Tesla, the electric-car manufacturer headquartered in California, is led by Elon Musk (CEO and co-founder). Tesla offers auto loans through financial institutions to select Tesla models — much in the same way that many dealerships offer financing. Tesla offers direct leasing on certain models. However, there are some limitations when it comes to Tesla Financing.
Short-term loan options
Tesla offers loans only for new Model S, Model X and Model Y vehicles. It also offers loans to owners of used Tesla vehicles.
Tesla offers leasing for Model S, Model X, Model 3 vehicles only.
If you are thinking of leasing, remember that you have the option to purchase a Model S/Model X once your lease is up. After leasing a Tesla Model 3, you won’t be able buy it.
You can only get a loan to finance a Tesla Model S if you have your own financing.
Leasing and loans with limited terms
The loan terms available to you are not very flexible and vary from vehicle to vehicle. Model X has a 60-month and 72-month loan term, while Model 3 and Model Y have 48, 60 and 72 months loan terms. For the Model S, terms are 36, 48 and 60 months, while for the Model Y, they can be up to 72 months. These terms are quite common, however other lenders may offer more flexible terms.
Tesla Financing, on the other hand, offers lease terms of 36 months for Model 3 and 24 or 36 months respectively for Model S or Model X. All leases offer 10,000, 12,000 and 15,000 annual mileage options.
Financing at your Computer
The entire process, from ordering your vehicle to applying online for your loan/lease, can be done online. The Tesla website allows you to design and place your Tesla. Tesla recommends you apply for financing within 30 to 60 business days of your delivery date. Since loan offers last 30 to 60 calendar days, they are only valid for the first 30 to 60. Leasing offers are valid for 90 days.
Tesla’s process differs from other automaker finance companies. While you can choose the car you desire and apply online to get preapproval, others will have to go to the dealership in order to close the loan and obtain their car. You may also need to visit a dealership to pick your car and apply for financing from finance companies that don’t offer preapproval.
A closer view at Tesla Financing
Here are more details about Tesla Financing.
- You can finance Tesla Financing to purchase or lease a Tesla. It all depends on where your location. Tesla Financing cannot be obtained in Delaware, Iowa Kentucky, Louisiana Mississippi Mississippi, Nebraska Nebraska, New Hampshire Oklahoma Rhode Island, Wisconsin.
- While federal incentives for Tesla vehicles are over, depending on whether Tesla vehicles are purchased or leased you may still be eligible for tax credits and rebates at the state or local level. On Tesla’s website, you can find a list of state incentives that may be available.
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A Tesla Financing auto loan is right for me?
Tesla financing is an option for those who are in the market to lease or buy a Tesla. It’s especially convenient if they offer online ordering and financing.
You will need an auto loan if you are unable to finance your Roadster or Cybertruck or live in another state that offers Tesla Financing.
How do I apply for a loan with Tesla Financing
You can apply for financing via Tesla’s website, regardless of whether you are looking to purchase or lease a Tesla. Tesla suggests that you apply to a Tesla loan or lease online if you’re less than 30 to 60 days from your vehicle’s expected delivery date. Within two days of your lease or loan application, a member from the Tesla Financing team will contact to discuss next steps.
Before applying for an auto loan through Tesla Financing, you should check your credit score and compare other loan options. Understanding your credit history can help you make informed decisions. In general, higher interest rates will be charged for those with lower credit scores. You can shop around to find the best rate and terms for you. For more information, see our article about how to obtain a car loan.