2024-06-30 12:03:09 -0700

Unbelievable: Tesla Model 3 actually less expensive to lease than a Toyota Camry!


One reason some folks shy away from electric cars is that they are often more expensive to purchase than their ICE counterparts. However, if you have been thinking about owning an EV, perhaps it is time to explore leasing one? This may be the smarter choice, as leasing the Tesla Model 3 is now cheaper than leasing the hybrid Toyota Camry!

If you are hunting for a sedan, there are many choices on the American car market. However, if you want an electric sedan, leasing a Tesla Model 3 is more financially prudent than leasing the hybrid Toyota Camry. This is because the former takes less money from your pocket per month.

According to findings by CarsDirect, it costs only $299 per month for 36 years to lease the Standard Range Rear Wheel Drive Tesla Model 3, with an initial deposit of $3,993. This means you end up paying $410 per month over the lease's lifetime. For reference, the Model 3 Standard Range RWD costs $40,380.

Meanwhile, you can get the LE model of the hybrid Toyota Camry for $359 per month for 36 months, with an initial deposit of $2,999, translating to a monthly cost of $442. This is despite the Toyota Camry selling for a significantly lower $29,804.

Comparing the two cars, the EV leasers will pay $32 less per month than the ICE drivers. This is before savings from charging with electricity at home instead of buying gas kick in!

However, if you prefer the 2024 Tesla Model 3 Long Range All Wheel Drive, the car has recently joined the list of EVs eligible for the full $7,500 tax credit. A lease will cost you $395 per month over 36 months with a $4,089 deposit, effectively costing you $509 monthly. The extra $99 monthly will net you 70 miles in driving range.

For buyers, the Long Range Model 3 now costs only $1,000 more compared to the Standard Range Model 3. This is because the former has qualified for the full EV tax credit, unlike the latter.

Meanwhile, Tesla has started categorizing its cars by battery supplier to ensure that Tesla buyers who qualify for the EV tax credit can get it. This becomes necessary as battery source has become a key criterion for eligibility for the federal EV incentive.

Tesla sources batteries from multiple suppliers, including Chinese. This means model trims with batteries manufactured abroad may not qualify for the full tax credit. The company itself tries to make its cars eligible by shuffling around the suppliers, with the Model 3 Long Range All Wheel Drive recently joining the more expensive Model 3 Performance on the approved list.

Tesla has now introduced a toggle on its website that filters wares by eligibility based on battery source. When switched on, the website displays only trims powered by Panasonic cells as they qualify for the full tax credit. Trims with LG cells are not displayed.

It is important to note that in addition to the battery origin and other components, the buyer must also qualify for the tax credit. A single tax filers' income limit of $150,000 applies, while dual filers can jointly earn up to $300,000.

Meanwhile, buyers who do not qualify for the tax credit might still want to get the Panasonic batteries as they are said to charge faster.

Whether you are leasing or buying, and whichever trim you are getting, Tesla Model 3 accessories like the Performance Spoiler by Fusion Motorsport can improve the aerodynamics of the car, resulting in a smoother and more responsive driving experience. Whether you choose the Matteor Glossy option, you are going to enjoy the lifetime warranty and the effortless installation thanks for its precision fit. Order either of these Tesla Model 3 accessories today and enjoy more than 20 percent discount!

Header image courtesy of InsideEVs