What Are the Typical Tesla Model 3 Lease Terms & Mileage Limits? (2025) ⚡️

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Thinking about leasing a Tesla Model 3 but puzzled by the lease terms and mileage limits? You’re not alone! While Tesla’s direct-to-consumer sales model simplifies buying, leasing a Model 3 comes with some unique quirks — like Tesla’s surprising no-buyout policy and strict mileage caps that can make or break your deal.

At Car Leases™, we’ve helped countless EV enthusiasts navigate these twists and turns. Did you know that going just a few thousand miles over your lease limit can cost hundreds of dollars in penalties? Or that Tesla only offers 24- and 36-month leases — no longer terms? Stick around, because later we’ll reveal insider tips to avoid costly mileage overages and how to pick the lease term that fits your lifestyle best. Whether you’re a daily commuter or a weekend road trip warrior, this guide will help you decide if leasing a Model 3 is your smartest move in 2025.

Key Takeaways

  • Tesla Model 3 leases typically come in 24- or 36-month terms, with 10,000, 12,000, or 15,000 miles per year options.
  • Tesla does not allow lease buyouts on Model 3s, meaning you must return the car at lease-end.
  • Exceeding mileage limits can cost $0.25 per mile in penalties, so choose your mileage allowance carefully.
  • Leasing offers lower monthly payments and warranty coverage, but no ownership or customization rights.
  • Alternatives like car subscriptions and financing might better suit drivers with unpredictable mileage or long-term ownership goals.

Ready to explore Tesla Model 3 lease deals?

Table of Contents

Here is the main body of the article, from the “Quick Tips and Facts” section to the section before “Conclusion”.

So, you’ve got your eye on a Tesla Model 3, and you’re wondering if leasing is the right move. You’re not alone! Here at Car Leases™, we’ve seen a surge of interest in these silent speed demons. The big question on everyone’s mind is: What are the typical lease terms and mileage limits for a Tesla Model 3?

Let’s cut through the noise. We’re going to break down everything you need to know, from the nitty-gritty of the lease agreement to the insider tips that can help you drive away happy. Forget the confusing jargon; we’re giving you the straight talk from our team of car nuts who live and breathe this stuff.

⚡️ Quick Tips and Facts About Tesla Model 3 Leasing

Pressed for time? Here’s the cheat sheet. We’ll dive deeper into each of these points, but this will get you up to speed faster than a Model 3 in Ludicrous Mode.

  • Typical Lease Terms: Tesla primarily offers 24-month and 36-month lease terms. The 36-month option is the most common for the Model 3.
  • Annual Mileage Options: You can typically choose between 10,000, 12,000, or 15,000 miles per year. Choose wisely!
  • No Lease Buyout: This is a big one! 🚨 As of now, you cannot purchase your Model 3 or Model Y at the end of the lease. You simply have to return it.
  • Down Payment: A “due at signing” amount is required, which includes your first month’s payment, a down payment (cap cost reduction), and an acquisition fee.
  • Credit Score Matters: A higher credit score generally gets you a better “money factor” (the lease equivalent of an interest rate). Check our guide on Credit Score and Car Leasing for more.
  • Ridesharing is a No-Go: Your lease agreement will likely prohibit you from using your Tesla for commercial purposes, including services like Uber or Turo.
  • Maintenance is on You: While the car is under warranty, you’re responsible for routine maintenance like tire rotations and wiper fluid.
  • Early Termination is Costly: Backing out of a lease early can come with significant financial penalties.

🔋 Tesla Model 3 Lease Terms Explained: What You Need to Know

Alright, let’s get into the meat and potatoes. A lease term is simply the length of your contract. For a Tesla Model 3, your main choice will be between a two-year (24-month) or a three-year (36-month) commitment.

As the experts at FINN note, a lease is a great way to “experiment with how it integrates into their daily lives.” Think of it as an extended, multi-year test drive.

H3: The 36-Month Standard

The 36-month lease is the most common option you’ll find for the Model 3 directly from Tesla. Why? It often represents the sweet spot for manufacturers.

  • Lower Monthly Payments: Spreading the car’s depreciation over three years instead of two typically results in a more affordable monthly payment.
  • Warranty Coverage: The 36-month term aligns nicely with a significant portion of Tesla’s 4-year, 50,000-mile Basic Vehicle Limited Warranty. This means for most of your lease, you’re covered for any major surprises. Peace of mind is a beautiful thing!

H3: The 24-Month Sprint

Feeling less committed? The 24-month lease is your ticket to short-term EV bliss.

  • Get the Latest Tech: Technology in the EV space moves at lightning speed. A two-year lease ensures you can jump into a newer model with the latest battery tech and features much sooner.
  • Higher Payments: The trade-off for this flexibility is usually a higher monthly payment, as the car’s initial, steepest depreciation is spread over a shorter period.

This is a core concept in Car Lease Basics: the shorter the term, the higher the payment, generally speaking.

📏 Typical Mileage Limits for Tesla Model 3 Leases: How Much Can You Drive?

This is where you need to be brutally honest with yourself about your driving habits. How many miles do you really drive in a year? Your commute, weekend trips, that annual road trip to see your quirky aunt—it all adds up.

Tesla offers a clear-cut set of mileage tiers for your lease:

Annual Mileage Tier Best For Potential Downside
10,000 miles/year City dwellers, remote workers, or those with a short daily commute. Restrictive for spontaneous road trips or long commutes.
12,000 miles/year The average American driver. A safe, middle-of-the-road option. May not be enough for those with heavy travel schedules.
15,000 miles/year Road warriors, super-commuters, and frequent travelers. Results in a higher monthly payment.

As one UK leasing company points out, “If you plan to put a lot of miles on the car, leasing may not be a good idea as most leases have mileage limits.” This is sound advice. Before you sign, calculate your average annual mileage from the past few years. It’s better to pay a little more per month for a higher mileage package than to get hit with a hefty penalty at the end of your lease.

But what happens if you miscalculate and go over? Don’t worry, we’ve got a whole section on that coming up. 😉

💰 Breaking Down Tesla Model 3 Lease Payments: What Affects Your Monthly Cost?

Ever wonder what magic formula spits out your monthly lease payment? It’s not magic, it’s math! Several key factors determine your payment, and understanding them gives you power. This is a crucial part of understanding Electric Vehicle Leases.

Here are the core components:

  1. Capitalized Cost (Cap Cost): This is the negotiated price of the car. With Tesla’s direct-to-consumer model, there’s not much “negotiating,” so this is essentially the price you see on their website for your chosen configuration.
  2. Residual Value: This is what Tesla predicts the car will be worth at the end of your lease. A higher residual value is good for you—it means the car is depreciating less, and you’re paying for less of that depreciation. Teslas are known for holding their value well, which is a huge plus for leasing.
  3. Money Factor: Think of this as the interest rate for your lease. It’s expressed as a small decimal (e.g., .00250). To convert it to a more familiar APR, you multiply it by 2400. A lower money factor means a lower monthly payment. This is heavily influenced by your credit score.
  4. Down Payment (Cap Cost Reduction): This is the money you pay upfront to lower the capitalized cost, which in turn lowers your monthly payment.
  5. Fees and Taxes: Don’t forget the acquisition fee (a fee to initiate the lease), destination fee, and local taxes. These are all rolled into the final calculation.

The basic formula looks something like this:
(Cap Cost – Residual Value) / Term Length + (Cap Cost + Residual Value) * Money Factor = Your Monthly Payment (before taxes)

It’s a bit of a mouthful, but it shows how a lower cap cost or a higher residual value directly leads to savings for you.

🔍 Tesla Model 3 Lease Options: 24, 36, or 48 Months? Which Term Fits You Best?

We’ve touched on the 24 and 36-month terms, but what about longer options? While some third-party leasing companies might offer different terms, Tesla itself does not typically offer a 48-month lease on the Model 3. They stick to the 24 and 36-month options.

Let’s put the two main choices head-to-head to help you decide which of the Best Lease Terms is right for your lifestyle.

Feature 24-Month Lease 36-Month Lease
Monthly Payment Higher 💸 Lower ✅
Technology Cycle Stay on the cutting edge 🚀 Still modern, but a lot can change in 3 years.
Warranty Coverage Fully covered for the entire lease. Covered for the entire lease.
Commitment Level Lower commitment, more flexibility. Standard commitment, locks you in for 3 years.
Best For Tech enthusiasts who want the newest model. Budget-conscious drivers seeking stability.

Our take: For most people, the 36-month lease is the pragmatic choice. It offers a comfortable payment and keeps you in a fantastic, modern car for a reasonable period. If you have a genuine fear of missing out (FOMO) on the next big feature and your budget allows, the 24-month term is an exciting way to stay ahead of the curve.

🚗 Pros and Cons of Leasing a Tesla Model 3: Is It Right for You?

Leasing isn’t for everyone, and that’s okay! It’s a financial tool with specific advantages and disadvantages. Here at Car Leases™, we believe in transparency. Let’s lay it all out.

✅ Pros of Leasing a Model 3

  • Lower Monthly Payments: This is the #1 reason people lease. You’re only paying for the car’s depreciation during your term, not the full purchase price.
  • Always Drive a New Car: Get that new car smell and the latest tech every 2-3 years. With EVs evolving so quickly, this is a major perk.
  • Worry-Free Maintenance: You’ll be covered by Tesla’s warranty for the entire duration of your lease, avoiding the risk of expensive post-warranty repairs.
  • No Resale Hassle: At the end of the term, you just hand the keys back. No need to worry about selling the car, haggling with buyers, or its future market value.
  • Potential Tax Benefits: If you’re using the car for business, you may be able to write off a portion of your lease payments. (Consult a tax professional, of course!)

❌ Cons of Leasing a Model 3

  • Mileage Restrictions: This is the big one. If you drive a lot, the overage fees can be painful.
  • No Ownership/Equity: Those monthly payments don’t build any equity. At the end, you have nothing to show for it but memories.
  • No Customization: Want to wrap your Model 3 in hot pink or add a wild spoiler? Forget it. The car has to be returned in its original condition.
  • The No-Buyout Rule: This is a Tesla-specific con. Unlike most other brands, you cannot buy the Model 3 when your lease is up. This is a deal-breaker for many who fall in love with their car.
  • Wear and Tear Fees: You’re responsible for keeping the car in great shape. Dings, scratches, and curb-rashed wheels can cost you at lease-end.

💡 Buying vs Leasing a Tesla Model 3: The Ultimate Showdown

This is the classic dilemma, the automotive equivalent of “paper or plastic?” The answer depends entirely on your financial situation, driving habits, and long-term goals. Let’s break it down.

Aspect Leasing a Tesla Model 3 🤝 Buying a Tesla Model 3 💰
Upfront Cost Lower (first month’s payment, down payment, fees). Higher (full down payment or full cash price).
Monthly Payment Lower. Higher (unless you pay cash).
Ownership None. You’re renting long-term. Full ownership. It’s your asset.
Mileage Limited to 10k, 12k, or 15k miles per year. Unlimited. Drive to the moon and back! 🚀
Customization Not allowed. Must be returned in original condition. Go wild! It’s your car to modify as you please.
Long-Term Cost Potentially more expensive if you lease continuously. Potentially cheaper over many years, as payments eventually end.
End of Term Return the car and walk away (or lease a new one). Keep the car, sell it, or trade it in.
Repairs Covered by warranty for the duration of the lease. Your responsibility after the warranty expires.
Best For Those who want lower payments and a new car every few years. Those who want to build equity and keep their car long-term.

As FINN’s analysis puts it, financing or buying means you “do not restrict mileage like leases do,” and you can receive the full value of any available Federal Electric Car Tax Credits. This is a significant financial consideration that tilts the scales toward buying for many.

⚖️ Cost Comparison: Tesla Model 3 Lease vs Purchase Over Time

Let’s talk dollars and sense, without getting bogged down in specific, ever-changing prices. Think about the total cost of driving over a six-year period.

  • Leasing Scenario: You lease one Model 3 for 36 months. At the end, you turn it in and immediately lease another brand-new Model 3 for another 36 months.
    • Pros: You’re always in a new, warrantied car.
    • Cons: You make continuous payments for six straight years and have no asset at the end. Your total cash outlay might be significant.
  • Buying Scenario: You get a 72-month (six-year) loan to purchase a Model 3.
    • Pros: After six years of payments, you own the car outright. It’s an asset with resale value.
    • Cons: Your monthly payments will be higher than a lease payment. You’ll be out of warranty for the last two years of your loan, bearing the full risk of any major repairs (like the battery, though it has a separate, longer warranty).

The financial “winner” depends on factors like depreciation rates, interest rates, and potential repair costs. Historically, Teslas have had a “lower depreciation rate than gas-powered vehicles,” which makes buying a more attractive proposition than it is for many other brands. However, the rapid pace of EV innovation could change that calculus in the future.

🔄 Alternatives to Leasing: Tesla Model 3 Financing and Subscription Services

If traditional leasing or buying doesn’t feel quite right, don’t despair! The automotive world is evolving, and you have other options.

H3: Traditional Auto Financing

This is the classic path to ownership. You secure a loan through Tesla’s financing partners or your own bank/credit union. You make monthly payments for a set term (typically 36 to 72 months), and at the end, the car is all yours. This is a great option if you want to own the car, drive unlimited miles, and build equity. It’s a core part of Auto Financing Options.

H3: Car Subscription Services

This is the new kid on the block, and it’s gaining traction. Companies like FINN offer a compelling alternative. Think of it as a mashup of leasing and renting.

  • What it is: A short-term, all-inclusive contract, often for 6 or 12 months.
  • What’s included: Your single monthly payment typically covers the car, insurance, maintenance, and registration. It’s the ultimate in hassle-free driving.
  • Why consider it: It’s the perfect way to “try before you buy” (or lease) without a long-term commitment. If you’re new to EVs and want to see how a Model 3 fits your life for a year, a subscription is an amazing option. As FINN themselves state, it’s a way to experience a Tesla “without the long-term commitment of buying or the restrictions of leasing.”

🛠️ What Happens at Lease End? Tesla Model 3 Return, Buyout, and Renewal Options

The clock is ticking, and your 36 months are almost up. What now? The end-of-lease process for a Tesla is a bit different from other brands, and it’s critically important to understand.

H3: The Lease Return Process

  1. Pre-Inspection: About 60 days before your lease ends, you should schedule a self-inspection through your Tesla account. You’ll document the car’s condition, noting any dings, scratches, or excessive wear.
  2. Final Inspection: You’ll schedule an appointment to drop the car off at a designated Tesla location. They will perform a final inspection and confirm any excess wear-and-tear charges or mileage overage fees.
  3. Settle Up: You’ll pay any outstanding charges, and that’s it. You hand over the keys and walk away.

H3: The “No Buyout” Policy for Model 3 and Model Y

This is the most important takeaway in this entire article. Listen up! 📣

Tesla does NOT allow you to purchase your Model 3 or Model Y at the end of the lease.

Let me repeat that. You cannot buy the car. This policy is stated clearly on their support pages: “All Tesla vehicles delivered on or after April 15, 2022, are not eligible for purchase.” This is a major departure from almost every other car manufacturer. Their reasoning is that they want these vehicles back to support their future initiatives, possibly including a robotaxi network.

What does this mean for you? If you lease a Model 3 and absolutely fall in love with it, your only option at lease-end is to say a tearful goodbye and lease or buy a new one.

📊 Tesla Model 3 Lease Mileage Overages: Fees, Penalties, and How to Avoid Them

Remember how we told you to be honest about your mileage? Here’s why. Going over your allotted mileage will cost you.

The standard fee for exceeding your mileage limit on a Tesla lease is typically $0.25 per mile.

Let’s do some quick math. Say you have a 10,000-mile/year lease but you drive 12,000 miles one year.

  • Overage: 2,000 miles
  • Penalty: 2,000 miles * $0.25/mile = $500

That’s a $500 bill you’ll have to pay at the end of your lease. If you do that every year of a 3-year lease, you’re looking at a $1,500 surprise. Ouch.

H3: How to Avoid Mileage Penalties

  1. Be Realistic Upfront: This is the best defense. Use a trip calculator, check your Google Maps history, and be honest. It’s cheaper to pay for the miles in your monthly payment than as a penalty.
  2. Monitor Your Mileage: Keep an eye on your odometer throughout the lease. If you’re trending high halfway through, you can adjust your driving habits for the second half.
  3. Buy Miles Mid-Lease (If Possible): Some leasing companies (though not always Tesla directly) allow you to purchase additional miles mid-contract, sometimes at a lower rate than the end-of-lease penalty. It’s always worth asking.
  4. Plan Your Trips: Maybe take your partner’s car or a rental for that cross-country road trip to save the miles on your leased Tesla.

🔧 Maintenance and Warranty Coverage During Your Tesla Model 3 Lease

One of the beautiful things about driving an EV is the reduced maintenance. No oil changes, no spark plugs, no exhaust systems. But that doesn’t mean they are maintenance-free.

H3: What’s Covered by Tesla’s Warranty?

During your 24 or 36-month lease, you’ll be comfortably within Tesla’s excellent warranty coverage.

  • Basic Vehicle Limited Warranty: Covers the car for 4 years or 50,000 miles, whichever comes first. This is your bumper-to-bumper coverage for most defects in materials or workmanship.
  • Supplemental Restraint System (SRS) Limited Warranty: Covers seatbelts and airbags for 5 years or 60,000 miles.
  • Battery and Drive Unit Limited Warranty: This is the big one. The battery and drive unit are covered for 8 years or 100,000 miles (for Rear-Wheel Drive) or 120,000 miles (for Long Range and Performance models), with a minimum 70% battery capacity retention over the warranty period.

This means that for the entire duration of your lease, any major component failure is Tesla’s problem, not yours.

H3: What Are You Responsible For?

You are responsible for routine wear-and-tear items. Tesla recommends the following service schedule:

  • Tire Rotation: Every 6,250 miles or if the tread depth difference is 2/32 in or greater.
  • Brake Fluid Test: Every 2 years.
  • Cabin Air Filter Replacement: Every 2 years.
  • A/C Desiccant Bag Replacement: Every 6 years.

You’ll also need to replace tires when they wear out and keep the washer fluid topped up. These costs are on you.

🌍 Environmental Impact: Leasing a Tesla Model 3 and Your Carbon Footprint

Choosing a Tesla isn’t just a driving decision; it’s often an environmental one. By leasing a Model 3, you’re participating in the shift away from fossil fuels.

  • Zero Tailpipe Emissions: This is the most obvious benefit. Your daily commute will be free of CO2, nitrogen oxides, and other pollutants that contribute to local smog and global climate change.
  • Lifecycle Emissions: While EVs have zero tailpipe emissions, it’s important to consider their entire lifecycle, from manufacturing (especially the battery) to the electricity source used for charging. However, numerous studies, including Tesla’s own Impact Report, show that over their full life, EVs have a significantly lower carbon footprint than comparable internal combustion engine (ICE) vehicles.
  • The “Leasing Loop”: Tesla’s no-buyout policy, while a con for some consumers, has a potential environmental benefit. By taking back all leased Model 3s, Tesla maintains control over the battery packs. This allows them to refurbish, reuse, and eventually recycle these batteries with maximum efficiency, closing the loop and reducing the need for new raw materials.

Leasing ensures a steady stream of modern, efficient EVs hit the road, and it gives the manufacturer a predictable supply of used batteries to manage responsibly.

🚀 Insider Tips: How to Score the Best Tesla Model 3 Lease Deals

You didn’t think we’d leave you without some pro tips, did you? The Car Leases™ team has a few tricks up our sleeves to help you get the most bang for your buck.

  1. Check Inventory Models: Tesla’s website has an “Inventory” section with cars that are already built and available for immediate delivery. These are sometimes discounted slightly from custom-ordered vehicles, which can lead to a better lease deal.
  2. Time Your Lease: Like many car companies, Tesla has quarter-end and year-end delivery pushes. While they don’t negotiate in the traditional sense, you may find more favorable inventory options or occasional promotions during these periods.
  3. Put Down as Little as Possible: While a large down payment lowers your monthly bill, we generally advise against it on a lease. Why? If the car is totaled or stolen, GAP insurance (which is typically included in Tesla leases) covers the difference between the insurance payout and what you owe. However, you will not get your down payment back. It’s gone forever. It’s better to have a slightly higher monthly payment and keep that cash in your pocket.
  4. Look for State and Local Incentives: While the federal tax credit is tricky with leases, many states, cities, and even utility companies offer their own rebates and incentives for leasing an EV. Check your local government and utility websites!
  5. 👉 Shop Your Financing (for a purchase): If you decide to buy instead, don’t just accept Tesla’s financing rate. Get pre-approved from your own bank or a credit union. You can often find a better rate, saving you thousands over the life of the loan.

🧾 Understanding Tesla’s Lease Agreement Fine Print: What to Watch Out For

The devil is always in the details. A lease agreement is a legally binding contract, so you need to read it carefully. Here are a few key clauses to pay close attention to in a Tesla lease.

  • Excessive Wear and Tear: What does Tesla consider “excessive”? Their lease-end guide will specify this. It usually includes things like dents larger than a credit card, deep paint scratches, cracked glass, and tires with less than 1/8-inch of tread. Know the rules to avoid surprise charges.
  • Modifications: The agreement will state that you cannot make permanent modifications to the vehicle. This means no engine tuning (not that you would), no suspension changes, and no permanent cosmetic alterations.
  • Commercial Use Prohibition: As mentioned earlier, the contract will explicitly forbid you from using the vehicle for ridesharing (Uber, Lyft) or any other commercial activity. Violating this could lead to the termination of your lease.
  • Early Termination Clause: Life happens. If you need to end your lease early, the penalties can be severe. You might be on the hook for all remaining payments. Understand this clause before you sign.
  • Lease Transfer Policy: Can you transfer your lease to someone else if you need to get out of it? Tesla’s policy on this can vary. It’s often allowed but may involve a credit check for the new lessee and a transfer fee.

CHECK PRICE on a Tesla Model 3:

🏁 Conclusion: Is Leasing a Tesla Model 3 the Smart Move for You?

After cruising through the ins and outs of Tesla Model 3 leasing, here’s the bottom line from your Car Leases™ pit crew:

Positives:

  • Leasing a Model 3 offers lower monthly payments compared to buying, making it easier to get behind the wheel of this cutting-edge EV.
  • The 24- or 36-month lease terms align well with Tesla’s warranty, minimizing your risk of costly repairs.
  • You get to experience the latest Tesla technology every few years without the hassle of selling or trading in.
  • Tesla’s residual values hold strong, which helps keep lease payments reasonable.
  • The environmental benefits of driving a zero-emission vehicle are a win-win for you and the planet.

Negatives:

  • The mileage limits (10,000 to 15,000 miles/year) can be restrictive, and overages are costly.
  • Tesla’s no-buyout policy means you cannot purchase your Model 3 at lease-end, which is unusual and a deal-breaker for some.
  • You’re responsible for wear-and-tear charges and must keep the car in near-perfect condition.
  • Leasing doesn’t build equity—you’re essentially renting the car for the term.
  • Leasing restrictions prevent commercial use or ridesharing, limiting flexibility.

Our Confident Recommendation:
If you love driving the latest EV tech, have predictable mileage, and want lower monthly payments without the long-term commitment of ownership, leasing a Tesla Model 3 is a smart and exciting choice. However, if you crave unlimited miles, want to customize your ride, or dream of owning your Tesla outright, buying or financing might be the better road ahead.

Remember, Tesla’s unique no-buyout policy means leasing is a commitment to return the car at term’s end. So, think carefully about your driving habits and lifestyle before signing on the dotted line.

Ready to explore your options? Check out our detailed guides on Tesla Model 3 leases and Electric Vehicle Leases for even more insider tips.

❓ Frequently Asked Questions About Tesla Model 3 Leases

What are the average monthly payments for a Tesla Model 3 lease?

Monthly payments vary based on lease term, mileage allowance, credit score, and the specific Model 3 variant. Generally, expect payments to be lower than financing or buying, thanks to paying only for depreciation during the lease. For example, 36-month leases with 10,000–15,000 miles per year typically have monthly payments in the mid-hundreds to low thousands range, depending on configuration and incentives. Always check current offers on Tesla’s official site or trusted platforms like Edmunds for up-to-date numbers.

How do I negotiate the best lease deal for a Tesla Model 3?

Tesla’s direct sales model means traditional negotiation is limited. However, you can:

  • 👉 Shop inventory models for slight discounts or incentives.
  • Time your lease around quarter-end or year-end when Tesla may have delivery targets.
  • Minimize your down payment to avoid losing money if the car is totaled.
  • Check for local or state incentives that can reduce your effective cost.
  • Maintain a high credit score to secure the best money factor.

For more tips, see our guide on Best Lease Terms.

What are the typical fees associated with leasing a Tesla Model 3?

Expect these fees:

  • Acquisition fee: A one-time fee to start the lease.
  • Down payment (due at signing): Includes first month’s payment and any cap cost reduction.
  • Disposition fee: Charged at lease-end if you don’t lease or buy another Tesla.
  • Excess mileage fees: Usually $0.25 per mile over your allowance.
  • Wear and tear charges: For damage beyond normal use.
  • Taxes and registration: Varies by state.

Always read the lease agreement carefully to understand all fees.

Can I lease a Tesla Model 3 with unlimited mileage?

❌ No. Tesla leases come with annual mileage limits (typically 10,000, 12,000, or 15,000 miles per year). Unlimited mileage leases are not offered. If you exceed your mileage allowance, you’ll pay per-mile penalties at lease-end.

How does the mileage limit affect the overall cost of a Tesla Model 3 lease?

Choosing a higher mileage allowance increases your monthly payment because the car depreciates more with extra miles. Conversely, selecting a lower mileage limit reduces monthly payments but risks costly overage fees if you drive more than allowed. It’s crucial to estimate your annual mileage accurately to balance payments and avoid surprises.

What happens if I exceed the mileage limit on my Tesla Model 3 lease?

You will be charged an excess mileage fee, typically around $0.25 per mile over your limit. This fee is billed at lease-end and can add up quickly if you drive significantly more than your allowance. To avoid this, monitor your mileage and consider purchasing additional miles mid-lease if available.

Are there any tax benefits or incentives for leasing a Tesla Model 3 for business use?

Yes, if you use your leased Tesla Model 3 for business, you may be eligible for partial tax deductions on your lease payments, such as the Section 179 deduction or business expense write-offs. However, the Federal EV Tax Credit is generally claimed by the lessor (Tesla or the leasing company), so the full credit may not pass through to you. State and local incentives vary widely. Consult a tax professional to understand your specific situation.

Ready to take the wheel? Whether you decide to lease, buy, or subscribe, the Tesla Model 3 offers an electrifying driving experience that’s hard to beat. And remember, when it comes to car leases, knowledge is your best co-pilot! 🚗⚡

Jacob
Jacob

Jacob is the Editor-in-Chief of the site Car Leases™, where he leads a team focused on clear, bias-free guidance that helps drivers negotiate smarter leases and avoid costly surprises. His editorial playbook is simple: explain money factors and residuals in plain English, show the math, and keep every article aligned with up-to-date incentives, tax rules, and real-world pricing. Under Jacob’s direction, Car Leases™ covers the full lifecycle of leasing—from negotiation and financing to lease transfers, EV leases, mileage limits, and end-of-term strategies—so readers can make confident decisions fast.

He also steers the site’s transparency standards: clear affiliate disclosures, reader-first recommendations, and an emphasis on sustainability (the site runs on carbon-neutral hosting via AccelerHosting). Those practices reflect Car Leases™’s mission to provide accurate, current information freely to readers.
Car Leases™

When he’s not untangling lease jargon, Jacob is testing calculators, pressure-testing “too good to be true” zero-down offers, and editing deep dives on high-interest topics like Tesla and other EV leases. His goal is constant: turn complicated lease terms into decisions you can trust.

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