A few weeks ago, we told you that YouTube influencer and Tesla Model 3 owner Carter Jones was considering a Model Y. She hadn't made a decision yet, but she did mention leasing versus buying. In the video above, Carter elaborates on that topic. It's a tough decision, and there are pros and cons on both sides.
Leasing is very popular in the US, but many folks insist that it's smarter to buy. If you can get a good interest rate, it's almost always a better financial decision to buy a car. However, there are definitely some notable advantages to leasing. Is this true when it comes to Tesla?
While leasing is popular among most cars, it's especially popular in the luxury segment. In fact, BMW is the most popular brand for leasing. Keep in mind, leasing is also preferred in cases where an automaker rarely offers discounts, cash on the hood, and/or zero-percent or low-interest financing.
Tesla's vehicles aren't cheap. Following a recent price hike, as well as the removal of the Standard Range option from Tesla's configurator, the Model Y electric crossover starts at $50,490. Tesla offers 2.49% APR for 72 months. On its site, it notes that with $4,500 down, the car will cost you an estimated $706 per month.
With that said, some quick napkin math tells us that even at 0 percent APR over the same long loan term, the monthly payment is $701 per month. And, we didn't include any taxes or fees. However, we also didn't put any money down. With the $4,500 down, you'd be lucky to get the loan payment to around $650 depending on taxes and fees. That's a hefty car payment for most people.
Tesla is leasing the Model Y for $489 per month with the same $4,500 down. The lease runs for 36 months and only allows for 10,000 miles per year. However, a monthly payment of less than $500 is much more appealing on the surface than a loan payment over $700. As you may already know, there's a whole lot more to consider here.
Carter walks us through it from her perspective and breaks it all down in much greater detail. We'd also love to read your perspective in the comment section below. Check out the video and then start a conversation below.