Tesla Lease-End Options [Complete Guide]
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Leasing a Tesla is an attractive option, especially given the fast pace that these vehicles improve.
However, like any lease, a Tesla one can get very expensive if you aren’t properly prepared for the lease-end.
In this article, we walk you through the Tesla lease-end options so that you can prepare now.
|Tesla Lease-End Options|
|Vehicle Inspection||(Self Inspection)|
|Return & Lease|
|Extend Lease||(Extend for 6 months)|
|Lease-End Fees||$395 Disposition Fee, Wear and Tear, and Excess Mileage ($0.25 / per mile over)|
Table of Contents
Tesla Vehicle Inspection
The Tesla lease-end vehicle inspection is a self-inspection. You will fill out their survey and attach the necessary photos of the car. You should ensure that the photos are accurate and taken in good lighting.
Based on the excess wear and tear present, you can decide to repair the vehicle before lease-end or accept the associated fees.
1. Return Tesla Lease
One option for your Tesla lease end is to return the vehicle. Here’s the basic process:
- Tesla contacts you 30-60 days before the lease-end.
- Get a pre-inspection so that you know your potential wear and tear fees.
- You can choose to repair excess wear and tear before the lease ends. Keep any repair receipts.
- Schedule your final inspection and drop-off appointment.
- Complete the self-inspection by submitting vehicle photos to determine wear and tear.
- Bring both key fobs and the mobile charging bundle, as well as all vehicle documents to your drop-off appointment.
- Following the return, you will receive a bill if you have any outstanding charges.
2. Purchase Tesla Lease
Some Tesla leases include a lease buyout option. Right now, you cannot purchase the Model 3 or Y. For all vehicles delivered after April 13, 2019, you must pay a $350 purchase fee. Furthermore, you’ll need to pay all local fees and taxes for a car purchase.
Here’s how you can purchase your lease:
- Contact Tesla for your buyout quote.
- After sending the quote, Tesla will ask you to confirm that you’d like to purchase the leased vehicle.
- If you want to proceed, then Tesla creates the purchased packet. The packet includes the “good through” date and buyout quote.
- You must send the full payment to Tesla by the “good by” date. The packet includes instructions for payment.
- Upon receipt of payment, Tesla will process the purchase.
- After the purchase is complete, Tesla will mail you the ownership documents.
3. Return and Lease New Tesla
Newer Tesla vehicles include up-to-date software and the latest mechanical/technological updates. For that reason, many people may be interested in upgrading to a new Tesla.
Tesla does not outline their upgrade process in detail. However, you most likely follow the same steps to return your current leased vehicle. Additionally, contact Tesla before your lease-end date to discuss upgrade options and the process.
4. Extend Tesla Lease
You can apply for one lease extension for up to six months if you do not have any outstanding fees. Here’s what you need to know for a Tesla lease extension:
- You can apply for the extension within 3 months of the lease’s end.
- You must be up-to-date with all lease payments to apply.
- Log into your Tesla Account.
- Choose “Manage” then “Glovebox.”
- Download a copy of the extension document.
- Complete and sign the form, then email a copy to Tesla.
- Tesla will respond by granting your lease extension if you meet the criteria above. The extension is not finalized until Tesla confirms it.
- You can turn your vehicle in before the full 6 months of extension. You will only pay for the extra months you’ve taken.
Tesla Lease-End Fees
If you owe any money on the lease upon the lease end, you will be billed for the outstanding payments.
Your lease will state your allotted mileage for the lease terms. If you exceed the mileage limits, you must pay excess mileage fees. According to the Tesla’s Motor Club thread, the excess mileage fee is 25 cents per mile for the Model S, X, and 3.
Wear and Tear
If you have excess wear and tear, then you will also owe a fee for that. Keep in mind that if you repair the excess damage ahead of time, you must go to a Tesla dealer or Tesla Certified Collision Center. You must also keep the repair receipts. Examples of excess wear and tear include:
- Less than 4/32” of tread
- Wheel scratches over 3”
- Excess scratches on the body
- More than two chips or any chips over ¼”
- Use of unauthorized, aftermarket items
- Missing or broken equipment/accessories
- Permanent stains
- Tears or burns on the carpet, upholstery, or interior
- Vehicle not maintained according to Tesla’s requirements
According to the Tesla Motors Club, Tesla charges a $395 disposition fee after the lease
Tesla Lease-End Benefits
As of right now, Tesla does not disclose any lease-end benefits when you lease another Tesla.
Compared to other dealers, the Tesla leasing program is fairly new.
As Tesla continues to tweak its leasing program, it may add lease-end benefits.
Frequently Asked Questions
What are my options at the end of the Tesla lease?
At the end of your Tesla lease, you can upgrade to a new Tesla, purchase the leased vehicle, return the leased vehicle, or extend your lease by up to six months.
Where can I return my Tesla lease?
You can return your Tesla lease to a Tesla Service Center. You may be able to get Tesla to pick up the vehicle for an additional per-mile fee.
What do I need to bring with me when I return my Tesla lease?
When you return your Tesla lease, you should bring both key fobs, the mobile charging bundle, the lease documents, a form of ID, and any other car accessories. If you repaired excess wear and tear before the drop-off appointment, then bring those receipts with you as well.
Is my residual value, purchase price, or end-of-lease fees negotiable with Tesla?
No, you cannot negotiate the lease terms with Tesla at the end of the lease. Tesla may be willing to negotiate at the beginning of the lease, but the terms are set once you agree to the lease.
Can I return my Tesla lease before the lease-end date?
Yes, Tesla allows you to end your lease early. You can transfer your lease, buy out the lease early, or end the lease. However, you will have to pay a fee to return your lease early, which can be very expensive.
What charges am I responsible for when my Tesla lease ends?
When your Tesla lease ends, you must pay a $395 disposition fee. You will also need to pay any outstanding payments. In addition, if you exceed your mileage limit or have any excess wear and tear, you must pay the associated fees for those as well.
What constitutes wear and tear for Tesla?
Large dents, cracked glass, damage to the upholstery, and unauthorized repairs all count as excess wear and tear. For more detailed information on Tesla’s wear and tear policy, read their guide.