Tesla Model 3 Becomes Top Leased Electric Vehicle in the US

The Tesla Model 3 has achieved a significant milestone in the United States by becoming the first electric vehicle (EV) to make it to the top 10 leased models. According to a report from Experian, the Model 3 ranked seventh on the list, accounting for 1.79 percent of new vehicle leases in the second quarter of the year.

In the second quarter, approximately 25 percent of the 42,000 new retail Tesla Model 3s that hit US roads were leased. This represents a significant increase of 14 percent compared to the same period last year when only around 16 percent of new Model 3s were leased.

The Model 3’s lease rate exceeded the overall EV leasing rate in the second quarter, which stood at about 21.2 percent. This achievement is notable considering that the top ten leased vehicles are typically high-volume cars and trucks such as the Ford F-150 and Honda CR-V.

The increase in EV leasing can be attributed to the recent eligibility of a wider range of models for federal tax credits. The Inflation Reduction Act loophole allows leased EVs to receive these tax benefits. Unlike most EV models, the Tesla Model 3 is both eligible for the buyer’s tax credit and popular among lease buyers.

The popularity of the Model 3 with lease buyers may be due to price cuts and Tesla’s dominance in the EV segment in the US. Leasing provides an opportunity for consumers to have the vehicle for a short period of time without ownership concerns.

While the Model 3’s leasing rate slightly surpassed overall leasing, which was at 21.3 percent, it is worth noting that the overall leasing rate has decreased compared to previous years.

In summary, the Tesla Model 3 has made history by becoming the top leased electric vehicle in the United States. With its increasing popularity among lease buyers, affordable pricing, and eligibility for federal tax credits, the Model 3 has solidified its position as a game-changer in the EV market.

– Experian
– Automotive News