The Tesla Model 3 at €299 per month: a misleading good deal?

In France, Tesla has accustomed us to play with financing options. For example, this summer offer on the Model 3.

Whether it’s a Tesla, a Renault, or a BYD, choosing not to buy an electric car outright is, in our opinion, a very sensible approach. Why tie up a significant amount of money when it’s possible to spread the expense over several months, thereby reducing financial pressure on the household? But let’s be clear: whether paying outright or financing, buying an electric car remains a risky bet. The rapid evolution of technologies, especially battery technology, can render a vehicle obsolete long before the financing ends.

Take the example of the Tesla Model 3 Propulsion, refreshed a year ago, offered at 39,990 euros. With a range of 520 km, it may not be the best at long distances, but it’s still adequate for daily use and some travel. This range is more than enough for everyday use and a few trips. Technologically, thanks to Over-The-Air (OTA) updates, we know it will hold up remarkably well over time. However, it’s a refreshed model, not a completely new car per se.

The LOA, a relevant offer?

For this type of vehicle, the Lease with Purchase Option (LOA) is a much more interesting solution than buying outright. With this option, there’s no need to worry about depreciation or resale at the end of the contract. Tesla offers a 36-month LOA with an annual mileage limit of 10,000 km. Before making your 35 monthly payments of 299 euros, you’ll need to pay an initial down payment of 8,030 euros, which is quite high, especially when brands like MG offer options with no down payment. But Tesla focuses on transparency with no income conditions, buyback, or bonuses, which can be appealing compared to certain practices of French manufacturers.

At the end of the lease, the purchase option is set at 26,217 euros. If you decide to acquire the car, the total cost thus amounts to 44,716 euros. This remains well above zero-interest offers. However, if you choose to return the vehicle, you will have spent 18,495 euros, or about 47% of the car’s initial value, which is still higher than its estimated depreciation over three years.

Ultimately, an enticing offer but far from relevant. It will certainly find its audience, but before committing, always think to pull out your calculator.

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