Tesla Leasing vs Buying
Complete financial analysis to help you decide the best option
Make the right financial decision for your Tesla
Compare leasing vs buying your Tesla with detailed cost analysis, pros and cons, and scenario-based recommendations to help you make the best financial choice.
Quick Comparison
| Factor | Leasing | Buying | Winner |
|---|---|---|---|
Monthly Payment | $400-800/month | $800-1,500/month | Leasing |
Down Payment | $3,000-5,000 | $5,000-15,000 | Leasing |
Total 3-Year Cost | $18,000-29,000 | $33,000-54,000 | Leasing |
Ownership | No ownership | Full ownership | Buying |
Mileage Limit | 10,000-15,000/year | Unlimited | Buying |
Customization | Limited | Full customization | Buying |
Tax Benefits | Business deductions | EV tax credits | Depends |
Long-term Value | No equity | Potential equity | Buying |
Real Cost Examples
Model 3 RWD
Leasing (3 years)
Buying (3 years)
Model Y Long Range
Leasing (3 years)
Buying (3 years)
Model S
Leasing (3 years)
Buying (3 years)
Leasing Pros
Lower Monthly Payments
Monthly payments are typically 30-50% lower than loan payments
Model 3 lease: $450/month vs $850/month loan
Lower Down Payment
Initial costs are significantly lower than buying
Typical lease down payment: $3,000 vs $7,500+ for purchase
Always Drive New Tesla
Get a new Tesla every 2-3 years with latest features
Upgrade to new models with improved range and features
Warranty Coverage
Always covered under Tesla's warranty
No expensive repairs out of warranty
Tax Benefits for Business
Potential tax deductions for business use
Business owners can deduct lease payments
No Resale Hassles
Simply return the car at lease end
No need to sell or trade-in the vehicle
Leasing Cons
No Ownership Equity
You don't own the vehicle and build no equity
After 3 years, you have nothing to show for payments
Mileage Restrictions
Limited annual mileage with excess charges
$0.15-0.25 per mile over limit (typically 10,000-15,000/year)
Customization Limits
Can't modify or customize the vehicle
No aftermarket modifications, wraps, or upgrades
Wear and Tear Charges
Charges for excessive wear at lease end
Scratches, dents, or interior damage can cost hundreds
Early Termination Fees
Expensive to end lease early
Early termination can cost thousands of dollars
Long-term Cost Higher
More expensive over 6+ years than buying
Two leases (6 years) cost more than buying and keeping
Buying Pros
Build Equity
Eventually own the vehicle outright
After 5-6 years, own a valuable asset
No Mileage Limits
Drive as much as you want
Perfect for high-mileage drivers
Full Customization
Modify and personalize your Tesla
Wraps, performance upgrades, interior modifications
Eventual Ownership
No more payments after loan is paid off
Years of payment-free driving
Sell Anytime
Can sell or trade-in whenever you want
Flexibility to upgrade when desired
Tax Credits Available
May qualify for federal and state EV credits
$7,500 federal tax credit (conditions apply)
Buying Cons
Higher Monthly Payments
Loan payments are significantly higher
Model 3 loan: $850/month vs $450/month lease
Higher Down Payment
Larger initial investment required
Typical purchase down payment: $7,500-15,000
Maintenance Costs
Responsible for all maintenance after warranty
Battery replacement could cost $10,000+ after 8 years
Depreciation Risk
Vehicle value may decrease
Tesla values can fluctuate with market conditions
Longer Commitment
5-7 year loan terms are common
Longer financial commitment than leasing
Technology Becomes Outdated
Keep same technology for many years
Newer models may have significantly better features
Decision Scenarios
Choose Leasing If:
- You want lower monthly payments
- You drive less than 15,000 miles per year
- You like driving a new car every few years
- You're a business owner (tax benefits)
- You don't want to worry about maintenance
- You prefer predictable costs
Leasing is likely better for your situation
Choose Buying If:
- You drive more than 15,000 miles per year
- You want to customize your Tesla
- You plan to keep the car for 5+ years
- You want to build equity
- You prefer ownership over payments
- You want to qualify for EV tax credits
Buying is likely better for your situation