It’s been three years since Tesla introduced its in-house leasing program, and now thousands of owners are coming off their Model S leases every quarter, prompting the automaker to introduce vehicle upgrades earlier this week as an end-of-lease option.
With the Model 3 coming out in late 2017 — and a record number of reservations, at over 500,000 — Tesla might also be trying to mitigate slowing demand for Model S and X by reminding current customers of the vehicles’ design features and technological parity to the Model 3.
Which is why the first option Tesla now lists on its website as an end-of-lease option is to upgrade to a new Tesla:
“Model S is better than ever,” Tesla states on its landing page for the end-of-lease options. “Over the last three years, we’ve added new features, like updated styling and interior, dual motor all-wheel drive, ludicrous speed, self-driving hardware, and more range. We also introduced Model X, the safest, fastest, and most capable SUV on the road. View local inventory to take delivery as soon as this week.”
Other end-of-lease options listed include allowing a customer to purchase his or her vehicle, return the vehicle, or extend the lease — but for only six months.
About one out of four vehicles that Tesla delivers today are leased from the company according to a published report, and therefore it’s become increasingly important for the OEM to manage the end-of-lease experience, given Tesla delivers approximately 25,000 vehicles per quarter according to the company.
