Everyone knows Tesla cars aren’t cheap, but how much do they cost? The price difference between the least expensive and most expensive Tesla is huge. The EV lineup is good for a wide range of needs and budgets. Tesla’s prices and trim levels change from time to time. You may consider a Tesla car loan, but the Tesla monthly payment is ever-evolving. Keep reading to know more.
How much is a Tesla per month?
Even though every car loan is different, the average monthly payment for a Tesla car loan is between $1,100 and $2,500. The actual cost of your loan each month will depend on a few things, though. These things are:
- How long do you have to pay back your loan: With a longer repayment period, you’ll pay less each month, but you’ll pay more in interest in the long run.
- How much money you put down: If you can put a lot of money down on the car, you won’t have to pay off as much of it later.
- Which model you pick: If you choose a more expensive Tesla model, such as the Model X, your monthly payment will probably be higher.
- Your interest rate: If the interest rate on your car loan goes down, you won’t have to pay as much each month.
Average loan term for a Tesla car loan
At the moment, 72 months, or six years, is the most common loan term in the United States. If you want to pay off your loan quickly, this is not the best length. As a general rule, loans with terms of 60 months or less are best because you pay less interest and can afford higher monthly payments.
Tesla is different from other car companies because the loan terms they offer are more strict than what other companies offer. Not only is financing not available in every state, but not all Tesla models are eligible for it either. Also, Tesla Lending only offers loans for 60 or 72 months for certain models, like the Model X. If you don’t like these terms, you can get financing through a third party, like a bank or credit union, if you want to.
How to get a Tesla car loan
Check your credit
It’s important to know what your credit score looks like before you start looking for loans. Your credit score has a big effect on the terms of your car loan and the interest rate. In general, a credit score of 660 or higher is considered good for a loan. If you finance your Tesla through their website, you may still be able to get a loan even if your credit score is below 660.
You might get a loan from Tesla Lending if you can show that you can pay it back. Proof of income or a co-applicant is both good ways to show that you can be trusted with money. Keep in mind that Tesla only offers loans for the Model 3, Model S, Model X, and Model Y, and used Teslas at the moment. If you want to borrow money outside of these limits, you would have to go through a third-party lender.
Now that you know what kinds of loans you might be able to get, you need to choose a lender. You can get a car loan from Tesla’s lender, from a credit union, or from your bank. Be aware that if you order a car from Tesla’s website and pay for it with a loan, the car can only be sent to certain states. Make sure you look at what at least three lenders have to offer before you decide. Here are some things a good car loan should have:
- Short loan term: 60 months or less
- Low annual percentage rate (APR): 4.93 percent or lower
- Manageable monthly payment: No more than 10 to 15 percent of your monthly income
Customer service is something to think about. Even if a lender has low payments and a high rate of approval, they might not be the best choice if they have bad reviews from customers or if you can’t get in touch with a representative.
If you can get pre-approved for a car loan, you may be able to negotiate better loan terms when you sign the agreement. Start by filling out a loan application to get pre-approved. You’ll need to include the following:
- Social Security Number
- Proof that you have a job
- Copy of your driver’s license or a valid picture ID
- Income documentation (paystubs, etc.)
Finding a Tesla car loan in your state
Different states have different interest rates and payment amounts for car loans. Having a local lender is helpful because they know the local economy and may be able to give you the lowest APR your credit score will allow.
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