The Tesla Model 3 has achieved a significant milestone by becoming the seventh most-leased vehicle in the US. This marks the first time an electric vehicle (EV) has made it into the top 10 leased vehicles. According to data from Experian, the Tesla Model 3 captured 1.79% of new vehicle leases in the second quarter of 2023.
Leasing has become an attractive option for consumers who are curious about EVs but are not ready to make a long-term commitment. Melinda Zabritski, Experian’s senior director of automotive financial solutions, explains that leasing allows consumers to have the vehicle for a short period of time and avoid the concerns of long-term ownership in an industry with rapid changes and new models.
The popularity of leasing the Model 3 can be attributed to Tesla’s efforts to make it more affordable and desirable. In January, Tesla reduced the monthly lease cost to $399, making it an even more appealing option. Currently, the base Model 3 with rear-wheel drive can be leased for just $380 per month for a three-year term. This move has likely attracted more potential lessees to consider the Model 3 as a viable option.
Additionally, a loophole in the Inflation Reduction Act has contributed to lower monthly payments for EVs that would not normally qualify for the full EV tax credit. Although the Model 3 is one of the few vehicles that does qualify for the full tax credit of $7,500, this loophole has further reduced the cost of leasing EVs for qualified buyers.
Despite the success of the Model 3, the Ford F-150 truck continues to hold the top spot for the most-leased vehicle with a 2.52% share of new leased vehicles. Other popular brands in the top 10 include Honda, Nissan, Chevy, Jeep, and Ram.
Overall, the increasing popularity of leasing and the improved affordability of the Tesla Model 3 have allowed more consumers to experience the benefits of EVs without the commitment of long-term ownership.
Sources:
– Automotive News
– InsideEVs