Tesla Model 3 Becomes First-Ever EV To Crack Into Top 10 Leased Vehicles In America

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Tesla Model 3 Becomes First-Ever EV To Crack Into Top 10 Leased Vehicles In America
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The Tesla Model 3 accounted for 1.79 percent of all vehicles leased in the second quarter of 2023, marking the first time an EV has made it into the top 10 on the new vehicle leasing charts

Tax Incentives, High Interest Rates Mean Leasing An EV Is The Cheapest Way To Drive A New Car Today

The Tesla Model 3 cracked into the top 10 despite rising rates of overall leasing. While rates across the country are up 1 point, to 21.3 percent, leasing of the electric sedan was up by nearly 14 points. However, fewer Americans are leasing today than were in 2018 and 2019. However, more buyers have started leasing electric vehicles, in part because of the wider availability of tax incentives for shoppers who choose the method. Oddly, the Model 3 is eligible for tax credits whether it is bought or leased.

Despite that, a recent report from Energy Innovation suggests that high-interest rates make monthly payments lower for lessees. The combination of tax incentives offered to consumers, Tesla’s ongoing push to lower prices, and high-interest rates makes the Model 3 a competitive offer and may help explain its recent success.

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