Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register
  • Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
  • The final cut of TMC Podcast #27 is available now with topics time-stamped. We discussed: Consolidation in LiDAR manufacturers; Volvo EX90 shipping with LiDAR; FSD Beta Full Release in N.A.; FSD detecting autopilot cheats, Gwen Shotwell directly overseeing SpaceX Starship; and more. You can watch it now on YouTube. We should have it published to podcast networks shortly.

US Bank end of Lease

smilepak

Active Member
May 11, 2015
1,905
669
SoCal, 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.
 
Maybe it's outside the US, but I thought I read somewhere that Tesla was leasing directly to some consumers.

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
 
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
 

David29

Active Member
Supporting Member
Aug 1, 2015
2,485
2,131
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....
 

smilepak

Active Member
May 11, 2015
1,905
669
SoCal, CA
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....

Here is a copy of what they sent me. You might get similar.
FullSizeRender.jpg
 
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.
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
Reactions: David29

AMPd

Well-Known Member
Nov 27, 2012
5,142
5,547
Northern California
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.
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!
 

whitex

Well-Known Member
Sep 30, 2015
7,063
9,058
Seattle area, WA
Yea, just top of page i didnt take picture of say something to the effect to call them for current promotional offers.
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
Reactions: David29
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...
 

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top