The automotive world is witnessing a groundbreaking moment as Tesla’s Model 3 secures its place on the coveted list of the top 10 most-leased vehicles in the United States. This achievement marks a historic milestone for electric vehicles (EVs) and underscores the growing popularity of Tesla’s affordable sedan in the American market.
According to a recent report from Automotive News, the Model 3 from Tesla proudly clinched the seventh position among the most-leased vehicles in the U.S. during the second quarter. This surge in demand for the electric sedan can be attributed to a combination of factors, including price reductions and EV tax incentives that have made the Model 3 even more appealing to consumers. Surpassing the Model 3 were perennial favorites like the Ford F-150, the Honda CR-V, and the Nissan Rogue, cementing the Model 3’s status as a formidable contender.
Intriguingly, the Model 3 accounted for a noteworthy 1.79 percent of all newly leased vehicles in the second quarter, a remarkable 14-point increase from the same period last year. This surge in popularity is indicative of a growing trend among consumers, with as many as one in four Model 3 sales now being made through leasing agreements. In contrast, the top three leasing vehicles—namely, the F-150, CR-V, and Rogue—collectively represented a substantial 7.26 percent share of all newly leased vehicles.
Melinda Zabritski, senior director of automotive financial solutions at Experian, noted that the Model 3’s presence on this list is atypical. Typically, the list consists of higher-volume vehicles with strong leasing programs. However, the rapidly evolving landscape of the EV market has prompted a shift in consumer behavior.
“In the EV space, there is so much change and so many new models coming out that leasing can be a good way to have the vehicle for a short period of time,” Zabritski explained. “An EV lease is a great way to avoid any of those ownership concerns that consumers might have.”
Remarkably, the leasing rate for the Model 3 has not only surpassed the overall new vehicle lease rate of 21.3 percent but also exceeded the EV lease rate, which stood at approximately 21.2 percent. It’s worth noting that current lease rates, while impressive, still fall short of the peak levels witnessed in 2018 and 2019 when the overall leasing rate soared beyond 30 percent.
This achievement for the Model 3 coincides with Tesla’s preparations for a significant $1.8 billion lease securitization process. In this endeavor, Tesla intends to bundle several of its auto leases and sell them as bonds, creating an alternative funding source that eliminates the need to wait for lease payments to trickle in.
There’s also speculation that Tesla might leverage this funding to introduce even shorter-term lease options, providing customers with greater flexibility in their leasing agreements. Earlier this year, Tesla introduced a seven-year financing option alongside its existing three-, four-, five-, and six-year lease plans, demonstrating the company’s commitment to catering to diverse consumer preferences.
In conclusion, the Tesla Model 3’s ascent to the list of the top 10 most-leased vehicles in the U.S. signifies a significant turning point in the world of electric vehicles. With its affordability, technological prowess, and commitment to innovation, Tesla continues to shape the automotive landscape and redefine the way consumers approach electric mobility.