Tesla has introduced a significant reduction in the starting lease price for the Model Y Long Range Rear-Wheel Drive (RWD) in the US, dropping it from US$349 to US$299 per month, making Tesla’s entry-level SUV more accessible to a broader range of consumers.
According to Tesla’s online configurator, the updated lease offer on the Model Y Rear-Wheel Drive (RWD) includes a US$2,999 down payment, a 36-month term, and an annual mileage cap of 10,000 miles. This brings the electric SUV’s lease price in line with that of the Model 3 sedan, which also starts at US$299 per month. (h/t: @SawyerMerritt)
Starting lease prices for the Long Range All-Wheel Drive (AWD) and Performance remain the same at US$399 and US$599 per month, respectively.
While the reduced monthly cost makes the Model Y more competitive in the electric vehicle (EV) and broader automotive market, there is an important caveat. Tesla still does not allow customers to buy out the Model Y at the end of the lease. This differentiates Tesla’s leasing structure from traditional agreements, where leaseholders typically have the option to purchase the car once the term expires.
Tesla’s policy of prohibiting end-of-lease buyouts on the Model Y, and also the Model 3, is not new and has been in place for a number of years. By retaining control of its leased vehicles, Tesla can ensure these cars are integrated into the company’s ecosystem, often repurposed for resale, service programs, or more importantly, and the reason behind the policy, future robotaxi networks.
This reduction in the starting lease price is the latest in a series of incentives to boost end-of-year sales in the US. The company is also offering 0% interest financing, free Full Self-Driving (FSD) transfers for existing owners, and three months of free Supercharging and FSD when purchasing a new car from existing inventory, instead of ordering a custom-built one.
