The Best Tesla Model 3 To Lease Is:
The Long Range AWD 4dr Auto
The Best Alternative Tesla Model 3 To Lease Is:
The Standard Plus 4dr Auto
Why We Picked The Long Range AWD 4dr Auto
It has the 2nd lowest percentage of list at 2 years (27.4%), and it also has the 2nd lowest overall cost over the course of a 2 year lease (£14,113).
If you pick a longer-term, the monthly payments would be less, because you are spreading the cost of a depreciating asset, but if you want to get the most value for money, then it is best to get the Long Range AWD 4dr Auto.
Our analysis below hopefully provides you with a little direction on which vehicles are best. We absolutely encourage you to research the market yourself and qualify what we have analysed. You will have to make the judgment on whether the Long Range AWD 4dr Auto model is worth it over the course of a 2 / 3 year lease compared with the rest of the line-up. For us, it is, but the decision ultimately rests with you.
Remember, at Car Leasing Guru, we do not review vehicles, we look objectively in terms of overall value for money. Use our free pricing system on the homepage, and we’ll tell you exactly what you should be paying to lease this car. We take an independent and impartial view of the market to show you what is fair.
Do We Always Pick Value For Money?
Generally, we will always look for the smallest amount you would pay over the course of the lease, at the same time we will also look at how much value the cheapest lease actually offers you.
There is no point in Car Leasing Guru suggesting the cheapest possible lease if all you get is a steering wheel and a windscreen, especially when you might be able to pay £10 per month extra and get a significant increase in the specification, exterior design, engine performance or economy. In this instance that’s why we’ve picked the Long Range AWD 4dr Auto. It offers the most ‘value for money’ in our opinion, especially on the range.
Tesla Model 3 Vs Rivals
A strong brand, market position and perception vs peers like the Mini Electric or Kia E-Niro. Retail pricing and the combination of EV incentives make this segment of the market very competitive, but it doesn’t count for anything unless there are strong residual values (RV’s) that go with it, and thankfully, Tesla RV’s are very strong compared with their main rivals.
Not only do Tesla’s command a premium in the 2nd hand market, one could argue that the constant and relentless pace they update the technology in their cars also has a positive effect on their overall perception; which helps their RV. Not to mention the fact that you can add options to your car via over the air updates at any point. In this respect, they’re more like a phone than a car. Constantly being updated to make them smarter.
This makes lease or ownership more cost-effective over the course of its lifecycle, as they can become more desirable over the course of their lifecycle as and when you add options; something you can’t do with traditional cars…
We gave the Long Range AWD 4dr Auto an 8.8 / 10 in terms of value for money compared with other models in the range. This number is a pure mathematical equation, not our personal opinion.
So if you are searching for Tesla Model 3 car leasing deals, Tesla Model 3 cost, cheap car leasing, or just general car leasing comparison, the Long Range AWD 4dr Auto is the best one to go for in terms of overall value for money.
We’ve only selected 3 models in this analysis, as those are the only ones available from Tesla at the time of writing.
See below for a detailed breakdown:
Car Leasing Guru Score
The Car Leasing Guru scoring system is based on the overall value a particular vehicle offers. I’ve included the definition for the category this model sits in. How this works & other scores
Tesla Model 3 Long Range AWD 4dr Auto
Score: 8.8 overall.
8.0 to 8.9:
Great – We enthusiastically recommend any vehicle in this category. Seriously impressive value for money; add it to a watchlist and compare against a few other vehicles.
Tesla Model 3:
There are three specifications to choose from in the Tesla Model 3 range. The base model ‘Standard’ up to the ‘Performance’. The ‘Long Range’ model easily offers the best value for money when looking at the entire range.
The ‘Standard‘ model gets:
- 254 miles of range
- 140 mph top speed
- 5.3 seconds (0-60 mph)
- 12-way power-adjustable heated front seats
- Premium seat material and trim
- Upgraded audio – immersive sound
- Premium Connectivity (30 days included):
- Satellite maps with live traffic visualization
- In-car internet streaming music and media
- Video streaming
- Internet browser
- Music and media over Bluetooth®
- Tinted glass roof with ultraviolet and infrared protection
- Power folding, heated side mirrors
- Custom driver profiles
- Center console with storage, 4 USB ports and docking for 2 smartphones
The ‘Long Range‘ model everything the Standard model gets, PLUS:
- 348 miles of range
- 145 mph top speed
- 4.4 seconds (0-60 mph)
- 12-way power-adjustable front and rear heated seats
- Premium audio – 14 speakers, 1 subwoofer, 2 amps, and immersive sound
- Premium Connectivity (1 year included):
- LED fog lamps
- Interior floor mats
The ‘Performance‘ gets everything the Long Range gets, PLUS:
- 329 miles of range
- 162 mph top speed
- 3.2 seconds (0-60 mph)
- 20” Performance Wheels
- Performance Brakes
- Carbon fibre spoiler
- Lowered suspension
- Aluminium alloy pedals
- Increased top speed from 145mph to 162mph
- Track Mode
On The Road (OTR) Price
You can see the OTR prices for the models we’ve selected below.
On The Road Price Vs Lease Cost
Remember, at Car Leasing Guru we do not review vehicles, we look at value for money.
The cheapest model you can get costs; £42,990. This is the Standard Plus 4dr Auto.
The next logical step up from that is the Long Range AWD 4dr Auto, which costs £51,490
Let’s see what we get for our money, and not spend an obscene amount more for the privilege.
As you can see from the graph above, there is an £8,500 difference between the two vehicles from the manufacturer’s list price.
What Does That Mean?
It means that you may be thinking you’ll need to pay an extra £8,500 over the course of a lease in order to get that vehicle…
You pay a proportion of that value. The more desirable the items in the vehicle, the more value is assigned to those items in the 2nd hand market.
The Long Range model holds (proportionally) a lot more value than you would otherwise think it would do.
Take a look at the graphs below. Notice anything? Specifically, look at the numbers at the top of the ‘Total Lease Cost’ graph for a 24-month lease @ 10,000.
Standard Plus 4dr Auto | £12,588
Long Range AWD 4dr Auto | £14,133
Difference = £1,545
Now look at the On The Road (OTR) graph below
Standard Plus 4dr Auto | £42,990
Long Range AWD 4dr Auto | £51,490
Difference = £8,500
Tesla themselves charge £8,500 extra for the privilege of leasing the Long Range version model.
You would only pay an extra £1,545 over the course of a 2 year lease (£64.37 a month) in order to get the Long Range model, even though Tesla themselves charge an extra £8,500.
The point here is that you may think in a lot of cases that you’ll be paying more overall because a vehicle is more expensive to buy at retail (£8,500 more in this case). The numbers above prove that is not the case, and you can actually get a vehicle that’s more expensive, for a small proportion of the actual cost of the vehicle. (£1,545).
This is why Car Leasing Guru exists, so we can show you exactly where to save money, and get more value. It is also why we recommend the Long Range AWD 4dr Auto overall. You get the most “bang for buck”.
FYI: Mileage is calculated per annum. 24 m 20k2 = 24 months @ 40,000 miles.
Long Range AWD 4dr Auto Vs Performance
Let’s look at this in a different way.
I’m going to select two other vehicles, but this time, it will be the Long Range vs the most expensive Performance model.
Take a look at the graph below and you’ll be able to see how proportional “value” is assigned to that vehicle. You can do this same exercise for the other vehicles in our charts too as well. Try it yourself and you’ll be able to see how much more you can get for your money.
On The Road Price
Long Range AWD 4dr Auto | £51,490
Performance AWD 4dr Auto | £56,490
The difference in the On The Road Price = £5,000
Next, we’ll look at how much you would pay over a 2 year lease, doing 10,000 miles a year. (use graph below as a reference)
Total Lease Costs
Long Range AWD 4dr Auto | £14,113
Performance AWD 4dr Auto | £15,184
The difference in the Total Lease Cost (over 2 years) = £1,051
Monthly payment: £1,051 / 24 months = £43.79
Lots of different numbers going on there, so let me explain.
What this tells us is that there is an OTR price difference of £5,000 between the two vehicles, but you would actually be spending an additional £1,051 over the course of the lease. You only spend a proportional amount in order to get the Performance model, you don’t spend the full £5,000.
What Is The Percentage Of List?
The ‘percentage of list’ is the difference between the capital cost (OTR price) and the Residual Value (RV). This shows, at a glance, exactly where value is attributed as a percentage. The lower the number, the better the percentage of list. This is usually a good indication of “value for money”.
Looking at the percentages within the graph below, you can see that they run anywhere between 27-29% or so for a 2 year lease, up to 37-40% on a more realistic 3 year lease. This means you will be paying between 27% to 29% of the total value of that vehicle before you hand it back. You can pay substantially more depending on which model you pick if it is undesirable in the 2nd hand market…
Leasing companies normally don’t read the percentage of list in this way, they actually read it in the opposite way. They would say that the vehicle has 65% of its value left, not that someone would spend 35% of the vehicle’s value. This is because they want to know what the value of the vehicle is at the end of its lease and make any adjustments where necessary from a financial risk perspective. Just makes the calculation easier on their end.
The percentage can give you a good indication of “value” but it also needs to be double-checked against the ‘On The Road’ price. Otherwise, a Ferrari would look like good value for money if we didn’t double-check the overall price and only looked at the percentage of list…
*miles per annum (e.g. 24m / 20k = 40,000 miles)
Is This Why Residual Values Are So Important?
Yes. The RV is the price/value that’s assigned to a vehicle at the end of its useable life.
From a leasing perspective, the end of its useable life is at the end of its term, be it 36 months/48 months etc.
A leasing company is simply going to sell that vehicle at the end of the term, and it’s going to have another life with another customer.
Specific optional or standard equipment and/or combinations of those are assigned a ‘value’ at a particular point in the vehicles life, the more meaningful the items, the more residual value is assigned to them.
Always try to pick vehicles with desirable 2nd hand specification (leather seats, climate control etc), or in this case, AutoPilot. This will provide you with a vehicle that should fulfil your ownership needs, whilst also minimising the financial risk to a leasing company/bank.
This is just some basic analysis that will hopefully help you understand the value of a 2020 Tesla Model 3 lease a little better.
2020 Tesla Model 3 Car Leasing Comparison | Price Guide
The Car Leasing Guru Team