Tesla has changed its policy to now not allow anyone to buy their car after their lease is over as used car prices are skyrocketing to new records.
Back in 2019, Tesla announced that it wouldn’t let people who are leasing a Model 3 buy it from the company at the end of their lease, which is most often an option in car leasing.
At the time, Tesla claimed that it removed the option because it planned to use the vehicles in its upcoming autonomous ride-hailing network:
“Please note, customers who choose leasing over owning will not have the option to purchase their car at the end of the lease, because with full autonomy coming in the future via an over-the-air software update, we plan to use those vehicles in the Tesla ride-hailing network. Customers can visit tesla.com/3 now to lease a Model 3.”
Three years later, this autonomous ride-hailing network has yet to happen, but the move was still extremely powerful for Tesla due to what happened to the used car market.
With long wait times and increased prices, many used Tesla vehicles are now being sold at higher prices than when they were new.
Tesla has been making a killing on those vehicles coming off of their leases, just like Tesla owners who are upgrading their vehicles.
Now Tesla is expanding its no lease buyout policy to all vehicles, according to an update to its website:
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.
– 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.
The new language makes it that now no new vehicle on lease starting today is eligible to be purchased at the end of the lease.
What do you think? Tesla wants more vehicles in its nonexistent (but potentially upcoming) autonomous ride-hailing network or does it want more used cars to sell? Let us know in the comment section below.
FTC: We use income earning auto affiliate links. More.