TESLA'S LITTLE KNOWN LEASING GOTCHAS YOU NEED TO KNOW ABOUT! EV LEASING 101

EV Channels Review

This video provides a comprehensive, albeit cautionary, look at leasing electric vehicles, with a particular focus on Tesla. The reviewer highlights the primary appeal of leasing: lower monthly payments compared to financing and the benefit of driving newer technology with aligned warranty coverage. However, the core message emphasizes the "gotchas" of EV leasing, especially with Tesla. A significant point is that while Teslas (Model 3 and Model Y) qualify for the $7,500 federal tax credit, this credit is *not* passed on as a capital cost reduction when leasing, unlike with some other manufacturers (e.g., Chevy Bolt, Hyundai Ioniq 5). This means lessees miss out on a substantial reduction in their lease payments. Furthermore, Tesla does not allow lessees to purchase the vehicle at the end of the lease term, removing a potential benefit of traditional leases. The video meticulously breaks down the components of a lease payment (principal, interest, taxes) and explains concepts like residual value and money factors, empowering consumers to understand the true cost. The reviewer strongly advises against leasing a Tesla unless it's for specific business tax write-off purposes, advocating for a deeper understanding of lease terms and considering financing as a potentially more transparent option, despite potentially higher payments.