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Tesla finally offers lease-to-buy options for Model 3 and Y, but it’s not available everywhere
Tesla is starting to offer the option to purchase its all-electric Model 3 and Model Y vehicles at the conclusion of a leasing period in some markets in Europe and Asia.
For some time, Tesla has not allowed owners to purchase their cars at the end of a leasing period. The car is to be returned to the automaker with no chance of a leaseholder buying out the car at the conclusion of the period. The car would be added to the company’s used inventory, to third-party resalers, or reserved for the future use of the Robotaxi fleet.
Tesla’s Leasing Program
Tesla’s leasing policy is one of the few automotive programs that is subjected to a required return policy at the conclusion of a leasing period. In its 2020 10-K filing with the SEC, Tesla details its process for receiving leased vehicles when the period is terminated.
The company states:
“Our used vehicle business supports new vehicle sales by integrating the trade-in of a customer’s existing Tesla or non-Tesla vehicle with the sale of a new or used Tesla vehicle. The Tesla and non-Tesla vehicles we acquire as trade-ins are subsequently remarketed, either directly by us or through third parties. We also remarket used Tesla vehicles acquired from other sources including lease returns.”
In some markets in the U.S., Canada, and Europe, Tesla did allow Model S and Model X leaseholders with the option to purchase the vehicle at the end of the lease period.
Tesla says:
“At the end of the lease term, customers are required to return the vehicles to us or for Model S and Model X leases in certain regions, may opt to purchase the vehicles for a pre-determined residual value.”
This program did not apply to the Model 3 or Model Y, as anyone who leased either of these cars would be required to relinquish possession of the vehicle with no chance of purchasing it at the end of the lease. However, Tesla added a new section to the 10-K in 2020, detailing the possibility of a lease-to-buy option in some markets in Europe and Asia, and it applies to the Model 3 and Model Y. The company writes, “This is not available with the Model 3 and Model Y,” on its website.
Lease-to-Buy Option for Model 3 and Model Y in Europe and Asia
Tesla added new language to the 2020 10-K filing that details its decision to allow lease-to-buy options on its vehicles in Europe and Asia.
The company wrote:
“We have outstanding direct leases and vehicles financed by us under loan arrangements accounted for as sales-type leases under ASC 842 in certain countries in Asia and Europe, which we introduced in volume during the third quarter of 2020. Depending on the specific program, customers may or may not have a right to return the vehicle to us during or at the end of the lease term. If the customer does not have a right to return, the customer will take title to the vehicle at the end of the lease term after making all contractual payments. Under the programs for which there is a right to return, the purchase option is reasonably certain to be exercised by the lessee and we therefore expect the customer to take title to the vehicle at the end of the lease term after making all contractual payments.”
In summation, Tesla is offering the option to buy a vehicle at the end of a lease in some markets. The customer has the option to return the vehicle as well in some cases, and Tesla is “reasonably certain” that the leaseholder will take possession of the vehicle title when the lease ends.
Teslarati obtained a list of the countries where this lease-to-buy option is available, according to the Online Design Studio. Some countries have explicit language that states the vehicle leaseholder must return the vehicle, while others indicate there is an option to purchase the car at the end of a lease. Some do not have any language that indicates what the leaseholder must do, which could indicate that the option to purchase the vehicle is available at the conclusion of the leasing period.
The countries where a lease-to-buy option is available are:
- Belgium
- Croatia
- Denmark
- France
- Italy
- the Netherlands
- Poland
- Taiwan
A few examples show that there is explicit language that indicates a lease can be purchased outright at the end of the period.
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- France’s Design Studio contains language that indicates the vehicle can be purchased outright at the conclusion of a leasing period.
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- Taiwan’s Design Studio explicitly states the vehicle can be bought outright at the end of a lease period.
Other Design Studio examples show that the vehicle must be returned to Tesla at the end of the leasing period.
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- Tesla does not give the option to buy the vehicle outright at the end of the lease in Germany.
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- Tesla explicitly tells U.S. leaseholders that they “forgo the option to buy your car at the end of the lease and must return it to Tesla after the lease term.”
Lastly, other Design Studios show no language either way, which seems to indicate the option to buy the car is available as the lease term expires.
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- Tesla Poland has no explicit language stating that the car must be returned to Tesla.
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- Tesla Italy also does not indicate specifically if the car should be returned to Tesla at the end of a lease.
Poland is one country where Tesla does not indicate whether the car is required to be returned at the end of a lease period. However, the option to buy the car at the end of the lease is available, according to one Polish Model 3 leaseholder who spoke to Teslarati. Model 3 leaseholder Szymon Janus said that Tesla does allow lease-to-buy options in his country of Poland, and at the end of the lease, can be purchased for “around 60% of the new car’s value,” he said. However, Tesla isn’t offering the lease-purchase option directly, it is operated through a bank, he says. This could be why Tesla has no explicit language depicting the required return of the vehicle at the lease’s end date.
Tesla has not revealed any further details within its 10-K filing that indicate whether the company will allow leased vehicles to be purchased at the end of a leasing period. However, it did detail some specific financial figures.
Tesla said:
“For the year ended December 31, 2020, we recognized $120 million of sales-type leasing revenue and $87 million of sales-type leasing cost of revenue.”
What do you think? Be sure to leave a comment below, or you can contact me directly at joey@teslarati.com or @KlenderJoey on Twitter.
News
Tesla FSD successfully completes full coast-to-coast drive with zero interventions
Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle maker’s executives.
A Tesla owner has successfully completed a full coast-to-coast drive across the United States on Full Self-Driving (FSD) Supervised. The trip was accomplished with zero interventions.
Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle maker’s executives.
FSD Coast-to-Coast
The coast-to-coast feat was accomplished by Tesla owner Davis Moss, who drives a stealth gray Model 3 with AI4 hardware. Based on data from the FSD database and a community tracker, the last 10,638.8 miles Moss drove in his Model 3 were completed using FSD 100% of the time. His vehicle is equipped with FSD v14.2.1.25, which was installed 12 days ago.
As per Moss in a celebratory post on X, his Model 3 was able to complete a full coast-to-coast drive across the United States in 2 days and 20 hours. His trip started at the Tesla Diner in Los Angeles, CA, and it ended in Myrtle Beach, SC. Overall, his trip spanned 2,732.4 miles.
“This was accomplished with Tesla FSD V14.2 with absolutely 0 disengagements of any kind even for all parking including at Tesla Superchargers,” Moss stated in his post. He also added in later comments that there were zero close calls during the trip.
Tesla community celebrates
The FSD milestone trip was widely lauded by members of the Tesla community, especially since a coast-to-coast drive with zero interventions has been cited by Elon Musk as a target since October 2016, when Autopilot 2.0 was unveiled. At the time, Musk initially estimated that a coast-to-coast drive across the United States should be possible by the end of 2017. Considering Moss’ feat in his Model 3, it appears that Elon Musk’s estimate was not impossible at all. It was just late.
Musk himself celebrated the milestone on X, and so did Tesla VP of AI Software Ashok Elluswamy, who wrote “World’s first fully autonomous coast-to-coast drive, done with Tesla self-driving v14. Congrats and thank you @DavidMoss!” in a post on X. The official Tesla North America account also celebrated the feat, writing “First Tesla to drive itself from coast to coast w/ FSD Supervised. 0 interventions, all FSD” on X.
Elon Musk
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.
Elon Musk has announced that the Tesla Model Y has become the world’s best-selling car by volume for the third consecutive year, capping 2025 with another dominant performance.
The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla.
Three years in a row
Musk posted on X: “Tesla Model Y is now officially the world’s best-selling car for the third year in a row!” The CEO’s comment echoed an update that Tesla included in its 2025 recap, which highlighted, among other things, the Model Y’s incredible streak.
The Model Y has held the title since 2023, outperforming traditional leaders like the Toyota RAV4 and Corolla thanks to its bang-for-the-buck nature and its stellar combination of practicality, performance, and tech. The Model Y is also lauded as one of the safest vehicles on the road, making it an ideal choice for families in key markets such as China.
An impressive 2025
The Model Y’s sales feat in 2025 is especially impressive considering the introduction of the vehicle’s new variant. Tesla’s changeover to the new Model Y across its global factories resulted in sales being paused for some time in the first quarter. As per Tesla’s Q1 2025 vehicle delivery and production report, “the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1.”
This suggests that the Model Y’s sales remained strong in 2025 to the point where it could still claim the title of the world’s best-selling vehicle by volume, even with its sales being throttled during the first quarter of the year. It would then be interesting to see just how far the Model Y can go in 2026, especially considering the rollout of new variants like the six-seat extended wheelbase Model Y L, the affordable Model Y Standard, and the top-tier Model Y Performance.
News
Tesla shares epic 2025 recap video, confirms start of Cybercab production
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.
Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps.
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.
Tesla’s 2025 highlights recap
Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the company’s pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimus’ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the world’s first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.
Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the year’s best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L.
The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating.
Cybercab production confirmed
Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026.
Musk has also noted that the Cybercab will be Tesla’s highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. “If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line,” Musk said earlier this year. “It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people can’t even get close to it.”
Tesla FSD successfully completes full coast-to-coast drive with zero interventions
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
