When it comes to driving a Tesla, one of the biggest decisions you’ll face is whether to lease or buy the car. Both options have their benefits and drawbacks, so it’s important to understand what each choice entails before making a decision.
This article will walk you through the pros and cons of leasing versus buying a Tesla, helping you decide which option is best for your needs and lifestyle.
Leasing a Tesla: Pros and Cons
Pros of Leasing a Tesla
- Lower Monthly Payments
One of the main reasons people choose to lease a Tesla is the lower monthly payments. When you lease, you’re essentially renting the car for a set period, usually three years. Since you’re only paying for the car’s depreciation during the lease term (and not the full price), your monthly payments are typically lower than they would be if you were buying the car. - Always Drive the Latest Model
Leasing allows you to drive a new Tesla every few years. As soon as your lease ends, you can return the car and lease a newer model with the latest technology and features. This is especially appealing if you love having the newest gadgets or if Tesla releases frequent updates that you don’t want to miss out on. - Lower Maintenance Costs
Since leased cars are usually under the manufacturer’s warranty for the duration of the lease, you won’t have to worry about major repairs. Tesla’s warranty typically covers most issues, so you’ll likely only be responsible for routine maintenance like tire rotations or brake checks.
Cons of Leasing a Tesla
- Mileage Limits
Leasing agreements usually come with mileage limits, typically between 10,000 to 15,000 miles per year. If you exceed this limit, you’ll have to pay extra fees for each additional mile. This can be a downside if you drive long distances or take frequent road trips. - No Ownership
At the end of the lease, you must return the car to Tesla. You don’t own the vehicle, so you won’t have an asset to sell or trade in. If you’ve fallen in love with your Tesla, this can be a tough pill to swallow. - Potential Extra Charges
When you return a leased Tesla, the car will be inspected for wear and tear. If there are any issues beyond what’s considered normal, you might have to pay additional fees. This could include things like scratches, dents, or worn tires.
Buying a Tesla: Pros and Cons
Pros of Buying a Tesla
- Ownership
When you buy a Tesla, it’s yours. You can keep it for as long as you want, sell it, or trade it in whenever you’re ready for something new. Over time, this can be a better financial decision because you’re building equity in the vehicle. - No Mileage Restrictions
Unlike leasing, buying a Tesla means you can drive as much as you want without worrying about mileage limits. This is ideal for those who travel frequently or have long commutes. - Customization
Owning a Tesla gives you the freedom to customize the car as you see fit. Whether you want to add new wheels, upgrade the interior, or apply a unique wrap, there are no restrictions on what you can do with your vehicle.
Cons of Buying a Tesla
- Higher Monthly Payments
If you finance your Tesla, your monthly payments will likely be higher than if you leased. This is because you’re paying off the entire cost of the car, not just the depreciation over a few years. This can be a significant financial commitment, especially if you opt for a top-of-the-line model. - Depreciation
Like all cars, Teslas depreciate in value over time. While Teslas tend to hold their value better than many other vehicles, they will still lose value the moment you drive them off the lot. If you plan to sell the car in a few years, you might not get back as much as you hoped. - Maintenance Costs
As the owner of the car, you’ll be responsible for all maintenance and repairs once the warranty expires. While Teslas are known for their reliability, repairs can be costly, especially as the car ages.
Which Option is Right for You?
Deciding between leasing and buying a Tesla depends on your personal preferences, driving habits, and financial situation. If you love driving the latest models, don’t mind mileage limits, and prefer lower monthly payments, leasing might be the better option for you.
On the other hand, if you plan to keep the car for many years, want to drive without restrictions, and don’t mind higher payments, buying could be the better long-term investment.
Both leasing and buying have their advantages and disadvantages, so it’s important to weigh them carefully. Whichever option you choose, one thing is for sure: you’ll be driving one of the most innovative and exciting cars on the road today.
Frequently Ask Questions
What is the downside of owning a Tesla?
Owning a Tesla is fantastic, but it does have some downsides. The initial cost is high, and while maintenance is lower compared to traditional cars, repairs can be expensive once the warranty expires. Also, charging infrastructure is improving, but it might still be inconvenient if you don’t have easy access to a charger.
How long can you lease a Tesla for?
You can typically lease a Tesla for 24 to 36 months. Some leases may offer shorter or longer terms, but 3 years is the most common option.
What is the monthly cost to lease a Tesla?
The monthly cost to lease a Tesla varies depending on the model and terms of the lease. On average, it can range from £350 to over £1,000 per month, depending on the model and lease terms.
Is it worth leasing a Tesla in the UK?
Leasing a Tesla in the UK can be worth it if you prefer driving the latest models without worrying about the car’s long-term value. It also means lower monthly payments compared to buying, which can be attractive if you want to drive a Tesla without the higher upfront costs.
What is the biggest advantage to leasing a car?
The biggest advantage of leasing a car is that you get to drive a new vehicle every few years with lower monthly payments compared to buying. Plus, you don’t have to worry about the car’s resale value.
How much is a Tesla monthly payment UK?
If you’re buying a Tesla, the monthly payment can vary widely depending on the model and your loan terms. For example, a Model 3 might have a monthly payment starting around £500 to £700, while higher-end models can be significantly more.
What’s the cheapest Tesla monthly?
The cheapest Tesla to lease or finance would usually be the Model 3. Depending on the terms, you could find lease payments starting around £350 to £400 per month, but this can vary.
How long does a Tesla battery last?
A Tesla battery is designed to last between 300,000 to 500,000 miles, which could translate to 20 years or more for the average driver. Over time, the battery’s capacity will gradually decrease, but Tesla batteries are known for their durability.
What bank does Tesla use for financing?
Tesla partners with several banks for financing, depending on your location. In the UK, they might work with banks like Barclays or Black Horse for financing options, but it can vary.
Are Tesla cars reliable?
Yes, Tesla cars are generally reliable, especially in terms of their electric motors and batteries. However, like any car, they can experience issues, particularly with software or hardware components, so it’s good to keep that in mind.
How long does it take Tesla to approve financing?
Tesla’s financing approval process can take anywhere from a few hours to a couple of days. It’s usually pretty quick, especially if you have a good credit score.
Does Tesla refund if not approved?
If you’re not approved for financing, Tesla usually refunds your deposit. It’s best to check the specific terms and conditions for your order.
Does everyone get approved with Tesla?
Not everyone gets approved for Tesla financing. Like any other financing option, approval depends on factors like your credit score, income, and financial history.
What is the 500 dollar deposit on a Tesla?
The $500 deposit (or equivalent in your local currency) is a reservation fee that holds your place in line for a Tesla. It goes towards the final purchase price of the car.
Can I return my Tesla after delivery?
Tesla has a return policy that varies by region. In many cases, you have a few days to return the car after delivery if you’re not satisfied, but it’s important to check the specific policy for your area.
Can my wife track my Tesla?
Yes, if she has access to your Tesla app, she can see the car’s location in real-time. You can also set up profiles and manage access through the app.
Can I cancel Tesla after ordering?
Yes, you can cancel your Tesla order after placing it, but there may be a cancellation fee depending on how far along your order is. It’s best to contact Tesla directly to understand any potential costs.
How long does it take to get a Tesla after ordering?
The delivery time for a Tesla can vary depending on the model and your location. It usually takes anywhere from a few weeks to a few months.
Does Tesla accept cash?
Yes, Tesla does accept cash payments for their cars. You can also pay using a bank transfer or certified check if you prefer not to finance.
What forms of payment does Tesla accept?
Tesla accepts various forms of payment, including bank transfers, credit cards for the deposit, and financing through approved lenders. They also accept cash and certified checks for the full purchase.