Tesla, looking at ways to boost sales, is leaning on lease deals to draw in buyers. The automaker’s competitors have made good use of the federal government’s $7,500 incentive to juice demand. The automaker is now offering significant lease deals that come with low monthly payments and other benefits to create some momentum.
S&P Global Mobility senior analyst Tom Libby said, “Tesla’s lease penetration has gone way up. They are getting more and more aggressive because they need to – and because they have financial resources to do so.” The deals include an offer of a 0.9 percent loan for 60 months on a new Model Y, and Tesla is throwing in three months of free charging and a Full Self-Driving trial.
Libby attributes some of Tesla’s incentives to its faltering market position. “Tesla had a monopoly on the EV market in the U.S., but they don’t anymore and as time goes by they are adjusting to the marketplace,” he said. “They have no choice if they want to maintain sales momentum.”
Leasing lets buyers get around the federal tax credit’s limitations, and Tesla has taken other steps to make them more appealing. Earlier this year, the automaker announced free lease buyouts for the Model 3 and Model Y, which it previously did not allow.
Lessees of those vehicles had to return their leases before, which didn’t sit well with many people. Libby agreed: “There’s a choice between a brand that offers the lease buyout option versus a brand that doesn’t. Everything else being equal, consumers are going with the brand that gives them the option of keeping their vehicle.”
[Images: Tesla]
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Source: The Truth About Cars
