Tesla Launches Leases for Certified Pre-Owned Vehicles Amid Tax Credit Deadline

PAPILLION, Nebraska — Tesla has begun offering leases for certified pre-owned vehicles, marking a rare move in the auto industry. The leasing option is available with no money down as the automaker attempts to boost sales before the end of the quarter. The federal tax credit for electric vehicles is set to expire soon, prompting companies to optimize their electric vehicle (EV) sales.

The $4,000 federal incentive for used electric vehicles will also end on September 30, impacting both new and used EV sales. Though leasing used cars is uncommon, Tesla is venturing into this territory for the first time.

Currently, in California and Texas, Tesla is leasing certified pre-owned Model 3 and Model Y vehicles for as low as $215 per month. Customers can opt for a 24-month lease with 10,000 miles annually, requiring only a $695 Acquisition Fee and the first month’s payment upfront.

This initiative comes as Tesla aims to sell more vehicles in the U.S. during this quarter. Analysts expect this push to result in a record sales quarter, but caution that a slowdown may follow due to demand being pulled forward by the fear of missed discounts.

Tesla’s global sales are down about 13% so far this year, although this quarter could show improvement. Still, experts predict a year-on-year decline in overall performance. In response to economic pressures, Tesla expanded its inventory by adding over 50,000 electric vehicles this year.

The move into pre-owned leasing raises questions about Tesla’s financial handling. Some experts wonder which financial institutions are backing these leases, especially as used car inventories increase due to changing market perceptions of the brand.

As used Tesla owners look to sell their vehicles amid rising inventory, the market dynamics may shift dramatically, reflecting the ongoing challenges facing electric vehicle manufacturers.