Elon Musk founded Tesla in 2003 and has worked on his electric car company for the past decade. Now, Tesla is a household name with multiple electric cars on the road.
Tesla’s cars are built to be as technologically advanced as possible and are packed with innovations that make them stand out from other vehicles. However, Tesla vehicles are some of the most expensive on the market.
The only other alternative to owning a Tesla aside from buying it is through a leasing plan. It can be a cost-effective way of driving one of their latest models.
In the past, Tesla cars were unavailable for lease and required you to purchase them in whole or through a financing plan. Drivers can now lease a vehicle from Tesla and pay less than they would if they bought it outright. Here’s what you should know about leasing your next Tesla.
What is Leasing?
Leasing is similar to renting. You pay for a car for a fixed period (usually two or three years) and then return it at the end of the lease term. You don’t own the car during this period but get all the benefits of driving it.
At the end of your lease term, you can either return it or buy it for a predetermined price set by the leasing company.
What are the Requirements to Lease a Tesla?
Tesla does not follow the traditional path of leasing its cars through dealerships. As a result, there are no Tesla dealerships anywhere in the world. Instead, you can lease your car directly from Tesla’s website or one of their showrooms.
The cost of leasing a Tesla is based on two factors: your credit score and the price of the car. You will likely qualify for the most favorable terms if you have good credit. If your credit isn’t that great, you may need to pay higher interest rates or deposit amounts. The more expensive the model, the higher your monthly payments will be.
There are several lease options available for new Teslas:
- 24-month lease
- 36-month lease
- 48-month lease
How to Lease a Tesla
Tesla is a luxury car manufacturer that offers several leasing options for its vehicles. The company’s most popular models for lease include the Tesla Model S and the Tesla Model 3, which are available for lease in most states. Here’s a brief breakdown of how to lease a Tesla in 2022.
Getting Started
The first step is to go to the Tesla website and select the model you want to purchase. Click on Order Now.
Customize Your Model
Next, it’s time to customize your car. Tesla offers four models: the Model S, 3, X, and Y. All have similar features but differ slightly in size, performance, and price. You can even choose between different variants of each model — for example, several configurations are available for the exterior colors and the type of rims.
Lease Your Tesla
After you’re done modifying your Tesla, you can continue to the payment option. After designing your Tesla, select Lease as a payment method to place an order for your vehicle. The Tesla leasing calculator is also available to help you determine how much it will cost to lease one of their cars.
Your credit application will be reviewed by Tesla, and you will be notified of the credit decision.
Once your credit application is approved and you’ve made your payment, a Tesla Advisor will contact you to discuss the next steps. Should your credit application be denied, a Tesla team member will contact you to discuss your options.
What States Can You Lease a Tesla In?
It should be noted that Tesla leasing is not available in all states. According to Tesla’s website, here are the current states that allow you to lease a Tesla in 2022:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- District of Columbia (D.C.)
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Montana
- North Carolina
- North Dakota
- New Jersey
- New Mexico
- Nevada
- New York
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wyoming
States You Cannot Currently Lease a Tesla
While the company has made significant efforts to expand its sales into new markets, there are still some places where Tesla can’t lease its vehicles. Here’s a list of all states where you can’t currently lease a Tesla:
- Delaware
- Kentucky
- Michigan
- Mississippi
- Nebraska
- New Hampshire
- Oklahoma
- Wisconsin
There are several states where Tesla cannot lease its vehicles directly to customers. In some cases, this is due to restrictive franchise laws that prevent automakers from selling directly to consumers. In others, it’s because the state itself doesn’t allow direct sales of any kind.
Tesla has been fighting these laws for years, but it’s had little success.
Auto dealer associations have lobbied for legislation restricting direct sales by automakers. They argue that dealerships provide a valuable service by connecting buyers with cars and financing options, which they say Tesla can’t do alone.
In some cases, state law requires automakers to sell through franchises rather than directly to customers. Some states don’t allow direct sales of any kind — even if they have no franchise laws on the books.
What’s the Best Tesla for You to Lease in 2022?
Tesla has four electric vehicles for lease. There are still two Tesla models in the pipeline (the Cyber Truck and the second-generation Roadster). Still, the American automaker offers only four EV options right now:
- Model 3
- Model Y
- Model S
- Model X
The model you decide to lease will ultimately depend on your needs and wants. For example, the Model 3 is the least-expensive car in Tesla’s lineup. If you want a bigger car, you can opt for the model X or Y. These bigger SUVs seat up to seven people and offer even more cargo space than their sedan counterparts.
How Much Does a Tesla Lease Cost in 2022?
The cost of leasing a Tesla in 2022 depends on several factors. It depends on which model you choose and your credit score. That means that if you have good credit scores and can afford a large deposit, you’ll be paying less for your car in many cases.
For comparison, all Tesla models listed below are based on 36-month leases and 12,000 miles a year. For the two newest models (3 and Y), we will pay a minimum down payment of $4,500. For the veteran models (X and S), we will use the minimum required $7,500 down payment.
These 2022 Tesla lease prices are accurate at the time of publication, but they may change in the future.
Tesla Model 3 Lease
We’ll start with the cheapest option of the four models. The Tesla Model 3 is a popular choice for those looking to lease a new car. It’s not surprising since it’s one of the most affordable electric vehicles on the market, but it also boasts impressive performance and some great features. Here’s a breakdown of the leasing plan:
| Model 3 Version | Down Payment | First Required Payment + Acquisition Fees | Due at Signing | Monthly Payment |
|---|---|---|---|---|
| Standard RWD | $4,500 | $1,239 | $5,739 | $544 |
| Long-Range AWD | $4,500 | $1,384 | $5,884 | $689 |
| Performance AWD | $4,500 | $1,384 | $6,006 | $811 |
©canadianPhotographer56/Shutterstock.com
Tesla Model Y Lease
The Tesla Model Y is the company’s newest vehicle. The Model Y is a crossover SUV similar to the Model 3 sedan and Model X, but with more seating capacity and cargo room.
Like the Tesla Model 3, the Model Y requires only a $4,500 down payment. Additionally, it’s only a few hundred more for the first payment. However, the monthly payment for a Model Y will be significantly more compared to the cheaper model X. Here’s a breakdown of the leasing plan:
| Model Y Version | Down Payment | First Required Payment + Acquisition Fees | Due at Signing | Monthly Payment |
|---|---|---|---|---|
| Long-Range AWD | $4,500 | $1,495 | $5,995 | $800 |
| Performance AWD | $4,500 | $1,569 | $6,069 | $874 |
©iStock.com/RoschetzkyIstockPhoto
Tesla Model S Lease
The Model S is the faster and more luxurious option of the sedan models. The model S has excellent specs, requiring a higher down payment of $7,500. The Model S’s upfront and monthly costs are higher, but that’s the cost of experiencing a great vehicle. Here’s the lease breakdown.
| Model S Version | Down Payment | First Required Payment + Acquisition Fees | Due at Signing | Monthly Payment |
|---|---|---|---|---|
| Standard AWD | $7,500 | $2,193 | $9,693 | $1,498 |
| Plaid | $7,500 | $2,731 | $10,231 | $2,036 |
©iStock.com/typhoonski
Tesla Model X Lease
The Model X is the most expensive lease option in 2022. It’s worth paying for as long as you can afford it. Here’s the lease breakdown for 2022.
| Model Y Version | Down Payment | First Required Payment + Acquisition Fees | Due at Signing | Monthly Payment |
|---|---|---|---|---|
| Standard AWD | $7,500 | $2,443 | $9,943 | $1,748 |
| Plaid | $7,500 | $2,891 | $10,391 | $2,196 |
©iStock.com/y_carfan
Some States are More Complex Than Others to Lease In
In some states, you can get a lease without much hassle. But in others, it’s more complex.
For example, Tesla leases are allowed in Vermont, but the state does not have a pickup or maintenance center. So, you’ll have to acquire your Tesla from a nearby state, which isn’t as easy.
Additionally, if you need to service your Tesla after going through all the hurdles to get a Tesla, you’ll need to drive to another state to get your car serviced. For example, if you’re in Vermont, you’d need to drive to either New York or New Jersey, which is far from ideal.
Here are some states without service centers:
- Alabama
- Alaska
- Arkansas
- Delaware
- District of Columbia
- Kansas
- Maine
- Montana
- North Dakota
- South Carolina
- South Dakota
- West Virginia
- Wyoming
We recommend checking out Tesla’s “find us” page to determine where the nearest service center is to you, so you don’t have to drive a long way if you have issues with your car.
Leasing vs. Financing: What’s the Difference?
While leasing and financing are methods of paying for a car, they differ. When you lease a car, you pay a fixed monthly payment, just like with an auto loan. But instead of owning the vehicle at the end of the term, you return it to the dealer and start over with another one.
With financing, on the other hand, you pay off your debt with monthly payments and then own the vehicle outright at the end of the loan period.
Benefits of Leasing a Tesla
There are many benefits to leasing a Tesla. First and foremost, it allows you to drive a luxurious vehicle without spending too much money upfront. If you know that you’ll be trading in your car within three years or less, this would be another reason to consider leasing instead of buying it outright.
Leasing also allows you to try out new Tesla models without making a significant investment upfront. If some new technology interests you, leasing could be an excellent way to get your hands on it without blowing all your money on it immediately.
Drawbacks of Leasing a Tesla
While there are many benefits to leasing a Tesla, there are also some drawbacks. For example, leasing can be expensive over time because of high-interest rates and mileage penalties.
Another drawback is that when you buy a new car, you can usually trade it in for a new one. But when you lease, you’re stuck with that car until the lease ends.
The only way around this is if there’s an option to purchase your leased Model S at the end of the term, but that’s not always available.
Consider a Used Tesla
A used Tesla may not have the same brand-new shine as a new car, but it can be a great way to save money without sacrificing style or performance. Used Tesla cars are also typically more affordable than their new counterparts, making them a smart choice for those who want to own one of these luxury vehicles without breaking the bank.
Tesla has been in the leasing business for a couple of years, and its program is still evolving. The company’s latest significant change came in 2017 when Tesla started offering customers the ability to lease its Model S and Model X vehicles without down payments.
The cost of leasing a Tesla depends on factors such as your credit score and income level. However, the average cost of leasing a Model S or X ranges from $500-2,200 per month. This includes tax, insurance, and maintenance costs. The price will also vary depending on where you live and the length of your lease term.
The image featured at the top of this post is ©Valeriya Zankovych/Shutterstock.com.
