehicle before maturity date to the dealership and they will provide a market value which could be higher/lower than the buyout price. If it's higher than the buyout then you can get equity depending upon the market price.

So my questions is that do Tesla provide market values if we sell back the leased vehicle to the Tesla dealership a little before maturity date to cover some amount through equity assuming that the market price is higher than the buyout price (I know buyout option doesn't exist).

Hoping to get some response on this.

Thanks.

 

[dmoon86]

No. You aren’t selling it back to tesla because you don’t own it. You are giving back to tesla because you are renting it.

 

[MaskedRacerX]

Hello Tesla Pros;

I understand that Model 3 leasing doesn't have a buyout option at the end of lease term. But I wanted to ask if Tesla provides a market value upon the return of the vehicle or not? For example in normal leasing terms you can sell your leased vehicle before maturity date to the dealership and they will provide a market value which could be higher/lower than the buyout price. If it's higher than the buyout then you can get equity depending upon the market price.

So my questions is that do Tesla provide market values if we sell back the leased vehicle to the Tesla dealership a little before maturity date to cover some amount through equity assuming that the market price is higher than the buyout price (I know buyout option doesn't exist).

Hoping to get some response on this.

Thanks.

They don't offer a buyout, so there's no equity, i.e., if you return your lease before the contract ends, you will have anywhere from $0 to $<some_value_above_0> owed, or, returned at contract date which should be $0 plus any wear/tear/damage.

It's a bummer, as I've done a few leases where I had decent to extremely good positive equity, and we flipped it for money in our pocket (and cheap ownership)

 

[jjrandorin]

Hoping to get some response on this.

The respons is "No", because you can neither buy out your lease, NOR sell it to a dealer, so there is no equity for you, period, end of sentence. Your option is to turn the car in, either early and let tesla tell you what you will owe on your lease, or at maturity, or lease transfer out of the lease to someone else who is willing to take it over.

There is no equity for the person in a tesla lease currently, period.

(moderator note)

I moved your new thread into this one because its the same basic question (selling a leased model 3 or y to a dealer to try to realize equity if any) with the same answer.

 

[OJM3SR]

Hello,

I will be leasing M3 so I wanted to ask if anyone knows about Upgrade to a New Tesla option at the end of lease term? I wanted to know if upgrading to a new tesla provides any benefit in terms of cost/equity since there is no buyout option? Or is this option simply starting a new lease from scratch for a new one after end the of existing one?

Thanks in advance.

 

[jjrandorin]

Hello,

I will be leasing M3 so I wanted to ask if anyone knows about Upgrade to a New Tesla option at the end of lease term? I wanted to know if upgrading to a new tesla provides any benefit in terms of cost/equity since there is no buyout option? Or is this option simply starting a new lease from scratch for a new one after end the of existing one?

Thanks in advance.

View attachment 866709

As I said earlier, there currently is no equity in a tesla lease for the person leasing the vehicle, full stop. There are no options that give you money in the current car, if any exists, at least right now.

The option you are pointing to isnt anything more than simply placing an order for a new vehicle.

 

[dmoon86]

Hello,

I will be leasing M3 so I wanted to ask if anyone knows about Upgrade to a New Tesla option at the end of lease term? I wanted to know if upgrading to a new tesla provides any benefit in terms of cost/equity since there is no buyout option? Or is this option simply starting a new lease from scratch for a new one after end the of existing one?

Thanks in advance.

View attachment 866709

“Upgrade to a new tesla”

It means you turn in your 2022 Model 3 or Y then you lease a 2025 Model 3 or Y for whatever price they decide at that point. You are “upgrading”

 

[stoffal1300]

I return my lease in March and my M3LR is worth more than the estimated lease value in contract. Mostly due to Tesla prices going up. Does that benefit me in any way? It's currently about $4500 more than the contractual depreciation estimate.

Can that be rolled over for a down on another Tesla? Seems unfair that they would charge fees for the return, but not honor the positive equity in the car.

 

[jjrandorin]

I return my lease in March and my M3LR is worth more than the estimated lease value in contract. Mostly due to Tesla prices going up. Does that benefit me in any way? It's currently about $4500 more than the contractual depreciation estimate.

Can that be rolled over for a down on another Tesla? Seems unfair that they would charge fees for the return, but not honor the positive equity in the car.

No, it doesnt. Tesla does not allow you to buy the car, nor do they allow you to sell the car to a dealer, so "you" have no equity at all in anything. You have a rented model 3 that you MUST return to tesla at the end of the lease. There is no equity for you, nothing you can do to get anything out of it, etc (nothing).

 

[karkrazy]

I return my lease in March and my M3LR is worth more than the estimated lease value in contract. Mostly due to Tesla prices going up. Does that benefit me in any way? It's currently about $4500 more than the contractual depreciation estimate.

Can that be rolled over for a down on another Tesla? Seems unfair that they would charge fees for the return, but not honor the positive equity in the car.

You may want to check your lease agreement, but IIRC, Tesla leases do not have a buyout option, unless your lease is through another lessor (not Tesla Finance or US Bank). The only way you can leverage any equity is if there is a buyout option.

Look at the bright side - if your lease was underwater with negative equity, the car would be returned with nothing else due except the disposition fee.