Tesla has launching leasing for its Model 3 sedan and the latest Model Y compact SUV in Canada. Previously, leasing was only offered for the company’s more expensive Model S and Model X vehicles.
According to Tesla’s website, you can now lease a Model Y starting at $724 per month, based on the default downpayment of $5,250 CAD on a 48 month term, with 16,000 kilometres allowed per year. After potential gas savings, Tesla says your Model Y Long Range Dual Motor would cost you $630 CAD per month.
The price drops further for Model 3 and its entry Standard Range Plus configuration, as a monthly payment can be at $474 CAD per month, based on the default downpayment above and 16,000 kilometres per year, on a four year term. Factor in gas savings and you’re paying $318 CAD per month says Tesla.
The fine print says you can either buy out or return your Tesla after the lease is up–but if you read CEO Elon Musk’s update below–that’s actually an error.
Why lease a Tesla? Business owners will surely jump on this to write off payments or kilometres, while leasing an electric vehicle means you don’t need to deal with battery degradation over the long term. With Tesla’s entry vehicles now available for lease, the company can expect even more sales from a new segment of buyers.
That’s an error in Canada. The lease payment is specifically lower than loan financing, as Tesla expects to repossess the car. This is essentially a bet on residual value. If you believe residual value will rise, buy on loan, if you think it will drop, then lease.
— Elon Musk (@elonmusk) August 19, 2020
Update: Elon Musk has clarified “that’s an error in Canada”, answering a reply in regards to being able to buy out your Tesla.