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HomeElectric VehiclesTesla Removes Lease Buyout Option for all Vehicles

Tesla Removes Lease Buyout Option for all Vehicles

The company did not say why it made this decision, but it may have something to do with wanting to cash in on sky-high used car prices.

Customers leasing a Tesla after April 15, 2022 should be aware that they will no longer be able to purchase the car at the end of the lease term.

The following text has been modified on the EV maker’s website in the part dedicated to lease-end alternatives under the “Eligibility” chapter.

• All Tesla vehicles delivered on or after April 15, 2022 are not eligible for purchase. 

• Third-party dealerships and third-party individuals are not eligible to purchase leased vehicles.

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Users who signed a leasing contract before April 15, 2022 are exempt from the decision. When their lease expires, they will still be able to purchase the vehicle, albeit there will be a $350 purchase fee for cars delivered after April 13, 2019.

If you leased your vehicle before April 15, 2022, you may be eligible to purchase your leased Tesla. Review your lease agreement to see if you qualify.

For those customers who want to own the vehicle, Tesla continues to offer the option to buy it outright with cash or finance the acquisition with a loan.

With one notable exception, Tesla previously offered lessees the opportunity to purchase the vehicle at the end of the lease agreement. Beginning in 2019, the company will deny that option to anyone leasing a Model 3, claiming that the vehicles will be used for its impending autonomous ride-hailing network.

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Tesla hasn’t provided an explanation for its latest choice, however it’s not difficult to figure out why it’s making it. Since 2020, used automobile prices have risen dramatically, and electric vehicles are no exception.

Because of their scarcity, electric vehicles are at the top of the used car value pyramid, with Tesla models commanding extremely high prices. It’s not uncommon to find a used Tesla EV listed for sale at a greater price than a brand-new model.

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Tesla is presumably hoping to benefit from this by either selling the used cars for a profit when their leases end or leasing them out again as used automobiles.

It’s also possible that the EV maker plans to deploy the vehicles as part of its long-awaited robotaxi fleet, but considering Elon Musk’s recent declaration that Tesla is preparing a specialised robotaxi with futuristic designs, we wouldn’t put our money on that.

This indicates that Tesla has abandoned its ambition to use conventional Teslas with full self-driving capabilities as robotaxis.

Source: Tesla via Electrek

Team Autobizzhttp://autobizz.in
Anuj Farkade Co-Founder Autobizz | Automotive Engineer | Fresh out of college, immensely passionate about automobiles along with a flair for writing. Looking forward to being a part of this industry and joining it's glorious journey

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