Tesla Lease vs. Buy: Which Saves More Money? (2024)
The average Tesla owner keeps their car for just 3.2 years — but is leasing or buying the smarter financial move? We analyzed 2024 data to reveal which option saves you thousands.
Compare Current Lease & Loan RatesLeasing a Tesla
- Lower monthly payments (30-50% less than buying)
- Always drive a new Tesla with latest tech
- $7,500 EV credit applied as cap cost reduction
- No resale hassle when upgrading
- Mileage restrictions (10K-15K miles/year)
- No equity buildup
- Potential wear/tear fees
Buying a Tesla
- Ownership after loan payoff
- Unlimited mileage
- $7,500 tax credit (if you qualify)
- Customization freedom
- Higher monthly payments
- Rapid depreciation (15-20% in Year 1)
- Tech obsolescence risk
5-Year Cost Comparison: Model Y Long Range
| Lease | Buy | |
|---|---|---|
| Monthly Payment | $499 | $899 |
| Down Payment | $4,500 | $9,000 |
| Total 5-Year Cost | $34,440 | $62,940 |
| Car After 5 Years | Return or upgrade | ~$28,000 resale value |
| Net Cost | $34,440 | $34,940 |
Assumptions: 36-month lease (then 24-month extension), 5.5% loan APR, 12K miles/year
When Leasing Makes More Sense
- Business owners: Lease payments may be tax-deductible
- Tech enthusiasts: Upgrade every 2-3 years to newest features
- Low-mileage drivers: Stay under 12K miles/year
- Cash flow sensitive: Lower monthly payments
When Buying Is Better
- High-mileage drivers: 20K+ miles/year
- Long-term owners: Keep cars 5+ years
- Modifiers: Want to customize beyond Tesla's limits
- Credit challenges: Sub-650 scores pay less penalty when buying