A Tesla Model 3 for €309/month, where is the catch?

We know that Tesla’s sales are sluggish at the start of this year, but to the point of slashing the Model 3 to 309 euros per month!

Typically, it’s difficult to keep up with Tesla’s commercial strategies, but when there is a fire in the Californian house, everything becomes blurred, if not crazy! The brand has been heavily betting for a year on LOA (Lease with Purchase Option) plans, both Basic and Premium, on its models. This approach allows offering very attractive rents thanks to a significant initial deposit and a final purchase offer. Regarding this last point, there’s no issue for a recent model when it more or less matches the depreciation at the end of the lease period, but the problem remains with the declining attractiveness of the brand…

An illustration of this concept with the Model 3. First, let’s recall that the electric Model 3 does not benefit from any ecological bonus in France, which places it in a difficult competitive position. Fortunately for it, the reduction of the ecological bonus hasn’t widened the price gap with the restyled Model Y, which is maintained at the same price, giving the sedan an added appeal.

In this context, should one succumb to Tesla’s current offer on the Model 3? The answer is nuanced. Technically, the car is undeniably efficient and reliable, despite the handicap of a tailgateless trunk. However, a thorough review of the general conditions of this Premium LOA offer is necessary before committing.

A Tesla at any price?

To access a monthly rent of 309 euros, spread over 36 months for 30,000 km, you need to make an initial deposit of 7,950 euros. This deposit represents a significant amount in a family budget, often requiring a loan. And renting a car while taking on a consumer loan is a very, very bad idea!

Over three years, the operation costs therefore 19,074 euros. This figure is nearly 48% of the catalog price of the Model 3 Rear-Wheel Drive offered at 39,990 euros, making for an unattractive ratio. Even considering fuel savings, the total cost remains high for a car that will probably have lost more than half its value in three years. And this is assuming Tesla manages to improve its image, which is far from a given. The buyout option set at 25,994 euros therefore appears completely unrealistic.

Everything suggests that this offer is testing the market and could evolve in the coming weeks. If Tesla reduces rents to a more competitive level, around 250 euros per month, the equation would become significantly more attractive. Until then, it’s best to wait and monitor the company’s upcoming announcements.

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