How a Tesla Lease Return Works

To return your Tesla lease, you’ll have to coordinate a final inspection, pay any remaining balances and fees, and schedule a drop-off appointment through your Tesla app within 30 to 60 days of your lease-end.

QUICK LOOK

• You’ll have to coordinate the return and new agreement if you want to upgrade your lease with a new car—Tesla will not coordinate a lease upgrade for you.
• Tesla lessees can extend their lease in the Tesla app for an additional six months, once per lease period.
• The easiest (and cheapest) way to get out of a Tesla lease early is to transfer your electric vehicle’s lease agreement to a new driver.
• Tesla lessees cannot buyout their Tesla lease if they drive a Model 3, a Model Y, or if their vehicle was put in service after April 15, 2022.

Learn more: How to lower your Tesla car insurance costs

Tesla lease-end options

You’ll have the following options when your Tesla lease term matures:

• Return your Tesla without getting another vehicle
• Return your current Tesla and upgrade your lease with a new Tesla
• Extend the lease (if your Tesla vehicle is eligible)
• Buy out your Tesla lease and purchase the vehicle (if your Tesla vehicle is eligible)

To return your leased Tesla and walk away

You’ll need to start the process to return your lease without upgrading to a new Tesla, about 30 to 60 days before the end of the lease:

• 30 to 60 days out: Tesla will contact you to do a final inspection and schedule your drop-off appointment. Tesla drivers are encouraged to contact Tesla via email for specific questions on the return process.
• Use the Tesla app to start the return process: The ‘Financing’ section in the app will then guide you through the steps to initiate the return, complete the final inspection, and schedule a drop-off appointment. Any end-of-term changes will be reflected in the app in the ‘Manage’ section within 48 business hours.
• Submit final self-inspection: Tesla requires you to take photos of the leased vehicle and submit them for evaluation. They will then assess your leased vehicle for any excess wear and tear using the Tesla Excess Wear and Use Guide.
• Repair excess wear and tear: You can avoid excess charges by repairing the damages at a Tesla service center or Tesla Certified Collision Center. Be sure to send copies of the reciepts and other proof of repairs to Tesla.
• On the day of your Tesla drop-off appointment: Bring the vehicle to your local Tesla service center in clean condition. You will also need to bring both key fobs and the mobile charging bundle.
• After the return: You will be billed for excessive wear-and tear penalties as well as any monthly payments and fees remaining on your lease obligations.

Expert tip: You can request transportation to retrieve your Tesla lease for a per-mile fee.

To lease a new Tesla

You will need to contact Tesla at ownershiployalty@tesla.com when the end of your lease is approaching so that you can learn about your lease upgrade options.

What to expect: Rather than Tesla handling the transition, you will typically be responsible for handling both transactions separately:

• Step 1: Coordinate your Tesla lease return with your service center, including a final inspection and drop-off appointment.
• Step 2: Initiate the Tesla lease for your new vehicle.

To extend your Tesla lease

You can extend your current Tesla lease for up to six months beyond the original lease-end date. This can be done once per lease:

• You need to be within three months of the lease-end date and on time with all your lease payments to be eligible.
• You can start your lease extension application from your Tesla Account or the Tesla app.
• You’ll receive an electronic form with your term information.
• Review and sign the form so that Tesla can determine your eligibility.
• Once approved, your Autopay will automatically continue until you return your Tesla lease.

To return a Tesla lease early

You have two options if you find yourself needing to return your leased Tesla early.

Transfer your lease to a credit-approved assignee through your Tesla account or app:

• You must have 13+ months left on the lease to be eligible.
• There will be a $150 credit application fee, a $500 lease transfer fee, and applicable taxes.
• More information can be found in the Leasing Assumptions Information Packet or by contacting Tesla at teslafinance@tesla.com.

Apply for early termination

• You have to have at least one lease payment remaining to be eligible.
• You will be required to pay the remaining lease balance through the Tesla Leasing Portal or pay the difference between the adjusted lease balance and the car’s market value.
• Use your Tesla Account to get a quote.
• When you return the car, you must remit payment and submit an odometer disclosure.

Expert tip: Transferring the lease is the only way to avoid the hefty fees associated with an early lease termination at Tesla. Be sure that the person taking over your lease has an income and credit score equal to or better than yours to be approved.

Tesla lease buyout restrictions

The following Tesla vehicles are not eligible for a lease buyout:

• Tesla Model 3
• Tesla Model Y
• New Tesla leases put into effect on or after April 15, 2022

What to do: Request a buyout estimate for your leased Tesla Model X or Model S through your Tesla app or online account to initiate the process. You’ll have to pay a $350 purchase fee for vehicles put into service after April 13, 2019.

Learn more: The top 7 benefits of owning a Tesla

MEET OUR EXPERTS

Tiffany Leung

Tiffany Leung is an insurance writer specializing in automotive technology and car insurance. Tiffany’s mission is to create content that helps car owners equip themselves with the knowledge they need to keep themselves and their cars safe. In pursuit of that mission, Tiffany has written over 700 articles for Jerry on topics ranging from how to get roadside assistance to how to prevent catalytic converter theft. Prior to joining Jerry, Tiffany worked with Logic Tech Corp as a social media specialist and marketing coordinator.

Pat Roache

Pat Roache is an insurance writer with over two years of experience in the automotive industry. With a focus on car insurance, maintenance, and brand reviews, Pat’s mission is to create engaging and accessible content that empowers readers to take autonomy over their car ownership. As a writer and editor with Jerry, Pat has penned over 600 original articles and edited over 1,000. Pat’s 8+ years of experience in the performing arts as a writer, director, producer, and performer lend to their keen eye for research and presentation. Most recently, Pat’s new English translation of Donizetti’s Italian opera “D[x]n Pasquale” had its world premiere in 2022 with Opera MODO (Detroit, MI). Pat also writes grants for an LGBTQ arts non-profit in Chicago, IL.