Recently, it seems incredible deals on EVs are everywhere, and now even Tesla seems to have joined in, reducing the lease price for the new Model 3 to an incredible $299 per month… incredible at first glance that is. Because as with all deals that seem too good to be true, there are some catches. This specific offer is for a 36-month lease with a down payment of $2,999 and an annual mileage limit of 10,000 miles, with each additional mile priced at a whopping $0.25 per mile. While this might not suit those who frequently go on long road trips, for most people, this could prove to be a fantastic deal. To put this in perspective, leasing a 2024 Toyota Corolla LE under similar terms, a 36-month lease with a $3,238 down payment and a 12,000-mile annual limit, would cost $239 per month. Although the monthly payment for the Model 3 is slightly higher, it arguably offers significantly more value for the money. It’s important to note, however, that these prices do not include taxes and fees.
This remarkably low lease price is made possible by a $7,500 EV lease incentive from the Inflation Reduction Act, which was passed in the US in August of 2022. Oddly enough, the Tesla Model 3 qualifies for this incentive only when leased, not when bought or financed, which can be a bit confusing. But that’s the government for you.
However, there’s a very significant drawback to leasing a Tesla that makes us hesitant to recommend it. Unlike most car leases, Tesla does not offer any buyout options at the end of the lease term. Typically, at the end of a lease, the lessee has the option to purchase the vehicle or finance the remaining value, allowing them to continue using the car without mileage restrictions. Unfortunately, Tesla requires that all leased vehicles be returned at the end of the lease with no option to buy them out, which makes leasing not make a whole lot of sense in the long term.
If Tesla were to introduce buyout options at the end of its leases, it would make this deal a no-brainer, and we would highly recommend it. But unless that change is made, we find it very difficult to recommend leasing a Tesla.
