Tesla Launches Zero Down Payment Used Car Leasing Service

According to foreign media reports, Tesla has begun offering officially certified used car leasing services in the United States, with zero down payment, as the company is eager to clear its inventory vehicles before the end of this quarter.

Tesla currently offers officially certified pre-owned Model 3 and Model Y leasing services in California and Texas. The leasing prices for these models are quite competitive, with a 24-month lease term and an annual mileage limit of 10,000 miles, the monthly lease payment starts at just $215, and no down payment is required.

Image source: Tesla

Tesla also offers a 12-month lease option with an annual mileage limit of 15,000 miles. Although this plan requires no down payment, a $695 "acquisition fee" is required. This means that users only need to pay this acquisition fee and the first month's rent to lease and use a pre-owned Tesla vehicle for one to two years. This is undoubtedly the most cost-effective way to get a Tesla vehicle at present.

Currently, the popularity of used car leasing is far less than that of new car leasing, but some automakers or dealers still offer such services. Tesla, on the other hand, is entering this business for the first time.

Due to the upcoming expiration of the U.S. federal tax credit policy for electric vehicles at the end of this quarter, major American automakers are making a concerted push to boost electric vehicle sales in response to the surge in market demand ahead of the policy window closing.

This situation also applies to used electric vehicles, as the $4,000 federal tax credit for used EVs is likewise set to expire on September 30.

Due to the impending expiration of the tax credit policy, market demand has been stimulated in advance. Tesla is striving to sell as many vehicles as possible in the U.S. market this quarter. This move is expected to drive the company's sales in the U.S. market to a record high this quarter, but it may also exert continued pressure on sales in the coming quarters.

As demand has been brought forward and potential future car buyers may forgo purchasing electric vehicles due to missing out on tax incentives, the U.S. electric vehicle market is expected to slow significantly over the next 12 to 18 months.

Since the beginning of this year, Tesla's global sales have decreased by about 13% year-on-year. Although sales performance is expected to rebound this quarter, most analysts still predict that its full-year year-on-year performance will show a declining trend.

This year alone, Tesla has added more than 50,000 vehicles to its inventory. In addition, the inventory of used Tesla cars is also continuously accumulating. Due to CEO Elon Musk's involvement in politics, the brand's image has declined, prompting many Tesla owners to rush to sell their vehicles.