Tesla Lease vs. Loan: What to consider in 2025
We use affiliate links and may receive a small commission on purchases. Read more about us.
There are several aspects one should look into before deciding whether to lease or finance a Tesla.
Both leasing and financing a Tesla can be a better option depending on some of the important aspects.
For example, a person who frequently changes his car and another person who hardly replaces his car will have two different perspectives while going for a new car.
Leasing might be a good option when you love to change your car after a while. But financing is always the better option when you have a plan to go a long way with your Tesla.
On I go with some of the more valid reasons why you should give a better thought before buying or leasing a Tesla-
What is leasing and buying a car?
Leasing a car means having the authenticity to enjoy the ownership of a car for a certain period of time through EMI.
After the session, the owner has to return the car.
On the contrary, buying a car means having ownership of the car permanently. One can have the ownership of a car both through a one-time payment or EMI.
Leasing or buying: which one makes sense?
Under certain circumstances, leasing might look like a better option as the monthly payment seems lower. But in the longer period, this smaller amount might fool you as most of the time taking a lease of a vehicle might put you in a situation where you will have to pay more than purchasing the car.
Under several business or tax situations, leasing might make sense. But as an individual, having the ownership of the car through a loan seems always a better option.
Why leasing a vehicle looks very attractive?
For several reasons, leasing a vehicle looks always attractive. Here are some of our findings on why we think people take it for granted that leasing a vehicle is a better option-
First of all, on the surface level, there is a lower monthly payment ratio.
As the monthly payment for leasing a car looks cheaper than paying the loan, it looks like a lucrative decision to the mind.
Moreover, you get to enjoy the experience of driving a car for three years for almost half the price of having one, which might paralyze the neutral mind for the anticipation of a bigger reward.
But remember that this convenience has a price that everyone has to pay in the longer run.
Tesla Lease vs. Buy: cost calculation
If you are thinking about having one EV from Tesla, you can either go with the loan option or you can have the ownership of the car for a minimum of three years through a lease.
How much the price of lease and Buy would differ from one another when it comes to having one Tesla?
Here is our estimation for you-
Tesla Model 3 Buy vs. lease
Category | Buy | Lease |
Monthly Payment | $1,316 | $519 |
Down payment | $4,500 | $4,500 |
Loan/lease terms | 36 months/3 years | 36 months/3 years |
APR | 2.99% | 5.37% |
Total for three years | $1,316x12x3=$47,376 | $519x12x3=$18,684 |
Including Downpayment | $47,376+$4,500=$51,876 | $18,684+$4,500=$23,184 |
That means to own a Tesla Model 3 through the loan, you will have to pay around $52,000 over three years, including the downpayment.
On the contrary, leasing a brand new Model 3 for three years will cost you nearly $23,200.
Remember that we have excluded some of the basic prices from the calculation. The aggregated cost might include additional $2,000 to $3,000.
Tesla Model S Buy vs. lease
Category | Buy | Lease |
Monthly Payment | $2,859 | $1,472 |
Down payment | $7,500 | $7,500 |
Loan/lease terms | 36 months/3 years | 36 months/3 years |
APR | 2.99% | 5.92% |
Total for three years | $2,859x12x3=$102,924 | $1,472x12x3=$52,992 |
Including Downpayment | $102,924+$7,500=$110,424 | $52,992+$7,500=$60,492 |
The monthly loan amount to have a Tesla Model S is $2,859. That means over the three years, you will have to pay around $110,500 to have one Tesla Model S.
On the other hand, with $1,472 of the monthly payment, you can lease a Model S for three years with a grand total of around $60,500.
The leasing price may look half the price of the total price, but there is a fallacy lying deeper into this segment which we will be discussing in the latter part of this article.
Stay tuned until the last to have some better insights-
Tesla Model Y Buy vs. lease
Category | Buy | Lease |
Monthly Payment | $1,796 | $766 |
Down payment | $4,500 | $4,500 |
Loan/lease terms | 36 months/3 years | 36 months/3 years |
APR | 2.99% | 6.06% |
Total for three years | $1,796x12x3=$64,656 | $766x12x3=$27,576 |
Including Downpayment | $64,656+$4,500=$69,156 | $27,576+$4,500=$32,076 |
With a downpayment of $4,500 and a monthly payment amount of $1,796, you can own a Tesla Model Y for over three years for about $69,500.
On the flip side of the coin, to take a lease of the Tesla Model Y for the period of three years, you will have to pay $32,100 with a $766 monthly payment, 6.06% of APR rate, and a $4,500 downpayment.
Tesla Model X Buy vs lease
Category | Buy | Lease |
Monthly Payment | $3,324 | $1,717 |
Down payment | $7,500 | $7,500 |
Loan/lease terms | 36 months/3 years | 36 months/3 years |
APR | 2.99% | 6.57% |
Total for three years | $3,324x12x3=$119,664 | $1,717x12x3=$61,812 |
Including Downpayment | $119,664+$7,500=$127,164 | $61,812+$7,500=$69,312 |
Finally, there comes the most expensive Tesla Model X. To get a Tesla Model X through a loan, the monthly payment is $3,324 with a downpayment of $7,500.
That means over the three years, you will have to pay a grand total of $127,200, including the downpayment.
On the opposite, with a $1,717 monthly payment, leasing a Tesla Model X for three years will require you to pay around $69,500.
Read more: Tesla Model Y Long Range vs. Performance
The value of Tesla cars hardly drop
When it comes to purchasing or leasing a vehicle, the depreciation cost plays a very significant role in the longer run.
Unlike many other vehicles, the value of Tesla Models does not seem to drop a lot. In general, over the three years, the value of a specific Tesla Model seems to drop by around 10%.
For some other hydraulic gas-powered vehicles, this percentage would surpass nearly 30 to 50%.
And that is where purchasing the vehicle through a loan makes sense on any occasion.
Why loan is a better option than leasing?
For example, let's assume that you have a Tesla Model 3 which you brought for $45,000. After three years, if the car loses 10% of its value, the car still has a price of $40,000.
That means the cost over three years is $45,000-$40,000= $5,000. In a simpler sense, you are paying nearly $1,700 to have a Model 3 every year.
Now, if you take the lease of the car for $20,000, you are paying around $6,500 every year.
In conclusion, you are paying $4,800 more when you go to lease the Tesla Model 3.
Leasing might be a better solution under business or Tax criteria
Indeed, an individual can benefit from purchasing a vehicle than leasing one. But when you take the bigger picture into consideration, leasing a Tesla looks actually very lucrative.
For example, in a business environment where you will require a large number of cars for a limited period, leasing can considerably become a more envying decision.
At the same time, in some situations, you might face some issues regarding TAX and other value-added services that you feel like hassles. In such situations, leasing a car might give you relief from those hassles.
But if you really want to have one that you are passionate about, we believe extending the EMI period might give you better relief to get the financial aid.
Leasing a Tesla puts limitations on the mileage
Leasing a Tesla has another drawback as well. Unlike a purchased Tesla, you will get limited access to the mileage.
For example, when it comes to leasing a Tesla Model 3, the annual mileage is limited to 10,000, 12,000, and 15,000 miles. After that specific tile, you will not be able to drive the car.
But when you go for having one, you will have the chance to modify the mileage even if you reach the threshold.
Consider buying a used Tesla
How about purchasing a used oneif you cannot afford to buy your cherished dream car?
Although the price of a brand new and used Tesla does not differ a lot, still purchasing a used Tesla can be a good way to save some of your bucks if finance is what you think most about.
One of the benefits of having a used Tesla is that you can always think about upgrading the Tesla which is not possible with hydraulic cars. That means no matter whether your Tesla gets released in the year 2023 or back in 2021, the features and specs of the same model tend to be quite equivalent and the same on most occasions.
When you take lease of a Tesla, you will be responsible for any damages to the car
Over three years, it is quite normal that your car will face some issues or external damages. And that is where the fear is when you take lease of a car.
If any sorts of damages are found when it comes to returning the vehicle, you will be responsible for the damages.
That means you will have to pay additionally for the damages.
But when you have ownership of the car, you are free to do anything with the car, including modifications and some external or internal decorations.
Where can you take a lease of a Tesla?
You can lease a Tesla directly from the manufacturer.
Even Tesla sells used models so that the consumers do not need to go to any third-party sellers to get their wished car.
If you want to take a lease of a Tesla instead of going for the ownership, you may check this link for current information on the monthly payment and TAX information.
Final verdict: Tesla lease is for business or Tax benefit and Tesla ownership is for individual.
To summarize the whole article in a single sentence, it is better to say that leasing would bring wholesome results for business or Tax benefits, whereas taking ownership of the car will benefit an individual.
It is now up to you to make the better decision that will help you in the course of your life. From our side, we are wishing you very good luck in your decision-making process.
