Tesla Lease vs. Finance: Best Choice for Model 3 & Y with 0.99% APR?
Hey everyone, DennisCW here! I recently spotted a Reddit post that sparked a ton of debate: with Tesla's killer 0.99% APR financing, should you lease or finance your new EV? It's a great question, especially now with lease deals popping up. Let's break it down based on real numbers for the Model 3 and Model Y.
The Reddit Dilemma
A first-time Reddit poster was eyeing an EV but got tripped up by the 9.99% APR confusion (spoiler: Tesla's actual financing is 0.99% right now). Comments flooded in—some saying skip financing altogether due to depreciation, others debating lease vs. buy. I've crunched the numbers, and here's the straight talk.
Model 3: Leasing Looks Like a Steal
Right now, Tesla leases for the Model 3 are super attractive:
- Rear-Wheel Drive (RWD): As low as $399/month
- Premium RWD (newly dropped): $449/month
These beat financing payments hands-down for most folks. Why? Leasing locks in lower monthly costs, perfect if you're upgrading every 3 years.
Model Y: Financing Wins (For Now)
Flip to the Model Y, and it's a different story:
- Premium RWD: $569/month to lease
These payments are higher, often requiring a bigger down payment for approval. At 0.99% APR, financing makes more sense here—especially if you plan to keep it 5-10 years.
| Model | Lease (RWD) | Financing Perk |
|---|---|---|
| Model 3 | $399-$449/mo | Higher payments |
| Model Y | $569/mo | 0.99% APR shines |
Leasing vs. Financing: Key Pros & Cons
Leasing Pros:
- Lower monthly payments (Model 3 especially)
- Depreciation protection: Return it after 3 years—no resale hassle
- Buyout option: e.g., Model 3 for ~$30K. If it's worth more, profit! If less, Tesla eats the loss
Leasing Cons:
- Higher interest rates (4-7% typically)
- Fees: Acquisition fee upfront, $350 disposition fee at end (waived if leasing another Tesla?)
Financing Pros:
- Ultra-low 0.99% APR
- Own it outright after payments—no fees
- Ideal for long-term owners
Financing Cons:
- Higher monthly payments
- You bear full depreciation risk
Quick Tip: Drop a non-refundable $250 deposit on Tesla's site, then tweak lease/finance in the app for real personalized numbers. Pro move: Use my Tesla referral code for up to $1,000 off!
My Advice (Not Financial Advice 😉)
- Model 3 buyer? Lease it. Payments are unbeatable.
- Model Y fan? Finance. 0.99% crushes the lease math.
- Short-term driver (3 years)? Lease.
- Long-haul keeper (5+ years)? Finance.
TL;DR: Lease Model 3, finance Model Y.
What do you think? Drop your thoughts in the comments—lease or finance?
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Drive safe, and I'll catch you in the next one! 🚀
DennisCW
