One can either purchase a Tesla Inc (NASDAQ:TSLA) vehicle or lease it for two or three years, providing a more cost-effective option for those not intending to keep it long-term. However, the cost of leasing a Tesla varies across models.
Which Teslas Can You Lease:
Tesla offers leasing options for both the lower-end Model 3/Y vehicles and the more expensive Model S/X vehicles. A noteworthy EV lease incentive of $7,500 is distributed across the lease term, but the costs differ for each model.
Leasing Model 3/Y:
Leasing the Model Y SUV requires a minimal down payment of $3,500, with an estimated monthly lease payment of $379 for 36 months (excluding taxes and fees). The total cost of owning the vehicle for three years amounts to around $17,144, representing only 39% of the full purchase price of $43,990.
On the other hand, for the Model 3, although priced lower, the lease down payment is higher at $4,500. Monthly payments for the Model 3 rear-wheel drive are $329 for 36 months, totaling about $16,344 or 42% of the vehicle's starting purchase price of $38,990.
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Leasing Model S/X:
For the higher-end Model S and X, the down payment significantly increases to $7,500. Leasing a Model S dual motor all-wheel drive for 36 months costs $1,099 per month, while the Model X dual motor all-wheel drive lease payment is $1,249 per month.
Why It Matters:
Customers need to consider that certain Tesla models, like all versions of the Model Y, the Model 3 Performance, and the Model X Dual Motor, qualify for a federal EV tax credit of $7,500 upon purchase. Specific states, such as California, also offer state-specific EV purchase incentives that can significantly reduce the cost of ownership, potentially making purchasing a more favorable option than leasing in certain circumstances.
Additionally, while leasing means relinquishing ownership at the end of the lease term, purchasing ensures extended use. Tesla provides a basic vehicle limited warranty for 4 years or 50,000 miles and covers the battery and drive unit for up to 8 years.
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Photo courtesy: Tesla
