The Tesla Model 3 was the seventh-most leased vehicle in America in the second quarter of 2023. While that may seem like a relatively uninteresting fact, it is made more noteworthy as this is the first time an EV has ever made it into the top 10.
Roughly 25 percent of all Tesla Model 3s to hit the road in Q2 were leased, and the electric sedan accounted for 1.79 percent of all leased new vehicles in that period. By contrast, only about 16 percent of new Model 3s were leased in the second quarter of 2022.
The Model 3 led the Honda Civic, the Ram 1500, and the Jeep Wrangler in terms of leasing rates, according to data from Experian and seen by Autonews. It still lags behind the Chevrolet Equinox and the Jeep Grand Cherokee. The Ford F-150 remains the most-leased vehicle in America, accounting for 2.52 percent of the leasing market.
Top 10 Leased New Vehicles Q2 2023
Read: Tax Incentives, High Interest Rates Mean Leasing An EV Is The Cheapest Way To Drive A New Car Today
The Tesla Model 3 cracked into the top 10 despite rising rates of overall leasing. While rates across the country are up 1 point, to 21.3 percent, leasing of the electric sedan was up by nearly 14 points. However, fewer Americans are leasing today than were in 2018 and 2019.
However, more buyers have started leasing electric vehicles, in part because of the wider availability of tax incentives for shoppers who choose the method. Oddly, the Model 3 is eligible for tax credits whether it is bought or leased.
Despite that, a recent report from Energy Innovation suggests that high-interest rates make monthly payments lower for lessees. The combination of tax incentives offered to consumers, Tesla’s ongoing push to lower prices, and high-interest rates makes the Model 3 a competitive offer and may help explain its recent success.
