Not every interested Tesla buyer can pay cash and have the car of their dreams delivered. Some require financing to make this dream a reality. So, does Tesla allow auto financing?
Yes, you can finance a Tesla. Besides, Tesla has its own in-house financing that you can easily apply on their site. But if you don’t want Tesla financing, you can also look for financing elsewhere. You can call your bank or local credit union for financing.
If you want the best financing for your Tesla, consider visiting your local credit unions as they have the lowest rates. However, it’s also crucial to note that Tesla financing is not offered to some models. In such a case, you will have to look for alternative financing.
What’s Tesla financing all about?
Tesla financing offers auto loans for a few models via financial institutions. On top of that, they also provide direct leasing on select models. Tesla financing is available for the new Tesla Model X, Model S, Model 3, and Model Y.
When it comes to leasing, Tesla financing is only offered to Model X, Model S, and Model 3. If you decide to lease, know that you can only buy Model X and Model S, but not Model 3. If the model that you desire is not covered with Tesla financing, you can always look for alternative financing.
One of the setbacks of using Tesla financing is the limited terms for loans. For instance, Tesla Model X has loan terms of 60 and 72-month loans only. The Tesla Model S has loan terms of 36, 48, 60, and 72 months. While Tesla Model Y and 3 have loan terms of 48, 60, and 72 months.
Even though these loans terms seem universal, other financing options provide a broader range of terms. And for those leasing, you will get 36 months for Model 3, and 24 or 36 months for Model X and Model Y. The good thing is that you will have mileage options of 10,000, 12,000, and 15,000.
How to apply for a loan through Tesla financing?
Tesla financing is available to bit customers who want to buy or lease their car. The process is super easy. All you have to do is to visit Tesla’s website and apply for a loan directly. Tesla suggests that you apply for a loan when you’re within 30 to 60 days of your estimated car delivery date.
Two days before your loan or lease application, one of the members of the Tesla Financing team will get in touch and advise you on the next steps. Nevertheless, it’s always a superb idea to compare Tesla financing and other loan offers before making the final decision.
How much is it to finance a Tesla?
The cost of financing a Tesla depends on several things. This includes the period of the loan payment, loan amount, and loan terms. Note that Tesla financing is not provided for all models and it’s not available in all states.
At the moment, Tesla is offering rates as low as 2.99% APR for qualified buyers. With this rate, buying a new Tesla Model 3 may cost around $37,990. However, the interested buyer will have to pay a down payment of $4,500 and monthly charges of $527.
Is Tesla financing an auto loan a good decision?
Yes, it’s a good decision. If you’re in the market for a Tesla – whether buying or leasing, financing through Tesla will make things easier for you. It will be even more convenient as Teslas are normally financed and ordered online.
However, if you live in a state where Tesla financing is not offered or want to purchase a Tesla Cybertruck or Tesla Roadster, then you will have to consider other financing options. Some of the states without Tesla financing include New Hampshire, Louisiana, Delaware, and Michigan.
Does Tesla accept trade-ins?
Yes, it does. However, Tesla does not accept trade-ins like a conventional franchise. Besides, their trade-in value is very low, which is why it’s worth considering selling elsewhere and matching their price. Alternatively, you can try to have Tesla match another quote.
Tesla trade-ins are slightly different from the traditional franchise trade-in because they lack traditional car lots. Therefore, they are forced to send trade-ins to auctions, where many traditional franchise dealers get their Teslas from. So, if you see a dealer selling a Tesla, it’s either from the auction or private seller.
Can I test-drive Tesla before buying the car?
It depends on which state you reside in. However, many states don’t allow interested buyers to test drive Tesla. This is because franchise dealerships are trying to put all kinds of roadblocks and prevent Tesla from offering services that dealers offer.
Luckily, Tesla has a return policy that allows new car buyers to drive their car for seven days before deciding whether to keep the car or return it. This allows new buyers to test drive the car and have a feel of the ride they intend to keep for good.
Is it possible to negotiate Tesla prices?
Unfortunately, you cannot negotiate Tesla prices. The prices that you see on their website are what you will have to pay. Nonetheless, there are some “inventory” Tesla models with a few miles on them that provide a small decrease in price. Check these out at Tesla service centers.
Can I buy a Tesla through dealers?
No, you can’t. This is because Tesla doesn’t have dealerships. Instead, they have Tesla stores, which are conveniently located in notable malls and shopping centers. Due to the franchise laws surrounding car sales, interested Tesla buyers have to buy their cars online.
So, if you want to buy a Tesla, you will have to buy directly from their stores. The elimination of middlemen has allowed Tesla to be cheaper. Even with this model, Tesla does not profit a lot as its profit margins are akin to that of a manufacturer rather than a third party seller
If you don’t have the cash to pay for a new Tesla, there’s nothing to worry about. Tesla accepts financing and has its own in-house financing program. Therefore, you can choose Tesla financing, bank financing, or credit union financing.
Nevertheless, it’s worth knowing that Tesla financing does not cover all Tesla models, but only a select few. On top of that, this program is not available in every state. But feel free to use other financing options to acquire the car that you’ve been fantasizing about.