Photo: Tesla
The Model 3 is the most affordable car in Tesla’s lineup and is now even more so after the EV maker crashed the prices in mid-January. Nevertheless, concerned that people might still not afford a Tesla, the EV maker has introduced a $399 leasing option for the car. If you think this is a great offer, read on.
The recent price cuts Tesla operated on January 12 have produced powerful emotions across the automotive spectrum. We’ve explained why we think there are very few beneficiaries of these price cuts besides new buyers and Tesla itself. We still cannot explain why Tesla cut the prices and, even more importantly, why it chose to cut them specifically now and not earlier. Tesla critics probably say that the low demand at the end of 2022 was a trigger, but we’re not sure this is the whole story. Here’s Elon Musk’s explanation, offered during the Q4 2022 earnings call.
“So basically, price really matters. I think there’s just a vast number of people that want to buy a Tesla car but can’t afford it,” said Elon Musk. “And so these price changes really make a difference for the average consumer. It’s sometimes for people who have a lot of money, they sort of forget about how important affordability is. And there’s always been our goal at Tesla to make cars that are affordable to as many people as possible.”
It’s good that Tesla is concerned with its cars’ affordability, and it acted accordingly. Nevertheless, despite the price cuts, Tesla was still not satisfied with the results because it offered an even more enticing offer: leasing. Tesla has modified its website’s front page to make it clear you can get a Model 3 as cheap as chips. More specifically, the monthly payment for the Tesla Model 3 RWD is $399 on a three-year contract. Switching to a two-year contract doesn’t change much, with the payment at $404 a month.
There are, of course, conditions attached to the contract. In the case of the Tesla Model 3, there is a $4,500 downpayment, and the lessee needs to pay not only that upfront but also the first month’s payment and an acquisition fee of $695. The price covers a 10,000-mile plan, with additional miles available at $0.25 per mile. The most important condition is that you cannot keep the car at the end of the lease term. This is the main reason why the monthly payments are so low: Tesla will still be able to sell your car for a profit.
Similar deals are available for the other Tesla models, although none of them is advertised on Tesla’s webpage. The monthly payment for the Model Y starts at $609, whereas leasing a Model S and Model X would set you back $1,319 and $1,549 per month, respectively. In the case of the Model S/X, the downpayment is $7,500.
“So basically, price really matters. I think there’s just a vast number of people that want to buy a Tesla car but can’t afford it,” said Elon Musk. “And so these price changes really make a difference for the average consumer. It’s sometimes for people who have a lot of money, they sort of forget about how important affordability is. And there’s always been our goal at Tesla to make cars that are affordable to as many people as possible.”
It’s good that Tesla is concerned with its cars’ affordability, and it acted accordingly. Nevertheless, despite the price cuts, Tesla was still not satisfied with the results because it offered an even more enticing offer: leasing. Tesla has modified its website’s front page to make it clear you can get a Model 3 as cheap as chips. More specifically, the monthly payment for the Tesla Model 3 RWD is $399 on a three-year contract. Switching to a two-year contract doesn’t change much, with the payment at $404 a month.
There are, of course, conditions attached to the contract. In the case of the Tesla Model 3, there is a $4,500 downpayment, and the lessee needs to pay not only that upfront but also the first month’s payment and an acquisition fee of $695. The price covers a 10,000-mile plan, with additional miles available at $0.25 per mile. The most important condition is that you cannot keep the car at the end of the lease term. This is the main reason why the monthly payments are so low: Tesla will still be able to sell your car for a profit.
Similar deals are available for the other Tesla models, although none of them is advertised on Tesla’s webpage. The monthly payment for the Model Y starts at $609, whereas leasing a Model S and Model X would set you back $1,319 and $1,549 per month, respectively. In the case of the Model S/X, the downpayment is $7,500.
Google News