What Would You Do?

[smilepak]

Here is the scenario...

Current 2015 Model S 70D Leasing end July 2018. By the time end of lease, you will be over the lease mileage limit by 5k-8k.

Do you

1) Keep the Model S 70D at the end of the lease

2) Return the Model S 70D and get a CPO 85D 2015/2016 model?

Curious.

Ideally, I wish they would

a) Allow mileage forgiveness on the lease if I turn around and buy another Tesla
or
b) Allow me to upgrade the 70Kw to 85Kw instead.

 

[BrettS]

You’ll need to post some numbers for anyone to really be able to answer this. How much is your buyout at the end of the lease? How much will the extra miles cost you if you turn it in? How much is the CPO 85D you’re looking at with the options you want?

 

[smilepak]

You’ll need to post some numbers for anyone to really be able to answer this. How much is your buyout at the end of the lease? How much will the extra miles cost you if you turn it in? How much is the CPO 85D you’re looking at with the options you want?

At the end of lease, my guess would be around 50k - 55k mileage. My lease limit is 3 years @ 15k per year. Owe left at end of lease is $52k.

I am thinking about spending no more than 65-70k for a CPO 85D.

 

[Skipdd]

I don't see these as a trade-off decision. You will have to pay the mileage overage regardless of which choice you make, so it's really whether you think the mileage increase from 70 to 85 is worth it. If it's mileage you want, you should probably consider all other options that might be available then.

 

[ItsNotAboutTheMoney]

At the end of lease, my guess would be around 50k - 55k mileage. My lease limit is 3 years @ 15k per year. Owe left at end of lease is $52k.

I am thinking about spending no more than 65-70k for a CPO 85D.

What's the overage fee?

 

[smilepak]

What's the overage fee?

o.25 per miles

 

[BrettS]

You will have to pay the mileage overage regardless of which choice you make, so it's really whether you think the mileage increase from 70 to 85 is worth it

This isn’t true... if you buy the car at the end of the lease then you don’t need to pay any overage fees.

As far as the original question goes, you can just look at the numbers and make your decision. To buy out the lease you’ll pay 52K and have a 2015 70D. If you go 8000 miles over then you’re looking at $2000 in overage plus 65K for the CPO car, so a total of 67K for a CPO 85D.

If you’re really looking at going with a 2015 or 2016 CPO car then you’d be paying 15K more for a similar car with a slightly bigger battery. In my opinion that doesn’t really make much sense. I would just buy your car and be done with it.

However, your lease doesn’t end for another year and at that point (hopefully) AP2 will have caught up to (and maybe even exceeded) AP1. Prices for preowned AP2 cars will have come down as well. What I would do is wait until your lease is almost up and see how AP2 is doing and if it has any features that make it worth the upgrade for you. If you think AP2 is a good upgrade, then turn in your car and pay the overage and get a late 2016 or 2017 AP2 car.

But without going to AP2 or adding a significant number of other features I don’t think it makes sense to pay an extra 15K (plus taxes, etc) for a car that would be so similar to your existing one.

 

[whitex]

What @BrettS said. Unless you're looking at giving it back early now, you don't have all the facts to make an informed decision on today. Just fyi, 85KWh battery is only 81KWh with 77 usable, so your extra may not be as much as you think (as a comparison, 60->75 upgrade which really ends up with only 10K more usable didn't sell very well for $9K, or $7K, until Tesla lowered it to $2K). 85KWh battery does have a higher voltage, so a little faster, but after few days you won't notice, so not sure how much extra that is worth to you. Lastly, you know your car, a new CPO is an unknown as far as what it has been through - to some people that adds a little value to keeping the car.

PS> You don't list in your sig what you have. Have you checked whether you can upgrade to 75 for $500? Some of the late 70's are software upgradable to 75. If it is, the option to upgrade should should up in "My Tesla", though I am not 100% sure for leased cars.

 

[smilepak]

You don't list in your sig what you have. Have you checked whether you can upgrade to 75 for $500? Some of the late 70's are software upgradable to 75. If it is, the option to upgrade should should up in "My Tesla", though I am not 100% sure for leased cars.

How do u check if it is upgradable? Mine is a 70D delivered in July 2015.

Sound like the consensus is to keep. Hmm the 70 to 75 might add like 10 extra miles?

I don't plan to do full autonomy, so AP2 wouldn't add much advantage now I think. I just like a good stop/go auto drive to use during traffic and long distance drive.

 

[whitex]

How do u check if it is upgradable? Mine is a 70D delivered in July 2015.

July 2015 would be one of the first 70's, so probably not the software limited 75. The surest way to tell would be to contact your SC.

 

[smilepak]

At least I got a response from SC saying 70D will not be swap-able to 85D anytime in the near future :-(

 

[TIppy]

If you buy out the lease, you are giving tesla the $7,500 rebate back. They apply the rebate by raising the residual value by $7,500, not by taking it off the msrp. If your buy out is less than the current market price, I guess it doesn't really matter, though.

If they had taken it off the msrp, your residual buy out would have been $52K - $7.5K, or $44.5k.

 

[smilepak]

I called and got confirmed my 70 kWh is not software upgradable to 75 kWh

Also if my batter dies or need replacement, there is no option or possibility to get 85 kWh battery

So I decide to keep it and active AP1. Maybe by 2019 or 2020 I'll replace it then with something better once AP2 or greater gets better and larger capacity that gives over 350 miles for under 90k

 

[Skipdd]

This isn’t true... if you buy the car at the end of the lease then you don’t need to pay any overage fees

Well, I have a lease and am expecting to buyout my lease early with ~5k miles above the limit and they told me I would have to pay the mileage overage. YMMV..

 

[whitex]

Well, I have a lease and am expecting to buyout my lease early with ~5k miles above the limit and they told me I would have to pay the mileage overage. YMMV..

Check your contract - that would be VERY unusual. I the early payout amount does not depend on mileage, which only come into play if you are returning the car early or not, but and may have a higher impact if returning early.

 

[ItsNotAboutTheMoney]

o.25 per miles

OK, then worst case is for 8k miles at $0.25/mile, which gives $2k.

Add $2k to the price of an alternative purchase.
(Maybe also add any admin fees you'd avoid if you buy it rather than hand it back.)

 

[smilepak]

Well, I have a lease and am expecting to buyout my lease early with ~5k miles above the limit and they told me I would have to pay the mileage overage. YMMV..

Now that is odd. If you buy your car at the end of the lease, you practically down the car with whatever mileage that is on it. Why would they make you pay them for something you end up owing.

Now, if you decide to buyout your lease early, that might be a different story. You would have to pay up the difference up to the end of lease amount you own. One top of that, pay for the residual value left on the vehicle.

Lease-End Options

Purchase Your Tesla
It’s easy to fall in love with your Tesla, so we made it easy for you to keep it. You may purchase your Tesla before your lease ends, or at point of maturity. Your Tesla is protected by a 4-year or 50,000 miles/80,000 km (whichever occurs first) New Vehicle Limited Warranty. The New Vehicle Limited Warranty may be extended to 8 years or 100,000 miles. In addition, your Tesla is protected by an 8-year or unlimited miles Battery and Drive Unit Limited Warranty.

 

[Skipdd]

Check your contract - that would be VERY unusual. I the early payout amount does not depend on mileage, which only come into play if you are returning the car early or not, but and may have a higher impact if returning early.

Thanks, I will.

 

[Skipdd]

Now that is odd. If you buy your car at the end of the lease, you practically down the car with whatever mileage that is on it. Why would they make you pay them for something you end up owing.

Now, if you decide to buyout your lease early, that might be a different story. You would have to pay up the difference up to the end of lease amount you own. One top of that, pay for the residual value left on the vehicle.

Lease-End Options

I am buying out early to essentially trade-in and get a new one (S 100D). But as @whitex advised, I will check my contract. As has been proven many times here, what a Tesla salesperson says doesn't always end up being right. They repeatedly told me when I first started talking to them about this in April, that they were just starting to see customers do what I was asking them, and didn't have that much familiarity with it...and were putting programs in place now to support it.

 

[smilepak]

I am buying out early to essentially trade-in and get a new one (S 100D). But as @whitex advised, I will check my contract. As has been proven many times here, what a Tesla salesperson says doesn't always end up being right. They repeatedly told me when I first started talking to them about this in April, that they were just starting to see customers do what I was asking them, and didn't have that much familiarity with it...and were putting programs in place now to support it.

Ah

That is interesting that you buy out early, ding on have ng to pay the remainder lease amount and then trade it up, another ding as trade in value is lower.