return my lease or buy out and sell third party?

[snowdog00]

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]

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.

 

[Big Toys]

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?

 

[AMPd]

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?

Huh?

 

[kizamybute']

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.

 

[EVRider-FL]

What do you plan to replace your leased car with?

 

[ATPMSD]

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]

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]

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]

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]

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).

 

[ucmndd]

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]

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]

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

 

[snowdog00]

Carvana quote 41k

 

[ucmndd]

Carvana quote 41k

lol. $60k for a 75D seemed pretty optimistic, even in the current goofy market (which I admit I haven't been following closely).

 

[sdorn]

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]

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.

 

[Kairide]

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.

 

[MSPK472]

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

Any chance you have an update on this? If buying out the lease from Tesla, do you pay the sales tax to Tesla who then handles getting the clear title with your name on it?