After a two-year hiatus, Tesla is reinstating its lease buyout option for customers interested in purchasing their electric cars at the end of their lease term. This option was previously available for the Model S and Model X but was discontinued in 2022. Now, all of Tesla’s passenger EVs, including the Model 3, Model Y, Model S, Model X, and Cybertruck, are eligible for the lease buyout starting November 27, 2024.
Customers can choose to buy out their leased Tesla directly from the automaker or from third-party dealerships. However, residents of Iowa and Louisiana are not eligible for lease buyouts, according to Tesla’s updated Lease-End Options webpage.
For customers leasing their vehicles through Tesla Lease Trust who wish to purchase the car at the end of the lease, the process is simple. They can access the purchase estimate through the Tesla smartphone app by navigating to the “Financing” tab, then selecting “Lease Details,” “Manage Lease,” and finally “Purchase Vehicle.” Once the intent to buy is confirmed, Tesla will provide a purchase packet with a purchase amount and a good through date. Any necessary vehicle inspections will be conducted, and all parties listed on the lease agreement must sign the purchase packet. The estimated purchase amount must then be paid in full, and Tesla will prepare the necessary paperwork for ownership transfer.
The reintroduction of the lease buyout option raises questions about Tesla’s long-term plans for leased vehicles. In the past, CEO Elon Musk hinted at transforming returned leased vehicles into self-driving vehicles for a potential robotaxi fleet. The decision to bring back the lease buyout option may indicate a shift in strategy or simply be a year-end financial incentive.
While Tesla remains tight-lipped about the reasoning behind the reintroduction of the lease buyout option, one thing is clear – customers who want to buy their leased Tesla now have the opportunity to do so. Whether this move aligns with Tesla’s future plans for self-driving vehicles or is simply a financial strategy remains to be seen. Nonetheless, for customers interested in keeping their leased Tesla, now is the time to explore the lease buyout option.