Tesla launches $0-down leases on used EVs to boost Q3 sales

On the Dash:

• Tesla is now offering leases on certified pre-owned Model 3 and Model Y vehicles in California and Texas, with $0 down and monthly payments starting at $215, marking a rare move in the used EV market.
• The push comes as federal tax credits for new and used EVs are set to expire on September 30, creating a surge in demand that Tesla is trying to capitalize on before the end of the quarter.
• The front-loading of EV sales is expected to result in a strong quarter for Tesla in the U.S., but analysts predict a slowdown in demand over the next 12 to 18 months, compounded by global sales declines and rising used EV inventory

Tesla is offering leases on certified pre-owned (CPO) vehicles for the first time, a move designed to accelerate sales before the end of the quarter. The new program is available in California and Texas for Model 3 and Model Y vehicles, with leases starting as low as $215 per month and requiring no down payment aside from a $695 acquisition fee and the first month’s payment.

The initiative arises as federal incentives for electric vehicles (EVs) near their expiration date. The $7,500 new EV tax credit and the $4,000 credit for used EVs will both end on September 30, creating a rush among buyers and pushing demand forward. Tesla is aiming to capitalize on this surge while also reducing the growing stock of used vehicles.

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Leasing used cars is uncommon in the automotive industry, but Tesla is entering the space to provide a more affordable entry point for consumers. Options include 24-month leases with 10,000 miles per year, as well as 12-month leases with up to 15,000 miles annually.

Further, Tesla’s aggressive strategy comes amid global sales challenges. The company’s deliveries are down roughly 13% year-to-date, and more than 50,000 EVs have accumulated in inventory in 2025. Analysts expect a strong U.S. quarter due to the incentive-driven demand, but the market may face a slowdown over the next 12 to 18 months as buyers adjust to the loss of federal credits.

This used-vehicle lease program represents Tesla’s latest effort to maintain sales momentum and clear inventory while offering consumers a cost-effective way to access the brand’s EVs.