Tesla Lease Or Loan: Don't Overpay For Model 3 Or Model Y

Leasing a Tesla Model 3 or Model Y could be a $17,000 to $18,000 mistake.

Steven Loveday

By: Steven Loveday

Sep 12, 2021 at 11:06am ET

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If you're in the market for an electric car, there's a good chance you're considering a Tesla Model 3, or perhaps even a Tesla Model Y. These cars aren't cheap, and they'll make a nice dent in your monthly budget, though you'll save money on fuel and maintenance over a gas car. You can choose to lease them, which will bring down the monthly payment and impact your budget less. However, in the end, leasing will cost you extra.

Tesla offers all of its vehicles for purchase and for lease. Currently, its financing rate is advertised at 2.49 percent for 72 months, which isn't bad, though many brands have been offering 0 APR for some time. Keep in mind, you'll need an excellent credit score to qualify for the best rates. It's also important to note that you don't need to finance through Tesla. If you can get a better rate elsewhere, take advantage of it.

If you go with Tesla's financing plan, which requires $4,500 down, the base single-motor rear-wheel-drive Model 3 Standard Range Plus ($39,990) will cost you about $549 per month. Meanwhile, with the same terms, the entry-level dual-motor all-wheel-drive Model Y Long Range ($53,990) will cost about $759 per month.

Tesla is leasing the base Model 3 for just $389 per month for 36 months with $4,500 down. The Model Y Long Range is leasing for $569 per month with the same terms. These leases both include 10,000 miles per year.

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As you can see, the lease "deals" are appealing since they'll save you $160 to $190 every month. However, as Cleanerwatt points out, while the low monthly payment for the leases could work to trick you, you could need up paying $17,000 to $18,000 more by choosing to lease a Tesla rather than buy one.

Check out the video for more details. Then, head down to our comment section the let us know your take on this. Have you leased an EV? Share your experience with us here.

Source: Cleanerwatt (YouTube)