Model X Lease Buyout

[Viro]

Just wondering if it is still true that you can perform a lease buyout at the end of a Model X lease from Tesla? I found this on their website:

"Can I purchase my Tesla at the end of my lease?
You can purchase your Model S or Model X at the end of the lease for its residual value, plus remaining amounts owed under the leases, taxes, official fees, etc. associated with the purchase. Model 3 will not be available for purchase at the end of the lease. Review full terms in your lease agreement."

Has anyone run into any problems doing this? Would it be better to pursue leasing through a 3rd party leasing agent instead of Tesla?

This isn't for a business unfortunately, just personal use. Going with a lease to help keep the payments affordable.

Thanks in advance for your help!

Matt

 

[TLej]

As far as I know it's just the 3 that you're not able to buy out at the end of the lease. My S is coming off lease in about 3 months, I plan on buying it out then as the residual is about $15k (CDN) less than any of the used ones I've seen listed.

 

[AMPd]

I don’t see why there would be any issues buying the car after the lease, it’s a pretty standard lease
It’s the model 3 that tesla is for some reason creating an issue for themselves in the future by not allowing it to be purchased after the lease.

 

[Wynn]

My lease ended September 19th. I purchased the Model X at the end. Kinda.
Tesla Finance has been horribly slow. They cashed my check on September 20th, and I am still waiting for the title (or any kind of paperwork from them) now 7 weeks later. Despite several phone calls and emails on my part. It's been incredibly frustrating!

The only good thing is the price was pretty reasonable. Below blue book value, certainly. All told, I ended up paying an extra 10% or so if I had just purchased it from the get go.

 

[TLej]

My lease ended September 19th. I purchased the Model X at the end. Kinda.
Tesla Finance has been horribly slow. They cashed my check on September 20th, and I am still waiting for the title (or any kind of paperwork from them) now 7 weeks later. Despite several phone calls and emails on my part. It's been incredibly frustrating!

The only good thing is the price was pretty reasonable. Below blue book value, certainly. All told, I ended up paying an extra 10% or so if I had just purchased it from the get go.

Finance has been slow for me as well, 2 weeks since they confirmed they had received my wire transfer and no title yet. At least I have had a couple of emails back and forth with them, so I don't feel abandoned. Hopefully I don't have to wait another 5+ weeks

 

[briandunno]

is it cheaper to lease the model x and then buy it out when the lease ends?

 

[TLej]

is it cheaper to lease the model x and then buy it out when the lease ends?

Doubtful; it cost me a few thousand more than if I had just bought the car in the first place, but it was nice to have the option to just turn it in at the end of the lease if it had been a troublesome ownership experience. Since my car was pretty much trouble-free, I didn't have much hesitation in buying it out. It also saved me from paying mileage overage fees and maybe some wear-and-tear charges for a little bit of curb rash on a couple of wheels which I have no intention of fixing but which Tesla might have charged me for.

Look at your lease calculations; add up your payments and down-payment and the residual and compare it against the purchase price and see for yourself. Pretty sure it will come out higher than an up-front purchase.

 

[SoCal Jimmy]

Older Tesla leases didn't make sense to purchase because Tesla would throw the $7500 Federal tax credit back into the residual to offset your payment but essentially you paid an extra $7500 if you bought the car out because they don't remove it from the residual if you decide to purchase. Most lenders add the tax credit to the front end as a rebate of sorts on your contract, but for Tesla accounting purposes, it was better for them to inflate the residuals and deal with it later.

I've heard some people have had success negotiating the buyout but those were few and far between occurrences.

 

[johnking]

Older Tesla leases didn't make sense to purchase because Tesla would throw the $7500 Federal tax credit back into the residual to offset your payment but essentially you paid an extra $7500 if you bought the car out because they don't remove it from the residual if you decide to purchase. Most lenders add the tax credit to the front end as a rebate of sorts on your contract, but for Tesla accounting purposes, it was better for them to inflate the residuals and deal with it later.

I've heard some people have had success negotiating the buyout but those were few and far between occurrences.

That's right. My Model S lease is coming to an end in Dec. I talked to Tesla Finance. They mentioned that the 7.5K is added to the residual value and they will not take it off. Its so tuff to talk to Tesla finance these days. They did not reply to my email for a month. I waited 1.5 hours on the phone to talk to them. Maybe they are busy with Model Y financing. I will evaluate the used car prices on their website about Nov to see if wanna buy or return the car.