Lease ending in 1 year, looking to stay with Tesla. What is the prodecure?

[eIon]

Considering:

• the car market right now
• the delivery time of Teslas
• the chip shortage

..is this something I need to jump on way in advance? If so, what do i actually do to get started? Do I just go through the same steps when I was a new customer? Or is there another set of steps that existing customers need to follow? Is there a way to ensure I go as little days without a car as possible if I start early enough?

 

[Maine182]

Considering:

• the car market right now
• the delivery time of Teslas
• the chip shortage

..is this something I need to jump on way in advance? If so, what do i actually do to get started? Do I just go through the same steps when I was a new customer? Or is there another set of steps that existing customers need to follow? Is there a way to ensure I go as little days without a car as possible if I start early enough?

I thought buyback wasn't an option for tesla lease ?

 

[jjrandorin]

I thought buyback wasn't an option for tesla lease ?

It isnt, but thats not what this OP asked, at least it doesnt look like it.

This OP is a year out on the end of their lease, and wondering how to get into another tesla. Since the lead time on a model 3 is like a couple of months, I think the Op is thinking about this quite a bit too early, but thats just my opinion.

The time to look at this would be somewhere around 3 months before the end of a lease, not 12 months+.

 

[Maine182]

It isnt, but thats not what this OP asked, at least it doesnt look like it.

This OP is a year out on the end of their lease, and wondering how to get into another tesla. Since the lead time on a model 3 is like a couple of months, I think the Op is thinking about this quite a bit too early, but thats just my opinion.

The time to look at this would be somewhere around 3 months before the end of a lease, not 12 months+.

humm good point I didn’t think about that

Maybe your SA can help you with that ?

 

[CtotheP]

I’m in the same situation. Called Tesla and since I told them I’d prefer to just give the car back instead of paying the lease, AND I was going to order a Model Y, they told me to order and whenever it comes in they’ll swap it for zero penalty. I ordered on Jan 18 and my current EDD is April/May so lead times could vary depending on your location.

I was disappointed in the lease situation (I’ve had positive equity against a lease in the past and wanted to take advantage given my M3LR is a 2020 w/ only 11k miles), but it is what it is..

 

[Willy’sEV]

I realize there is no buy-out provision in the lease.
Does this mean that it cannot be done? Can one call Tesla and ask for a buyout at the end of a 3-year lease or is this a no-go and the car must be turned in? Anyone have any experience on this?

 

[Kairide]

I realize there is no buy-out provision in the lease.
Does this mean that it cannot be done? Can one call Tesla and ask for a buyout at the end of a 3-year lease or is this a no-go and the car must be turned in? Anyone have any experience on this?

How to respond to a question like this without hurting your feelings.....I can't so I'll just leave it as is.

 

[Willy’sEV]

How to respond to a question like this without hurting your feelings.....I can't so I'll just leave it as is.

What?

 

[Kairide]

What?

Ok…here it is. Your first statement:
I realize there is no buy-out provision in the lease.

Does this mean that it cannot be done? - See your first statement.
Can one call Tesla and ask for a buyout at the end of a 3-year lease or is this a no-go and the car must be turned in? - See your first statement.
Anyone have any experience on this? - Only the thousands who currently have a 3 or Y lease. See multiple threads and posts on this in TMC.

Your first statement clearly explained how the M3 and Y lease works. What is so confusing about this? Tesla has a clear policy that you cannot buy the 3 and Y lease. Tesla does a lot of confusing things, this is not one of them.

 

[CapeOne]

I realize there is no buy-out provision in the lease.
Does this mean that it cannot be done? Can one call Tesla and ask for a buyout at the end of a 3-year lease or is this a no-go and the car must be turned in? Anyone have any experience on this?

Although not necessarily specified in the lease, there had been a period when Tesla allowed lessees to sell their M3 or MY to third party dealerships but that option was removed last year. If/when the used car market declines, Tesla may offer that option again or even allow direct lessee buyouts.

 

[Willy’sEV]

So the reason for my post was that traditionally I have been leasing my cars for many many reasons, won’t go into the long list here, but when I entered into the Tesla M3 lease in May 2021 my thoughts had not changed and I would turn the car back to Tesla in 3 years, and lease something else. I did not care that there was no buyout for the customer at the lease end.

However, the current market conditions with lack of new cars from dealers, markups over MSRP, and the used car market commanding high prices, one has to give pause to my former strategy. For anyone coming off their Tesla lease in the next year or so, I would not hold my breath that Tesla will sell you the car and if they did sell you the car it will be a lousy deal. One cannot expect anymore the buyout to be much less than the original MSRP in fact since Tesla has raised prices over the last year in a big way, one can expect a current market value of the car. Ouch! We have never seen this landscape before.

And if you think the car market will get better soon, guess again. Every time there is a Covid lockdown in China, this is setting back the chip manufacturers back even further. With limited manufacturing production the chip makers are turning out chips that have higher profit margins. Car chips are the lower profit margin. Strap in.

 

[raptor5244]

So the reason for my post was that traditionally I have been leasing my cars for many many reasons, won’t go into the long list here, but when I entered into the Tesla M3 lease in May 2021 my thoughts had not changed and I would turn the car back to Tesla in 3 years, and lease something else. I did not care that there was no buyout for the customer at the lease end.

However, the current market conditions with lack of new cars from dealers, markups over MSRP, and the used car market commanding high prices, one has to give pause to my former strategy. For anyone coming off their Tesla lease in the next year or so, I would not hold my breath that Tesla will sell you the car and if they did sell you the car it will be a lousy deal. One cannot expect anymore the buyout to be much less than the original MSRP in fact since Tesla has raised prices over the last year in a big way, one can expect a current market value of the car. Ouch! We have never seen this landscape before.

And if you think the car market will get better soon, guess again. Every time there is a Covid lockdown in China, this is setting back the chip manufacturers back even further. With limited manufacturing production the chip makers are turning out chips that have higher profit margins. Car chips are the lower profit margin. Strap in.

Yep, some leases are great, some not so great. No one had a crystal ball 3 years ago but in hindsight this is one car that was better to own since Tesla never allowed the buyer the option to buy the car at the end of the lease.

FWIW, the resale value of my Tesla M3 Performance pretty much tanked from mid 2019 to early 2021. With only 7k miles $60k turned into about $42k, then the chip shortage hit and it went up to about $48k when I sold it. If I waited a bit longer I probably could have got low-mid $50s but never tried to time the auto market before. I had the tax credit on that one so the hit was as bad as it could have been.

The LR and SR didn't take a much of a depreciation hit but I thought the M3P depreciation was pretty extreme so I sold it when the market went up. I still have a 2019 M3 SR+ and that was a great buy at $36,250 after tax credit so folks who bought that model at that time can't really get too upside down and will either use the equity to trade up when there is someone worth trading up to.