The Tesla Model 3, renowned for its innovation and forward-thinking technology, has achieved yet another milestone in the realm of electric vehicles (EVs). In a remarkable turn of events, the Model 3 has emerged as the first electric vehicle to secure a coveted spot in the top 10 leased vehicles in the United States. This achievement not only highlights the growing popularity of EVs but also signifies a significant shift in the automotive landscape.
A Historic Feat
During the second quarter of the year, the Tesla Model 3 clinched the seventh position on the list of the most-leased vehicles in the US. Astonishingly, it accounted for a notable 1.79 percent of all new vehicle leases, solidifying its status as a game-changer in the world of electric mobility. These figures were unveiled in a comprehensive report from Experian, a reputable credit reporting company, as cited by Automotive News.
Melinda Zabritski, Experian’s senior director of automotive financial solutions, revealed that an impressive 25 percent of the approximately 42,000 new retail Tesla Model 3s that graced American roads in the last quarter were acquired through leases. This marked a substantial 14 percent increase compared to the corresponding period in the previous year when only around 16 percent of new Model 3s were leased.
Notably, the Model 3’s lease rate exceeded the overall EV leasing rate, which stood at approximately 21.2 percent during the second quarter.
Redrawing the Leasing Landscape
Traditionally, the top ten leased vehicles list predominantly features high-volume cars and trucks, including perennial favorites like the Ford F-150, ranking first with 2.52 percent of the total, the Honda CR-V securing second place at 2.48 percent, and the Nissan Rogue claiming the third spot with 2.26 percent.
While the Tesla Model 3’s combined retail sales and lease volume reached an impressive 42,000, it fell slightly behind the Honda CR-V (88,600), Ford F-150 (71,000), and Nissan Rogue (45,800) in terms of sheer numbers.
A Shift in EV Leasing Dynamics
The surge in EV leasing can be attributed, in part, to an expanded range of models becoming eligible for federal tax credits when leased, thanks to an Inflation Reduction Act loophole. Notably, the Tesla Model 3 stands out as one of the few EV models that also qualify for the buyer’s tax credit, allowing purchasers to benefit from the full $7,500 credit when acquiring the vehicle outright.
Zabritski suggests that the Model 3’s appeal to lease buyers may be attributed to competitive pricing and Tesla’s dominant position in the US EV market. She explains, “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. An EV lease is a great way to avoid any of those ownership concerns that consumers might have.”
While the Model 3’s leasing rate marginally surpassed the overall leasing rate, which stood at 21.3 percent, it’s worth noting that the overall leasing trend in the US has dipped compared to 2018 and 2019 when leasing rates exceeded 30 percent.
The Tesla Model 3’s historic achievement signifies a turning point in the adoption of electric vehicles and reflects the shifting preferences of consumers in the automotive industry. As the Model 3 continues to lead the charge for EVs, it sets the stage for a future where electric mobility takes center stage in the American automotive landscape.
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