Short answer: with no federal lease credit since October 2025 and Tesla financing still below market rates, financing is the better deal for most people who keep a car longer than three years. Leasing makes sense if you want the lowest monthly payment, drive under about 10,000 miles a year, and plan to switch cars in three years.
What Tesla lease prices look like now
| Model | Reported from | Due at signing | Term / miles |
|---|---|---|---|
| Model 3 (base RWD) | $439/mo | $3,000 | 36 mo / 10,000 mi a year |
| Model Y (base RWD) | $499/mo | $3,000 | 36 mo / 10,000 mi a year |
Reported on 2026-10-25 from a third-party snapshot of Tesla’s current offers (tesla.com blocks automated checks); the Model 3 price rose from $419 for applications after October 22. Prices exclude the $695 acquisition fee, sales tax and registration, and Tesla leasing is not offered in every state. Higher trims, more miles or less down raise the payment. Treat these as a starting point and price your exact build in the app.
Three-year cost: lease vs finance a Model Y
Both examples use the $39,990 Model Y Standard RWD and exclude sales tax, registration and insurance.
| Lease | Finance (2.49%, 72 mo) | |
|---|---|---|
| Up front | $3,000 + $695 fee | $4,163 (10% of price + fees) |
| Monthly | $499 | $561 |
| Paid over 3 years | about $21,659 | about $24,350 |
| After 3 years you have | Nothing (return the car, or buy it if your contract allows) | A car worth its resale value, with about $19,432 left on the loan |
The lease costs less cash over three years, but every dollar is gone. The loan costs more per month, and after three years you own equity equal to the car’s resale value minus the remaining balance. Whether that equity is positive depends on used Tesla prices in 2029, which nobody can promise; Tesla used prices fell sharply after past new-car price cuts. If you would keep the car five to eight years, financing almost always wins because the payments stop.
The financing payment uses the Model Y promo rate reported for orders from October 22, 2026. The Model 3 Standard has no promo rate, which makes leasing relatively more attractive on that car. Rates by trim are in Tesla financing rates.
Sales tax on a lease
In most states you pay sales tax on each lease payment rather than on the full price, which lowers the up-front cost. A few states tax a lease on the full vehicle price or tax the down payment up front; Texas, for example, applies its motor vehicle tax to the full price on leases. Georgia charges its title ad valorem tax on leased cars too. Check your state on the state pages or in Tesla price by state.
Federal tax: what changed in 2025
- Lease credit gone: The $7,500 federal clean vehicle credit (and the $7,500 commercial credit used for leases) ended for vehicles acquired after September 30, 2025.
- Loan interest deduction: For 2025 to 2028, interest on a loan for a new US-assembled personal vehicle is deductible up to $10,000 a year, phasing out above $100,000 of modified AGI ($200,000 joint). Leases do not qualify. US-market Model 3 and Model Y are assembled in Fremont, California or Austin, Texas.
Together these tilt the math toward financing compared with 2024 and early 2025, when the $7,500 lease credit often made leasing a Tesla the cheaper option.
Mileage, wear and the end of the lease
- Mileage: the advertised payment assumes 10,000 miles a year. Overage is billed at the end, so pick a realistic allowance up front.
- Wear: curb rash, windshield chips and interior damage beyond normal wear are charged at return. Keep the car insured for full replacement.
- Buyout: Tesla began offering lease buyouts on new US leases in November 2024. Confirm the purchase option and residual value in your contract.
- FSD: FSD (Supervised) is subscription-only in the US now, so it does not lock value into a leased car you hand back.
Who should lease, who should finance
- Lease if you want the lowest monthly payment, drive little, like a new car every three years, or use the car for a business that can deduct lease payments.
- Finance if you will keep the car five years or more, drive a lot, or want to benefit from the loan interest deduction.
- Pay cash if your savings earn less than the loan rate after tax.
Frequently asked questions
How much is it to lease a Tesla Model Y in the US?
In late October 2026 the base Model Y lease was reported from $499 a month with $3,000 due, 36 months and 10,000 miles a year, excluding the $695 acquisition fee and tax. The Model 3 was reported from $439. Prices vary by state and change often.
Can you buy out a Tesla lease?
Tesla announced lease buyouts for new US leases in November 2024; before that, Model 3 and Model Y leases had no purchase option. Whether yours has one depends on the contract and lender, so read the purchase option section before you sign.
Do Tesla leases get the $7,500 credit?
No. The federal commercial credit that let leasing companies pass on $7,500 ended with the consumer credit for vehicles acquired after September 30, 2025.
Is the car loan interest deduction available on a lease?
No. The 2025 to 2028 deduction of up to $10,000 a year covers interest on a loan for a new US-assembled personal vehicle. Lease payments do not count.
Does the referral link work on a lease?
The US referral perk (3 months of FSD Supervised) applies to new Model 3 and Model Y orders. Third-party trackers do not say whether leases are excluded in the US, so check that the benefit appears on your lease order summary before you pay.