Tesla is an electric car maker headquartered in California. Its CEO, Elon Musk, also co-founded it. Tesla offers auto loans to select Tesla models through financial institutions, similar to what many dealerships offer financing. Tesla also offers direct leasing of some models. Tesla Financing has its limitations.
Limited loan opportunities
Tesla offers loans to purchase new Model S or Model X, Model Y, Model Y, and Model 3 vehicles. It also offers loans on used Tesla vehicles.
Tesla only offers leases for Model S, Model X or Model 3 vehicles.
If you’re thinking about leasing, keep in mind that you can purchase a Model S and Model X at the end of your lease. You won’t be allowed to buy a Tesla Model 3 if you lease it.
If Tesla won’t finance your model, you will have to obtain financing yourself through a lender like a bank, credit union, or other financial institution.
Short terms for loans or leases
Lender-term options for loan terms are very limited and can vary from one vehicle to the next. Model X only offers 60- and72-month loan terms. Model 3 and Model Y offer 48, 60, or 72-month loan terms. Model S loan terms can range from 36, 48 to 60 months and up to 72. These are standard loan terms but may be extended by other lenders.
Tesla Financing offers lease terms as low as 36 months on the Model 3 while they offer terms up to 24 months on the Model S, Model X and Model X. All leases include 10,000 to 12,000 or 15,000 annual mileage options.
Financing from your computer
All of the steps, from ordering your vehicle and applying for your loan or leasing — whether you are interested in buying or leasing a Tesla through Tesla Financing — can be done online. First, design your Tesla and place an order on the Tesla website. Tesla recommends that funding be requested within 30-60 business days of the delivery date. Because loan offers can only be used for 30-60 business days, it is a good idea to apply. Leasing deals are valid for 90-days.
Tesla’s process is not like other automakers’ finance firms. Some people may be able select the car they want online and apply for preapproval online. But, in order to close your loan and get your vehicle, you will need a dealership. Finance companies that don’t offer preapproval may require you to visit the dealership to select your car before you can apply for a loan.
An in-depth look at Tesla Financing
Here are some additional facts about Tesla financing.
- Tesla Financing can help you finance your purchase or lease of a Tesla. Tesla Financing doesn’t exist in Delaware.
- Even though federal incentives have ended for Tesla vehicles, depending on whether you lease or buy, you may be eligible for incentives such as tax credits or rebates from the state. Tesla’s website provides a list of possible state incentives.
Are you eligible for a Tesla Financing auto loans?
Tesla financing may be an option for you if your goal is to buy or lease a Tesla.
However, if you don’t have Tesla Financing or want to finance a Roadster/Cybertruck, you can look for an auto loan elsewhere.
How can I apply for an loan from Tesla Financing
Tesla’s website allows you to apply for financing after you purchase your Tesla. Tesla recommends that you apply for a Tesla lease or loan through your online account within 30-60 days of your vehicle delivery date. A member of Tesla Financing will contact you about the next steps within two business days of receiving your loan or lease application.
Before you apply to Tesla Financing for an auto financing, make sure you check your credit rating and compare loan offers. Knowing your credit profile can help you understand your expectations. Lower credit scores generally mean higher interest rates. You should shop around for the best rates and terms to suit your needs.