Tesla Model 3 Monthly Payment: Buy, Lease or Subscribe?
Your Tesla Model 3 monthly payment will depend on whether you buy, lease, or subscribe to this EV. Keep reading to find out which option best suits your needs.
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8 minutes
Date
06.23.2023
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Overview
Purchasing a Tesla Model 3, let alone an electric vehicle (EV), can be challenging for most people. Operating your new Model 3 daily looks much different than a traditional gasoline car. You’ll have to contend with and consider those lifestyle changes before you take the plunge.
In addition, the discussion of buying a Tesla Model 3 also fits into a larger dialogue about owning, leasing, or subscribing to this popular EV. The debate between buying and leasing is nothing new, especially given it also applies to non-EVs.
However, subscribing to a Tesla can help you test-drive this eco-friendly car on a short-term basis. You’re not locked into a vehicle for years at a time. Plus, you only have to worry about charging the vehicle since your monthly subscription typically covers maintenance costs, insurance, roadside assistance and registration.
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How much is a Tesla per month?
Many people purchase a Tesla to capitalize on fuel savings and federal and state tax incentives. However, these benefits are not an immediate discount. You must also pay for the electricity required to charge your new EV.
How much does it cost to subscribe to a Tesla?
In discussing whether to lease, buy, or subscribe to a Tesla Model 3, most people don’t realize that you can subscribe to a Tesla for about what you’d pay for a lease. However, you can take advantage of shorter lease terms and a single monthly payment beyond your charging costs.
For example, FINN offers subscription services for both Model 3 Standard Range and Long Range variants. Standard Range variants include a subscription term of 24 months with no down payment required. Fees range from $709 to $909 with a $160 monthly insurance rate at time of publication.
FINN lets you choose between 850 miles (free), 1,000 miles (an extra $39), 1,250 miles (an extra $109), or 1,500 miles (an extra $179). Any additional miles are $0.39. Terms for the Long Range model mirror the Standard Range, though terms are set to 12 or 24 months.
How much does it cost to buy a Tesla?
Purchasing a Tesla Model 3 includes several costs. Here’s a quick breakdown of the costs associated with buying a Model 3:
- Purchase price: Model 3s listed on Tesla’s website currently retail for between $38,030 and $52,670, depending on which model, trims, features, and accessories you choose.
- Monthly payments: If you finance your purchase, your monthly payments incorporate interest based on the terms you choose and the interest rate you qualify for based on your credit score. Assuming a 5.69% APR, monthly payments on a loan vary from $575 to $1060 with $4,500 down.
- Destination fee: Tesla sets this at $1,390 for purchased and leased vehicles.
- Down payment: Tesla requires a downpayment of $4,500 to finance a Model 3 loan.
Tesla only offers direct financing through a handful or two states and doesn’t publish its minimum credit scores required to qualify. Terms vary from 36 to 72 months. Federal (up to $7,500) and state tax incentives will depend on whether or not you purchase or finance your new Model 3.
How much does it cost to lease a Tesla?
Tesla offers 24- and 36-month lease terms but doesn’t allow lessees to purchase the vehicle once the lease expires. A short-term car lease will cost you more, but Tesla only offers leasing in half of the 50 states.
A Tesla Model 3 ranges from $399 to $445 monthly, depending on your qualifications. Tesla requires a $4,500 down payment and about $5,60 due at signing.
In gathering the documents you need to lease a car, consider how many miles you will need. The number of miles allowed per the lease is critical to determining how much it costs to lease a car. Tesla offers 10,000 miles free, but you can upgrade to 12,000 and 15,000 miles. The more miles you want, the more you’ll pay on top of the base lease price.
While you can end a car lease early, you typically must pay early termination fees based on the vehicle's value. In addition to whatever monthly payments remain, these fees can make terminating your loan cost-prohibitive.
Additional costs of driving a Tesla
It’s a common misconception that, without an internal combustion engine, Teslas don’t require any maintenance beyond charging. However, Teslas still contain brakes and suspension components, to name a few, that require routine care. You must still remember to rotate and balance your tires and keep your car aligned for proper tire wear.
Additional costs include the components necessary to charge your Tesla at home. A wall connector retails for $475 and a mobile connector for $230. You can also add Enhanced Autopilot for $6,000 and Full Self-Driving Capability for $15,000.
Tesla estimates about $400 annually in charging costs. This estimate assumes a rate of $0.15 per kilowatt-hour (kWh) and a consumption rating of 25 kWh expended per 100 miles. The Tesla Model 3 has an EPA-estimated range of 272 miles.
Annual Insurance Premiums
Between AutoInsureSavings and Insuranks, the average annual cost to insure a Tesla Model 3 is around $2,000. That’s roughly $167 per month.
Compare this to AAA’s average cost of insurance for 2022. Annually, premiums average $1,588 or about $133 per month. That means you’ll spend an extra $34 monthly to insure a Tesla Model 3 compared to the average gas-powered vehicle.
Should you buy, lease or subscribe to a Tesla?
Deciding you want to drive an electric vehicle is only half the battle. You must choose between buying, leasing, or subscribing to a Tesla Model 3.
To help you make the best decision for your situation, we’ve put together the following list of pros and cons for each option:
Buy | Lease | Subscribe | |
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Cons |
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Here’s a summary of the various features and costs associated with buying, leasing, and subscribing to a Tesla Model 3:
Buy | Lease | FINN Subscription | |
Purchase price | $38,030 to $52,670 purchase price + $1,390 destination fee | First month’s payment, acquisition fee ($695), and down payment due at signing | N/A |
Terms | 36, 48, 60, or 72 months | 24 or 36 months | 12 or 24 months |
Monthly payments | $575 to $1,060* | $399 to $445 | $689 to $1,039 |
Down payment | Varies | $4,500 plus $5,600 due at signing | None required |
Tax credits available | $7,500 federal plus state incentives | Varies | None |
Mileage | Unlimited miles | 10,000, 12,000, or 15,000 miles | 850, 1,000, 1,250, and 1,500 miles |
Insurance | You must provide | You must provide | $160 |
Restrictions | Financing through Tesla only available in certain states | You cannot purchase the Model 3 once the lease is up | Colors and availability may vary |
*Monthly payments assume a 5.69% estimated annual percentage rate (APR). Terms vary.
Prices, rates, and tax credits will vary depending on your credit situation, where you live, and what incentives your state offers for electric vehicles.
So, should you buy, lease or subscribe?
Tesla unveiled the current Model 3 variant back in 2016. It’s rumored that the sudden push to sell existing Model 3s stems from the arrival of the refreshed model, but no official reports confirm nor deny these whispers. All the same, it’s given many current Tesla owners pause.
What’s happening in the industry greatly affects the value of Model 3s purchased now. Should the refreshed model delight audiences, older Model 3s could lose significant value. While this may reduce the leasing costs of older models, most buyers are expected to want to lease the latest and greatest variant.
Even the best car leasing deals pale compared to what you could have with a car subscription. FINN’s car subscriptions offer the flexibility to test out a Tesla Model 3 without the hassle of getting trapped in a contract.
You can use the 12 or 24 months included in the subscription to try out the Model 3 and see how well it fits into your life. Your monthly subscription payment covers maintenance costs, insurance, and registration.
So, should you buy, lease or subscribe?
Tesla unveiled the current Model 3 variant back in 2016. It’s rumored that the sudden push to sell existing Model 3s stems from the arrival of the refreshed model, but no official reports confirm nor deny these whispers. All the same, it’s given many current Tesla owners pause.
What’s happening in the industry greatly affects the value of Model 3s purchased now. Should the refreshed model delight audiences, older Model 3s could lose significant value. While this may reduce the leasing costs of older models, most buyers are expected to want to lease the latest and greatest variant.
Even the best car leasing deals pale compared to what you could have with a car subscription. FINN’s car subscriptions offer the flexibility to test out a Tesla Model 3 without the hassle of getting trapped in a contract.
You can use the 12 or 24 months included in the subscription to try out the Model 3 and see how well it fits into your life. Your monthly subscription payment covers maintenance costs, insurance, and registration.
Final thoughts
Tesla customers nationwide struggle with deciding between buying, leasing, and subscribing to a Model 3. With a FINN Tesla subscription, you can minimize your headaches while still enjoying the benefits of an electric vehicle. When you’ve finished your Tesla Model 3 subscription, you can easily revisit your decision and make a more informed choice.