Yes, you can buy your Tesla when the lease ends. Since November 27, 2024, buying a Tesla after a lease is available on every model—Model 3, Model Y, Model S, Model X, and Cybertruck—as long as the lease is held by Tesla Lease Trust and you are not in Iowa or Louisiana.1Tesla Support. Lease-End Options The buyout runs through the Tesla app, and the price is the residual value from your lease agreement plus a purchase fee of up to $350 and applicable taxes.
Which Teslas Are Eligible
All U.S. vehicles leased through Tesla Lease Trust became eligible for end-of-lease purchase on November 27, 2024.1Tesla Support. Lease-End Options The earlier restriction that blocked buyouts on Model 3 and Model Y vehicles (and, later, all models) no longer applies.
Two limits are worth knowing before you plan around a buyout. Residents of Iowa and Louisiana cannot purchase their leased Tesla through the standard process at all. And if your lease is held by a third-party lender rather than Tesla Lease Trust, Tesla’s process does not apply—you’d contact your lessor directly, since their contract controls the transaction.1Tesla Support. Lease-End Options Check the Financing section of the Tesla app or your lease agreement to see who holds your lease.
What the Buyout Will Cost
Your price starts with the residual value written into your lease—the projected end-of-term value locked in when you signed. That figure doesn’t move with the market, so the buyout can favor you if the car is worth more today, or work against you if it has depreciated further.
On top of the residual, Tesla charges a purchase fee of up to $350, and your state and local sales tax applies to the total.1Tesla Support. Lease-End Options On a vehicle worth tens of thousands, sales tax alone can be significant.
Once you own the car, you’ll also pay title transfer and registration fees at your local motor vehicle agency. These vary by state, from under $50 to several hundred dollars. Roughly 39 states also impose an annual EV registration surcharge, ranging from $50 to several hundred dollars depending on where you live. Budget for those post-purchase costs before committing.
Mileage Charges Are a Reason Some Owners Buy
If you’ve gone over the miles allowed in your lease, returning the car costs $0.25 per mile above the limit. Buying the car eliminates that overage charge entirely, because mileage limits only apply to returned leases. For drivers well past their allotment, the buyout can wipe out what would otherwise be a steep return bill. If you still have time left and know you’ll exceed the limit, Tesla may let you buy additional mileage through the app, up to 20,000 miles per transaction.2Tesla Support. Tesla Leasing
How to Complete the Buyout
The whole process runs through the Tesla app when the lease is with Tesla Lease Trust.
- Open the app and go to Financing, then Lease Details, then Manage Lease, and select Purchase Vehicle. Tesla will ask for your registration address and title assignment details before generating the estimate.1Tesla Support. Lease-End Options
- Review the purchase packet Tesla sends. Every person listed on the lease must sign it.
- Complete a vehicle inspection if your state requires one.
- Submit full payment by the “good through” date printed on your packet. If that date passes, the quote expires and you’ll need a new one.1Tesla Support. Lease-End Options
Tesla does not appear to offer its own financing for a lease buyout. You’ll need to pay in full from personal funds or line up an auto loan through a bank or credit union before the good-through deadline. Get pre-approved early so financing doesn’t push you past the expiration date.
Title, Registration, and Insurance
After payment clears, Tesla prepares a bill of sale and signed title and mails them to you, typically within a couple of weeks. Take those documents, proof of insurance, and a photo ID to your local motor vehicle office to transfer the title into your name and update the registration.
Your insurance also needs updating. During the lease, your policy had to list Tesla Lease Trust as the lienholder and additional insured, and Tesla required at least $100,000/$300,000 bodily injury liability, $50,000 property damage, and physical damage coverage for the full vehicle value with a deductible no higher than $2,500.2Tesla Support. Tesla Leasing Once you own the car, those minimums no longer apply and you only need to meet your state’s liability limits. If you financed the buyout, your lender will likely require comprehensive and collision until the loan is paid off. Call your insurer to remove Tesla Lease Trust and reset your coverage.
What Happens to Your Warranty
The New Vehicle Limited Warranty stays with the car and transfers to you automatically when you buy the vehicle. Whatever coverage period remains at purchase continues to apply.3Tesla Support. Vehicle Warranty
The battery and drive unit carry a separate eight-year warranty, with mileage caps that depend on the model:3Tesla Support. Vehicle Warranty
- Model S, Model X, and Cybertruck: 150,000 miles
- Model 3 and Model Y, standard range or base AWD: 100,000 miles
- Model 3 and Model Y, premium or performance trims: 120,000 miles
Tesla guarantees at least 70% battery capacity retention over the warranty period. A three-year lease has already consumed part of the eight-year window, so check your delivery date to see how much battery coverage is left before you decide.
Buying Before the Lease Ends
Tesla’s app also has an early termination option under Manage Lease, but that path is described as returning the vehicle, not purchasing it. Eligibility depends on how much time is left, your payment status, and other factors, and the quote is subject to change based on an inspection and the return date.4Tesla Support. Ending Your Lease Early Whether you can buy the car early rather than return it isn’t spelled out. If you want to purchase before the term expires, contact Tesla and check your original lease agreement for an early purchase clause.
Federal Tax Credit
The federal Previously-Owned Clean Vehicle Credit, which offered up to $4,000 on qualifying used EVs, is not available for vehicles acquired after September 30, 2025.5Internal Revenue Service. Clean Vehicle Tax Credits A lease buyout completed in 2026 will not qualify, and there is no separate federal credit designed specifically for end-of-lease purchases.