Tesla's latest vehicle, the Model Y, is quite similar to the Model 3, but the price is about 25 percent higher. Now that Tesla offers a lease program in most US states, this price difference may make choosing between the two more challenging. Tesla also offers leasing in parts of Canada and in some European countries.
A lease typically has a much lower monthly cost than a loan, but lower long-term value. At the completion of a loan payoff, the car is owned and has resale or trade-in value. At the end of a lease term, it may be possible to renew the lease, or the leased vehicle may be purchased or turned in. The person leasing the vehicle, known as the leasee, does not own the car but is responsible for damages and excessive wear and tear. A maximum number of miles driven per year to be covered the lease is agreed and exceeding that will incur fees. The monthly payment with a lease is significantly lower, though, perhaps as low as half that of a similar length loan, so there is a definite short term advantage to a lease.
Tesla’s new US lease program makes it easier to drive a Model Y or other Tesla vehicle. The lowest possible lease payment is $499 per month, given Tesla’s suggested downpayment of $4,500. Both the ‘Long Range All-Wheel Drive’ and ‘Long Range All-Wheel Drive Performance’ options are available, the Performance model adding $10,000 to the total value and making a difference of $180 to the monthly lease payment. These figures are based on choosing to drive 10,000 miles or less per year, which works out to only 38 miles per weekday. 12,000 miles annually raises the monthly cost to $526 and choosing the largest mileage option, 15,000 miles per year, makes the monthly lease payment $552. This would allow an average of over 57 miles per weekday of driving. According to a thread on Tesla Motors Club, the overage charge is 25 cents per mile for the Model 3, S, and X. It seems likely that this would be the same for the Model Y.
More Details for Leasing A Tesla
Qualifying to lease a Tesla Model Y is similar to getting a vehicle loan and requires credit checks. The term for the Model Y is fixed at 36 months, while the downpayment amount is variable and likely is tied to the applicant’s credit rating. Tesla requires the driver to have insurance with fairly standard coverage, but it must cover physical damage insurance for the full value of the vehicle and have a deductible of $2,500 or less. Taxes are not included in the prices given and vary by area. Some areas do offer electric vehicle rebates or credits when leasing, as well as when buying, so it is worth doing some investigation when considering a new Tesla car. The effort could result in a savings of several thousand dollars.
Tesla leases are currently available in 39 US States and the District of Columbia. For those living in Delaware, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Nebraska, New Hampshire, Oklahoma, Rhode Island, and Wisconsin, cash purchase or a loan are the only options. Leasing Is available in Canada within Alberta, British Columbia, Ontario, and Quebec, as well as in many European countries. Business leases are also offered through a separate program, which is where leasing is more common. The option for the consumer to lease a Tesla Model Y brings these fantastic vehicles within reach for many that may not have been able to afford a loan payment, but there are definite trade-offs to consider before making that commitment.
Source: Tesla, Tesla Motors Club