Tesla has expanded its financing options by offering leases on pre-owned vehicles, giving customers in California and Texas a new way to get behind the wheel of a Model 3 or Model Y.
The new program was announced by Tesla on X, highlighting that customers can lease for as little as $0 down and $225 per month, making Tesla ownership more accessible to drivers who may not want the upfront cost or long-term commitment of buying new.
Based on a review of Tesla’s used vehicle listings in California, we were able to find numerous examples of the Model Y available for around $230 per month with $0 down. Add in a small $1,000 down payment, and the payment drops to under $200 per month. This applies to leases for 24 months with an annual mileage limit of 10,000 miles.
The deals are even better for Model 3, where payments can be around $150 per month with no money down, or just $128 month with the maximum down payment of $612 on this 2018 example.
Additionally, Tesla’s pre-owned vehicles are covered by whatever remains of the original New Vehicle Limited Warranty (4 years or 50,000 miles from the initial delivery date, whichever comes first).
After the original warranty expires, Tesla provides an extra 1 year or 10,000 miles (whichever comes first) of coverage under the Used Vehicle Limited Warranty, adding peace of mind for lessees.
Customers can also purchase their vehicle outright at the end of the lease.
By introducing leases on used vehicles, Tesla is also targeting a broader audience, including younger drivers and those who may have been priced out of the new EV market. Offering a Model 3 or Model Y lease at such low prices is a significant reduction from the cost of leasing or financing the purchase of a brand-new Tesla, which can run hundreds more per month depending on configuration.
For Tesla, this strategy not only helps expand its customer base but also ensures older inventory continues generating revenue. Pre-owned leases could also appeal to households looking for a second EV without the financial burden of a new purchase.
Currently, Tesla is only offering pre-owned leasing in California and Texas, two of its largest markets. If the program proves successful, it’s likely Tesla will expand availability across the U.S. and potentially into international markets. Given the company’s history of rolling out new products regionally before expanding, a wider release seems almost inevitable.
