Estimated Read Time: 6 minutes
TL;DR: Tesla allows lease buyouts for drivers of the Cybertruck, Model S, Model 3, Model X, and Model Y at the end of their lease term. Note that Iowa and Louisiana are not eligible for Tesla lease buyouts; but if you live in any other state, you're good to go.
Hi there, Tesla lessee. Curious about a lease buyout? Lucky for you, Tesla now allows lease buyouts, so you can finally end your lease and keep your Tesla.
Tesla Buyout Stats by Model
Lease End makes the process easy and as smooth as your ride. We've connected drivers with our financing partners to buy out the Cybertruck, Model S, Model X, Model 3, and Model Y.
Financing terms can vary greatly from driver to driver and depend on credit score, income, vehicle value, and other factors. For the Tesla buyouts we've completed, the following shows the average book value and monthly lease buyout loan payment that drivers land for each model:
Vehicle Model | Average Book Value | Average Monthly Payment |
Model 3 | $35,480.00 | $564.96 |
Model Y | $37,375.00 | $808.53 |
Model S | $63,920.00 | $927.46 |
Model X | $62,445.55 | $1,129.48 |
Cybertruck | $95,419.00 | $1,289.69 |
As we facilitate more and more Tesla lease buyouts, we'll continue to update this data monthly. And if you're ready to buy out your leased Tesla now?
Why buy your leased car with Lease End?
Lease buyouts can be a great choice for lessees. Accessing your equity, qualifying for lower monthly payments, and scoring a good deal on a reliable used vehicle? Itâs a no-brainer!
- Save Money. Avoid disposition and wear-and-tear fees from the dealership.
- Drive Freely. Drive as much as you want without worrying about mileage overage fees.
- No Surprises. You know your carâs history and condition, making it a safer choice than buying used.
- Access Your Equity. If the market value of your car is higher than the residual value, you have positive equity. So, keep your car forever, or sell it when you choose, but definitely get your equity out of it.
- Stay Home. Skip the dealership hassle and DMV trips. We handle it all for you.
- Get the Best Financing. With partners like Ally Bank, TD Bank, and Capital One, we'll find the right auto loan for you.
The Financials: Expect the Best Buyout Loan Rates
Again, every driverâs monthly payment for a buyout will vary based on vehicle, residual value, credit score, and other factors, the average monthly payment for a lease buyout (considering all vehicles) through Lease End is
$512.45âfor context, the average new monthly loan payment in Q1 2024 for borrowers with the best credit was $723
according to Experian.
Your credit score plays a significant role in the interest rate you'll receive. If your credit has improved since you leased the car, you might qualify for a better rate than you did before.
The Lease End Process: 4 Easy Steps
Step 1: Tell us about your car.
Weâll ask some basic questions about you & your lease to prepare for your purchase.
Step 2: View your loan & coverage options.
Review your unique financing and customizable vehicle coverage options.
Step 3: Sign your buyout documents.
Weâll prepare the documents you need, and youâll eSign securely on your Lease End account.
Step 4: Relaxâwe'll take it from there.
Weâll arrange titling, registration, and new plates for you so you can skip the DMV trip.
The Alternative: Dealing with Your Dealer
Sure, you can buy out your car at the dealership or through your manufacturer. Just be prepared to deal with additional fees, hassle, time, and energy.
The Lease End Difference: Our team is made up of real people in Utah and Idaho. We've worked with every state DMV and every manufacturer we can. We care about our customers, so we've done the dirty work for you. Un-lease your car from the comfort of your home with the help of lease-end advisors who really care.
(See what others have to say about Lease End,
here đ.)
Make Your Move
Picture your future self: you've successfully bought your Tesla and are now the proud owner of a vehicle you know and love. Youâre enjoying the freedom and flexibility that comes with owning your carâat an affordable monthly payment.
Lease End is here to support you through every step of the process, ensuring that your transition from lessee to owner is as smooth and stress-free as possible.
Our Take on Tesla's Previous No-Lease-Buyout Policy
In 2022, when leased vehicle equity was drastically outpacing vehicle market value, some leasing companies and dealerships started to limit lease buyouts. Most either gave up or soon lifted the restrictions. But Tesla waited two additional years to do so.Â
Why?
Table of Contents:
What is a lease buyout?
TopBefore we discuss Teslaâs motivations, letâs start with the basics.
Throughout a vehicle lease, the leasing company holds on to the carâs title, meaning theyâre the legal owner. A lease buyout allows the lessee to purchase the vehicle from the leasing company and keep the car.
If this purchase is financed with a lease buyout loan, the ex-lessee will just keep driving and making monthly payments on the vehicle. No more mileage restrictions, no more wear-and-tear fees, and no lease-end inspection.Â
Why did Tesla restrict buyouts?
TopIn 2022, Tesla announced that drivers would no longer be able to purchase any leased vehicle delivered after April 15th of that year. And by âannounced,â we mean they subtly changed the language on their
lease-end-options pageâlargely leaving any affected lessees to discover and navigate the policy change themselves.
Whatâs so lucrative about leased cars?
Dealerships love returned leased cars. Theyâre three-year-old vehicles with a closely tracked maintenance history, driven by people terrified of mileage-overage fees or damage charges.
A used car in good condition may as well be made of gold these days. When dealerships get a car back at the end of a lease term, they can sell that car at a significant profit.
Thatâs all reason enough for dealerships to want your vehicle back. With Teslaâs high demand and specialized parts? They probably felt they had even more incentive than other leasing companies to restrict buyouts.
Imagine: Tesla, with Buyouts
Customers can lease a vehicle for a few years with a lower monthly payment than theyâd likely pay to finance. The driver has already put a lot of equity, money, and time into the car and doesnât need to switch cars entirely if they decide that theyâre ready to purchase an electric vehicle (EV) at lease-end.
If the customer likes the vehicle, the car is in good shape, and the vehicle has retained a competitive market value (which is common for Teslas), buying out the car is a great deal. For the driver.
This also means that Tesla can't re-sell the vehicle or mark it up. With their used vehicles afloat in the market or up for re-sale by consumers, Tesla has less control over âtheirâ inventory and market prices. If someone can get a good deal on a bought-out Tesla, why go back to the Tesla dealership to get into another lease or buy a new car?
The Reality: Tesla, without Buyouts
Tesla retained control of their inventory and pricing by restricting buyouts for so long. Customers who might have leased for the lower monthly payments, hoping to buy out and maintain lower monthly costs were forced to either keep leasing endlessly or make a different vehicle purchase.
Lessees were unable to build equity in their leased vehicles, tooâturning Teslaâs leasing program into something like a more complicated, more expensive car rental service.
What are my rights as a lessee?
TopAs long as your
Lease Agreement allows for it, you can buy out your leased car. You should also be able to buy it out based on a locked-in residual value.
The equity youâve been building in the car? It belongs to you, and you can access that with a buyout. And once you purchase the car, itâs all yours. No mileage restrictions, maintenance restrictions, or wear-and-tear restrictions.
How do I buy out?
TopIn the past, you could buy out your EV as long as it wasn't a Tesla. But now the opportunity is there for Teslas as well, if you want to get out of the leasing cycle and just keep the car you already love.
These are some of the benefits of a buyout with Lease End.
- Owning a vehicle (and the right to re-sell, if you want)
- Continued coverage with Ally
- Skipping the dealership hassle (weâll talk to them for you)
- No mileage limit
- No cosmetic restrictions (beyond local laws or restrictions)
- No maintenance restrictions
- No wear-and-tear inspection
- No DMV trip
- No shopping around for auto loans
- No down payment
- No loan payment for 45 days
Tesla Lease Buyout Process (And Why Lease End Makes It Easier)
If youâre ready to buy out your Tesla lease (Model Y, Model 3, or even that sweet Cybertruck), hereâs what the process usually looks like:
Step | What Happens |
Get Your Lease Payoff Amount | Request this from Tesla. It includes residual value, fees, and taxes. |
Secure Financing | Shop around or use Lease Endâs financing partners for competitive rates. |
Complete Buyout Paperwork | Includes loan docs, purchase agreement, and payoff forms. |
Title & Registration | Once the purchase is complete, transfer the title and register the car in your name. |
Celebrate | You officially own your Tesla. No more mileage limits. No more dealer drama. |
Pro Tip:
Teslaâs lease payoff quotes are usually valid for a short window (often 10-15 days). Timing is everything, and Lease End can help speed up the financing so you donât miss the window.
Tesla Lease Buyout Financing: What to Expect
Many Tesla lessees wonder if financing a buyout will mean huge monthly payments. Good news: it doesnât have to.
- Rates: Lease End customers often qualify for rates better than new car loan averagesâespecially if your credit score has improved since you started your lease.
- Equity: Teslas tend to retain their value better than most vehicles, which means you might have equity in your leased vehicle. That could lead to lower financing needs (and payments).
- No Down Payment: In many cases, Lease Endâs financing partners donât require a hefty down payment.
Why this matters:
Buying out your Tesla could actually lower your monthly payment compared to getting into a new lease or financing a brand-new Tesla. And with used EV prices staying high, owning a car you already know is a smart financial move.
Does GAP Insurance Apply to Tesla Lease Buyouts?
Quick answer: Yes, and itâs worth having.
If you finance your Tesla lease buyout and your Model 3 or Model Y gets totaled or stolen before you pay off the loan, you could owe more than the carâs insurance payout. Thatâs where GAP insurance saves the day.
What GAP covers:
â The difference between your carâs depreciated value and your remaining loan balance.
What it doesnât cover:
â Late fees, lease termination fees, or personal property in the car.
Pro Tip: Lease End can bundle GAP coverage into your financing plan so you stay protected without extra hassle.
Final Thoughts: Tesla Lease Buyouts Just Make Sense
If you love your Tesla, hate mileage limits, and donât want to get upsold at the dealership? A lease buyout could be your perfect move.
And doing it through Lease End? Even better.
We help with financing, paperwork, titling, and registrationâso you never have to leave your couch or battle the DMV.
Ready to make your Tesla officially yours?
Speak with a lease-end expert at
(888) 307-5197, or get started below.