Auto Loan
Tesla Financing
Unhappy with your current auto loan terms? Click here to refinance and drive home some savings!
Unhappy with your current auto loan terms? Click here to refinance and drive home some savings!
Tesla acts as a loan broker and encourages customers to apply for financing on its website. Tesla passes on your application to its loan partners when you apply. Tesla will then forward any offers to you for approval. No specified minimum Tesla finance credit score is required to apply for a Tesla auto loan. However, consumers with excellent credit (720+) typically qualify for lower-APR financing.
Key Takeaways
Tesla provides new and used car loans through its lender partners, with APRs starting in the range of 6.36% and 7.34%. The loan term length generally varies between 36 and 84 months. If you are applying with a Tesla lender partner, you are exempt from paying application fees. However, you have the option to compare offers and choose the one that is most suited for you.
Leasing allows you to drive a new vehicle regularly without having to pay the full purchase price. The low monthly payment is one of the best aspects of leasing. However, there are some drawbacks. In a 36-month (three-year) lease, you pay for almost half of the vehicle's value while using less than half of the vehicle's lifetime.
For Tesla models, the lease terms fall between 24 to 36 months. The APR varies between 5.37% and 6.57% based on your credit score and the model you choose. For instance, if you have an excellent credit score and are planning to lease a Tesla Model X, then the APRs would start at 6.57%.
| Tesla Model | Lease Term (months) | Starting APR |
|---|---|---|
| Model 3 | 36 | 5.38% |
| Model Y | 36 | 6.07% |
| Model S | 24-36 | 5.93% |
| Model X | 24-36 | 6.58% |
If you live in one of Tesla’s serviced states, in-house financing is a convenient option — but comparing third-party lenders can help you secure a better rate.
Here are some of the third-party financing options for buying a Tesla.
Some popular third-party financing options for Tesla include Tenet, offering rates from 5.99% to 16.20% APR with terms ranging from 36 to 84 months and loan amounts between $15,000 and $95,000. myAutoLoan starts at 6.94% APR, with terms from 24 to 84 months and a minimum loan amount of $8,000. Autopay provides more flexible terms, with rates starting at 4.85% APR, loan terms from 12 to 96 months, and loan amounts ranging from $8,000 to $120,000. Comparing these options can help you find the best rate and terms for your Tesla purchase.
Tesla presently does not publicize any rebates or financing offers. Although federal tax advantages for purchasing an EV have ended, you may still be eligible for state benefits.
| Pros | Cons |
|---|---|
| Can apply directly on the Tesla website | There is a risk of damaged credit |
| Expenses are spread over time | Monthly payments can be expensive |
| You’ll have to use a Tesla for longer than intended. |
To qualify for Tesla finance, you must demonstrate that you have sufficient income to repay the loan payments. Those with high FICO credit ratings get the greatest prices. You'll need these documents when applying for a car loan.
Bank of America, one of the major banks in the United States by assets, provides all forms of automobile loans, including new, used, private purchase, lease buyout, and refinance. It also does not specify a minimum credit score criterion.
LightStream, an online lender, offers very competitive rates. Because all of its loans are unsecured, there are no restrictions on car model or dealerships. If you have strong or excellent credit, a LightStream offer may be the ideal auto loan preapproval to present to the dealership.
Tesla does not have its own funding company, although it does collaborate with several lenders and accepts third-party financing.
Based on the model, your credit score, and the lender you've chosen, the Tesla financing APRs start at 6.36%.
Tesla does not disclose which lenders it works with to provide finance. You can use the offer to acquire a Tesla by applying straight to any lender of your choice for a vehicle loan.
No, the lenders with whom Tesla works do not provide 84-month financing. You might, however, secure an 84-month auto loan for your Tesla from another provider.