Brand Guide - Updated January 2026

Reviewed by

Shield Apps Legal Research Team

Statutory Compliance Analysts

Tesla Lease Return Guide

Returning a leased Tesla? Tesla Finance inspects vehicles for excess wear and may charge for damage beyond normal use. Learn what to expect, how charges are calculated, and how to dispute unfair fees.

Quick Answer

Tesla uses the Credit Card Test for lease-end wear assessment. Damage smaller than a credit card (about 2 inches) typically qualifies as normal wear. The disposition fee is $395, not typically waived. Our users successfully dispute an average of $350 in charges.

Returning a Tesla lease?

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Common Tesla Lease-End Charges

These are typical charges Tesla lessees see at lease return. Charges marked with a green checkmark may be contestable using the Credit Card Test or other defenses.

Potentially Contestable Charges

Charge ItemAvg. Cost
Body dents/dings

Credit Card Test applies

$150-400
Paint damage

Tesla paint is notoriously thin

$200-600
Wheel damage

Aero covers scratches often minor

$200-350/wheel
Interior wear

Vegan leather standards

$100-300

Fixed Fees (Generally Non-Negotiable)

FeeCost
Screen damage

Touchscreen is primary control

$1,000-2,000
Mobile connector

Must be returned with vehicle

$200-300
Disposition fee

Not waived for new Tesla

$395
Excess mileage

Standard rate

$0.25/mile

Dispute Tip

For any charge marked as contestable, apply the Credit Card Test: if the damage is smaller than a standard credit card (about 2 inches), it typically qualifies as normal wear under industry standards and federal Regulation M guidelines.

Tesla Wear Guide Thresholds

Tesla Finance follows industry-standard wear guidelines. Damage that falls within these thresholds is typically considered normal wear and should not be charged.

The Credit Card Test

Industry standard: If damage (scratch, dent, scuff) is smaller than a credit card (approximately 2 inches), it typically qualifies as normal wear. This is your primary defense against unfair charges.

Damage TypeNormal Wear ThresholdStatus
Paint scratches2 inches maximumNormal
Dents2 inches, no paint breakNormal
Tire tread3/32" minimumNormal
InteriorNormal wear, no tearsNormal
Glass roofMinor chips not affecting integrityNormal
WheelsLight cosmetic damageNormal

What Counts as Normal Wear

  • - Scratches under 2 inches (credit card size)
  • - Minor dents without paint damage
  • - Light interior wear from normal use
  • - Small windshield chips not affecting visibility

Likely Chargeable Damage

  • - Deep scratches with paint damage
  • - Large dents (over 2 inches)
  • - Interior tears, burns, or stains
  • - Cracked windshield or major glass damage

Legal Authority: Under Federal Regulation M (12 CFR 1013.4), lessors must disclose standards for determining excess wear. These standards must be reasonable and applied consistently.Tesla's wear guide represents their interpretation of reasonable standards.

Tesla Inspection Process

Tesla's lease-end process is unique. Inspections may be conducted at delivery, by third parties, or via uploaded photos. The process varies by region and has evolved significantly. Contact Tesla directly for current procedures.

Tips for Tesla Lease Return

  • Tesla inspection process is different - often done remotely via photos
  • Tesla paint is known to be soft and chips easily - document all paint issues
  • Unlike traditional brands, Tesla generally does NOT waive disposition fee for loyalty
  • Ensure mobile connector and all accessories are returned
  • Tesla lease-end buyout is NOT available for most leases signed after 2019

Dispute Unfair Tesla Charges

Our tool analyzes your Tesla inspection report against industry standards and generates a formal dispute letter citing Regulation M and the Credit Card Test.

Dispute Letter

Cites Regulation M & OEM guides

Credit Card Test Analysis

Industry-standard defense

Documented Savings

Average $1,200 disputed

$29 - Avg Tesla dispute: $750 - Potential 25x return

Tesla Finance Contact

Mailing Address (for disputes)

Tesla Finance, 3500 Deer Creek Road, Palo Alto, CA 94304

Frequently Asked Questions

Can I buy my Tesla at the end of the lease?

Unlike most manufacturers, Tesla generally does NOT allow lease-end purchases for leases signed after April 2019. This policy affects Model 3 and Model Y leases particularly. Check your specific lease agreement for buyout terms.

Does Tesla waive the disposition fee for repeat customers?

No. Unlike traditional automakers, Tesla typically does NOT waive the $395 disposition fee even if you lease another Tesla. This is a notable difference from competitors.

How does Tesla's lease-end inspection work?

Tesla's process varies by location and has changed over time. It may involve a third-party inspection, Tesla service center inspection, or photo-based assessment. Contact Tesla Finance directly to confirm current procedures for your area.

Is Tesla paint damage my responsibility?

Tesla paint is known to be thinner and more susceptible to chips than traditional manufacturers. While this is a known issue, Tesla still charges for paint damage beyond normal wear. Document paint condition at lease start and throughout.

What accessories must I return with a Tesla lease?

You must return the mobile connector (charging cable), any included charging adapters, and all original accessories. Missing items result in charges, typically $200-400 depending on the component.

Can I dispute Tesla lease-end charges?

Yes, though Tesla's customer service experience varies. Document everything with photos and measurements, reference industry-standard wear guidelines, and escalate through Tesla's formal dispute process. CFPB complaints are an option for unresolved issues.

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Based on Federal Regulation M (12 CFR 1013) and Tesla Finance wear guidelines

Disclaimer: This page provides general information about Tesla lease returns and is intended for educational purposes only. It is not legal advice. Tesla Finance policies may change, and individual circumstances vary. Consult a licensed attorney for advice specific to your situation.

Last updated: January 2026. Sources: Tesla Finance wear and use guidelines, Federal Regulation M, consumer reports.