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return my lease or buy out and sell third party?

snowdog00

Member
Aug 31, 2021
5
4
Boston, MA
Hello,

First-time poster (former forums.tesla user). I have a 2018 Model S 75D, advanced autopilot, with 27k miles. It's in mint condition with the exception of a couple of scratches on the rims. Tesla wants ~55k. Should I be buying it out and selling it to a third party? It would appear I have a car that a lot of people might want to buy. Sell it for 60k? Am I crazy to just not hand it back and be done with the aggravation? What about selling to a used car dealer? I would think that might be easier, but I wouldn't make any money.

(FYI, I searched around a bit for a similar thread I couldn't find one.)

Thank you in advance,
-Sean
 

Sanderpman12

Member
Jul 27, 2021
165
45
Charlotte NC
Hello,

First-time poster (former forums.tesla user). I have a 2018 Model S 75D, advanced autopilot, with 27k miles. It's in mint condition with the exception of a couple of scratches on the rims. Tesla wants ~55k. Should I be buying it out and selling it to a third party? It would appear I have a car that a lot of people might want to buy. Sell it for 60k? Am I crazy to just not hand it back and be done with the aggravation? What about selling to a used car dealer? I would think that might be easier, but I wouldn't make any money.

(FYI, I searched around a bit for a similar thread I couldn't find one.)

Thank you in advance,
-Sean
Hey man i think you should buy it and then sell on used market. I doubt dealership is a good idea but it does not hurt to try and see what they offer.you will definitely get more transferring to a buyer because of things transferring.
 

kizamybute'

Member
Aug 24, 2019
186
470
Los Angeles, CA
For only a $5,000 difference, probably not worth the hassle. Plus, don't forget, you'll have to pay sales tax on the $55,000, so that will likely wipe out any profit margin. Also, looking at sold listings on E-bay, for a 75, not sure you could get $60,000 for it. Maybe as the market is hot right now, but based on the sale prices I'm seeing $60,000 might be a stretch. For me, I would take the gamble for a minimum profit of $10,000 with homes for $15,000. For $5,000 at best, that leaves little wiggle room and for me, probably not worth the hassle. Just my personal take.
 

ATPMSD

Member
Mar 12, 2021
345
349
Atlanta, GA
Also, if you turn it in Tesla will look to collect a lease termination fee and anything beyond normal wear and tear, excess mileage and tires if the tread is worn. So then the first step is to read your lease so you know what the fees might be. Next, I would get quotes from people like Carvana and Carmax. You should be able to do better in a 3rd party sale, but at least you will have a baseline.
 

Kairide

Member
Jul 13, 2021
170
194
CA
There wouldn't be a lease termination fee if you leased prior to spring of 2019, I forget the exact month. My 2019 75D lease was set to expire March 2022. It was a good idea to buy based on the market and math. If I wait until the lease was over, residual would have been $43K, buyout price in August was $53K. The KBB and NADA values were $63K - $71K. I paid $5k for EAP at the time I leased which was guaranteed to be upgraded to FSD for free, the updated 3.0 hardware was installed last fall.
By buying out the lease, I lowered my monthly payments, lowered my interest since I'm not paying Tesla's crazy MF, bought a low mileage, red, FSD equipped Model S for well below market value.
The biggest pro to buying is you don't have to deal with Tesla's absurd lease return process, that apparently does not include a pre-lease return inspection. You just submit photos to them. They will probably charge you a couple grand for the rims.

My advice and the advice of all car experts is if you have a lease that's ending, buy the car. Unless of course you don't like it or don't need a car.
 

whitex

Well-Known Member
Sep 30, 2015
6,728
8,564
Seattle area, WA
Hello,

First-time poster (former forums.tesla user). I have a 2018 Model S 75D, advanced autopilot, with 27k miles. It's in mint condition with the exception of a couple of scratches on the rims. Tesla wants ~55k. Should I be buying it out and selling it to a third party? It would appear I have a car that a lot of people might want to buy. Sell it for 60k? Am I crazy to just not hand it back and be done with the aggravation? What about selling to a used car dealer? I would think that might be easier, but I wouldn't make any money.

(FYI, I searched around a bit for a similar thread I couldn't find one.)

Thank you in advance,
-Sean
Is $55K plus taxes and fees that Tesla will charge you to buy it less than $60K you expect from a private sale (minus cost of sale, if you list it, use escrow or sell through a third party, etc)?
 

ucmndd

Well-Known Member
Mar 10, 2016
6,992
13,783
California
Depends how much BS you're willing to endure to (maybe) make a few bucks. Agree with getting quotes from Carvana, Carmax, etc. to help with your decision making.
 

ucmndd

Well-Known Member
Mar 10, 2016
6,992
13,783
California
You'd have to include the cost of the lease to the cost of ownership. It's really a lease + 55K car. Think you can get it back?
lol, no. The lease is done. That money is spent, there's no getting it back, no point in including it in any calculus.

The decision here is turn the car in and walk away (net: $0), or buy out the lease for $55k to turn around and sell the car for maybe more (net: sale price minus $55k).
 
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ucmndd

Well-Known Member
Mar 10, 2016
6,992
13,783
California
Consideration: If you have to pay sales/use tax on the residual value to buy out the lease, you've just increased your break-even by another $5k or so.
 

oktane

Active Member
Oct 25, 2016
1,778
2,538
USA
Some states will require you to pay sales/use tax when you purchase out your lease. Others give you time (like 30 days) to sell the car and not pay a tax. Check your local laws. Then see what you think you can get for your car and subtract 10%. If you still think it will be more than the $55,000 you spend to buy the lease out, go for it. Otherwise, not worth the hassle/risk. How much is your time worth? I'd have to be sure to make at least $5k before I'd bother.
 

snowdog00

Member
Aug 31, 2021
5
4
Boston, MA
Thank you for all the feedback. My lease ends on 9/14/2021. I'm getting the new Model S, long-range, with full autopilot. Delivery is now 9/8. That's a story in itself! I ordered on 5/15/21 (when the lead times were 12 weeks). I received several notices that the delivery was getting pushed further out (the last one was late October). The delivery delay is what made me think about buying the car so that I wouldn't be without one for an unknown period of time. Then a week ago, I get the notice that it will be here on the 8th.

Yes, I would need to pay 6.25% ($3,250) sales tax in MA. I'm going to engage with Carvana and Carfax. I'll post an update when I have one. I'm of the mind that unless I can clear 5-8k, it is not worth the hassle. Thank you all again!
-Sean
 

sdorn

Director of Awesome
Supporting Member
Oct 9, 2016
1,040
1,055
Georgia
lol. $60k for a 75D seemed pretty optimistic, even in the current goofy market (which I admit I haven't been following closely).
Yeah, Carvana just bought our 7 year old Toyota Sienna with 75000 miles on it for over $19k. We only paid $33k for it brand new at 0% interest for 72 months. The used car market is crazy right now.
 

Kandiru

Active Member
Oct 20, 2014
1,272
490
USA
You never buy out a lease, ever. A good for you lease will have a high residual value, on top you will be paying taxes twice.
 
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Kairide

Member
Jul 13, 2021
170
194
CA
You never buy out a lease, ever. A good for you lease will have a high residual value, on top you will be paying taxes twice.
That’s terrible advice. Especially with the way the car market is now. All of the experts agree that if you have a lease ending now, buy if you like the car. I currently bought my 2019 Model S lease out 8 months early. Purchase price was $53K, KBB and NADA value is $63K+. If the car is worth more than the buy out price, why wouldn’t you buy it?
Taxes are dependent on the state. In CA you only pay taxes on the principal lease payment, not the entire price of the car. So you aren’t paying taxes twice.
 
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