Tesla Cuts Model 3 And Y Lease Prices To $329 And $399 A Month

October 12, 2023

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Tesla has a proclivity to change its pricing schematics and update vehicle models at a moment’s notice. Early this month, Tesla cut its Model 3 and Y prices. Moreover, the automaker also introduced a new entry-level Model Y, likely featuring the firm’s LFP battery pack.

The 2023 Tesla Model 3 now starts at $40,380, and the Model Y runs $45,380. These vehicles are each powered by rear-mounted motors and offer a respective 272 and 260 miles of range, per the EPA. But buyers can now elect for an all-time low lease price.

Following these price drops, Tesla has just introduced lower lease prices to account for the reductions. The Model 3 RWD’s lease price is $349 a month for 36 months with $4,500 down. This lease price encompasses 10,000 miles on an annual basis. Effectively, it will cost $18,154 to lease the sedan for three years. On top of the lease price, Tesla charges a $695 acquisition fee and a $395 disposition fee at the end (factored in the estimated lease price).

The Model Y’s monthly lease price runs slightly more than its smaller Model 3 sibling. The Model Y’s lease cost is $399 a month for 36 months with the same $4,500 downpayment. Its duration is the same— 10,000 miles. The total price of leasing a Model Y from Tesla is $19,954, with all the additional fees.

In addition to the lease deal, Tesla updated its $7,500 tax credit banner for the Model 3 and Model 3 only. Now it reads, “All new Model 3 vehicles currently qualify for a federal tax credit for eligible buyers. $7,500 tax credit expected to reduce to $3,750 on Dec 31, pending federal guidance. Take delivery to guarantee full incentive.” Since all EVs, regardless of manufacturing location, qualify for the $7,500 built-in lease tax credit anyway, this should not affect Tesla’s lease prices.

It’s important to note that Tesla’s lease deals are notorious for a major caveat. Namely, Tesla will not allow customers to buy out the EV at the lease’s end. That said, with the upcoming North American debut of the refreshed Highland Model 3, these lease prices might decrease further as Tesla will likely need to make room for the latest variant.