Tesla cuts Model 3 monthly lease payment to $399, but increases cash flow

Tesla launched its first lease program for the Model 3 just a few weeks ago, and it’s now dramatically reducing the base monthly lease payment to just $399, but also increasing the down payment amount.

For a long time, a rental program was considered an important demand driver for the Model 3, as rental contracts are particularly popular in this segment, but a balance between the cost of monthly payments and down payment is important.

On April 11, Tesla launched a one-year lease program for the Model 3 after first putting the vehicle on sale.

The cheapest listed version of the Model 3 started at a monthly payment of $504 per month plus $3,000 cash.

Today, the automaker cut monthly payments to just $399 per month, but increased the cash needed to $4,500:

An interesting part of Tesla’s Model 3 lease program is that customers won’t be able to purchase the Model 3 at the end of the lease.

The company says it has other plans for the vehicles:

“Please note that customers who choose to lease over own will not have the option of purchasing their car at the end of the lease, as with full autonomy coming via an over-the-air software update, we expect to use these vehicles in the Tesla carpooling network.

Later last month, Tesla unveiled its “Robotaxi” plan for an autonomous carpooling network. They plan to use vehicles coming back from leasing to put them in this self-driving carpool fleet.

Electrek’s Grasp

There’s no doubt that this updated lease pricing structure represents better overall value, but the $4,500 down payment isn’t insignificant either.

It’s the cheapest way to get a Tesla. Customers will pay around $19,000 to drive a Tesla vehicle for 3 years.

That’s not a bad deal, especially after factoring in your gas savings if you’re coming from a gas-powered car.

I’ve never rented a car before, but would love to hear from serial sellers on what they think of this deal. Let us know in the comment section below.

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