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

[ReversePolarity]

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

 

[angus[Y]oung]

@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

 

[RichAZ/CapeCod]

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]

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.

 

[ReversePolarity]

@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