TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC
Start a Discussionhttps://teslamotorsclub.com/tmc/tags/

US Bank end of Lease

Discussion in 'Model S' started by smilepak, Jul 14, 2017.

  1. smilepak

    smilepak Active Member

    Joined:
    May 11, 2015
    Messages:
    1,167
    Location:
    Eastvale, CA
    I'm about a year away from end of lease and received a letter from US Bank notifying such.

    It state one of the option is trade in and another is purchase. They said call for promotion offers.

    I am curious what everyone experience with their Tesla on these leases

    1. Did they give you an option to buy the vehicle early without having to pay the remainder of the lease?

    2. Did they give you an option if you trade in at the end of lease without mileage over charge?

    3. If you did buy out your lease, I assume you had to pay some end of lease buyout fees?

    Anything else you did?

    Thanks.
     
  2. renshcp

    renshcp Member

    Joined:
    Aug 27, 2016
    Messages:
    29
    Location:
    Washington, IL
    Following...
     
  3. hariclt

    hariclt Member

    Joined:
    Nov 15, 2016
    Messages:
    59
    Location:
    Charlotte, NC
    Very interested in understanding .. please keep positing ..
     
  4. Alex D

    Alex D Member

    Joined:
    Mar 31, 2016
    Messages:
    249
    Location:
    Lake Worth, FL
    Following, too. Very interested in the responses.
     
  5. ba2002

    ba2002 Member

    Joined:
    Jul 3, 2016
    Messages:
    75
    Location:
    Minneapolis, Mn
    Interested as well.

    The lease extension option that was announced previously - does that apply to US Bank leases? Or just Tesla's inhouse leasing? Anyone know?
     
  6. smilepak

    smilepak Active Member

    Joined:
    May 11, 2015
    Messages:
    1,167
    Location:
    Eastvale, CA
    I believe the extension is on US Bank Lease. Tesla have a different lease company now?
     
  7. ba2002

    ba2002 Member

    Joined:
    Jul 3, 2016
    Messages:
    75
    Location:
    Minneapolis, Mn
    Maybe it's outside the US, but I thought I read somewhere that Tesla was leasing directly to some consumers.
     
  8. jeffro01

    jeffro01 Active Member

    Joined:
    Jan 30, 2013
    Messages:
    1,781
    Location:
    SF Bay Area
    They do and they are. There are really two options when leasing a Tesla, US Bank or Tesla themselves. From what I've been able to gather, and someone correct me if I'm wrong here, is US Bank gets first dibs and Tesla only gets involved when US Bank won't approve someone as their terms are stricter than Tesla's...

    Jeff
     
    • Informative x 2
  9. bandido

    bandido Member

    Joined:
    Apr 16, 2017
    Messages:
    10
    Location:
    Phoenix, AZ
    I am very interested to see how Tesla manages it's customers on this front. I have leased multiple BMW's in the past and they are extremely accommodating, discounted miles, incentives, money back if miles are lower, etc. Tesla leasing is still very young and the first crop of 3 year leases may just be ending now and in the next year. This is a major opportunity for Tesla to build more loyalty into it's customer base by truly competing with the other car companies. My lease is $.25 per mile for overage and I would love to not have to pay that one if get a new car. Also, I want to hear what happens with the extension process, costs, etc.

    Todd
     
  10. MP3Mike

    MP3Mike Active Member

    Joined:
    Feb 1, 2016
    Messages:
    3,631
    Location:
    Oregon
    Why don't you call, see what the offers are and let us know...
     
    • Like x 1
  11. n2mb_racing

    n2mb_racing Member

    Joined:
    Jun 14, 2014
    Messages:
    688
    Location:
    durham, NC
    Good to know. I wasn't planning on buying my car at the end of the lease because they want $94k for a P90D in Sept of 2018. I don't think it is worth that much even now.
     
    • Like x 1
  12. David29

    David29 Member

    Joined:
    Aug 1, 2015
    Messages:
    941
    Location:
    DEDHAM, MA
    As another US Bank lease customer with a bit more than one year left, I am intrigued by your post and will be most interested if I get a similar letter and what the details might be.
    I have not yet decided what to do when my lease ends. That will depend a great deal on how good Model 3 is once we can see one and drive it. (I do have a reservation.)
    I also suspect that, if Model 3 is indeed a good car, the prices for used Model S might drop, and if so, that may make the lease buy-out prices for Model S too high. I would worry that ending the lease too soon might push me into a premature decision on the relative merits of my used Model S versus a new Model 3....
     
    • Like x 2
  13. smilepak

    smilepak Active Member

    Joined:
    May 11, 2015
    Messages:
    1,167
    Location:
    Eastvale, CA
    Here is a copy of what they sent me. You might get similar. FullSizeRender.jpg
     
    • Informative x 1
    • Like x 1
  14. renshcp

    renshcp Member

    Joined:
    Aug 27, 2016
    Messages:
    29
    Location:
    Washington, IL
    This was my rationale for leasing in the first place, just my personal bet that with technology advancing and other compelling options hitting the market that Model S residuals would start to decline over my 3 years with the car. I have 2 years left, btw. I think I made the right bet. That said, if the car is worth a fair amount less than the buy option at the end of the lease, would they lower the buy price to market price?
     
    • Like x 1
  15. AMPd

    AMPd Active Member

    Joined:
    Nov 27, 2012
    Messages:
    1,902
    Location:
    Northern California
    Dang
    My lease matures June 2019 and the value of my P90D was 75k
    I'm going to buy it and keep it for EVER!
     
    • Like x 3
  16. whitex

    whitex Active Member

    Joined:
    Sep 30, 2015
    Messages:
    1,615
    Location:
    Seattle area, WA
    This is a very standard end of lease notification, there are no special offers mentioned in it at all. The letter just tells gives you notice so you can think about what you want to do.
     
    • Informative x 1
  17. smilepak

    smilepak Active Member

    Joined:
    May 11, 2015
    Messages:
    1,167
    Location:
    Eastvale, CA
    Yea, just top of page i didnt take picture of say something to the effect to call them for current promotional offers.
     
    • Informative x 1
  18. whitex

    whitex Active Member

    Joined:
    Sep 30, 2015
    Messages:
    1,615
    Location:
    Seattle area, WA
    That is what's called targeted advertising. You are a customer who will be buying a car soon - whether buying your leased car out or new car loan or lease, it's still a "sale" opportunity to a bank whose product is financing/leasing.
     
    • Informative x 1
  19. activejustin

    activejustin Member

    Joined:
    Dec 12, 2015
    Messages:
    20
    Location:
    Woodstock, GA
    I leased a Mercedes C250 and the residual value of my car at the end of the 42 months was $25k or about $6k-$9k more than the book value of the car, depending on which guide you go by. I definitely was not going to buy it at the residual price, but was lucky to have benefited from lower payments on my lease due to the optimistic residual.

    I turned the C250 back in to the dealership. After they processed and inspected it, noting it only had normal wear and tear, they offered to sell my car back to me for $17k($8k less than the residual) and waived the mileage fee I would have had to pay since it was 4k miles over. I gladly bought it back to hold me over until the Model III comes out, not realizing quite how long that would be!

    Sometimes It Makes Sense to Turn it In
    If your residual is much higher than the actual value of the vehicle, my suggestion is to turn it back in and see if Tesla will sell it back to you at a price lower than the residual. Obviously if you buy it, they do not have to go through the process of refurbishing the vehicle, the carrying costs, transportation costs, or paying someone to sell it again. All things that would encourage them to sell it to the original owner at a fair price. Not sure if this is something Tesla does, but I would assume.

    Sometimes you are better off to buy it at the Residual Price and Sell
    In the past I have leased a BMW and a Jaguar. The residual price of those vehicles was actually lower than the market price at the end of the lease, so I bought those vehicles for the residual and sold those for a small profit. I leased the Jaguar new with an $8k discount, so when I bought that for the residual and sold it, I ended up driving that car for $200 a month for 2 years after you take out the profit I made selling it. I did not do quite so well on the BMW, I only came out a few hundred dollars ahead, but did not have to pay the mileage fee to the dealership when I sold it myself.

    When leasing you have to be creative when it comes time to turn in the vehicle.
    You cannot always use the same strategy every time. If they hit you with a low residual, the good part is you even though you had higher payments, you can sell the car and make some of that money back.
    If on the other hand you get a car with a residual that is way too high, like I did on my Mercedes and I would assume most Teslas, feel good that you are sticking it to the man when you turn the car in.
    It does not hurt that they might just offer you a fair deal to buy your car back if you ask...
     
    • Helpful x 3
    • Like x 1
  20. n2mb_racing

    n2mb_racing Member

    Joined:
    Jun 14, 2014
    Messages:
    688
    Location:
    durham, NC
    Did you do a 3yr lease?
     

Share This Page