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Leasing "no buy out" Option and trading up (to another Tesla)

Nov 13, 2014
115
46
Los Angeles CA
Just curious and for those who leased - with the existence of the "no buy out option" how does Tesla treat/handle situations where you might want to trade up to a newer tesla? There is very little information on how these things are calculated... With a traditional lease the bank will have a buyout thats literally updated monthly, but of course, this isn't an option with TFS
 
Nov 3, 2019
276
332
Green Valley AZ
We have had our MY since Nov 7th (1,100 miles so far. Damn Covid!). We leased as we wanted to see if there were quality issues as reported by a number of new owners. In short, our MY is perfect. Paint, gaps, mechanicals, the whole ball of wax! Beautiful car. I am very pleased to see this likely new option and we will be buying our MY if given the opportunity.

Rich
 

hakunamattata

Member
May 28, 2020
158
64
New Jersey
Just curious and for those who leased - with the existence of the "no buy out option" how does Tesla treat/handle situations where you might want to trade up to a newer tesla? There is very little information on how these things are calculated... With a traditional lease the bank will have a buyout thats literally updated monthly, but of course, this isn't an option with TFS

The leases are very similar to traditional ones where in they have a money factor (interest) and residual value i.e. the value of the car at the end of the term. The following link Tesla Leasing Calculator | Tesla Support from Tesla talks about a number of scenarios. I think your question falls under lease extension i.e. if you order another Tesla then you go automatically go on a month to month lease with the original payment terms, same like the traditional ones.
 
Nov 13, 2014
115
46
Los Angeles CA
@ReversePolarity FYI the leasing program is expected to change early next year, possibly including ability to purchase your car at the end for M3/MY: Tesla Announces A New Leasing Experience For 2021

Thanks, I got this email too for my current lease (Model S). I'm only speculating but perhaps the "no buy out" is to reduce arbitraging/reselling; as I myself have gotten money back on several leased vehicles after selling it to carmax/other dealer mid-lease. For the Tesla, its mainly for upgrading as they come out with new tech pretty often.


The leases are very similar to traditional ones where in they have a money factor (interest) and residual value i.e. the value of the car at the end of the term. The following link Tesla Leasing Calculator | Tesla Support from Tesla talks about a number of scenarios. I think your question falls under lease extension i.e. if you order another Tesla then you go automatically go on a month to month lease with the original payment terms, same like the traditional ones.

Its basically 100% the same as all other leases out there, except, up front, there is a "no buy out" clause meaning you can't purchase the car from the lessor at anytime during the term or at end of term, unless its totalled/stolen/etc. But i was curious how Tesla treated the situation when a lessee wanted to get into a new Tesla, how the "buyout" so to speak might work
 

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