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Buying your new Tesla just got more expensive. Like many automakers, Tesla is following suit and has raised its interest rates by around three-quarters of a percent, according to its online payment calculator. Here’s a look at what you can expect to find when buying a Tesla and how it may affect your cost on an EV.
Tesla had been holding onto a financing rate of 2.99%, which was lower than some of its competitors. This is no longer the case, as Tesla’s rate has been replaced with the increased rate of 3.24% APR. For comparison, the Polestar 2 offers a rate incentive of 2.49% for all loan terms of 24 to 60 months.
The good news is that Tesla is keeping it simple, showing the same APR for all loan terms up to 72 months. The rate also applies across the entire lineup. This higher interest rate is in line with many of the interest rates we’re seeing this month.
The bump in APR will leave customers of new Tesla models paying more for the privilege of financing through Tesla’s captive finance company. How much more you’re looking to pay depends on the loan term you opt for. The longer you finance, the more you pay in interest charges.
This means on your next Tesla Model 3, which has an MSRP of around $48,440 after destination, you’re looking at about $324 more in interest now compared to last month for a 60-month loan. Tesla vehicles aren’t eligible for any federal tax credits that could potentially save you money on the purchase of a new electric vehicle.
Tesla is far from the only brand raising its APR right now. In an unsurprising move, many automakers’ special financing rates went up with this month’s round of incentives. Based on the promise of increasing Federal Reserve funds rates, we would be unsurprised if APRs took another step up next month.
See the Best EV Deals & Incentives
Pictured: 2022 Tesla Model S (Top), 2022 Tesla Model 3 (Middle)
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