The Right Financing Can Save You Thousands
Tesla currently offers 0% APR financing on the Model 3, while third-party lenders typically charge 4-8% APR. On a $50,000 loan over 60 months, the difference between 0% and 6% APR is $7,970 in interest payments.
Your Financing Options
Tesla Financing
Credit Unions
Banks
Real-World Example
Michael purchased a 2025 Model 3 Long Range ($47,740) and compared three financing options. He had excellent credit (780 score) and could put down $7,500 using the federal tax credit.
Michael chose Tesla financing and saved $6,980 compared to his bank's offer. The 0% APR promotion made it the clear winner.
How Credit Score Affects Your Rate
| Credit Score Range | Typical APR Range | Monthly Payment ($50k, 60mo) |
|---|---|---|
| 781-850 (Excellent) | 0-4.5% | $833-$935 |
| 661-780 (Good) | 4.5-7% | $935-$990 |
| 601-660 (Fair) | 7-12% | $990-$1,112 |
| 501-600 (Poor) | 12-18% | $1,112-$1,270 |
How to Apply
Check Your Credit Score
Review your credit report for errors and know your score before applying. This helps you understand what rates to expect.
Get Pre-Approved
Apply for pre-approval from 2-3 lenders within a 14-day window to minimize credit score impact. Compare rates and terms.
Configure Your Tesla
Select your model and options on Tesla's website. The financing calculator will show Tesla's current rates and monthly payments.
Submit Your Application
Complete the financing application through Tesla or your chosen lender. You'll need proof of income, employment, and residence.
Review and Sign
Carefully review the loan terms, APR, monthly payment, and total interest. Sign electronically and schedule your delivery.
Pro Tips
Time Your Application
Apply for financing at the end of the quarter when Tesla offers the best promotional rates. Check for 0% APR deals on specific models.
Use Tax Credit as Down Payment
Apply the $7,500 federal tax credit at point of sale to reduce your loan amount and monthly payment. This can help you qualify for better rates.
Consider Shorter Terms
A 48-month loan typically has lower rates than 72 months. While payments are higher, you'll save thousands in interest and own the car sooner.
Refinance Later
If you don't qualify for the best rates now, you can refinance after 6-12 months once your credit improves or rates drop.
Check Credit Union Membership
Many credit unions offer membership for a small fee or donation. Their rates are often 1-2% lower than traditional banks.
Negotiate the Price First
Focus on the total vehicle price before discussing financing. Lower purchase price means lower monthly payments regardless of your rate.
Common Mistakes
Only Checking One Lender
Not shopping around can cost you thousands. Compare at least 3 lenders to ensure you're getting the best rate available.
Focusing Only on Monthly Payment
A low monthly payment with a long term means paying more interest overall. Always calculate the total cost of the loan.
Not Reading the Fine Print
Check for prepayment penalties, origination fees, and other hidden costs. Some lenders charge fees that increase your effective APR.
Applying Too Many Times
Multiple applications over several months hurt your credit score. Do all your rate shopping within a 14-day window.
Skipping Pre-Approval
Without pre-approval, you don't know your budget or negotiating power. Get pre-approved before configuring your Tesla.
Frequently Asked Questions
Related Articles
Lease vs Buy a Tesla
Compare leasing and buying to find the best option for your situation
Best Time to Buy a Tesla
Learn when to buy for maximum savings and incentives
Tesla Tax Credits and Incentives
Understand federal and state incentives that can reduce your purchase price
Total Cost of Ownership
Calculate the complete cost of owning a Tesla over time