The Tesla Model Y Propulsion is discounted to €249/month

With a lot of advertising jingles, Tesla promises its Model Y Propulsion at an unprecedented price. But let’s take a closer look.

Tesla is increasingly used to promotional campaigns with enticing prices or leases. Just last September, the Model Y Propulsion dropped to 299 euros per month, but its purchasing price was then 46,990 euros, after tax incentives. From a purely statistical perspective, the more a manufacturer resorts to promotions, the worse their sales tend to be. Therefore, it is advisable to take the time to evaluate.

What does the Tesla offer say?

Only one vehicle is involved: the entry-level version of the Model Y Propulsion, whose relevance has dramatically declined since the arrival of a Long Range Propulsion version that is only 2,000 euros more expensive but offers 600 km of range and ultra-quick charging times. Also, there are new tough competitors.

Tesla is thus offering its Propulsion at the unprecedented rate of 249 euros per month through a 36-month lease (Leasing with Purchase Option). It’s short, but ultimately perfect given how fast technology evolves in the electric sector. However, the contract specifies that the first rent is 9,780 euros, which means 5,780 euros after deducting the 4,000 euro ecological bonus. It’s reasonable, but be cautious. We’ll come back to that.

Following are 35 rents at 249 euros. In the end, the lease over these three years will cost you 14,495 euros, excluding insurance and optional services. If the Model Y appeals to you, you will also have the option to purchase it at the end of the lease for an additional price of 31,493 euros. This results in a final price of 45,980 euros. That’s 5,000 euros more than its cost price of 40,990 euros as of October 2024. And 9,000 euros more than in September. Is this really a good deal?

Let’s also revisit the 5,780 euros of the first rent. If you finance it through a bank, it will represent an additional monthly payment of at least 190 euros, thus making a total loan of 439 euros/month and an extra 1,204 euros in interest. Thus, the lease of this Model Y Propulsion ultimately costs 15,697 euros. And a similar equivalent at the end of 3 years of leasing will cost much less used than the 31,493 euros extra requested to fully purchase it (if you were crazy enough to do so…)

Know that orders are open until November 18, 2024, for delivery before December 15, 2024. In the meantime, given Tesla’s stock market crash following the announcement of the Robotaxi, major announcements could be rushed. Perhaps the renewal of the Model Y for example? This would explain the urgency to clear the stocks.

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