If you have not already noticed, Tesla is increasingly growing in popularity and selling just as fast. Tesla is currently the world’s largest vehicle maker, as reported by Market Cap. There’s no doubt that Tesla is a beautiful car that everyone will eventually want to have. Nevertheless, this sleek vehicle is relatively expensive for the average consumer.
Recently, the famous automaker has launched an aggressive lease program. The question now is: Is it worth leasing a Tesla? Or is it better to purchase one?
Exploring Tesla’s Leasing Program
Visit Tesla’s comprehensive website to learn about their basic pricing structures. The overall cost of ownership can help you decide whether to lease the vehicle or not. No matter which option you choose, you will find both advantages and disadvantages to lease or buy. We’ve compiled lists of both.
Advantages of Leasing a Tesla
- Compared to priced vehicle leases, the down payment when leasing a Tesla is lower than what you might expect. It comes with ownership flexibility and allows for new model exchange.
- You can customize your requirements with a variety of leasing terms that fit your individual needs. Also included in a lease are mileage caps and ownership length.
- After three years, you can trade in the leased Tesla for a brand new model. Since the manufacturer is continually producing newer options, this is an exciting deal.
- Attractive tax incentives if you use the vehicle for business purposes.
- No security deposit when leasing a Tesla.
- Access to a 3-year drive time and annual mileage options, ranging from 10,000, 12,000 to 15,000 miles per year.
- Tesla’s leasing program involves a combination of monthly payments and a down payment.
- Possibility to gain significant amounts of tax credits for leading an electric vehicle.
Disadvantages of Leasing a Tesla
- If you drive more than 15,000 miles a year, be prepared to deal with excessive extra costs. Once you lease a Tesla, you’re locked into the vehicle for three years.
- Like the Model S and X, Leasing the more expensive Tesla demands a $7,500 down payment, a $695 acquisition fee, and payment for the first month of the lease. You must meet this requirement to pick up the new Tesla.
- Finally, leasing the entry-level Tesla Model 3, which is considerably cheaper, comes with a down payment of $4,500. You must also pay the first month’s lease charges as well as the acquisition fee when picking up the vehicle.
Exploring the Purchase of a Tesla
To purchase a Tesla, whether, on loan or right out, there will be large fees. The fees may be greater in price when choosing to purchase instead of lease.
Advantages of Purchasing a Tesla
- There are no mileage limitations.
- Tesla’s vehicle loan APR (which stands at 2.49%) is relatively lower than the standard percentage of luxury sedans’ loans.
- Consider the Tesla Model S 9 (the Long Range Plus). The base price is $69,990. If you decide to forgo the autopilot, the final total cost comes to $76,920. The monthly payment (for 36 months) will set you back $1,019 each month according to current lease options. You’ll also have to pay a $ 695 acquisition fee and a $7,500 down payment.
The Disadvantage of Purchasing a Tesla
- With interest on your loan, the monthly cost is higher than when leasing.
- Unlike the ability to trade in your vehicle after three years with a Tesla lease, you will still own the electric car when you hit the three-year mark. Selling the car to upgrade will be more difficult and will cost more.
- There might be considerable depreciation if you want to trade up or sell the vehicle at the end of three years.
So, when considering the facts, should you buy or lease a Tesla? Much depends on your circumstances, what you plan to do with the vehicle, and how you plan to use it. Will you drive it occasionally or cover many miles over a few months? Do some keen analysis of what will work for you.