Lease transfers in Canada

[Tes La Ferrari]

Has anyone taken over a Tesla lease ?

wondering if the original person is still on the hook for it after the new person takes over?

also, what info do they ask for from the new person that is taking over the lease ? is it just a standard credit app, and they pull your credit ? or is it more complicated ?

 

[yamanote]

I've transferred two of my P100D leases now.

The new lease applicant assumes all liability after the assumption is complete. Once a lease has been transferred once, it cannot be transferred again. Must have at least 12 or more payments remaining on the term to be eligible for a transfer.

It requires a credit application through Tesla Finance. It's an incredibly slow process and expect it to take up to 6 weeks from the day you email them to begin the application process to finally handing over the car. It is obvious that team do not prioritize lease transfers.

Further, they will give you a lot of misinformation about how the transfer works (it's very different in the US vs Canada, and they will just tell you how the process works in the US). Once the transfer has been approved and you receive a firm transfer date, you should reach out proactively to your local delivery centre who can guide you through the remaining steps. Ignore what the team in Utah tells you on the phone (such as 'waiting for a DMV form through the mail').

$150+tax application fee (nonrefundable whether approved or denied)
$500+tax transfer fee if approved and you proceed with the transfer
These fees are debited directly from the new applicant's bank account (part of the credit check includes filling out an ACH form).

 

[Tes La Ferrari]

I've transferred two of my P100D leases now.

The new lease applicant assumes all liability after the assumption is complete. Once a lease has been transferred once, it cannot be transferred again. Must have at least 12 or more payments remaining on the term to be eligible for a transfer.

It requires a credit application through Tesla Finance. It's an incredibly slow process and expect it to take up to 6 weeks from the day you email them to begin the application process to finally handing over the car. It is obvious that team do not prioritize lease transfers.

Further, they will give you a lot of misinformation about how the transfer works (it's very different in the US vs Canada, and they will just tell you how the process works in the US). Once the transfer has been approved and you receive a firm transfer date, you should reach out proactively to your local delivery centre who can guide you through the remaining steps. Ignore what the team in Utah tells you on the phone (such as 'waiting for a DMV form through the mail').

$150+tax application fee (nonrefundable whether approved or denied)
$500+tax transfer fee if approved and you proceed with the transfer
These fees are debited directly from the new applicant's bank account (part of the credit check includes filling out an ACH form).

Thanks @yamanote ! Appreciate the detailed response.

How did you handle payment of money as an incentive for lease takeover between parties ?

 

[yamanote]

Thanks @yamanote ! Appreciate the detailed response.

How did you handle payment of money as an incentive for lease takeover between parties ?

I had the applicant bring me a bank draft for the agreed amount. I put a significant downpayment at lease inception so I was looking for money back, if you're giving the new applicant an incentive then you'd bring them a draft for the agreed amount when you meet to hand over the car.

The transfer date is not necessarily the same date the new applicant's first payment will be taken. I divided the monthly payment by the number of remaining days prior to their first payment and added to the amount payable to myself.

 

[Goodtohave]

I am in Quebec and leased my Model 3 through a private leasing company.

I am considering offering a lease takeover and getting a new one but was unsure about how it would work for the 8k government rebate.

I contacted the rebate department and the responsibility falls to the new owner. If it stays in Quebec not a problem, if the owner allows it to be transferred out of Quebec the rebate has to be paid back.

 

[GoldenBasis]

I have taken over a lease in Canada and can confirm what @yamanote has written.
I would add that you need to call the Utah center by phone and not rely on emails. Once you speak to someone, things can move fairly quickly otherwise it just sits in email neverland.

 

[Vawlkus]

I am in Quebec and leased my Model 3 through a private leasing company.

I am considering offering a lease takeover and getting a new one but was unsure about how it would work for the 8k government rebate.

I contacted the rebate department and the responsibility falls to the new owner. If it stays in Quebec not a problem, if the owner allows it to be transferred out of Quebec the rebate has to be paid back.

Only caveat I’m aware of is that the car must have been registered in Quebec for at least a year, otherwise the rebate gets clawed back.

 

[Goodtohave]

Only caveat I’m aware of is that the car must have been registered in Quebec for at least a year, otherwise the rebate gets clawed back.

No it has to remain in Quebec for 4 yrs or you pay back the rebate. 2k per year that is left

If not I would buy a new one every year and sell it in Ontario