Leasing a Model 3 or Model Y from Tesla just became a more interesting proposition.
If you’ve been in the market for a Tesla over recent years, you’ve always had a few options on how to buy one from the company. You can either finance one that is brand new or buy it straight up in cash if you’re a baller like my one friend when he bought his Subaru Outback (I’m not jealous at all). Tesla also offers used models through its website for purchase or financing.
The last option is to lease one, and that option just got more interesting today. As reported by Electrek, Tesla has cut the monthly payment for leases of both the Model 3 and the Model Y. This comes soon after both vehicles also received price cuts, dropping the Model 3 to the lowest starting price it has ever been at $38,990. The Model Y also got its base model price cut down to $43,990.
Now, if you want to lease a Model Y, you’ll pay $399 per month for the base model. This represents a $100 decrease from the previously quoted monthly payment of $499 per month. In order to get this monthly payment, customers will need to provide a down payment of $4,500, agree to a lease term of 36 months, and only drive up to 10,000 miles per year.
The Model 3 also got a price cut. Now, if you want to lease a Model 3, you’ll pay $329 per month instead of the previous $419 per month, a $90 price decrease for the base model. In order to get this monthly payment, customers will need to do the same as the Model Y and provide a down payment of $4,500, agree to a lease term of 36 months, and only drive up to 10,000 miles per year.
Other high-level trims have also received price cuts on leases ranging from $70 up to $90 per month, but the biggest discounts do appear to be on the base models.
However, Tesla expects prices to increase starting next year. The company anticipates that the Model 3 will lose half of the $7,500 tax credit starting next year and potentially prompt a price increase. So, this represents a potentially unique opportunity for those looking to lock in a low lease payment. Of course, the refreshed Model 3 isn’t available in the United States yet, so that $329 monthly payment will only get you the former generation of the Model 3.
Tesla could also be trying to lock customers into a lease now rather than wait until next year when the new IRS guidance on the tax credit kicks in. Starting next year, customers will be able to lock in their $7,500 tax rebate at the time of purchase, putting the onus on the dealer to get the credit from the government. It’s currently unclear which brands and dealers will support this new method.
Personally, I’m more interested to see what the price drop on the Model 3 and the corresponding lease payment will have on the used market. Used Model 3 prices have been dropping like a rock this year and I’ve been able to find deals under $25,000 which — based on your eligibility — could also qualify for the used $4,000 EV tax credit. If prices drop even further, certain customers might be able to grab a used Model 3 for under $20,000, a truly insane deal.
Today’s price change also comes in the same week that supply chain analyst Ming-Chi Kuo predicted that the Cybertruck will start getting in the driveways of its first owners by the end of the year. There’s a lot going on in the EV space and Tesla is certainly wrapped into all aspects of it.