Lease early termination with zero due?

[coolzai]

I'm currently leasing a M3 SR+ with 5 months left on the term. I ordered a MY LR in October, the EDD was April 2022 by then, which perfectly aligned with my lease. Yesterday, I just noticed that my MY reservation already has a VIN number assigned already, and the EDD is end of December this year. I was surprised by this development.

I started to research the lease end options for my M3. I see that Tesla already killed the third-party buyout option. I get a quote from my Telsa account for the early termination, and it showed me that I didn't owe any money?!

I know I can put the order on hold until April next year, but if I can get out of the lease for free then why wait? Is this early termination quote too good to be true? Is there's any catch? Do I still need to pay for the rest of five monthly payments?

 

[jjrandorin]

I'm currently leasing a M3 SR+ with 5 months left on the term. I ordered a MY LR in October, the EDD was April 2022 by then, which perfectly aligned with my lease. Yesterday, I just noticed that my MY reservation already has a VIN number assigned already, and the EDD is end of December this year. I was surprised by this development.

I started to research the lease end options for my M3. I see that Tesla already killed the third-party buyout option. I get a quote from my Telsa account for the early termination, and it showed me that I didn't owe any money?!

I know I can put the order on hold until April next year, but if I can get out of the lease for free then why wait? Is this early termination quote too good to be true? Is there's any catch? Do I still need to pay for the rest of five monthly payments?

You likely wont be able to put the order on hold till april of next year, and the "zero due" is likely due to the fact that model 3 SR+ are selling for EXTREMELY high prices (more than new in some cases). They are not charging you anything, likely because there is enough equity in there to cover your 5 payments.

 

[coolzai]

You likely wont be able to put the order on hold till april of next year, and the "zero due" is likely due to the fact that model 3 SR+ are selling for EXTREMELY high prices (more than new in some cases). They are not charging you anything, likely because there is enough equity in there to cover your 5 payments.

Cool. Thanks! But I'm definitely gonna wait to take the delivery until January for the tax credit.

 

[jjrandorin]

Cool. Thanks! But I'm definitely gonna wait to take the delivery until January for the tax credit.

if you can (meaning if tesla does not force you to take delivery before then). There are tons of threads on that though, so im gonna head off the tax credit talk in this thread.

 

[aljlin]

Given the fact you’re going from one tesla to another and their long lead times, I wonder if they’re also giving some flexibility on the lease end since you’re going to another Tesla and it’s hard/impossible to really perfectly plan on timing lease end of prior car to delivery of next car.

 

[ebwb]

Your cost to terminate the lease early is zero because Tesla is taking the $9,456.83 in equity that you'd otherwise have, if you were able to trade-in the car to a dealer. Sadly Tesla cancelled third-party buyouts in November.

It's never a good idea to lease from Tesla due their restrictive policies; it's doubly bad to put a large down payment, since you can't get that money back.

 

[coolzai]

Your cost to terminate the lease early is zero because Tesla is taking the $9,456.83 in equity that you'd otherwise have, if you were able to trade-in the car to a dealer. Sadly Tesla cancelled third-party buyouts in November.

It's never a good idea to lease from Tesla due their restrictive policies; it's doubly bad to put a large down payment, since you can't get that money back.

Just double checking, even if I don't terminate the lease early, I won't be able to the equity back, right?

I know that later in the lease that I should've taken loan instead of lease. That's what I'm doing with the Y this time.

 

[ebwb]

Just double checking, even if I don't terminate the lease early, I won't be able to the equity back, right?

I know that later in the lease that I should've taken loan instead of lease. That's what I'm doing with the Y this time.

Correct, there's no way to get any equity back in a Tesla lease.

 

[OCCanuck]

Has anyone taken Tesla up on their $0 early lease termination? If so, how picky were they with the condition? I will be annoyed if they try to charge me for tires and the rim damage when the car is worth $8-10k more than my current residual.

 

[TheRock66]

Has anyone taken Tesla up on their $0 early lease termination? If so, how picky were they with the condition? I will be annoyed if they try to charge me for tires and the rim damage when the car is worth $8-10k more than my current residual.

Would love to know this too!

 

[OCCanuck]

I had Tesla come by my house to conduct the end of lease inspection. I had the following changes:

- 2 tires are below the 4/32" minimum: $250 each (for 18")
- 1 rim with curb damage: $85
- Tint removal: $350

Total: $935.

If I have the tint removed myself or replace the tires I can have those charges removed. For the tires I was told that I can use any tires that match the rating of what is currently on the car, so I will be replacing them with $100 tires from Americas Tire.

 

[dakotasurfer]

Did someone at support get back to you in the "24-48 hours" as specified in the auto reply message? I'm waiting (not so) patiently now for a week...

 

[JeffTutorialsY]

Did someone at support get back to you in the "24-48 hours" as specified in the auto reply message? I'm waiting (not so) patiently now for a week...

Have they gotten back to you yet?

 

[OCCanuck]

Are you waiting for your reply to schedule the inspection or to return the vehicle? I got a call for my inspection within a day or two. For the return I had to call my local Tesla store. They told me to just bring it in. The return process was less than a 5 minute visit.

 

[OCCanuck]

YMMV but Tesla didn't end up charging me for the rim damage or the removal of the tint. I replace the front tires for $250 before bringing the car back, so I don't know if they would have overlooked that charge.

 

[JeffTutorialsY]

Are you waiting for your reply to schedule the inspection or to return the vehicle? I got a call for my inspection within a day or two. For the return I had to call my local Tesla store. They told me to just bring it in. The return process was less than a 5 minute visit.

Cool, thanks for the info! What was the lead time for inspection? Did they come out within a week or so?

 

[OCCanuck]

Cool, thanks for the info! What was the lead time for inspection? Did they come out within a week or so?

My experience might be unusual. I got a call within a day or two of submitting the request, but it was an inspector that was trying to fill a space in his schedule due to a cancellation. The inspection took 30-40 minutes and I had to show him that I had both key cards, the mobile charger and the charging adaptor.

 

[TheJDJ]

San Diego here.

MSM/Black/19's No FSD
OD Nov 19.
At the time my EDD was January.
I'm not in a big hurry. I have a leased 2019 due back July '22 in the same config +FSD. My plan is to take delivery next year when hopefully BBB is in effect, then turn in my 2019 early.

I decided to do a home refinance while waiting, and have not yet completed my tasks. Now that the refi is done it's time for me to get going on this.

Has anyone successfully turned a lease in early with no fees and no further lease payments? Here is my early lease termination quote:

Estimated Quote
Gross Cap Cost
$57,690.00

Principal Portion of Payments Made
-$12,758.67

Cap Cost Reduction
-$3,500.00

Adjusted Lease Balance
$41,431.33

Vehicle Value
-$47,400.00

Residual Early Termination Cost
$5,573.67

Base Lease Payoff
$0.00

Property Tax
$0.00

Account Balance
$0.00

Disposition Fee
$395.00

Tax on Disposition Fee
$0.00

Total Due
$0.00
Subject to change upon inspection

Good through 2/24/2022


My question is - Does this mean exactly what it looks like? With Tesla things are not always what they seem. My next lease payment is scheduled for Feb 25th. My last lease payment would be June 25th.

 

[JeffTutorialsY]

I decided to do a home refinance while waiting, and have not yet completed my tasks. Now that the refi is done it's time for me to get going on this.

Has anyone successfully turned a lease in early with no fees and no further lease payments? Here is my early lease termination quote:

Estimated Quote
Gross Cap Cost
$57,690.00

Principal Portion of Payments Made
-$12,758.67

Cap Cost Reduction
-$3,500.00

Adjusted Lease Balance
$41,431.33

Vehicle Value
-$47,400.00

Residual Early Termination Cost
$5,573.67

Base Lease Payoff
$0.00

Property Tax
$0.00

Account Balance
$0.00

Disposition Fee
$395.00

Tax on Disposition Fee
$0.00

Total Due
$0.00
Subject to change upon inspection

Good through 2/24/2022


My question is - Does this mean exactly what it looks like? With Tesla things are not always what they seem. My next lease payment is scheduled for Feb 25th. My last lease payment would be June 25th.

I'm a little confused by your question. There's no catch. If it's zero, it's zero.

 

[TheJDJ]

My previous post was mod-moved to here from the Model 3 LR AWD Waiting Room thread where my update and question probably made more sense.

Buying a new Model 3 hinges on being able to successfully turn in my current lease early. I'm hoping it is just as simple as it looks but want to know if anyone has successfully done it with no issues.