Lease Demand for Tesla Model 3 Beats BMW, Mercedes

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Consumers seek leases on Teslas 26% more often than on Mercedes-Benz vehicles and 20% more frequently than on BMWs, Scot Hall, executive vice president of operations at car lease transfer marketplace, told Auto Finance News.

Currently, Tesla offers leasing options on its Model X and Model S variants but not on the lower-priced Model 3s. Leasing accounted for only 6% of Tesla’s car sales in the second quarter.

“Our Q3 Model 3 deliveries were limited to higher-priced variants, cash/loan transactions, and North American customers only,” according to the company’s earnings report.

“There remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the car, and by starting international deliveries.”

Developing a strong direct leasing program for Model 3 is “highly critical” and almost essential for a luxury carmaker trying to compete in lending, Hall said.

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As Associate Editor of Auto Finance News, Nicole Casperson reports on the latest news, trends, and innovations impacting the auto finance space. Nicole is an experienced business reporter from Texas, and she previously specialized covering the housing and mortgage industry. Nicole received her Master of Arts in Mass Communication and her Bachelor of Arts in Journalism both from the College of Media & Communication, Texas Tech University.