Tesla Announces New 2-Year Lease Deal For Model S 60 From $593/Month*

6 months ago by Mark Kane 52

Tesla Model S & Model X

Tesla Model S & Model X

Tesla Motors has announced a limited time, 24-month lease option for both Model S and Model X in 60 kWh configurations only.

According to Tesla, 2-year lease deals are often requested by consumers, feeling 3-years is too long.

Tesla Model S and X comparison for U.S. (July, 2016)

Tesla Model S and X comparison for U.S. (July, 2016) – click to enlarge

The deals on the Model S (60) start at $593/month,  but there is also $7,288 due at signing.  The Model X (60D) start from $730/month, with $7,425 down.  (Based on 10,000 miles driving/year.  Add $27 on the S deal for 12,000, $54 to bump that to 15,000)

With the earlier introduction of battery upgrade options (from 60 to 75 kWh), it’s clear that Tesla is doing whatever possible to make the S/X more affordable and to increase sales.

But why set a specific/arbitary deadline of September 12th?  

Perhaps there is another announcement set for the 2nd week of September that will shake up the lineup – such as the AutoPilot 2.0, Model 3 news, or even that long-anticipated P100D reveal?

However, the most likely reason for a Sept. 12th cutoff is that it currently takes Tesla just under 3 weeks to build and deliver a Model S in the US, and we can’t help but notice that the offer timing exactly lines up with making a delivery before the end of Q3.  Just a coincidence?  Maybe…but whatever the reason, it just got cheaper to get into a Tesla, and that is pretty good!

“A 2-year lease option is one of our most popular requests. We listened and are launching a limited time test of a 2-year lease on Model S and Model X. Starting at only $593/month (details here), our new 2-year lease program was designed just for you to drive electric today, and is available on all Model S and X orders placed by September 12th.

For additional savings, combine this offer with the Tesla Referral Program and apply a $1,000 credit towards your configuration. Just get the special personal code of any Tesla owner and enter it at the time of order.

It’s never been more affordable to experience the exhilarating performance and extraordinary safety of the groundbreaking Tesla Model S sedan and Model X SUV. With the best safety ratings of any car ever built and equipped with driver assistance Autopilot features that steer, change lanes and control speed, Tesla’s zero-emissions vehicles have revolutionized the modern driving experience.”

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52 responses to "Tesla Announces New 2-Year Lease Deal For Model S 60 From $593/Month*"

  1. Eco says:

    I was just looking at financing a Model S for 96 months but this lease option may influence my decision.

    1. Tim says:

      Ignore this advice if you wish – it’s your money – but financing a car for 96 months is a really bad financial decision. It is a pretty definite indicator that you really cannot afford the car.

      1. jelloslug says:

        Why? If the interest rate is low there is no reason to no get the payments as low as possible. You can always pay more each month.

  2. The article doesn’t mention the annual miles allowed, so I’ll guess it’s low… like 10,000 miles.

    1. Jay Cole says:

      Hey Tony, yes it is 10,000 miles. I’ll add that into the story (and the maybe the additional costs for a 12k and 15k lease)…good note!

      /thanks

    2. RM says:

      Yes, that price is for 10K miles. There are also 12K and 15K mile options.

    3. Isak Swahn says:

      Go with the 15k option (or higher if there is). You’ll love it so much that you’ll drive to the shop 10 miles away instead of the one 1 mile away just to buy milk. 🙂

  3. only for the 60 and 60D. 75 and 75D are only available for 3 years. The down payment in enormous, making it a bad deal. Also, $593 is for 10k miles per year. As the good book said, the devil is in the details.

    1. JT says:

      You’re talking about the lease of a Luxury car, not Toyota Prius! There’s no cheap lease for luxury car. Compare it with BMW 7 series and Mercedes S class since they are in the same tier. If they don’t get you on the monthly payment, they’d get from your down payment. If you look at their calculation, the total amount at the end is always the same no matter what.

    2. Bacardi says:

      I actually agree that they could have made the offer far more attractive if they had a lower drive off despite it increasing the payments…All of Tesla’s competitors, whether luxury or EVs usually allow you to play with the numbers to get a $500ish drive off…

  4. DL says:

    Very disappointing to see Tesla play the same games with lease advertising the the “dealers” do. Flinging out a “low” lease payment and burying the details of the super high associated down payment is an advertising bait and switch of the highest order. If you go to the Tesla website and build the lease, you will see that the minimum down is $2500, and the associated monthly payment is then $812! (w/CA sales tax).

    1. Some people don’t have that much free cash available left each month, but they sometimes get lump sum payments, earnings, or Tax Return Checks, hence they might be able to pay the big Down on delivery, but not the larger monthly payment.

      Bait and Switch – is when you advertise a deal like this, but then say – sorry – that is for cars on the lot in Red, but we only have blue – that will be $XXX.XX Extra! Since

      Tesla Builds to order – so, this is not exactly a Bait and Switch in this case, but simply – to get the low monthly – you put in a big down payment or on delivery payment up front!

      This is true for anything, from buying a house, to buying an airplane, and is offered daily from cars as cheap as a Smart ED, to the iMiEV, and I am sure even with cars like the Rolls Royce at the other end, and everything in between!

      It is all based on the basic TVM (time Value of Money) formulas. Think of it like this: You need to pay your rent, your employer messes up your pay check, shorting your check you receive on the 28th of the month, making it hard or not possible to pay your rent now, but – they tell you – don’t worry – you will get your money on the next check (two weeks later)! NOW – How Valuable is that Missing Money to you? Especially – if you have already delivered the check or checks , and now it is going to bounce, costing you money, reputation, and aggravation!! The Money Missing on your paycheck – is much more valuable on the 28th, than it is two weeks later, since it saves you money, arguments with your landlord (or bank – if it was a Mortgage Payment that was missed or bounced a check on), late fees, NSF Fees, etc!

      So – The Down Payment is usually much larger, if the monthly payment is much smaller, for the same reason – the Vendor, seller, or in this case, Tesla, gets more value from your down payment being bigger today, than they get from your smaller payments made over the next 24 months!

      1. DL says:

        Well gee willikers, is that how money works? Thanks for the finance lesson.

        My point is that Tesla could advertise a $135 per month lease also, since they allow up to 25% down payment. If they didn’t have the restriction, they could advertise a $10 per month lease if they wanted to. So what’s the honest lease advertisement? In my mind, that’s a zero down number

        An BTW, if you don’ have enough “free cash left at the end of the month” you shouldn’t be looking at $70K cars.

        1. Tim says:

          Shhhh! This is Murica. If you want a luxury good, there’s a sure fire way to finance it for a really long time so you can have your God Given Right fulfilled.

          Next, Tesla will adopt a “no credit check” policy with an associate right to repossess the car at any time and for any reason.

          Money is cheap … at least to the financiers.

  5. vdiv says:

    10k mile/year lease is ridiculous for a Model S. Here’s this car that begs to be driven long distance all the time, but sorry, you can’t.

  6. tom911 says:

    With 9% tax that works out to about $1k per month… ouch.

    1. Warren says:

      Well it seems that even taking into account the higher sticker price compared to $50k cars out there, The Tesla is about 3x more than the $189/month..$3800 drive off on a $50k i3 and the list price isn’t even double.

    2. Loboc says:

      More than that. It’s a nominal 950.66/mo before TTL. (Taking the down payment divided by 24, add the 15k-mi premium plus the $593 payment.)

  7. no comment says:

    tesla seems to always be good for innovative strategies. my guess is that they will lease the cars out as 60kWh cars and resell them as used 75kWh cars to maximize revenue.

    1. Hauer says:

      my thought exactly.
      on market in time when people realize THEIR model 3 is still not in production.

      And yes, I have despised that “leasing rate” shitty ads for decades. But hey, it’s “the market”.

      1. Michael says:

        I generally don’t like leases but consider this. It may be prefect timing to have a Tesla now and switch up to the fully autonomous version (which I would purchase). This could fall into the time frame Elon is taking about when he says it is coming sooner than you expect. If the current version is not upgradable to fully autonomous, the value could drop significantly. Better to rent this version.

  8. Taser54 says:

    Tesla’s production must be way off compared to estimates.

    1. floydboy says:

      It could be construed as a response to sagging demand, yes. It also could simply be a way to prevent demand from sagging, pre-Model 3.🤔

  9. Ruudi says:

    Does a lease count against the basis of the Federal tax credit?

    1. Bro1999 says:

      Oh yeah.

  10. Well, 10,000 Miles a year, could be about as few as these two trips, but – I doubt I would do both in the same year:
    #1) Downsview, Toronto, Ontario, to Oshkosh, WI, to Presidio, TX, to Daytona Beach, FL, to Kennebunkport, ME, to Halifax, NS, to Downsview, Toronto, ON: 6,781 Miles, 102 Hours of Driving.

    #2) Downsview, Toronto, Ontario, to Detroit, MI, to Orlando, FL, to New York, NY, to Ottawa, ON, to Downsview, Toronto, Ontario: 3,179 Miles, 47 Hours of Driving.

    Total of these two trips, not counting side excursions, = 9,960 Miles!

    Since My Commute would only be about 375 miles, and shopping trips about 1,700 miles a year, I guess I could skip the extra leg on trip #1 – to Kennebunkport, ME, to Halifax, NS, and instead of going all the way to Daytona Beach, FL, I could instead go to Jacksonville, FL! That – would end up with 19,725 miles over the two years – IF I Drove these two Trips (as I just modified them) EACH YEAR – over the two year spread!

    The big problem for most people – is the amount of Commuting Driving they do – and that is where I gain quite a bit of buffer!

    Realistically speaking – I have actually driven from Toronto, to Oshkosh, to Presidio, TX, back to Toronto, one year, for about 4,100 Miles Plus Local Excursions; and this year have driven down to Kissimmee, FL, and back for about 2,600 mile plus local excursions, and also down to Harrisonburg, VA, for about 1,150 Miles, plus local excursions – which would have burned up some 4,000 of those 10,000 Miles on this lease this year, so – it could work, and my average over the last 6 years have only been about 9400 Miles, and that includes a trip of a weeks of wandering my way done to Orlando, FL, and then a dip down to Key West, FL, and a dodge up I95 to Maryland, extra trips to Detroit, and Oshkosh, and so on! So – I think besides me, there must be some folks who could do just fine on 10,000 Miles a year in a Tesla!

    Sure – it might not be the only car they drive, and they might even get a used LEAF or Something, to do the Commuting in, so as to just use the Tesla for the longer trips! But – 10,000 Miles a year COULD be enough for a few hundred new orders to come in, that might not have!

    1. pk says:

      Except that even the cheapest model S will only get you that $3,000 rebate and the model 3 will undoubtedly get the full $14,000 in Ontario. I expect the model 3 to sell around the sweet spot of $46,667 with some of the options like AWD + winter package.

  11. chris1 says:

    I was wondering this morning if there was a way to lease a tesla for 24 months and googled it. Turns out this article is only 2 hours old.

    Now back to the details.. What a bad deal. Adjusted for the down payment this is basically close to $1000 a month. A terrible lease deal for a car whose price is $67.2 – 7.5k = $59.7k

  12. Bsweet says:

    I don’t know much about leasing because I never have but I know that my aunt Leases cars through Chrysler and after she paid the down payment the first time she didn’t have to pay it on her next lease(I think) I wish Tesla would have a lease for life program I would Think about doing that with a one time down payment

  13. georgeS says:

    After having 85 kwh, there’s no way I could live with 60kwh….unless you just want an in town car.

  14. floydboy says:

    Looks like Tesla’s pulling some of those “demand levers” in lieu of traditional advertising, mr Musk was referring to. I can also see(if the Solar City acquisition goes smoothly) complete energy package leases, combining car, battery storage and solar panels next, just ahead of Model 3 release.🙂

  15. John says:

    Let’s see, $14,232 of lease payments over 24 months, + $7288 down = $21,520. Divide that by 24 and you get $897 per month for only 10k miles per year. Add tax and another $50 to get 12k miles per year and now you’re at $1000 per month. Wow, what a great deal…

    Looks like folks at Tesla thinks everyone eats retard sandwiches for lunch…

    1. LEAF_n_PiP says:

      Leases aren’t always about saving money. There are many that could buy the car new, but prefer to lease to get a new car every 2-3 years (for a variety of reasons).

      1. John says:

        Transportation expenses are typically the most expensive costs in an average household. The fact that most folks perpetually lease/buy new every 3-4 years is why most households are perpetually broke. And most of the variety of reasons you mention involve new-ness of gadgets, options, looks, etc. and not function. While having more range from my Leaf may be nice, it’s paid for and I’m not going to incur a brand-new $500 per month payment for a new Bolt just so I can charge my car less.

        Before you lose your mind, I’m not talking about ALL households, just most. But on the flip side, we DO depend on the retard sandwich eaters of today to buy the new, expensive technologies in order to make that technology cost-effective for the PB & J eaters of tomorrow…

        1. Mister G says:

          The global economy is based on consumption if people want to lease EVs it is good for creating jobs. BELIEVE ME

          1. John says:

            Yeah, and the consumption model is working really nicely, right? Leverage on credit, (consume), keep the machine running (consume)… until the credit game finally collapses… and there go the jobs you were talking about..

  16. Bonaire says:

    A hunt for sales.

    1. Tim says:

      I believe it’s called a “business”.

  17. LEAF_n_PiP says:

    In California, I believe 24 month leases do not qualify for the $2500 state rebate (not sure if funds have been replenished yet) since the minimum term is 36 months.

    1. Warren says:

      California requires 30months+ for the CVRP.

      1. e-Ray says:

        Correctomundo. at the CVRP web site: https://cleanvehiclerebate.org/eng/eligibility-guidelines
        it states “Original lease terms of at least 30 months are required for program eligibility.”

        However, Tesla’s estimate of the lease cost on their web site states: “$4,788 effective down payment, After $2,500 California Incentive, Subject to availability and limitations.”

        I took that to mean if the funding ran out you were out of luck, not that the 30 month rule would apply. They may need to re-word that…

    2. Tim says:

      It’s also income-based now, not just the length of lease and type of car.

  18. tesla short says:

    You can buy a used Leaf for cheaper than $7,425 down.

    2012 Nissan Leaf SL – $7,228
    https://www.cargurus.com/Cars/l-Used-Nissan-Leaf-d2077#listing=149880907

    1. jelloslug says:

      This just in: Used cars cost less than new cars!

      1. Bro1999 says:

        **cost less than the down payment on a lease of a new car. That one is news.

  19. James says:

    Tesla leases only make sense if you can write them off as a business expense. This one is no different.

  20. Bacardi says:

    Here are the real numbers for one of its most popular counties, L.A. county:

    $2500 due immediately to place order
    $5969 due at signing
    $646/mo

    You also get the state incentive (once funded) of $2500 but there’s a catch, you have to have it for 30 months (unless they change the policy)…You will get a $2500 check now but once you turn in the car, CA will demand $500 back…

    Keep in mind this is a pure base Tesla, can only get the color black or white…If you want to add the very popular AP option, monthly payment goes up to $693/mo

    If Tesla could offer a base S with the AP option, charge $2500 to order, $0 drive off they could keep the out the door monthly payments below a grand…

  21. John says:

    A 24-month lease is too short to qualify for the California clean vehicle rebate of $2,500. That wipes out a fair chunk of any savings that might be had in California. I suppose there are people for whom that won’t matter, but if they’re trying to market to folks who really want a Tesla for a little less, it’s a bit of a hurdle.

    1. Bacardi says:

      When you fill out the CVRP website, it will ask if you purchase or lease and if you lease your terms…If you enter 24 months or less, no check for you…As reported by many 24 month Volt leasors, you select 30 months, get the full $2500 and after the Tesla CA registration comes out of your name, CVRP sends you a bill for the remaining months, in this case its $500…Just think of it as an interest free $500 loan…

      With all that being said, Tesla is including the $2500 as part of the savings…I’m sure several have already pointed that out to them…It’s also possible they have insider information that rules could change to allow 24 month leases…

  22. ModernMarvelFan says:

    Looks like Tesla is trying to boost sales in short term…

    Maybe it isn’t meeting the order ramp rate…

  23. Kdawg says:

    So for 2 years it would be $593 X 24 + $7288 = $21,520.

    That seems like a lot to drive a car for 2 years.

    I wonder if they would do a lump-sum type lease meaning, pay them $15,000 up front and you get 20,000 miles or 2 years, whichever comes first.

    1. Bacardi says:

      First your numbers are the advertised numbers and don’t include everything…The tax (which can vary by county) will add quite a bit to the deal…

      Single pay leases are usually not much more attractive financially and takes away two huge benefits from leasing, ability to walk away from the car if a total loss and the ability to keep money in your bank account and pay monthly…

      It does not appear Tesla even offers a single pay option, on their configurator for the lowest MSRP car, max you can enter for the “down payment” is $16,800…That turns your monthly payment to $124 before tax…Also config will not let you vary the miles beyond 10K/12K/15K…