How Much Does It Cost to Lease a Tesla Model Y in July 2025?

As electric vehicles (EVs) become more mainstream, leasing a Tesla Model Y has become a popular option for drivers seeking an all-electric experience without the long-term financial commitment of ownership. The Model Y, Tesla’s compact SUV, is renowned for its cutting-edge technology, efficient performance, and minimalist interior. However, lease pricing varies widely based on factors like trim level, location, credit score, and federal or local incentives. In this article, we’ll break down what it costs to lease a Tesla Model Y in July 2025 and what potential lessees should consider.

1. Current Lease Pricing in July 2025

Tesla frequently adjusts its lease pricing, and as of July 2025, the typical lease offer for a Tesla Model Y is as follows:

Note: These prices reflect Tesla’s direct offers and assume excellent credit. Regional variations may apply.

2. What Affects Lease Prices?

Several key factors influence the lease price of a Tesla Model Y:

Credit Score
Tesla’s financing partners typically require a credit score of 700 or above for the best lease offers. Those with lower scores may see higher monthly payments or additional fees.

Mileage Allowance
The standard lease includes a 10,000-mile annual limit. Tesla allows customers to increase the mileage cap to 12,000 or 15,000 miles per year for an added monthly cost.

Down Payment and Drive-Off Fees
The listed $4,500 down payment includes the first month’s payment, an acquisition fee, and a security deposit (if applicable). Customers may opt to pay more upfront to lower the monthly cost.

State Taxes and Fees
Lease quotes typically exclude state and local taxes, title, and registration fees. For example, California imposes sales tax on the monthly lease payment and sometimes an additional EV registration fee.

3. Federal and State Incentives

While leasing a Tesla doesn’t make you eligible for the $7,500 federal tax credit as the owner, the leasing company (Tesla Finance LLC) may claim the credit and pass the benefit to you in the form of reduced lease pricing. In some states, additional incentives may further lower the cost:

• California: Up to $2,000 Clean Vehicle Rebate (CVRP) for eligible low-to-moderate income households.

• New Jersey: No sales tax on EVs.

• Colorado: Additional lease incentive of up to $2,000.

Always check your local incentives and eligibility at the time of signing.

4. Leasing vs. Buying: Which Is Better?

Advantages of Leasing:

• Lower monthly payments compared to financing.

• No long-term ownership risks (e.g., battery degradation).

• Access to the latest Tesla software and hardware upgrades every few years.

Disadvantages:

• Mileage restrictions.

• No equity built over time.

• Lease-end return process and possible wear-and-tear fees.

Buying makes more sense for drivers who:

• Exceed 15,000 miles annually.

• Want long-term cost savings.

• Intend to customize or keep the vehicle long-term.

5. How to Lease a Tesla Model Y

Tesla has streamlined the leasing process through its website. Here’s a step-by-step guide:

1. Visit tesla.com/modely and select your desired configuration.

2. Choose “Lease” as your payment method.

3. Customize lease terms (mileage, down payment).

4. Review estimated delivery timeline and place your order.

Tesla requires a $250 non-refundable order fee at checkout.

6. EV Charging and Additional Costs

Lessees are responsible for charging the vehicle. Tesla Model Y supports:

• Home Charging: Installation of a Level 2 Tesla Wall Connector or NEMA 14-50 outlet. Approx. $1,000–$1,500 for equipment and install.

• Supercharging: Tesla’s nationwide DC fast charging network, billed per kWh or per minute depending on location.

Charging costs vary by region but generally range from $0.20–$0.40 per kWh.

7. Tips for Getting the Best Lease Deal

• Check for Local Promotions: Some Tesla stores may offer additional incentives or demo discounts.

• Negotiate Trade-Ins: You can apply trade-in value toward your down payment.

• Bundle With Insurance: Some insurers offer EV-specific coverage discounts, especially for leased vehicles.

• Monitor Seasonal Promotions: Tesla tends to push lease incentives at the end of each quarter.

Conclusion

Leasing a Tesla Model Y in 2025 remains a compelling option for those wanting flexibility, low upfront costs, and a taste of Tesla’s technology without long-term commitment. With competitive lease pricing, evolving tax incentives, and growing infrastructure, the Model Y continues to be a strong choice for both first-time EV drivers and long-time enthusiasts.