If you’re searching for a Tesla, use their Tesla finance calculator. The tool helps determine whether leasing or buying is best suited to your circumstances.
If your credit score is excellent, qualifying for a Tesla lease or auto loan shouldn’t be an issue; if not, raising it may be essential to secure financing.
How to use the calculator
Tesla remains one of the top players in terms of electric vehicle sales. Offering incentives and discounts to its customers can significantly lower the cost of buying or leasing an EV; however, these rebates and credits often have complex requirements, making them hard for dealerships or traditional lenders to include as part of a loan agreement.
Tesla Auto offers financing through its lending arm and third-party auto lenders, with rates typically higher than traditional lenders but offering longer repayment terms and more accommodating credit qualifications.
In securing Tesla Auto financing, it’s necessary to submit a credit application and provide verification of income and employment. Your details on this form include your name, address, phone number, driver’s license number and Social Security Number, as well as verification of gross annual income.
Payment options
Tesla works with several lenders who provide auto loans with terms ranging from 36 months to 84 months for its customers, though the company does not disclose which lenders it works with.
Tesla acts as a loan broker and will submit your application to its partner lenders for consideration, saving both time and money with this convenient process. Furthermore, this enables you to see loan offers without impacting your credit score. Should they be approved, you can sign the Retail Installment Contract right from within your Tesla Account.
Down payment
No matter your purchasing method, Tesla provides multiple financing solutions for their electric vehicles. Once you find one that best meets your needs, apply.
Once your lender approves your loan application, digital signature services like DocuSign make it possible to complete and sign your loan agreement digitally. When taking delivery of your Tesla, you will enjoy all its benefits!
An accessible Tesla finance calculator with trade-ins, extra payments, and down payments is now available to assist with calculating monthly car loan repayments and interest payments over any given period. Furthermore, balloon payments may reduce total payments and help make smart decisions before you commit to a loan – as well as compare loan terms and interest rates to find the most advantageous deal.
Interest rate
The purchase of a Tesla is an investment, and interest rates on car loans play a crucial role in how much you owe overall. Therefore, you must shop around for the lowest rate possible to ensure maximum savings over your finance term – even small differences can add up quickly!
Tesla differs from other manufacturer lenders by not offering loan preapproval, and its financing process requires a hard credit pull that may temporarily lower your score. Furthermore, Tesla doesn’t provide discounts to certain groups, such as college graduates or service members.
Final Payment
Depending on your loan amount and vehicle selection, you may be required to make a balloon payment at the end of your term. This large lump sum payment reduces your monthly payments and can help you buy a car you otherwise would not be able to afford.
When you select financing as your method of payment when placing an order, Tesla will send you a credit decision within 48 hours. Then, you can decide if you want to purchase your new Model Y with an auto loan or lease it for 1-5 years.
Car dealerships and other manufacturers often offer 0% financing as an incentive to sell vehicles. It is one of the carrots they use to draw in buyers, but a long-term loan may not be in your best interest. Over time, you are more likely to be upside down on the car as the interest accumulates and it depreciates. Shop with a lender you trust and check out our auto loan calculator to see how different down payment options and loans impact your monthly payments and overall cost of ownership.
