Understanding Tesla Lease Payments (2024)

Your Tesla lease payment isn't arbitrary — it's calculated using three key factors most dealers won't explain. Here's exactly how Tesla determines your monthly payment, and how to get the lowest possible rate.

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The 3 Components of Your Tesla Lease Payment

1. Capitalized Cost

The vehicle's selling price minus:

  • Down payment
  • Trade-in value
  • Rebates/incentives

Tip: The $7,500 federal EV credit is applied as a cap cost reduction on Tesla leases.

2. Residual Value

Tesla's estimate of what your car will be worth at lease end (typically 50-60% of MSRP).

Model 3: ~58% residual
Model Y: ~55% residual
Model S/X: ~50% residual

3. Money Factor

The lease equivalent of an interest rate:

  • 0.0025 (Excellent credit)
  • 0.0035 (Good credit)
  • 0.0045+ (Fair credit)

Convert to APR: Multiply by 2400 (0.0025 = 6% APR)

How Credit Score Affects Your Payment

Credit Tier FICO Score Model Y Payment* Rate Factor
Excellent 720+ $459/mo 0.0025
Good 680-719 $499/mo 0.0035
Fair 640-679 $569/mo 0.0045

*36-month lease, 12K miles/year, $4,500 down

💡 Pro Tip: The 1% Rule

A good Tesla lease deal is when your monthly payment is ≤1% of the car's MSRP. Example: $50,000 Model Y should lease for ≤$500/month with $4,500 down.

3 Ways to Lower Your Tesla Lease Payment

  1. Multiple Security Deposits (MSDs): Each deposit (max 10) reduces your money factor by ~0.00007. Saves $15-$30/month.
  2. End-of-Quarter Timing: March, June, September, and December often have inventory clearance deals.
  3. Demo/Used Leases: Pre-configured vehicles with under 5,000 miles may lease for 10-15% less.
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