There is no one-size-fits-all answer to this question. A lot depends on factors like your annual mileage expectations, monthly budget, and lifestyle.

Regardless of which option you choose, Tesla will give you full online access to your personalized company profile where you can request estimates for purchase or perform an end-of-lease checklist. This is a perk that you don’t get with every other brand.

Costs

Tesla’s sleek designs and innovative technology make their vehicles desirable, but they also come at a premium. The Model 3 costs around $48,440 before taxes and fees, which makes it out of the price range for many buyers.

Leasing offers several benefits for those who choose to go that route. In addition to being able to trade in the vehicle every three years, leasing often comes with lower monthly payments than a traditional loan. This is largely due to the limited amount of mileage allowed during the lease period, which reduces wear and tear on the vehicle.

However, it’s important to remember that leasing a Tesla isn’t free. The company will require a nonrefundable order deposit, which is applied to the final purchase price. In addition, lessees will pay interest on their monthly payments and may also be required to pay upfront or other fees, such as origination, establishment, monthly accounting, statement, late, and other fees. In addition, buyers will likely have to pay taxes on the vehicle’s final sale price. The Tesla website includes a financing calculator that can help drivers estimate their payments.

Taxes

Teslas are sleek, modern cars with impressive range and cutting-edge technology. However, the company’s vehicles aren’t cheap. A basic Model 3 costs $48,440 without taxes and fees, making it a major investment for most drivers. Fortunately, there are ways to reduce the cost of owning a Tesla, including leasing and financing.

There are pros and cons to both options, but you should decide which route makes more sense for your personal situation. Leasing can offer lower monthly payments and more flexibility, allowing you to exchange your Tesla for a new vehicle every three years. Additionally, a Tesla lease may be eligible for tax credits that aren’t available to those who purchase a car.

One big drawback to leasing is the annual mileage limit, which can be quite restrictive if you drive frequently or over long distances. Also, leasing companies typically charge hefty fees for excessive wear and tear. If you finance your Tesla, you can avoid these penalties by driving it carefully. The downside of financing is that you won’t own your Tesla until it’s paid off, so you won’t have as much flexibility when it comes to choosing a car.

Maintenance

While Teslas are known for their long battery life, they do require some maintenance. Depending on the state you live in, some Tesla dealerships offer maintenance centers where you can take your vehicle for service. However, some states do not have any Tesla maintenance centers.

Leasing a Tesla can help you avoid some maintenance costs. In addition, leasing typically comes with a mileage cap, which reduces your monthly payments. Compared to gas-powered vehicles, EVs cost less to maintain and require fewer repairs.

Another advantage of leasing is that you can upgrade to a new model every three years. This allows you to try out different electric vehicle features and see if they suit your lifestyle. It also gives you the option of buying the vehicle at the end of your lease term. Purchasing the car outright requires paying off your loan and assuming ownership. This may not be suitable for some people.

Warranty

Whether you lease or finance your Tesla, you’ll be able to access company warranties and customer service assistance. You’ll also be able to trade in your vehicle for a new model after three years (unless you exceed the 15,000-mile limitation) or sell it once the term is up.

While leasing may seem like the better option, it comes with a number of costs that can add up quickly. These include the $1,200 delivery fee, acquisition fee, taxes and registration fees. Plus, you’ll need to factor in the annual mileage limit and wear and tear charges.

On the other hand, purchasing your EV can be a wiser financial decision. It will save you money in the long run since you won’t have to pay interest on your loan. And you’ll have the freedom to upgrade whenever you want and avoid any restrictions on mileage. Of course, you’ll need to check financing rates and make sure you can afford your prospective purchase. It’s also a good idea to consult with a financial professional before making a decision.

Payments

Tesla cars are sleek and modern, but they don’t come cheap. A basic Model 3 costs $48,440, making it out of reach for many car buyers. However, those who want to experience the thrill of driving an electric vehicle might consider leasing a Tesla to see how it fits into their daily lives.

Those who choose to lease a Tesla will typically pay a lower down payment and monthly payments than those who buy one. Additionally, a Tesla lease comes with strict mileage limits, so drivers should calculate how much they’ll drive each year before agreeing to the terms of their agreement.

Those who prefer to finance their Tesla will have to submit a credit application and provide the company with information like their date of birth, registration address, employment details, social security number, and more. Once approved, those who select financing will be able to review their options within their Tesla account. These include the loan term, their ideal down payment, and the amount of annual miles they’d like to drive.