The Tesla Y Hatchback car review

The Tesla Y Hatchback Long Range AWD 5dr Auto - how much is it to lease?

When Tesla launched their Model 3 saloon around 2017 (with models arriving into the UK around 2019) the electric vehicle world changed with such propulsion, that even the hardened EVangelists like our e-car lease team were surprised.

We were less surprised when the Model 3 was confirmed as the best-selling EV of 2021 with nearly 35,000 registrations. But when a new SUV version was launched, the Model Y, in 2021 (for UK customers) it became apparent that this would indeed be one of the Model 3’s greatest competitors.

This was somewhat ostensible when March 2022 resulted in 6,464 Model Y registrations compared to the 6,457 Model 3 registrations! The onset of which is the best Tesla to lease? should I lease a Model 3 or Model Y? has led to some interesting conversations with our personal, business and salary sacrifice leasing customers.

Because of continued price increases, brought about by vehicle and parts shortages, the Model Y is still only available to deliver in the Long Range format. Not unlike every other manufacturer, the Tesla group is having to contend with some significant disruptions to their supply chain which is leading to long delays on delivery, coupled with a continued increase in prices

On the contract hire side of things, being able to offer a price consistency for customers is proving to be almost impossible in the current market! As at June 2022, you will pay £56,000 for a standard Long Range, with the upcoming Performance due to come in at £65,000. With these prices, it is fair to say that the Tesla is not a cheap EV product and will be retained for those customers with a healthy budget.

Indeed, because many customers are trying to manage their budgets accordingly they will utilise our contract hire and leasing product. Do Teslas have leases? If you are on the UK website you will note that they offer cash purchase, a PCP (Personal Contract Purchase) or a Tesla Loan (being a Hire Purchase). For leasing, you need to speak to a credit broker like e-car lease.

Comparing the best finance products on a BEV is something which arises very commonly with all of our UK customers. Many want to know which is best? Which is cheapest? However, getting the right deal for you, or the company, is more about education on how the product operates so that you receive something which is suitable for your needs and requirement, for example:

Contract Hire (Leasing) - this is a usership product which means that you use the Tesla for 2, 3 or 4 years on a fixed annual mileage (which is amendable during the contract), with an initial rental of your choosing (the first payment / deposit) and on either a driver-maintained basis (you / the company pays for servicing and maintenance) or a funder-maintained basis (the cost of all servicing, tyres and breakdown recovery is included for an additional cost). Can you purchase the Tesla after a lease? In most cases, finance companies will simply collect your vehicle at contract cessation - we always suggest that this is not suitable if you wish to purchase an EV at the outset. Leasing is ideal for any individual or company who wishes to operate a Model 3 or Y for a fixed set of time without the hassle or concerns associated with ownership. Unlike PCP or HP there is no integrated rate of interest or APR to contend with;
PCP - for individuals in the UK this has been the foremost way in which to procure a new vehicle. While this is often referred to as a lease product, for the purposes of clarity we do not adopt this so as not to confuse this with the above (contract hire). A PCP operates quite similarly to contact hire in that there is an initial payment (sometimes called deposit or down payment) followed by a series of monthly payments. The key differences to contract hire is that there is a representative APR on each arrangement which you can utilise to understand the competitiveness of the funding. In addition, you will be offered a Guaranteed Future Value (GFV, Balloon or Optional Final Payment) which effectively is an amount you need to pay to own the vehicle (or use in the case of part-exchange or sale). Until the final payment is made, the vehicle is not owned by the end-user. Is a PCP cheaper than contract hire? In most cases it isn’t, on the basis of the higher discounts / residual value attributed to contract hire. If you are utilising a PCP to simply hand your Tesla back at contract end, then you would probably be more financially savvy using contact hire. However, if you think, or know unequivocally, that you do want the ability to purchase a car, then you should almost certainly consider a PCP arrangement. For a business / company car situation, a similar product can be used called Finance Lease. Unlike the PCP this has a final payment / rental which MUST be satisfied at the end of the contact i.e. you cannot elect to return the vehicle as you can do under a PCP. In addition, many finance companies do not allow the company to purchase the Tesla at the end of the contact; it must be sold to a genuine 3rd party; and
HP - for individuals / companies who do wish to have a pure purchase-based finance product then consider the Hire Purchase route. Often you will see this advertised as 3 - 6 year payments, coupled with a deposit, which allows you to purchase the vehicle over a period of time. Like the PCP, use the fixed rate of interest / representative APR to understand the finance deal you are being offered. If a vehicle, like the Tesla Model 3 and Y are, is the same price regardless of where you purchase it from, then the only differing factor will be the rate of interest being applied to the arrangement. For an individual this is a common way to own your new or used car. For businesses, there are some differences which relate to the way in which you account for the arrangement - always speak to your accountant about the tax implications. In effect, you utilise capital allowances on a HP agreement compared to offsetting the monthly rental in a leasing or finance lease arrangement. For those looking to purchase a Tesla over a long period of time, then HP will be the main suggestion.

In all of the examples, the costs you pay will be ultimately determined by the underlying purchase cost (note that Tesla offer NO discount) and any corresponding interest rates or residual values. With contract hire / leasing you will be currently looking to budget around £500 - £700 per month. But you should not always just consider the finance aspect of any deal. It’s of equal importance to take into account the running costs of a vehicle - we call this the Whole of Life cost analysis. This is about considering the cost of servicing, maintaining, fuel, insurance and any other savings and or costs which might arise. With political and economic changes in our UK automotive future, drivers now have to consider company tax, congestion zone and clean air zone policies which influence vehicle costs. Our e-car lease website will help with this via our charge cost, cost per mile and company car tax calculator (together with our funder-maintained quotations).

For further details on the best Tesla Model Y lease deals (or any other Tesla) just get in touch with out expert team.

Tesla MODEL Y Hatchback Long Range AWD 5dr Auto

In terms of the car shown, the Tesla MODEL Y Hatchback Long Range AWD 5dr Auto, this is based on the following configuration: