Tesla’s brand new lease buyout program kicks off with rates starting at $299/month

Tesla has steadily evolved its leasing policies over the years. For a long time, Tesla restricted lease buyouts on certain models, particularly the Model 3 and Model Y, requiring lessees to return their cars at the end of the contract. However, the company recently made a big change that changes its approach to leasing.

Starting November 27, 2024, all leased Tesla vehicles, including the Cybertruck, Model S, Model 3, Model X, and Model Y, are now eligible for buyouts. This update will let customers purchase their leased vehicles at the end of their term. Tesla has also opened the door for third-party dealerships to participate in these buyouts, making the program even more accessible. However, restrictions will hinder this new policy in certain states like Iowa and Louisiana, which are not eligible for the buyout option due to local regulations.

Tesla has streamlined the lease buyout process for customer convenience. Using the Tesla app, lessees can request an estimate, providing their registration address and title assignment details. Once the estimate is ready, customers can complete the purchase through the app, which includes signing a purchase packet, scheduling inspections if needed, and paying associated fees. A purchase fee of up to $350 is also applicable, alongside local taxes and other costs.

To complement this change, Tesla has also introduced competitive lease rates starting at $299 per month for the Model 3 and Model Y, while the Model S, Model X, and Cybertruck start at $999 per month. When combined with the new buyout flexibility, these rates make leasing a solid option for customers who wish to own their vehicles long-term.