I got a Model 3 in Jan 2020 for 3 years/45K miles. Due to covid my miles driven has come down drastically and I don't expect to drive the initially expected 45K miles. In fact, I think it will be a lot less, more like 36K miles. Does Tesla renegotiate lease terms? Especially, since COVID was totally unexpected will Tesla make an exception and renegotiate? Appreciate your thoughts.
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Model 3 lease renogtiation
- Thread starter wft3
- Start date
I don’t see why they would. You agreed to a price and said you would drive 45,000 miles or fewer, under pain of penalty mileage. 36,000 is fewer than 45,000 so as far as they’re concerned you’re just sticking to the contract terms.
if you order a whole pizza and only eat 3/4 of it, should you be able to negotiate the price afterwards?
if you rent a house and stay at your secret sexytime partner’s house 95% of the time, should your rent decrease?
not to mention you have no leverage. You can’t just say “fine I’m returning it” without paying out the lease.
if you order a whole pizza and only eat 3/4 of it, should you be able to negotiate the price afterwards?
if you rent a house and stay at your secret sexytime partner’s house 95% of the time, should your rent decrease?
not to mention you have no leverage. You can’t just say “fine I’m returning it” without paying out the lease.
UncertainTimes
Active Member
You can always call and ask. That is, if you ever manage to get in touch with an actual person.
I agree with you 100% under normal circumstances. Since COVID is an unexpected event, I thought this is a reasonable expectation. No?
People drive less (or more) miles than they had on their lease all the time. Covid makes this a bit different, but I doubt they would do this. There isnt any reason for them to, they would have to redo the contract, and you are not anywhere near the end of it.
If you were at the end of your contract, you might be able to talk to them about something. Year 1 of a 3 year lease? Nope, they will likely tell you "come talk to us near the end of your lease if you are still under miles".
Absolutely zero reason for them to even consider it so early into a lease term.
If you were at the end of your contract, you might be able to talk to them about something. Year 1 of a 3 year lease? Nope, they will likely tell you "come talk to us near the end of your lease if you are still under miles".
Absolutely zero reason for them to even consider it so early into a lease term.
Not really, because you are in year 1, not year 3 of your lease term, so to answer your question "no, not reasonable expecation". Doesnt mean you cant ask, but its not a "reasonable expectation".
Appreciate your input. However, I don't understand why year 3 vs year 1 matters? I understand they are not obligated to do accommodate this as per the terms of the contract. But, due to the widespread unforeseen situation caused by COVID, pretty much most of the country has been in highly restricted mobility mode for the greater part of this year and for the foreseeable future. Since this situation directly affects the mileage and lease terms such an offer would be excellent customer service and would endear them with users.
UncertainTimes
Active Member
it matters, but there is nothing stopping you from asking them. Nothing anyone says here is going to matter anyway, so this is all an exercise in internet discussion.
I dont believe they will renegotiate it, and I dont believe its reasonable to expect them to do so, "asking" someone to do something and "expecting" them to do something are completely different in my book.
No. You signed a contract and that is your deal.
Owners who had free referral SC miles were given an extension of usage of those miles during early months of covid but for Tesla that was a software account change that a lot of people were asking about and was fairly easy to grant. Increasing range on some cars in emergency disaster areas to allow people to get to safety away without worrying about running out of charge, also an easier thing to arrange.
Your lease situation is different in that it is contractual and I’d assume would require a lot of extra work for their contract department to process and who knows who else it would involve. I rather doubt it in this case. When Tesla Solar came out with new 340W panels to replace 315W ones contracted for, their solar contract with people had language about allowing them to make substitutions of equal or greater value. As far as I know they made the change to all contracts back then that hadn’t already been installed and it did require additional paperwork on their part however, so who knows. I think they’ve been a pretty fair company to work with. They even made concessions on vehicles at different times. Like someone said wouldn’t hurt to ask.
Your lease situation is different in that it is contractual and I’d assume would require a lot of extra work for their contract department to process and who knows who else it would involve. I rather doubt it in this case. When Tesla Solar came out with new 340W panels to replace 315W ones contracted for, their solar contract with people had language about allowing them to make substitutions of equal or greater value. As far as I know they made the change to all contracts back then that hadn’t already been installed and it did require additional paperwork on their part however, so who knows. I think they’ve been a pretty fair company to work with. They even made concessions on vehicles at different times. Like someone said wouldn’t hurt to ask.
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I think there is also the issue that Tesla bundles up the leases and sells them to get the money early. Changing the lease would change the value of what they sold, so it would have to be re-negotiated with the buyer of the bonds first.
COVID wasn’t their plan either. I don’t see them renegotiating.
CapeOne
Active Member
It doesn't hurt to ask but I doubt they will renegotiate the mileage limit to lower the payment. I have read about other automakers providing temporary relief programs (such as deferred or modified payment plans) to customers financially impacted by COVID but that’s a bit different as you are not claiming any sort of financial hardship issues. I'm not sure Tesla would do anything even if you were.
This issue alone will eliminate any possibility of a renegotiation. The OP might be able to “sell” his lease to another party through a lease broker, but I think he would still retain some liability.
I suspect they would renegotiate to a low limit on miles at the same rate per month.
You can't unfortunately, it's stated in the lease agreement. I looked into this.
No. Not for something like this. Do they want to renegotiate 1000s of leases?
I don't think this would put a dent in endearing their customers. They have so many other areas of poor customer service that need fixing. Leasing is not even on the radar.
