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Leased a Model 3 but had to relocate for work...now going to exceed the annual mileage by a LOT

Discussion in 'Tesla, Inc.' started by idealdreams, Dec 29, 2019.

  1. idealdreams

    idealdreams Member

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    I leased a LR AWD Model 3 in May when my commute to work was about 2 miles. I would drive around 10 miles a day on average when you factor in other trips and a couple hundred mile weekend trips once or twice a month.

    When I leased my Model 3, I didn't expect this to change. Unfortunately/fortunately I had to relocate for work, and my daily commute is now 70ish miles round trip, which even if I used my car strictly to drive to/from work, I would still exceed the allowed mileage by about 14000 miles. I have under 1000 miles left for the year and there's a sinking pit feeling in my stomach about the fee I'm going to have to pay when it's time to turn the lease in.

    I know I brought this on myself since I didn't have the foresight to see this risk (well, I did, but not 4 months into the lease), but I'm wondering if anyone else has had an experience in mileage overages with Tesla and what my options are to avoid having to pay an exorbitant fine in 2.5 years yet.

    Please spare the condescending comments as I am already bringing enough of it on myself as it is.
     
  2. run-the-joules

    run-the-joules Active Member

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    #2 run-the-joules, Dec 29, 2019
    Last edited: Dec 29, 2019
    The contract will tell you how much that'll cost you.

    Determine how much that'll be, and determine if it's worthwhile to buy a cheap used ICE to do some of the commuting in, or look at other alternative options like carpooling, train, etc. Maybe work from home occasionally when possible?

    Hell, there might even be worthwhile end of year lease specials on something like a Bolt or Leaf (if you can charge at work) that might pay for itself. Probably not, and even if there's something out there it's not necessarily a great idea to fix a bad lease with another one, but… options
     
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  3. ZappCatt

    ZappCatt Member

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    The current overage fee for miles is $.25 a mile(you can check your lease document to see what it is in your case., so you can see how much money it will cost you. There is no "punitive fee".

    My guess is buying/renting an ICE car and paying for gas would end up being more per mile, so I would say to enjoy your car, let the advanced features make your long commute more comfortable and look to put away some money for that bill at the end of your lease.

    If you would rather, you might be able to reach out to Tesla to see if they would change your lease to a higher annual mileage, and thus charge you the money earlier in the process(better for them, especially if your situation changes again and you do not use all the miles you have pre-paid for)
     
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  4. run-the-joules

    run-the-joules Active Member

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    Yeah if it's only 25c/mile it's gonna be difficult to beat that unless you get a ridiculous deal on something very efficient and sell it for as much as you bought it for in a couple of years.
     
  5. EricUSC

    EricUSC Member

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    You can list your car on www.swapalease.com to find someone who wants to take over your lease. Then, buy or lease another Tesla with terms that better match your new commute.
     
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  6. ChadS

    ChadS Last tank of gas: March 2009

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    I went way over on an S lease once; I knew I would, but like others here felt that 25 cents/mile really wasn't bad for what I was driving.

    Besides, you had to pay a bunch of fixed costs to get the lease, so the more miles you put on the lower your average cost/mile for the whole lease. That's not a good argument for driving extra miles just for fun, but if you are going to drive the miles in something, it might as well be in your 3.
     
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  7. dc121gw

    dc121gw Member

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    When you lease a car, you're financing the difference between the sales price and the expected residual value. When you turn in a car with high mileage, the car is worth less to Tesla than the precalculated residual, so Tesla is making you pay a fee to compensate them for this difference. That's the gamble you take when you lease.

    Your options are to pay the fee, or to convince someone to take over your lease while you look for another car.
     
  8. RC2785

    RC2785 Member

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    Having you looked into towing your car? For example U-Hail rents car trailers, and the good thing about u-haul is that you can drop them off at any U-Haul location nationwide. You can rent a pickup truck from them as well.
     
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  9. Gamsberry

    Gamsberry Member

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    No more wine for me tonight. Simple mistake but I got a solid laugh picturing OP trailering his car back & forth to work each day to keep the miles off. Thanks for that :)
     
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  10. acarney

    acarney Active Member

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    There’s also a very good chance Tesla will change course in another two years and offer end of lease buy outs of the vehicles. If that’s the case it might be worth it to you to buy the car to avoid the fee and then either trade it in for a new car depending on trade value and if there are any incentives at the time, sell it privately, or just keep it.
     
  11. StellarRat

    StellarRat Active Member

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    Maybe you can call them and see if there are other options. Can't hurt to try.
     
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  12. emailrob

    emailrob Member

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    Lol, I thought exactly the same and haven't been drinking.
     
  13. hydro 481

    hydro 481 Active Member

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    I know this won’t help but my gf’s sister went over her car lease by 30K miles. They were gonna charge her like 8K in fees.
     
  14. Watts_Up

    Watts_Up Active Member

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    For that amount you can get a used compact car (i.e. Honda Fit) for the commute and keep the Model 3 for the weekend trips.
     
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  15. SageBrush

    SageBrush REJECT Fascism

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    #15 SageBrush, Dec 30, 2019
    Last edited: Dec 30, 2019
    Good advice above.

    I think I would look into selling the lease on the private market and asking Tesla for options, in particular paying for a higher mileage budget.

    Some arithmetic:
    14,000 miles excess at 25 cents a mile works out to an extra $97 a month over a 36 month lease term.
    Hopefully the relocation was worth quite a bit more than that to you.

    P.s.,
    My casual review of swapalease in the past left me with the impression that people who are trying to get out from a lease due to excess miles offer $1,000 - $3,000 cash to the lease buyer. Meaning not a whole lot of savings compared to just paying for the miles to Tesla.
     
  16. Dan203

    Dan203 Active Member

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    Which lease did you get? They offer up to 15k a year. Maybe you call and get switched over if you pay the difference?
     
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  17. digitalDCH

    digitalDCH Member

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    Just put your M3 up on jack stands at the end of each day and run it in reverse for an hour or so...the miles should just roll right off

    Ferris-Bueller-s-Day-Off-ferris-bueller-2541353-1600-900.jpg
     
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  18. 640k

    640k Member

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  19. kirbo20

    kirbo20 Member

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    I would just throw an extra $100 aside each month and pay the overage of roughly $3,500 at the end of your lease. Do you get paid mileage? That alone will cover your overage cost.
     
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  20. Nate977p

    Nate977p Member

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    I've been in this situation in the past on both personal and business vehicles. Typically bought a new car from the dealer and they wiped out the overage (by buying the car from manufacturer and selling on their own). But this being Tesla....

    My advice would be as others said before.
    1) Call Tesla. See if you can buy miles early; several other luxury brands allow that. Its typically discounted, so at a lease end rate of $.25, they may let you rebuy at $.15 or $.2.

    2) If it was me, I would open another bank account and put $100 a month into it. That way you have your estimated overage paid for when bill comes, and no big expense stress. This isn't entirely wasted money as if you did a higher up-front lease, you would have paid probably $.10-$.15/mile, thus you hurt yourself $50 a month.

    Honestly I don't see another option. Buying a second car would be silly. Swapping it, and you lose taxes you paid and downpayment. You are stuck with it, but the financial loss compared to doing more miles upfront seems to be about that $50 number ($100 overage minus $50 you would have paid on higher mile lease).

    My $ .02
     
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