End of lease dealer shenanigans

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iPlug said:
Probably won’t actually go through with lease buyout for a few months as lease concludes in June and have a Model Y order on hold until the beginning of the year for anticipated $8000 federal tax credit and $4000 federal tax credit for the used BEV (not for us but next purchaser of Leaf) so this will likely raise the CarMax offer.
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What you might gain in tax credit value, you might lose in market value as the used car shortage improves.

'A bird in hand ... ' comes to mind

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I sold my 2018 Tesla Model 3 LR to CarMax this morning for $43k. It has just under 34k miles and was purchased 41 months ago for $51k at a time when the federal tax credit was $7,500 and the Colorado tax credit was $5,000. We'll replace it with a Model Y we ordered in September. It is pretty remarkable to think that if the federal tax credit is renewed for Tesla, we will end up being paid to swap our 3.5 year old Model 3 for a new Model Y.

I had been dithering with myself when to finalize the Model Y order but I recently realized that there was no chance of delivery before the end of the year, and the sooner the car is delivered in 2022, the stronger the hand I will have. We may end up keeping the Model Y for a short time if an even longer range Model Y than the current LR becomes available. While the longer range than the LR model is not terribly important to me given the recent expansion of DC fast charging in the locations we like to travel, I still think an EV that approaches 400 EPA miles is worth an upgrade price.
 
SageBrush said:
I sold my 2018 Tesla Model 3 LR to CarMax this morning for $43k. It has just under 34k miles and was purchased 41 months ago for $51k at a time when the federal tax credit was $7,500 and the Colorado tax credit was $5,000. We'll replace it with a Model Y we ordered in September....
I had been dithering with myself when to finalize the Model Y order but I recently realized that there was no chance of delivery before the end of the year, and the sooner the car is delivered in 2022, the stronger the hand I will have...
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We also ordered a Model Y in September and that was our original plan.

Initially March was the estimated delivery date, but they moved that up to December as the Federal tax credit became more likely. Over at the many threads on this at TMC, it looks like once they assign you a VIN if you refuse delivery they may block or grant only a short hold, keep your deposit thereafter, then put you at the back of the line at the higher price.

It is a bit of a game with variables that seem to shift on an almost daily basis.

Here is one of the many TMC threads:
https://teslamotorsclub.com/tmc/threads/2021-ev-tax-credit.231476/

Post #253, for example there:
"I received my VIN on 11/08. Tesla said I can put a hold on it til 12/08."

Assuming Tesla keeps their current playbook (they can and do evolve their playbook often to market conditions), this would mean you and I are in the clear if we don't have a VIN by the end of the month. If I see little delivery pressure, I may consider un-holding earlier next month.

What does your Tesla account page say the estimated delivery window is for your Model Y currently?
 
iPlug said:
What does your Tesla account page say the estimated delivery window is for your Model Y currently?
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June 2022, but I only completed the pre-VIN checklist this week.
Worse case, I take delivery before the end of the year, sell to CarMax for a hefty profit, and order another Model Y when it suits me. It is hard to see a bad hand for the two of us, just perhaps one hand better than another.
 
SageBrush said:
June 2022, but I only completed the pre-VIN checklist this week.
Worse case, I take delivery before the end of the year, sell to CarMax for a hefty profit, and order another Model Y when it suits me. It is hard to see a bad hand for the two of us, just perhaps one hand better than another.
Click to expand...
+
 
I guess it boils down to how long this inflated used car market will last? You mentioned June? I think that is way too late. January? I think that would be ok. Obviously any new EV would want to happen then but new car production is already on the upswing and that means used car prices will start to drop accordingly.
 
DaveinOlyWA said:
I guess it boils down to how long this inflated used car market will last
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Genius

In any case, the relevant question is how long the LEAF and/or Tesla inflated used car prices will last
 
If delivery of the Model Y is offered any time after 12/31/2021 and before June ‘22 we will take it.

Agree, it should be expected there will be some degree of decoupling in terms of price inflation in the used and new BEV market from the ICE market with the possibly impending tax credits as described. This would cause the price delta of new and used BEVs to increase relative to ICE. By how much and for how long is indeed the question.
 
SageBrush said:
DaveinOlyWA said:
I guess it boils down to how long this inflated used car market will last
Click to expand...
Genius

In any case, the relevant question is how long the LEAF and/or Tesla inflated used car prices will last
Click to expand...

My guess is Jan will see the last of the best seller prices.
 
DaveinOlyWA said:
SageBrush said:
DaveinOlyWA said:
I guess it boils down to how long this inflated used car market will last
Click to expand...
Genius

In any case, the relevant question is how long the LEAF and/or Tesla inflated used car prices will last
Click to expand...

My guess is Jan will see the last of the best seller prices.
Click to expand...

That is what I said in the summer, but that was before the Tesla/Hertz deal, the used car EV tax credit hovering in the BBB legislation, and Nissan's remarkably delayed Ariya.

It is also notable that GM is selling trucks without heated steering wheel or heated seats, and no provision for later furbishment. Those are not the actions of a company on the cusp of supply line resolution.
 
We need to stay a 2 vehicle household so can’t sell the Leaf until we get the Model Y. If timing means we gain the $8k Federal tax credit for the Model Y but then collect ~$2k less the +$8,416.60 currently offered if we buy the Leaf after our lease ends and immediately sell, I still consider that a big win.
 
SageBrush said:
iPlug said:
What does your Tesla account page say the estimated delivery window is for your Model Y currently?
Click to expand...
June 2022, but I only completed the pre-VIN checklist this week.
Worse case, I take delivery before the end of the year, sell to CarMax for a hefty profit, and order another Model Y when it suits me. It is hard to see a bad hand for the two of us, just perhaps one hand better than another.
Click to expand...
Over at TMC some new action in last 2 days - lots of folks who ordered ~3-4 months before us, some on hold and/or had estimated deliveries into 2022 now being told delivery is imminent and/or can't hold any longer. Looks like EDD can change at a moments notice from months from now to now.
 
iPlug said:
SageBrush said:
iPlug said:
What does your Tesla account page say the estimated delivery window is for your Model Y currently?
Click to expand...
June 2022, but I only completed the pre-VIN checklist this week.
Worse case, I take delivery before the end of the year, sell to CarMax for a hefty profit, and order another Model Y when it suits me. It is hard to see a bad hand for the two of us, just perhaps one hand better than another.
Click to expand...
Over at TMC some new action in last 2 days - lots of folks who ordered ~3-4 months before us, some on hold and/or had estimated deliveries into 2022 now being told delivery is imminent and/or can't hold any longer. Looks like EDD can change at a moments notice from months from now to now.
Click to expand...

Yep, happened to me. Went from Mar-Apr delivery to a 2 week window in December. Ordered 9/29, profile completed 11/20ish. I'll try to slide into 2022, and if not -- so be it.
 
While digging around for something else, I stumbled across these threads of people encountering the same garbage as the OP (dealer putting on some ridiculous fees).

https://forum.leasehackr.com/t/nissan-dealer-ask-1495-for-lease-buyout-processing-fee/394835
https://www.reddit.com/r/askcarsales/comments/p6sxjk/dealer_charges_1995_for_a_lease_buyout_nissan/

This is sort of related to https://mynissanleaf.com/viewtopic.php?p=578262#p578262.

That said, $300 purchase option fee at lease end in the lease contract sounds right.
 
Anyone in California buyout a lease from Nissan then turn around within 10 days and sell to another party like CarMax? How did you deal with sales tax, if so?

Will have to go through a Nissan dealership for buyout who will try to force applying CA sales tax at that time, but CA law is no sales tax if sold in 10 days or less.

Figure may be less hassle filing claim for sales tax refund in CA per Publication 117 than fighting the sales critters over the issue. They could buy the vehicle on the spot, but will play low ball games, so good to have maximal options.
 
iPlug said:
Anyone in California buyout a lease from Nissan then turn around within 10 days and sell to another party like CarMax? How did you deal with sales tax, if so?

Will have to go through a Nissan dealership for buyout who will try to force applying CA sales tax at that time, but CA law is no sales tax if sold in 10 days or less.

Figure may be less hassle filing claim for sales tax refund in CA per Publication 117 than fighting the sales critters over the issue. They could buy the vehicle on the spot, but will play low ball games, so good to have maximal options.
Click to expand...

You may have a hard time making the less than 10 day turn around selling to CarMax. CarMax wanted a clean paper title to complete the sale when I sold my F150 to them about a year ago. I don’t know how long CA takes to clear the title and send you a paper title.
 
Flyct said:
You may have a hard time making the less than 10 day turn around selling to CarMax. CarMax wanted a clean paper title to complete the sale when I sold my F150 to them about a year ago. I don’t know how long CA takes to clear the title and send you a paper title.
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Was worried about that possibility, but it’s not an issue. The 10 day window doesn’t start until after receiving the title.

Transfer of a vehicle to a lessee by a lessor—as a sale for resale
The sale of a vehicle to a lessee by a lessor may be considered a nontaxable sale for resale. If the lessee transfers title and registration to a third party within 10 days from the date the lessee acquires title from the lessor at the expiration or termination of a lease, the sale will be presumed to be a sale for resale. Transfer of title and registration occurs when the lessee endorses the certificate of ownership.

https://www.cdtfa.ca.gov/formspubs/pub34.pdf
 
Update
We bought out our Leaf lease then immediately re-sold the vehicle and pocketed net $10K.

The wife's Model Y, on order since September last year, finally arrived today. Seems most, ourselves included, figured the used car market would get cooler by now; instead the used/BEV market got even hotter, so it turned out to be substantially more profitable than imagined.

2019 Leaf SV (non-plus)
Leaf net payoff (1-2 months early): $13,275.70
Sale Price: $23,000
Odometer: 23k miles

No sales tax as here in CA if re-sold within 10 days is a non-taxable event.

Best offer was actually a tad more from Carvana for $23,252. But we went with our original Nissan dealership after getting them up to $23k even.

If we went through Carvana we would have had to go through the hassle of convincing the Nissan dealership to not force taxes at time of buying out the lease. Then if the dealership refused to not collect taxes, we would have to file paperwork to the State of California to get the taxes reimbursed. Either way, we would also have to wait for the title to be mailed to us then next to deal with Caravana to do more paperwork.
 
iPlug said:
Update
We bought out our Leaf lease then immediately re-sold the vehicle and pocketed net $10K.

The wife's Model Y, on order since September last year, finally arrived today. Seems most, ourselves included, figured the used car market would get cooler by now; instead the used/BEV market got even hotter...
Click to expand...

Yeah spending $100 to fill the tank tends to get folks' attention. Congratulations!
 

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