Tesla Refinancing (August 2025)

Buying a Tesla is one of the best investments you can make for the future - it's clean, sleek, and energy-efficient! However, paying high car loan payments on your Tesla could be bad for your financial future. If you think you are saddled with a high APR, refinancing your Tesla could be the key to getting a better deal.

Tesla refinancing through Way.com can help you lower your APR, get affordable monthly payments, change your loan conditions, and save hundreds of dollars every year. No matter what Tesla model you own, we'll help you find multiple lenders who offer better rates than what you're paying today!

What is Tesla Refinancing?

Like every other refinancing, Tesla refinance also includes applying for a new auto loan with better terms and conditions. As a result, you can replace your existing Tesla loan for better APRs and loan term.

Why Should You Refinance Your Tesla?

If you used Tesla Financing to buy your car, you may have been given a high APR on your loan. It might've seemed fair at that point, but over time the car loan payment might've become unmanageable. Other factors like your credit score and payment history might also have contributed to the high APR.

However, your finances may have improved after a few months and you might be in a position to score a better deal. If done right, Tesla refinancing can lower your APR by at least 1% and reduce your monthly payments significantly. You can also refinance your Tesla to add a new co-signer, include add-on benefits, or get cash-out refinancing for immediate expenses.

When Should You Consider Tesla Auto Refinance?

Don't rush to refinance your Tesla immediately after taking a loan. It takes at least a few months for your financial standing to improve. Here are the main situations when you can consider Tesla refinancing:

• If at least 60-90 days have passed since you first took the loan
• If your credit score has increased by a few points
• If you've become eligible for a better loan
• If your monthly expenses have increased and you want to save money
• If you want to add a co-signer to your loan
• If your car has become old and is not worth the high monthly payments

Tesla Refinance Rates April 2025

Here are the refinance rates for used Tesla for different term lengths. So, if you are planning to refinance Tesla, you can expect the Tesla refinance rates starting from 6.99%.

If you are looking to refinance your Tesla with a third party lender, the Tesla refinance rates starts at 5.99%. However, with Tesla financing the APRs can be as low as 1.99%.

What Type of Tesla Can You Refinance?

You can refinance almost any model of Tesla currently in the market. The most popular models are the Model 3, Model Y, Model X, Model S, and the CyberTruck.

What Documents Do You Need to Refinance Tesla Loan?

Having all the documents and information ready for reference can smoothen the process of Tesla refinancing. Keep the following at hand before applying:

• Your credit score: Ideally, you will get better APRs if you have a score above 680. Build your credit for a few months and keep track of it using the one free annual credit report from credit bureaus.
• 14-day payoff amount: Call up your lender and ask for the amount you owe including the next 14 days' principal and interest.
• Car Loan-to-value ratio: Ensure you are not 'upside-down' on your current loan (i.e. you don't owe more than what the car is worth)
• Loan term remaining: You should ideally have at least a year left on your current loan if you want to refinance your Tesla.
• Prepayment penalty: If you initially financed your vehicle from Tesla Financing, you won't have to pay a prepayment penalty. However, if you financed using third-party lenders, there may be some penalty involved.

To further smoothen the process, keep your other personal and vehicle details ready, like:

• Car information: VIN, title, registration, number, and mileage
• Income information: Salary slips, pay stubs, and tax returns
• Personal information: Driver's license and Social Security Number

How To Refinance Your Tesla with Way

Step 1: Calculate if refinancing can help you save money

Use an online auto loan refinance calculator to input your desired APR or new loan term. If the projected monthly payment is lower than your current payment, you can be guaranteed that refinancing your Tesla will save you money.

Step 2: Apply to refinance lenders with Way

Once you enter your basic details and apply, Way.com will show you a list of all the lenders with pre-qualified offers. Using a refinance platform like Way.com will let you compare rates from multiple lenders, and choose deals with the most favorable terms.

You can also temporarily avoid a hard inquiry, as most lenders use a soft credit pull which won't affect your credit score.

Step 3: Choose an offer and start saving!

When you see an offer you like, all you need to do is complete the application and submit any supporting documents. At this point, the lender will conduct a hard credit inquiry, which will temporarily affect your credit score by a few points.

However, you will be able to increase it in the coming months - provided you are consistent in your payments.

How Do I Know If My Tesla Will Qualify for Refinancing?

Your Tesla will typically qualify for refinancing if:

• You have a valid driving license
• You have a valid registration
• You have made your previous car loan payments on time
• You have a verifiable income source
• You have full coverage insurance

What Else Can I Include when Refinancing my Tesla?

Refinancing also allows you to include additional benefits. The most important add-ons are GAP and ESC.

• Guaranteed Asset Protection (GAP) protects you from expenses if your car is completely totaled in an accident. It pays the difference between the vehicle's worth and the actual amount you owe on it at the time of the accident.
• Extended Service Contract (ESC) is an additional warranty covering any mechanical failure, engine issues, and electrical problems your Tesla may face after the manufacturer's warranty expires.

Can I Refinance a Tesla with Bad Credit?

If you are desperate to reduce your monthly payments, you can refinance your Tesla even with a bad credit score. Some lenders specialize in refinancing for borrowers with bad credit. However, keep the following guidelines in mind when doing so:

• Try to build your credit score for at least a few months before applying. Even a few points can make a big difference in your APR.
• Analyze your credit score at least once a year using the free annual reports from credit bureaus.
• If you have bad credit, make a larger down payment when taking the loan to reduce your APR.
• Getting a co-signer to take on the loan with you can help you get a better APR even with bad credit.

Why Choose Way.com to Refinance Your Tesla

We understand how hard it is to finance and maintain your vehicle. Owning a car should be a joy, not a struggle. However, rising vehicle costs, fuel prices, and auto loan payments can put stress on your wallet! That's where we come in - to make car ownership simplified.

You can refinance your Tesla with Way.com by comparing offers from multiple lenders, choosing APRs that fit your budget, and save at least $1000 every year - all in just a few minutes. You can also save more through our car services marketplace offering affordable auto finance, refinancing, parking, car wash, and roadside assistance.

Way.com has a 4.5 rating on Trustpilot, with more than 3 million satisfied customers. The Way app also has a 4.7 rating on Google Play and 4.9 on the iOS app store.