is coming to an end, you’ll need to complete a final inspection and schedule a drop-off appointment to return your car and the keys. You will also need to handle any remaining charges on the account. There are also options to return the lease early, lease another Tesla, and buy out your lease if you are eligible.

Leasing vehicles have become a popular alternative for many drivers—for good reason. Leasing a car allows you to drive it in its prime years. It also gives the flexibility to upgrade your car to the newest car at the end of the lease term.

However, before your lease ends, you will have a few decisions to make. A Tesla lease requires you to adhere to specific guidelines to ensure a smooth return. Be sure to double-check any requirements to avoid additional fees or penalties.

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How a Tesla lease return works

When your Tesla lease matures, you will have four lease-end options:

Return the vehicle without getting another vehicle

Return the vehicle and upgrade your lease to a new vehicle

Extend the lease if your vehicle is eligible

Buy out the lease and purchase the vehicle (eligible for vehicles leased before April 15, 2022, only)

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If you want to return your leased Tesla and walk away

To return your lease without upgrading to a new Tesla, the process starts 30-60 days before your lease-end date.

30-60 days out: Tesla will contact you to do a final inspection and schedule your drop-off appointment. Tesla drivers are encouraged to contact Tesla via

for specific questions on the return process.

Use the Tesla app to start the return process: To start the lease return process, you will need to sign in to your Tesla app. The ‘Financing’ section in the app will then guide you through the steps to initiate the return, complete the final inspection, and schedule a drop-off appointment. Any end-of-term changes will be reflected in the app in the ‘Manage’ section within 48 business hours.

Submit final self-inspection: You will need to review any excess wear and tear on the leased vehicle using the

Tesla Excess Wear and Use Guide

. Tesla requires you to take photos of the vehicle and submit them for their evaluation. You can avoid excess charges by repairing the damages at a Tesla service center or

Tesla Certified Collision Center

. If you get any repairs done, be sure to contact Tesla to let them know they have been addressed. You will also need to send copies of the receipts and other proof of repairs.

On the day of your Tesla drop-off appointment: Bring the vehicle to your local Tesla service center in clean condition. You will also need to bring both key fobs and the mobile charging bundle.

After the return: You will be billed for any remaining charges to meet your lease obligations.

If you return your Tesla lease without getting a new Tesla lease, you’ll be responsible for the following:

Any outstanding lease payments and fees on your account

Excessive wear-and-tear penalties

You can request transportation to retrieve your Tesla lease if you live far from a service center. However, you will be charged a per-mile fee. After you return your vehicle and make the outstanding payments, you can walk away! You are free to lease another car at another automaker or take a break before getting another car.

MORE: How to calculate a car lease payment

If you want to lease a new Tesla

If you love Tesla and want to get another lease on a new car, the process is simple albeit not as streamlined as other luxury brands. You will need to contact Tesla at

ownershiployalty@tesla.com

when the end of your lease is approaching so that you can learn about the options for your next Tesla lease.

Some Tesla drivers may find the process frustrating as the lease return and lease upgrade process are not streamlined. Rather than Tesla handling the transition, you will be responsible to handle both aspects separately.

From there, the process is similar to the lease return we outlined above. You’ll still need to schedule a Tesla final inspection and a drop-off appointment.

MORE:

Everything you need to know about the Tesla self-driving car

If you want to extend your Tesla lease

If you’re not quite ready to part with your Tesla lease, you can extend your lease for up to six months beyond the original lease-end date. This can be done once per lease. However, to be eligible, you need to be within three months of the lease-end date and on time with all your lease payments. You can then start your lease extension application from your Tesla Account or the Tesla app.

You will then be sent an electronic form with your term information. Be sure to review and sign the form so that Tesla can determine your eligibility. Once approved, your Autopay will automatically continue until you return your Tesla lease.

MORE: How to prepare a car for inspection when returning a lease

If you want to return a Tesla lease early

It is always best to return your lease when it expires. However, circumstances can change, whether financially or physically (e.g. moving to another country). Fortunately, if you want to end your lease early, you can:

Transfer your lease to a credit-approved assignee through your

Tesla account

or app. You must have 13+ months left on the lease to be eligible. There will be a $150 credit application fee, a $500 lease transfer fee, and applicable taxes. More information can be found in the

Leasing Assumptions Information Packet

or by contacting Tesla at

teslafinance@tesla.com

Apply for early termination if you have at least one lease payment remaining. You will be required to pay the remaining lease balance through the Tesla Leasing Portal or pay the difference between the adjusted lease balance and the car’s market value. Use your Tesla Account to get a quote. When you return the car, you must remit payment and submit an odometer disclosure.

To avoid the hefty fees associated with a Tesla early lease return, transfer the lease to another lessee, also known as a

car lease swap

. If you transfer the lease, be sure that the person taking over your lease has an income and credit score equal to or better than yours to be approved.

MORE:

Is it better to lease or buy a car?

How to find the best Tesla insurance

Returning a Tesla lease is mostly contactless and straightforward—and so can finding the perfect car insurance for your next Tesla.

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Can I return my Tesla lease to any dealership?

You can return your Tesla lease by scheduling a drop-off appointment with your local Tesla Service Center.

Can I extend my Tesla lease?

Yes—you can apply for a lease extension for up to six months after your original lease-end date. You can apply for a lease extension if you are within three months of your lease maturity date and your account is in good standing.

Can you return a Tesla lease early?

You can end your lease early by transferring your lease to a credit-approved assignee if you have more than 12 months left on your lease period. There is also the option for an early termination, which can be costly. Review your lease agreement for all the options available to you.

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