Featured image: Motortrend
Leases have been playing a growing role in Tesla's automotive business. While the higher mix of leases is impacting the company’s Revenue Growth, it is accretive to the company’s Gross Margins. Some customers also prefer to lease vehicles for tax purposes, the program is also to be helping Tesla cater to a broader audience. Therefore, Tesla is expanding the markets where leasing is offered.
Tesla began offering Model Y and Model 3 leasing in Canada. Previously, Canadian residents could only lease Model S and Model X, which was a limiting factor.
Model 3, which was incredibly popular, was not available, which frustrated some Tesla customers, for whom leasing was the most suitable option. Model Y is the new model of the company. The opportunity to lease this model to US residents became available only last month. Therefore, such an early launch of this opportunity for Canada was a very pleasant surprise.
For example, if you choose Model 3 Standard Range Plus for a 48-month term, you will need to pay only $474 per month, with an initial payment of $5,250. After potential savings in gasoline and maintenance, that amount would be $380 per month.
If you choose Model Y Long Range for a 48-month term, you will need to pay only $724 per month, with an initial payment of $5,250. After potential savings in gasoline and maintenance, it would be $630 per month.
By offering Canadian residents the opportunity to lease their entire line of vehicles, Tesla is well-positioned to expand. Now that a new production line for the Model Y at the Fremont, California has been launched, production of the company's most popular and affordable vehicles will continue to grow.