- Interest rates lower than average for some borrowers
- Flexible terms of 36 to 72 months
- Faster than financing through a third-party
- Apply for a loan online
- No application fees
- Not available in every state
- May get lower rates from a credit union or other lender
Tesla Auto Financing Overview
If you’re looking to buy a Tesla EV, the quickest and easiest way to get financing is online through Tesla Auto financing. You can apply at the same time as you build your Model S, 3, X, or Y online, customizing the features you want.
Here’s a look at some of the key features of Tesla financing.
You will not face any fees when financing a Tesla through their auto financing program. You will pay a destination fee, which is included in the list price. Taxes, title or registration fees relevant to your state will also apply.
When you visit the Tesla Design Studio online and build your favorite model, you can choose “loan” as the payment option. The option defaults to an APR of 5.89%. But the rate you get for financing a Tesla through their auto financing program might vary depending on your credit score.
This provided base rate is lower than the national average APR for new car loans, which is 6.58% across buyers. But Tesla’s rates are not as low as other options. For instance, the United States Senate Federal Credit Union offers rates as low as 4.24% for 36 months for new car loans.
Tesla falls short when it comes to offering financing to car buyers across the U.S. When financing a Tesla, according to the Tesla website, you must take delivery in one of these states: AZ, CA, CO, FL, GA, HI, ID, IL, IN, MA, MD, MN, MO, MS, NV, NJ, NY, NC, OH, OR, PA, RI, TN, TX, UT, VA or WA.
Tesla Auto financing terms are comparable to most other auto loans. They have loan terms ranging from 36 to 72 months.
How Tesla Auto Financing Stands Out
Tesla financing makes it easy to order your new EV and apply for financing all on the same site. Rates for borrowers with excellent credit scores are lower than the national average interest rate across all buyers.
Comparable Tesla Auto Financing Options
When looking to finance a car, it’s important to know all your options. Here are two other companies to consider when looking to finance a Tesla.
Ford Motor Company, manufacturer of the Mustang Mach-e all-electric SUV and the new Ford F-150 Lightning, offers multiple financing options. These are offered for new, used and certified pre-owned vehicles through Ford Credit. Terms range from 12 to 84 months, which is more flexible than Tesla’s terms.
The Flex Buy program, available in all but 7 states and Washington, D.C., provides a unique payment structure. In the first three years, users will have payments 15% to 18% lower than rates for the following years. Ford Credit also allows you to pre-qualify for a loan, putting it slightly ahead of Tesla’s financing options. The downside, of course, is it is only available for Ford vehicles.
United States Senate Federal Credit Union
If you have your heart set on a Tesla, you have options besides Tesla Auto financing. USSFCU is one to consider. They offer loan terms of up to 7 years, a 0.25% discount for auto pay and interest rates that start at 4.24% for qualified car buyers with excellent credit.
How To Apply
To apply for a Tesla auto loan, first design your vehicle in the Design Studio. This will provide your estimated payments, so you can add or remove features to create an EV that meets your budget.
Once you have created an account and logged in, visit the “Payment Method” section of your account and select “Finance,” then “Loan.” Choose Tesla as the financier and then complete the application.
You will need to provide some personal information, including:
- Social Security Number
- Phone number
- Employment information
Tesla financing will have to do a hard credit pull at some point to approve your loan.
Who the Tesla Auto Financing Is Best For
Tesla Auto financing is best for those with a good to excellent credit score, who are purchasing a new Tesla and live in one of the 27 states where Tesla financing is available.
Tesla Auto financing provides convenience, relatively low-interest rates and an easy online application. You may find lower rates or better terms from third-party financiers, however. Be sure to compare all your options before making your final selection.
FAQHere are the answers to some of the most frequently asked questions about financing a Tesla.
- What is Tesla's current financing rate?
- When you create your ideal Tesla in the design studio, the APR for a loan starts at 5.89%. But this rate is sure to vary based on your credit score.
- Is it hard to get financed by Tesla?
- Tesla doesn't mention the criteria required to finance a vehicle, but the higher your credit score, the lower your interest rate will be.
- What credit score is needed to finance with Tesla?
- Tesla doesn't list the credit score required to qualify for financing, but the consensus amongst buyers online is that a 720 or higher score will help you qualify for the best rates.
- What is the longest loan term for a Tesla?
- Tesla offers loan terms for up to 72 months.
Sabah Karimi contributed to the reporting for this article.
Information is accurate as of July 27, 2023.
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- MarketWatch. 2023. "Average Auto Loan Interest Rates."