Buy Now, Pay Later and 6 More Ways You Can Finance a Tesla in 2025

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So, you’re thinking about buying a Tesla this year. That’s exciting, and a little overwhelming, depending on your budget. Let’s get real for a second. Unless you’re paying outright in cash, the real question becomes how you’re going to finance it without stretching yourself too thin.

The good news? There are options. A lot more than you might think. Keep reading as we look at six different ways you can pay for your new Tesla purchase (beyond using buy now, pay later).

You Can Use Klarna, but With Limits

You won’t be financing your actual car through Klarna, but you can split things like wall chargers or floor mats into four smaller payments. Tesla partnered with Klarna for shop items, not vehicles, and it’s interest-free for six weeks. It’s not flashy, but it helps when you’re staring down all the extras.

Tesla’s Built-In Financing Tool Is Simple

If you would prefer to avoid third-party lenders, you can apply for financing directly through Tesla when you order your car. They’ll walk you through everything online. You’ll get loan terms between 36 and 84 months, and you can even roll in things like Full Self-Driving. It’s not always the lowest rate, but it’s fast and easy.

Credit Unions Still Come Out Ahead Sometimes

Don’t sleep on your credit union. Most of the time, they’ll beat the annual percentage rate (APR) you’ll be offered by Tesla. This means it might be worth the extra steps if you want to save over the long term. You’ll need to apply and get pre-approved before placing your order, but people who’ve done it swear it’s worth it.

Leasing Isn’t Dead

When leasing a Tesla, you’ll likely receive a lower monthly payment than if you purchased, but it comes with a mileage limit and no ownership at the end of the lease. This makes sense if you don’t drive many miles or want the option to upgrade after a couple of years.

Some People Just Pay Upfront

If you’re sitting on enough cash to pay outright, Tesla takes wires and ACH transfers. That means no loan, no monthly payments and most importantly, no interest. This is the lowest total cost option if you’re planning to keep the car for a while.

Home Equity Option

A few folks take out a home equity line of credit (HELOC) to fund their Tesla. Rates can be lower than a car loan, but your house is collateral. Only do this if you’re comfortable with the risk and know you’ll be able to make the payments.

Personal Loans Are Still Available

Personal loans aren’t tied to the car, so they’re a little riskier for lenders, and they’ll charge you for that. Interest rates are almost higher for personal loans than they are for auto loans, but it might be your best shot if you’re struggling to get a loan from an auto lender.

So, What’s Your Move?

If your goal is a low monthly payment, you might want to choose leasing. But if you would prefer to minimize your overall cost, you’re better off paying cash or using a low-cost auto loan. While Tesla’s own financing is an option, your local credit union will most likely offer a better interest rate. 

No matter how you plan to finance your new Tesla, just make sure the payment plan fits within your budget.

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