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Learn about Tesla financing and other traditional auto loans and how EV Life can help you save money on electric vehicle financing.
Peter Glenn
Despite many legacy brand automakers jumping into the EV space and releasing new electric models, Tesla continues to dominate the electric car market. The Tesla Model 3 and its sport utility cousin, the Model Y, are still the two most popular EVs in the country by a large margin. And while the price has gone down recently for both cars, Teslas are still on the pricier side of the spectrum for many drivers. So, if you’re like most potential Tesla buyers, you will probably look to finance your Tesla purchase with a loan rather than pay the sticker price upfront.
You will also want to take advantage of the numerous state and federal tax credit, incentives, and rebates available to encourage drivers to purchase eligible EVs like the Tesla Model 3 and Model Y instead of a traditional gas-guzzler.
In this article, we’re going to compare some of the Tesla financing options available through Tesla and other auto loan companies and see how EV Life’s EV Climate Loan can help applicants take advantage of tax credits, incentives, and rebates to save money on their Tesla purchase and lower their monthly loan payment compared to traditional lenders.
Tesla offers a variety of auto loan financing options for new and used Tesla models through outside lenders. Drivers can apply for financing directly on the Tesla website during the car-buying process by filling out a credit application in their Tesla Account after placing an order.
When financing your electric car purchase through Tesla, the company essentially acts as a middleman between you and the auto lender when you order your new vehicle. Tesla’s lending partners, which include US Bank and Wells Fargo, among others, offer standard car loans for all Tesla models, including Model Y, Model 3, Model X, and Model S, with loan terms ranging from 24 to 72 months.
Tesla financing is only available in certain states, and the company does not publish a minimum income or credit score required to qualify for financing, but like most traditional loans, borrowers in the 26 available states with higher credit scores and larger down payments usually have a better chance of getting a lower interest rate.
Tesla Financing does not disclose most of its loan terms up front, but research indicates that rates start around 5.59% APR for the purchase of new Tesla electric vehicles. There is no application fee, and down payments can range between 0% and 50%.
In addition to Tesla financing through the manufacturer, there are also many traditional auto lenders offering financing for Tesla EVs. However, the vast majority of traditional auto lenders approach electric car financing the same way they do gas-powered vehicles.
Third-party lenders like banks, credit unions, and auto lending companies have a range of financing terms to purchase a Tesla depending on your income, credit score, and down payment amount.
But while so-called “captive loans” through car manufacturers and traditional auto financing options have a range of standard loan terms to choose from, none of them help drivers take advantage of available EV incentives to immediately lower the cost of their loan payment.
The solution? The EV Climate Loan from EV Life.
Thanks to 2024 tax credit updates, the $7500 EV tax credit is now available to eligible buyers as a discount at checkout through Tesla to qualified buyers on select vehicles including:
Trims | Current Price | Federal EV tax credit | State & Local Incentives |
---|---|---|---|
Model Y (all trims) | $43,990 | $7,500 | |
Model 3 (Performance only) | $38,990 | $7,500 | |
Model X (Base trim only) | $79,990 | $7,500 | |
Model S | $87,490 | $0 |
When you apply for the EV Climate Loan with EV Life, we help you:
Don’t navigate the complex and ever-shifting EV incentive process alone. Financing with EV Life guarantees the best prices and the lowest rates on your EV, saving the planet while saving your pocketbook.
Get pre-qualified today to find out how much you could save on your electric vehicle.
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