Tesla Model Y: Should You Lease It? Is It Worth It? Let's Break It Down

Name: Tesla Model Y: Should You Lease It? Is It Worth It? Let's Break It Down
Uploaded: 2020-10-02T14:44:06Z
Description: Deciding between buying and leasing a car is hard. Leasing means a lower monthly payment and peace of mind, but it doesn't mean you come out ahead.

Tesla started leasing the Model Y in July for $499 per month, which is much less than a financing payment. Is it a solid deal?

Steven Loveday

By: Steven Loveday

Oct 2, 2020 at 10:44am ET

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Tesla started offering leases for its new Model Y all-electric crossover back in July. Typically, it's always a more sound financial decision to by a car rather than leasing one. However, you have to be sure to secure a good interest rate. Still, some people simply can't afford a monthly car payment of some ~$700 per month.

You can lease the Model Y for $499 per month, which may be enticing to many. It may also mean that people who can't really afford a Model Y are able to get one. What have you got to lose?

Bearded Tesla Guy crunched all the numbers and put together some nice charts to spell it all out for us. He says the Model Y lease payment is currently $200 per month less than buying the crossover at the offered financing rate. We're talking about the cheapest (for now) $49,990 Tesla Model Y Long Range All-Wheel Drive.

Via Tesla's website, the lease estimate comes in at $499 per month for 36 months with $4,500 due at signing. This is for a 10,000-mile-per-year lease agreement. If you choose to finance through Tesla, you're looking at $699 per month for 72 months with $4,500 down. That's at 2.9% APR. Keep in mind, lease deals vary based on your credit score and other factors. In addition, you may be able to find different financing rates elsewhere.

There's one other important piece of information here. Like the Model 3, when you lease a Tesla Model Y, you don't get the option to buy it and keep it once the lease terms are up. This isn't typical of almost all other leases.

What do you think?

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Bearded Tesla Guy notes that even if you simply financed the Model Y, kept it for 36 months, and sold it, you'd have a nice chunk of cash in hand. He goes so far as to say when comparing the total final cost, with all factors and numbers considered, you would end up far ahead.

Check out the video for the detailed breakdown and accompanying charts. Then, let us know if you've leased an EV.

Source: Bearded Tesla Guy (YouTube)