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Lease trade-in timeline

ramymedhat

New Member
Jun 17, 2021
1
0
Canada
I ordered a MY 05/08 with an estimate delivery 9-12 weeks (early to late July). My current lease expires mid August, so that gave me enough time to trade in the leased car. I filled the trade in form and my car had positive credit ($3K). Now the delivery date has been pushed to Aug 9 to Sep 9 with no VIN yet. Does anyone know what happens when my lease expiry date arrives? Do I return my current car and lose the credit or can I give it to them and wait for the model Y? Tried to contact Tesla but as expected, no response.
 

maus92

Member
Apr 26, 2021
265
391
Annapolis, Maryland
I ordered a MY 05/08 with an estimate delivery 9-12 weeks (early to late July). My current lease expires mid August, so that gave me enough time to trade in the leased car. I filled the trade in form and my car had positive credit ($3K). Now the delivery date has been pushed to Aug 9 to Sep 9 with no VIN yet. Does anyone know what happens when my lease expiry date arrives? Do I return my current car and lose the credit or can I give it to them and wait for the model Y? Tried to contact Tesla but as expected, no response.
Most leasing companies will allow you to extend your lease month-to-month for several months. I suppose the residual value will have to be recalculated, it might translate into a slightly better equity position for you
 

rohiggidy

Member
May 27, 2021
174
141
ny
I ordered a MY 05/08 with an estimate delivery 9-12 weeks (early to late July). My current lease expires mid August, so that gave me enough time to trade in the leased car. I filled the trade in form and my car had positive credit ($3K). Now the delivery date has been pushed to Aug 9 to Sep 9 with no VIN yet. Does anyone know what happens when my lease expiry date arrives? Do I return my current car and lose the credit or can I give it to them and wait for the model Y? Tried to contact Tesla but as expected, no response.
Can I still trade in my vehicle even though I am still in a lease?

You can trade-in your vehicle before your lease or loan has matured. Tesla will calculate and compare the payoff amount, early termination penalty (if applicable) and will add whichever is lower to the new Motor Vehicle Purchase Agreement. You will not need to pay off lease or loan in full prior to trading in that vehicle.
 

Sw3rv3c1ty

Member
Jun 5, 2021
27
13
Michigan
Check with your lease company. As most are blocking 3rd parties (e.g. Tesla) from buying out your lease. GM, Honda/Acura, and Nissan require all leases to be returned to the respective dealerships. Tesla in my case sent me a text to tell me that Honda/Acura no longer accepts trade-ins for leases because Honda/Acura is blocking 3rd parties. Something to be aware of, if you are still int he queue.
 

doomsday997

Member
Jun 1, 2021
206
369
NY
Check with your lease company. As most are blocking 3rd parties (e.g. Tesla) from buying out your lease. GM, Honda/Acura, and Nissan require all leases to be returned to the respective dealerships. Tesla in my case sent me a text to tell me that Honda/Acura no longer accepts trade-ins for leases because Honda/Acura is blocking 3rd parties. Something to be aware of, if you are still int he queue.
Ford Dosent allow it either I believe. I was selling my acura lease as well (to Vroom or Rodo) and now this punch in the gut. So ticked off, only option now is to try to sell to an Acura or Honda dealer.
 

Kairide

Member
Jul 13, 2021
152
154
CA
You can always try extending the lease. By extending, you run the risk of losing the positive equity. The residual was pre-determined at the start of your lease. The positive equity is being driven by the current used car market, which may change if you wait a few months to trade it in. It may not be ideal, but the best thing to do is buy out the lease, especially if you have positive equity. You can always buy out the lease as the lessee, and than sell it to whoever you want when the time comes.
 

doomsday997

Member
Jun 1, 2021
206
369
NY
You can always try extending the lease. By extending, you run the risk of losing the positive equity. The residual was pre-determined at the start of your lease. The positive equity is being driven by the current used car market, which may change if you wait a few months to trade it in. It may not be ideal, but the best thing to do is buy out the lease, especially if you have positive equity. You can always buy out the lease as the lessee, and than sell it to whoever you want when the time comes.
The problem with that is the tax you have to pay on the buyout pretty much negates any profit I might make
 
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heyitsme

Member
Jul 22, 2021
115
198
Bay Area
im in the same shoes. My Tesla delivery date is likely going to be after my current lease expiration date - which means i'd need to extend the lease for another month or 2.

Does anyone know how registration renewal/PNO works? Do I need to renew before trading in? CA DMV doesn't do partial refund unfortunately, so I'd have to pay for the entire year.
 

Kairide

Member
Jul 13, 2021
152
154
CA
im in the same shoes. My Tesla delivery date is likely going to be after my current lease expiration date - which means i'd need to extend the lease for another month or 2.

Does anyone know how registration renewal/PNO works? Do I need to renew before trading in? CA DMV doesn't do partial refund unfortunately, so I'd have to pay for the entire year.
Yes, in CA you’ll need to have an active registration on the vehicle you want to trade in.
 

heyitsme

Member
Jul 22, 2021
115
198
Bay Area
Yes, in CA you’ll need to have an active registration on the vehicle you want to trade in.
Thanks, does this mean i would need to renew before transfer?

in CA there’s a grace period where you can pay late fee and renew at a later time. Meanwhile the registration is not yet suspended. Can I do this and file a notice of transfer at the time of trade-in ?
 

Kairide

Member
Jul 13, 2021
152
154
CA
Thanks, does this mean i would need to renew before transfer?

in CA there’s a grace period where you can pay late fee and renew at a later time. Meanwhile the registration is not yet suspended. Can I do this and file a notice of transfer at the time of trade-in ?
I think that would be up to the buyer, in this case Tesla. Usually when selling/trading in a car to a dealership, the first thing they do is ask for a copy of the registration. I've personally never traded in a car with an expired registration, but I have a feeling they won't be happy since they would be on the hook for the cost.
 

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