The Tesla Model 3 has achieved a significant milestone by becoming the first electric vehicle (EV) to make it onto the list of top 10 most-leased vehicles in the U.S. The data from Experian, as reported by Automotive News, reveals that the Model 3 sedan secured the seventh spot on the list in the second quarter. The increased demand for the electric sedan can be attributed to price cuts and EV tax credits.
While the Model 3 accounted for just 1.79 percent of newly leased vehicles in the quarter, the percentage translates to one in four Model 3 sales being on lease. This marks a 14-point increase from the previous year’s second quarter. The top three leasing vehicles on the list were the Ford F-150, Honda CR-V, and Nissan Rogue, which collectively accounted for 7.26 percent of all new leased vehicles.
Melinda Zabritski, senior director of automotive financial solutions at Experian, noted that it is unusual for a car like the Model 3 to feature on this list, as it is typically dominated by higher-volume vehicles with leases. However, the electric vehicle market is undergoing rapid changes with new models constantly entering the market, making leasing an attractive option for consumers who want to try out different vehicles for shorter periods of time without ownership concerns.
According to Automotive News, the leasing rate for the Model 3 exceeded both the overall new vehicle lease rate of 21.3 percent and the EV lease rate of approximately 21.2 percent. Zabritski mentioned that current lease rates are still lower than the peak levels seen in 2018 and 2019 when the overall leasing rate surpassed 30 percent.
In other news, Tesla is preparing a $1.8 billion lease securitization process to generate alternative funding. This involves bundling up several of its auto leases to be sold as bonds. This funding could potentially be used by Tesla to offer even shorter-term leases than what is currently available. Earlier this year, Tesla introduced a new seven-year financing option in addition to its existing three-, four-, five-, and six-year leases.