Returning a lease - TFS issues

[TiLaSoul]

I'm having real issues with TFS on the return of my M3 lease. It's an early termination as I have a Y arriving next week.

I submitted that early termination two weeks ago and was sent a termination process link around 48 hours after that. I submitted around 50 requested photos within 24 hours of that through an automated portal and since then, nothing. That's over 10 days without any comms despite emails chasing.

I called them today and they said they'd get straight back to me which, to their credit, they did. The problem is the content of that...

I was asked in the email what my preferred drop off location, date and time was so I responded with Birmingham, March 8th at 11 as I'm collecting my Model Y there at 10.30.
The guy comes back an hour later saying I'll be charged a full month lease costs if I don't return it by the 28th of Feb (... today...!).

At a loss as to what to do other than suck up a £500 charge because of Tesla's lackadaisical approach. I suppose it's actually great business for them; don't respond to customer contact, wait it out then charge an additional month because **** you that's why.

Thought I'd share my experience so others can be more wary of this practice.

 

[Durzel]

Nothing helpful to add, and my experience of lease returns is nil, but I guess the only thing you could've done is given even more notice than 2 weeks, i.e. at the start of the month. Doesn't excuse how you've been treated or the suspicious timing of the reply, of course

 

[muster39]

I'm having real issues with TFS on the return of my M3 lease. It's an early termination as I have a Y arriving next week.

I submitted that early termination two weeks ago and was sent a termination process link around 48 hours after that. I submitted around 50 requested photos within 24 hours of that through an automated portal and since then, nothing. That's over 10 days without any comms despite emails chasing.

I called them today and they said they'd get straight back to me which, to their credit, they did. The problem is the content of that...

I was asked in the email what my preferred drop off location, date and time was so I responded with Birmingham, March 8th at 11 as I'm collecting my Model Y there at 10.30.
The guy comes back an hour later saying I'll be charged a full month lease costs if I don't return it by the 28th of Feb (... today...!).

At a loss as to what to do other than suck up a £500 charge because of Tesla's lackadaisical approach. I suppose it's actually great business for them; don't respond to customer contact, wait it out then charge an additional month because **** you that's why.

Thought I'd share my experience so others can be more wary of this practice.

Based on my lease experience, it’s likely that the lease company will try and charge you for any ‘damage’ they decide is beyond fair wear and tear. If you do end up having to pay £500 for a further full month’s lease cost, but return the vehicle on the 8 March, then you could try and use this to negotiate down any additional costs as they will have had the vehicle back nearly three weeks early.

 

[btc1k]

Utilise the complaint procedures post return.

I've never paid any late charges, damage charges, on any lease I've ever had, even though most of them I've had to go through complaints process.

 

[TiLaSoul]

Based on my lease experience, it’s likely that the lease company will try and charge you for any ‘damage’ they decide is beyond fair wear and tear. If you do end up having to pay £500 for a further full month’s lease cost, but return the vehicle on the 8 March, then you could try and use this to negotiate down any additional costs as they will have had the vehicle back nearly three weeks early.

I had to submit a thorough documentation process in order to return the car - it's be confirmed that there are no wear & tear costs for return. Given the high value of the Model 3, the sale value for them far outweighs the value left on the lease and so the only thing that would have triggered costs (rear tyre tread depth) has already been factored into my return cost of £0.

I've managed to speak to someone on the phone now and am waiting to hear a resolution via email. Apparently it's all down to their lease system being monthly and so if I'd submitted a return request yesterday, my quote would have also been only valid until today - seems daft.

I'm hoping they'll pro-rate the monthly charge for March but let's see...

 

[bc1979]

What are the overall charges for ending your lease early out of interest? I always thought that it’s very expensive to get out of a lease early if they let you at all?

 

[TiLaSoul]

What are the overall charges for ending your lease early out of interest? I always thought that it’s very expensive to get out of a lease early if they let you at all?

£0 for me. TFS terms allow for early termination and the final cost is your remaining balance on the lease minus sale value and admin costs. I put a fairly high deposit down in December 2020 and the car has a ridiculous residual value right now so there's no charge.

In 'normal' times or with pretty much any other car, I would be facing some costs.

 

[mvrlogins]

Given the high value of the Model 3, the sale value for them far outweighs the value left on the lease

In this case, would it not make sense for you to to sell the car privately?

 

[Durzel]

In this case, would it not make sense for you to to sell the car privately?

You can't sell a lease car, you don't own it.

You could ask the lease company whether you can purchase the vehicle. Of course, if they accept then they will propose a price that's likely to be in line with market values, so you've nothing really to gain unless you actually just want to hold on to that specific car, or you think prices will go up even more than they are currently (which seems unlikely, or there might not be much in it to make it worthwhile).

 

[mvrlogins]

You can't sell a lease car, you don't own it.

You could ask the lease company whether you can purchase the vehicle. Of course, if they accept then they will propose a price that's likely to be in line with market values, so you've nothing really to gain unless you actually just want to hold on to that specific car, or you think prices will go up even more than they are currently (which seems unlikely, or there might not be much in it to make it worthwhile).

Ah, my lease (Blackhorse) had an option to buy at the end, with the price fixed when I signed the lease.

The agreed price was 2/3 of the market value so I paid the lease company that when the lease ended

This was my first lease. I assumed most/all leases were like that.

 

[Durzel]

That's a bit silly of them I guess under normal circumstances cars, including Teslas, depreciate by a broadly predictable amount, so lease companies are always the winners. These are strange times though and it looks like Blackhorse's policy of pre-offering a buy out price hurts them. Good for you

Some companies allow you to buy the car (Leaseplan springs to mind, when I was looking into it). Others won't entertain it. The ones that do (Blackhorse notwithstanding) would likely offer a buy out price that is in line with current market values, or perhaps somewhere around the price likely to be realised at auction - which at the moment is also going to be artificially high.

Strictly speaking the difference between a lease vs PCP is that you never own the car. In reality, its more the expectation that you can't even own it. The lease company will - all things being equal - take the car back at the end of the term. In practice money talks and it's marginally less work for them to sell it to you than it is to take it back, prep it, put it through auction, etc.

 

[bc1979]

Ah, my lease (Blackhorse) had an option to buy at the end, with the price fixed when I signed the lease.

The agreed price was 2/3 of the market value so I paid the lease company that when the lease ended

This was my first lease. I assumed most/all leases were like that.

That sounds like a PCP rather than a lease.

 

[ShuggyShaw]

I'm having real issues with TFS on the return of my M3 lease. It's an early termination as I have a Y arriving next week.

I submitted that early termination two weeks ago and was sent a termination process link around 48 hours after that. I submitted around 50 requested photos within 24 hours of that through an automated portal and since then, nothing. That's over 10 days without any comms despite emails chasing.

I called them today and they said they'd get straight back to me which, to their credit, they did. The problem is the content of that...

I was asked in the email what my preferred drop off location, date and time was so I responded with Birmingham, March 8th at 11 as I'm collecting my Model Y there at 10.30.
The guy comes back an hour later saying I'll be charged a full month lease costs if I don't return it by the 28th of Feb (... today...!).

At a loss as to what to do other than suck up a £500 charge because of Tesla's lackadaisical approach. I suppose it's actually great business for them; don't respond to customer contact, wait it out then charge an additional month because **** you that's why.

Thought I'd share my experience so others can be more wary of this practice.

Out of interest, is there a timescale they expect the car to be returned by? I'm looking at doing a similar approach and ordering a Model Y. Just wondered how quick they expect the car to be returned.

 

[TiLaSoul]

Out of interest, is there a timescale they expect the car to be returned by? I'm looking at doing a similar approach and ordering a Model Y. Just wondered how quick they expect the car to be returned.

According to the person I spoke with, the quote on early termination in your Tesla account is only valid for the month it's obtained in. Meaning if you got a quote now, you'd be expected to return the vehicle by the end of March.

The issue I had was that, although I obtained a quote early on in Feb, Tesla's lease management company for the return didn't process my car assessment for 10 days meaning I was given 24 hours to return or face another months lease payment and a new quote.

Thankfully as that was Tesla's **** up, they allowed me to return it on March 8th when I was collecting the new car, without a new quote or another months payments.

My advice would be to chase then as soon as you've submitted your lease return assessment re: drop off.

 

[ShuggyShaw]

According to the person I spoke with, the quote on early termination in your Tesla account is only valid for the month it's obtained in. Meaning if you got a quote now, you'd be expected to return the vehicle by the end of March.

The issue I had was that, although I obtained a quote early on in Feb, Tesla's lease management company for the return didn't process my car assessment for 10 days meaning I was given 24 hours to return or face another months lease payment and a new quote.

Thankfully as that was Tesla's **** up, they allowed me to return it on March 8th when I was collecting the new car, without a new quote or another months payments.

My advice would be to chase then as soon as you've submitted your lease return assessment re: drop off.

Thank you mate, very handy!

I’m going for a test drive tomorrow so shall see what I think and go from there.

Only problem I’d have is how long the company my work uses takes to order and get the car! In an ideal world, I’d place an order this weekend with an estimated delivery of May and get a quote for May but doubt I’ll have a smooth transition. Many thanks though!!

 

[ShuggyShaw]

@TiLaSoul

Did you have your Model 3 with Tesla Financial Services and was it a Contract Hire Agreement? or was it a PCP?

i went to Leeds today and was informed i wasn't able to end my lease early and basically didn't believe i could obtain a quote to end it early for £0.

if i cant then fair enough but just wondered what situation you was in at the time of having the Model 3.

cheers

 

[CMc1]

@TiLaSoul

Did you have your Model 3 with Tesla Financial Services and was it a Contract Hire Agreement? or was it a PCP?

i went to Leeds today and was informed i wasn't able to end my lease early and basically didn't believe i could obtain a quote to end it early for £0.

if i cant then fair enough but just wondered what situation you was in at the time of having the Model 3.

cheers

You can do this via the app under the financial section > lease details > manage lease > early terminate

It will then show fees etc

 

[TiLaSoul]

@TiLaSoul

Did you have your Model 3 with Tesla Financial Services and was it a Contract Hire Agreement? or was it a PCP?

i went to Leeds today and was informed i wasn't able to end my lease early and basically didn't believe i could obtain a quote to end it early for £0.

if i cant then fair enough but just wondered what situation you was in at the time of having the Model 3.

cheers

Lease through TFS. As said above, you can request an early termination quote from your web account.

 

[ShuggyShaw]

@CMc1 @TiLaSoul I've found all that and obtained about 10 quotes , but what i want to know is that if you had a contract hire with TFS or PCP deal. I just find that after taking out a personal contract hire agreement with TFS, that handing the car back for £0 to good to be true and after my experience today with the guys at the Tesla showroom, they basically told i could be leasing from TSF cause Tesla dont lease cars and that it wasnt a thing that i could early terminate.

In a dilemma where i dont want to wait a couple months incase a charge occurs for handing the car back but place an order next week through work for a Model Y. Be stuck with 2 cars that i can not hand back if you get me.

but @TiLaSoul is you define 'lease' as a contract hire with TFS directly, then hopefully this is a thing and not a bug with my account.

Sorry for ramble.

 

[TiLaSoul]

I’m not sure I understand your issue but it was a contract hire which is a lease.