Will Tesla ever offer Lease buyout?

[Dan203]

If you are worried about losing money, don’t buy or lease a new car every 3 years.

There is no economical way to buy a car every 3 years.

Teslas have always held their value well, even prior to the pandemic. They are likely to continue holding their value well for at least another 3-4 years as EVs are a hot market. Leasing a Tesla right now is a sucker’s bet.

I wasn’t worried about losing money, I was just trying to minimize the loss. If you're going to get a new car every 3-4 years anyway you'll, normally, lose less money with a lease. If ypu keep a car for 6-7 years then buying is better. But that’s using typical depreciation of 50%+, obviously in a market like this where used cars are selling for more than new that calculation changes.

 

[Zorg]

Didn't read the whole thread, but we leased our X back in Sept'19 and bought out the lease earlier this year. Back in 2019, it made sense because Tesla kept lowering the price on their S/X, and leasing was a good way to protect against future price decreases. Then the pandemic non sense happened, and our X is now worth about the same as when we leased it. I don't know if leases on S/X still allow for buy outs.

 

[Zorg]

Well, the answer is NO. Tesla is no longer allowing lessees to buy out their cars at the end of a lease, though the policy is applicable to all leases issued as of today. That seems short-sighted though. Today's leases will end in 3 years. By then, the market will no longer be crazy and used cars will be priced like... well used cars.

 

[brancky3]

Well, the answer is NO. Tesla is no longer allowing lessees to buy out their cars at the end of a lease, though the policy is applicable to all leases issued as of today. That seems short-sighted though. Today's leases will end in 3 years. By then, the market will no longer be crazy and used cars will be priced like... well used cars.

Unless Tesla is planning to raise prices even further. They may have an excuse to do it after competing cars lose tax credit status

 

[240vPlug]

I read a news story this morning that said they no longer allow buyout of S and X in Canada so it looks like Tesla continues to move in the opposite direction.

I think the bottom line is that they are only going to allow it once the market conditions are no longer in their favor. When that happens the benefits to the consumer will be minimal at best as well.

 

[alangold]

No your points are good. Here is the thing that irks me about Tesla leases though. They appear to be making the profit by charging a higher money factor (interest rate) and quoting a lower residual. I would deduce that that formula only works if they refuse to let the customer buy the vehicle at lease end. I mean that is where the cost if the lease is right the money factor and the difference between sales price and residual.

IIRC residual they are quoting is 62% meaning their actuaries say the car is going to lose 38% of its value during the course of the lease. Even before the used car bubble model 3 was at worst seeing 10% depreciation after 3 years.

I leased for the tax benefits and because i wanted the fixed costs (even if market conditions changed). What im concerned about though is getting past the early adopters. Like i said leasing is appealing to a lot of folks i talked to because…even though they may be paying more….they are mitigating potential risk of being upside down after a few years.

I feel like Tesla has to make leasing more appealing to potential customers as many folk who don’t understand BEV technology may not want to take the risk of buying in. Now right now they don’t need it and they couldn’t meet the additional demand but I don’t see how they can continue this practice for the long term.

I have M3 on order - I agreed to 3 year lease with 5k down - delivery est November - can I change the agreement to purchase instead of lease ? - is their a chart or payment calculator for M3 purchase ?

 

[240vPlug]

I have M3 on order - I agreed to 3 year lease with 5k down - delivery est November - can I change the agreement to purchase instead of lease ? - is their a chart or payment calculator for M3 purchase ?

You should be able to change it. Contact your SA. What I did with my order is change to cash and then when I got the VIN I changed to financing (called SA). Use can either use Tesla finance or you might get better terms from a credit union.

Here is a really good calculator that shows payment and amortization.

Auto Loan Calculator

Free auto loan calculator to determine the monthly payment and total cost of an auto loan, while accounting for sales tax, fees, trade-in value, and more.

www.calculator.net

 

[alangold]

Thanks

 

[RL-TheDude]

I have actually been considering asking them to let me buy it out. I mentioned it to the guy at the SC when I dropped my car off a month ago and he said I need to talk to the sales people (it was too early and they weren’t in).

My car has 2 Carfax reports already from being hit in parking lots twice while unoccupied… it will have those on its record forever… maybe Tesla can be convinced to let this one go.

 

[240vPlug]

I have actually been considering asking them to let me buy it out. I mentioned it to the guy at the SC when I dropped my car off a month ago and he said I need to talk to the sales people (it was too early and they weren’t in).

My car has 2 Carfax reports already from being hit in parking lots twice while unoccupied… it will have those on its record forever… maybe Tesla can be convinced to let this one go.

Highly highly doubtful. They will tell you your two options if you want out of the lease are to terminate or transfer.

They will not make an exception to the no buyout clause. Market conditions would need to change dramatically and only at that point would there be a chance they change their stance on this.

 

[alangold]

You should be able to change it. Contact your SA. What I did with my order is change to cash and then when I got the VIN I changed to financing (called SA). Use can either use Tesla finance or you might get better terms from a credit union.

Here is a really good calculator that shows payment and amortization.

Auto Loan Calculator

Free auto loan calculator to determine the monthly payment and total cost of an auto loan, while accounting for sales tax, fees, trade-in value, and more.

www.calculator.net

I checked the calculator - $50k for model 3 in Florida with $5000 down is $1000 per month - 48 months —-lease is $550 per month 36 months but of course no value to me at end - when turned in - thanks for your suggestion

 

[RL-TheDude]

Highly highly doubtful. They will tell you your two options if you want out of the lease are to terminate or transfer.

They will not make an exception to the no buyout clause. Market conditions would need to change dramatically and only at that point would there be a chance they change their stance on this.

There’s a third option which is extend - that’s an official thing… may need to when my lease ends depending on production timing for my next one.

 

[Jersey_guy_202]

I checked the calculator - $50k for model 3 in Florida with $5000 down is $1000 per month - 48 months —-lease is $550 per month 36 months but of course no value to me at end - when turned in - thanks for your suggestion

You would be much better off with loan, try stretch it to 60 or 72 month then you can bring monthly payment down to 750 range. Think of it as free call option that lets you exercise anytime during next 5-6 years, vs leasing just throwing money down the drain. If it’s BMW/Audi ICE I would’ve recommended leasing because they don’t hold values at all, but not tesla.

 

[BigNerd]

Read a view threads here... so no other options to get out of a Model Y lease early or to buy it out?

 

[240vPlug]

Read a view threads here... so no other options to get out of a Model Y lease early or to buy it out?

Only option is to terminate or transfer the lease. Something like SwapALease is good for transferring and getting a few extra dollars. I suspect though if the current market trend continues Tesla will start allowing lease buyout by the end of next year. Used prices are falling and available vehicles for sale (other than Tesla inventory) is growing rapidly. Combine that with all the lease returns that should be starting and will accelerate next year and beyond. Of course all this pure speculation and subject to change.

 

[Zorg]

Tesla will offer lease buyouts when they start lowering prices again and it financially benefits them.

 

[RichAZ/CapeCod]

Tesla will offer lease buyouts when they start lowering prices again and it financially benefits them.

Makes good sense. Hoping I can buyout my Nov 2020 MY LR AWD lease instead of getting a new (non-lease) MY LR AWD Nov of 2023.

Rich

 

[Zorg]

Makes good sense. Hoping I can buyout my Nov 2020 MY LR AWD lease instead of getting a new (non-lease) MY LR AWD Nov of 2023.

Rich

If car value is less than buy out I could see Tesla selling it to you, but then why buy it?

 

[RichAZ/CapeCod]

If car value is less than buy out I could see Tesla selling it to you, but then why buy it?

Super reliable. Treated very well by me. I know what I have. If the price is right (good luck with that one...).

Just a few reasons I would consider such a purchase.

Rich

 

[dino007]

Same actually i would buy out my 21 MY, i leased because it was my first EV and wasn’t totally sure and also the lease was like 300$ a month cheaper lol

According to tesla with this new pricedrop im 3k negative so i guess a buyout option would be very much so a possibility this year if things hold up crossing my fingers on that one

I rather buyout mines than jump into a new loan on 24 tesla y or 3