EV Lease vs. Loan: Which Is Better in 2026?
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Lease deals can start at $299/month. A financed 2022 Model 3 Long Range runs around $475/month at 5.25% APR. If you only care about the monthly payment the choice is clear, we'll walk you through all the considerations and potential pitfalls.
The Core Difference
Lease: You pay for the depreciation during the lease term plus finance charges. At end of term, you return the car and walk away. Watch out for mileage limitations and down payments and other fees that cannot be financed.
Loan: You're buying the car. Monthly payment is higher because you're paying the full purchase price plus interest. At end of term, you own the car outright, drive it as much as you want.
When Leasing Makes Sense
- You want a new car every 2–3 years and don't want the hassle of selling
- You drive under the mileage limit (typically 10,000–12,000 miles/year)
- You want the lowest possible monthly payment and don't mind higher upfront costs
- You're uncertain about EVs and want the flexibility to switch
Tesla's current lease offers (from $299/month on Model 3, from $399/month on Model Y) are genuinely competitive for low-mileage drivers who upgrade frequently. Downpayment for those offers is 3,000 plus an initial acquisition fee of just over $1,000 depending on your location.
When Financing Makes Sense
- You drive more than 12,000 miles/year - over-mileage charges add up fast
- You plan to keep the car for 3+ years
- You want to build equity and use the car as a trade-in asset later
Over 5 years, financing a used Tesla beats leasing a new one for most drivers.
The Numbers: 5-Year Comparison
Lease: $399/month × 60 months + ~$4,200 upfront = $28,040 total. Car returned at end of term.
Financed used Model Y LR: $29,000 purchase, $550/month × 60 months = $33,000 total. Car worth ~$16,000–$18,000 at end. Net cost: ~$15,000–$17,000.
The financed route costs more in monthly payments but less upfront and on a net basis over five years.
The Mileage Factor
Tesla leases typically allow 10,000–12,000 miles/year. Over-mileage charges run $0.15–$0.25/mile. A driver doing 15,000 miles/year on a 10,000-mile lease accrues 5,000 extra miles/year — at $0.20/mile that's $1,000/year, or $3,000 over a 3-year lease.
Financing Rates
| Credit Score | Tenet APR |
|---|---|
| 760+ | From 5.25% |
| 720+ | From 5.75% |
| 680+ | From 6.25% |
| 620+ | From 7.50% |
Rates as of April 2026, subject to change. Minimum loan balance $10,000. Regional rates as low as 4.40%.
One Last Thing
For most drivers who plan to keep a car for 4+ years and drive normal mileage, financing a used Tesla beats leasing a new one on a 5-year net cost basis. The lower lease payment is attractive for those who plan to switch cars frequently.
Check your EV financing rate with Tenet — two minutes, no credit impact.
Rates as of April 2026, subject to change. APR range 5.25%–18.99%. Minimum loan balance $10,000. Tenet Energy Inc., NMLS #2262929.