Lease trade-in timeline

[ramymedhat]

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.

 

[jmaddr]

Tesla will not take a car as trade-in before delivery of your purchase.

 

[maus92]

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]

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]

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]

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]

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]

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

 

[EngProf]

EDD disappeared again.

 

[heyitsme]

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]

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]

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]

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.

 

[Stanlana]

The problem with that is the tax you have to pay on the buyout pretty much negates any profit I might make

I was gonna buy out my lease And then sell it to Carvana or others. I know I’ll have to pay sales tax which is about 7% in New Jersey. So what’s the best way to avoid paying sales tax if any?
Can I sell my lease to Carvana before or even after delivery of my MY?
My EDD is December2021-January 2022 and the lease ends in May 2022.

 

[doomsday997]

I was gonna buy out my lease And then sell it to Carvana or others. I know I’ll have to pay sales tax which is about 7% in New Jersey. So what’s the best way to avoid paying sales tax if any?
Can I sell my lease to Carvana before or even after delivery of my MY?
My EDD is December2021-January 2022 and the lease ends in May 2022.

There is no way. If you buy it out you will pay tax. Yes you can sell your lease to car max as long as it’s a car that that is allowed to be sold to third parties. Lots of car companies aren’t allowing it anymore (GM, Ford, Honda/Acura, Nissan to name a few)

 

[Stanlana]

Any body knows if Toyota/Lexus allow lease buy out by the 3rd party like Carvana?

 

[doomsday997]

Any body knows if Toyota/Lexus allow lease buy out by the 3rd party like Carvana?

As far as I know you still can with Toyota. You can always call and check