If You Lease A Tesla, Get Ready To Go Shopping Again: EV Giant Ends Lease Buybacks

Electric vehicle leader Tesla is changing its policy for people who lease vehicles from the company. Here’s what investors and customers who lease Tesla vehicles should know.

What Happened: If you’ve ever leased a vehicle, chances are you know that at the end of the lease you can buy the vehicle. That offering is coming to an end for people who lease vehicles from Tesla Inc TSLA.

Tesla has quietly updated its policy for all new vehicles that are leased to no longer offer a buyout option at the end of the lease terms, according to Electrek. 

“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,” Tesla’s website says.

All Tesla vehicles delivered on or after April 15 will no longer be eligible for purchase according to the new terms.

There is no explanation from Tesla on its website as to why it is updating its policy.

Related Link: Used Cars Appreciating Faster Than Stock Market, Even Some Cryptocurrencies: Report 

Why It’s Important: Tesla changed its policy in 2019 for those leasing the Tesla Model 3. People could no longer buyout this Tesla model at the end of the lease. The policy change was done due to Tesla wanting to use the vehicles for its autonomous vehicle efforts.

“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,” Tesla said at the time.

The autonomous ride-hailing network has not come to full fruition by Tesla yet.

Used vehicle sales have skyrocketed over the last two years with traditional automakers and electric vehicle companies facing supply chain challenges and production shutdowns.

Tesla could be looking to capitalize on the rising value of used vehicles. Some used vehicles, including Teslas, have even surpassed the sale price of the new vehicles. 

The change in policy could also lead to more people looking to buy their Teslas instead of leasing from the company as they will now lose the valuable option of buying out the vehicle at the end of the lease terms.

Price Action: Tesla shares are up 0.99% to $994.77 on Monday morning at publication.