Tesla Model 3 secured its place as the seventh-most leased vehicle in the United States during the second quarter of 2023. This achievement marks the first time an electric vehicle has entered the coveted top 10 list of leased vehicles in the country.
Approximately 25 percent of all Tesla Model 3s that hit the road in Q2 2023 were leased, reflecting a notable increase from the 16 percent lease rate recorded during the same period in the previous year. Data sourced from Experian and reported by Autonews highlights that the Model 3 outpaced leasing rates for popular vehicles such as the Honda Civic, Ram 1500, and Jeep Wrangler. However, it still trailed behind the Chevrolet Equinox and the Jeep Grand Cherokee. The Ford F-150 continued its dominance as the most-leased vehicle in America, commanding 2.52 percent of the leasing market.
The achievement of the Tesla Model 3 in breaking into the top 10 list is particularly noteworthy against the backdrop of rising overall leasing rates in the country, which reached 21.3 percent, marking a 1-point increase. In contrast, leasing of the Model 3 surged by nearly 14 points during the same period. It's worth noting that while leasing rates have increased, they remain below levels seen in 2018 and 2019.
One notable factor contributing to the increased leasing of electric vehicles is the wider availability of tax incentives for shoppers who opt for this financing method. Interestingly, the Model 3 is eligible for tax credits whether it is purchased or leased.
A recent report from Energy Innovation suggests that high-interest rates have played a role in making monthly payments more attractive for lessees. The combination of tax incentives available to consumers, Tesla's continuous efforts to lower prices, and prevailing high-interest rates has made the Model 3 an enticing choice, likely explaining its recent success in the leasing market.