agent Entrepreneur logo
MenuMENU
SearchSEARCH

Would a Leasing Program Benefit Tesla?

May 19, 2014
2 min to read


Via Auto Remarketing


CINCINNATI - You can’t secure a traditional consumer lease from Tesla. But the company did recently introduce its new Resale Value Guarantee program that offers a similar deal.

Ad Loading...


The program offers to buy back a Model S between 36 months and 39 months at a guaranteed residual.


According to Tesla officials, "When combined with a car loan provided by Tesla's banking partners, this program gives customers the functional equivalent of a lease."


But there’s a caveat.


The program is positioned as a lease program, but the owner still has to finance and pay taxes on the vehicle.


According to Scot Hall, executive vice president of Swapalease.com, these and other factors are keeping Tesla from enjoying the true benefits of a leasing program.

Ad Loading...


The car brand has introduced a program that is masked as a lease, but finding a way to offer a traditional lease will benefit Tesla's ability to compete against other luxury brands, as well as additional benefits for consumers, Hall suggested.


In April of this year, Tesla did launch a leasing program for small and medium size buisnesses in an effort to provide companies "the ease and simplicity of being able to deduct payments from their business taxes," according to the company. For more on Tesla business leasing, see the automaker's blog post here.


Hal explained that many other luxury brands use consumer-facing leasing programs as a way to ramp up growth as well as an outlet to push new EVs that compete directly with Tesla models.


"A standard lease program would benefit customers and help Tesla grow its brand further and compete against other luxury makers that are now focusing on EV technology," said Hall. "Look at the success luxury brands such as BMW and Mercedes-Benz have had as a result of their lease programs, which see between 50 percent and 70 percent lease rates for higher-end models. These lease programs have played a large part in the growth these brands have enjoyed over the years, particularly as they introduce EV models to compete against Tesla."


More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...