For the first time, an electric vehicle (EV) has slipped into the list of cars Americans lease most often.
Credit reporting agency Experian tells Automotive News that the Tesla Model 3 ranked seventh on the list of most-commonly-leased vehicles in the third quarter of 2023. About one in four new Model 3 buyers last quarter chose to lease.
“Typically, the top leased vehicles list is made up of high-volume cars and trucks,” AN says. The Ford F-150 topped the leased list, Experian reports, followed by the Honda CR-V and Nissan Rogue.
Leases Have Grown Rarer
Americans changed their leasing behavior during the height of the COVID-19 pandemic.
Leases have historically made up about a third of new car sales. But at the height of the COVID-19 pandemic, leasing fell to as low as 19% of new car sales.
Many customers traditionally leased car after car. When one lease ended, they would roll into a new lease for a new car. But, a lease contract typically includes a clause that lets the lessee buy the vehicle for a price set when they signed their lease.
The soaring new car prices of 2022 left many lessees with a car they could buy for a price fixed before prices began their rocket ride. Many purchased their vehicle at the end of their lease because they could do so for less than market value.
That helped contribute to a shortage of used cars, as dealers lost a reliable source of relatively new cars in good condition.
This Could Mean More Used Model 3s and More Tax Rebates
The Model 3’s appearance on the list of most commonly leased cars raises the possibility of a steady stream of used Model 3 EVs appearing at dealerships in a few years.
Unless Congress changes the law before that happens, those cars will be eligible for a federal tax credit of up to $4,000 available on some used EVs.
