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.
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.
