According to new data from Experian, Tesla’s Model 3 has become the first electric vehicle (EV) to make the list of the top 10 most-leased vehicles in the U.S. The Model 3 ranked seventh on the list in the second quarter, with demand being driven by price cuts and EV tax credits. The top three leased vehicles on the list were the Ford F-150, the Honda CR-V, and the Nissan Rogue.
The Model 3 made up 1.79 percent of new leased vehicles in the quarter, with one in four Model 3 sales being on lease. This marks a 14-point increase from the previous year’s Q2. Melinda Zabritski, senior director of automotive financial solutions at Experian, noted that it is unusual for a car like the Model 3 to make the list, as it typically consists of higher-volume vehicles with leases.
Zabritski explained that leasing can be a good option for EVs due to the constant changes and new models in the EV space. Leasing allows people to have the vehicle for a short period of time and avoid ownership concerns. The leasing rate for the Model 3 surpassed the overall new vehicle lease rate and the EV lease rate, although lease rates are still below peak levels reached in 2018 and 2019.
In addition to its inclusion on the most leased vehicles list, Tesla is preparing a $1.8 billion lease securitization process, which involves bundling up several of its auto leases to be sold off as bonds. This will provide an alternative source of funding for Tesla without having to wait for lease payments.
Some speculate that Tesla may use this funding to offer even shorter-term leases than its current options. Earlier this year, the company introduced a new seven-year financing option in addition to its existing three-, four-, five-, and six-year leases.
Overall, the Model 3’s achievement in making the top 10 leased vehicles list showcases the growing popularity and acceptance of electric vehicles in the U.S. market.
– Automotive News