Tesla Financing: What To Know in 2024
Tesla changed the car market by letting you order your car online for delivery straight to your door. Getting a loan for your Tesla can be just as easy if you know where to look.
We’ve pulled together the best options for financing a Tesla to help you find a loan with the lowest interest rates.
How do your Tesla payments compare to the average?
Use our auto loan calculator to determine how much car you can afford.
We’ve calculated the average monthly payment for the most popular Tesla models based on the borrower’s credit score. You can use the tables below to compare your Tesla financing offer to the average payment for people with similar credit.
You’ll notice that our data occasionally shows that borrowers with excellent credit have higher monthly payments than people with good or fair credit. There’s a simple explanation — people with excellent credit scores often choose shorter car loan terms. This temporarily increases the cost of monthly payments, but paying off a loan quickly means they’re paying less interest over the course of their loan.
How did we get these numbers?
We used Kelley Blue Book and Experian to estimate monthly Tesla payments based on average annual percentage rates (APRs) for each credit range.
Tesla sells its cars to consumers directly. As a result, Tesla vehicles do not have a manufacturer’s suggested retail price, or MSRP. Simply, Tesla does not have dealers to suggest prices to, since it sells its own vehicles.
When Tesla presents a price for one of its vehicles, you can see two options: starting purchase price and probable savings price. Probable savings prices include potential tax incentives, rebates and gas savings. We based our data on purchase price.
Learn more about how we calculated average monthly Tesla payments.
Estimated average monthly payments for new Teslas
| Model | Starting purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2024 Tesla Model 3 | $38,990 | $613.30 | $571.17 | $557.73 | $597.28 |
| 2024 Tesla Model S | $74,990 | $1,301.48 | $1,212.07 | $1,183.55 | $1,267.48 |
| 2024 Tesla Model X | $79,990 | $1,397.06 | $1,301.08 | $1,270.47 | $1,360.56 |
| 2024 Tesla Model Y | $42,990 | $689.76 | $642.38 | $627.27 | $671.75 |
| 2024 Tesla Cybertruck All-Wheel Drive | $79,990 | $1,397.06 | $1,301.08 | $1,270.47 | $1,360.56 |
Estimated average monthly payments for used Teslas
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 Tesla Model 3 | $24,469 | $492.47 | $426.12 | $382.35 | $381.40 |
| 2018 Tesla Model S | $32,772 | $693.33 | $599.92 | $538.29 | $536.95 |
| 2018 Tesla Model X | $34,000 | $723.04 | $625.62 | $561.35 | $559.96 |
| 2020 Tesla Model Y | $32,549 | $687.94 | $595.25 | $534.10 | $532.77 |
Tesla finance options
If you’re looking for a loan for a new or used Tesla, you have several financing options. All of these are available online, and you should be able to find out what rates you qualify for by submitting a few forms.
Tesla Financing
Best for...
Convenient financing, assuming you live in a qualifying state.
If your priority is convenience, applying for financing from Tesla is quick and painless. After you’ve designed your custom car, you can apply for prequalification directly on the Tesla website. You can also estimate your monthly payment and view approximate Tesla loan rates based on your credit score as you build and design your car on the Tesla website.
As of the writing of this article, Tesla financing rates are as low as 6.49% directly from the manufacturer, and you may qualify for a loan term between 36 and 84 months long.
You can only finance a Tesla through the manufacturer if you live in a qualifying state. Tesla does not currently offer loans in the following locations: Alabama, Alaska, Arkansas, Iowa, Kansas, Kentucky, Louisiana, Maine, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia, Wisconsin, Wyoming and Washington, D.C.
If you do live in a qualifying state, it’s worth considering financing directly through Tesla because you may be eligible for certain Tesla incentives like tax credits and extended warranties.
Federal tax credit
You may get up to $7,500 off the purchase price of an eligible new Tesla on qualifying cash or financing purchases. (Previously, buyers had to apply this federal tax credit on tax returns. But starting in 2024, it can be applied at the time of purchase.) Only certain Tesla models are eligible, and there are caps for both your income and the vehicle’s MSRP.
Used Teslas
All used Teslas sold through the manufacturer are covered by Tesla’s Used Vehicle Limited Warranty. The Used Vehicle Limited Warranty covers your Tesla for the remainder of the car’s basic limited warranty, which lasts five years or 50,000 miles, plus an additional one year or 10,000 miles.
Extended service agreement
You have the option to purchase additional coverage for your new Tesla before your basic limited warranty expires. If you purchase the Tesla extended service agreement, you’ll get up to two years or 25,000 miles of additional coverage.
Bank and credit union auto loans
Best for...
Borrowers who qualify for discounted rates through their bank or credit union.
Banks and credit unions often offer competitive Tesla financing rates, and some even give discounts to current members. A discounted interest rate can lower your monthly Tesla payments and the total cost of your loan, so reach out to your bank or credit union to ask whether they offer financing incentives to current clients.
You’ll likely be able to apply online to finance a Tesla through your bank or credit union. Some financial institutions let you apply for prequalification, which allows you to see what interest rates you’ll qualify for without impacting your credit. Then, you can compare this offer to offers from Tesla Financing and online lenders to find the loan with the lowest interest rates.
Online auto loans
Best for...
Shopping around for low interest rates.
It’s worth spending some time shopping around for a few quotes from online lenders if you’re looking for the best Tesla interest rates. Depending on your credit, you may be able to find the lowest rates with an online auto loan. Some online lenders also offer loans to borrowers with fair or bad credit, making these loans easier to qualify for than ones from Tesla or a financial institution.
You can get up to five loan offers with LendingTree’s auto marketplace by filling out a single form. Checking your rates won’t impact your credit. Once you have your offers in hand, you can compare them to find the one that offers the lowest monthly payments for your Tesla.
In-house financing
Best for...
People with bad credit and no other options.
Now that Teslas have been on the market for well over a decade, some buy here, pay here lots have used Teslas in stock. When you choose in-house financing at one of these lots, your Tesla loan will come from the dealership rather than a traditional lender.
These loans typically come with low eligibility requirements, which means that they are easier to qualify for, even with bad credit. But you should consider all of your options before getting a loan with in-house financing. Buy here, pay here lots charge high interest rates, making the loans expensive and difficult to pay back. This is called predatory lending, and it can lead to owing more on your car than it’s worth.
Before you finance your Tesla at a buy here, pay here dealership, look at auto loans for bad credit. Many lenders specialize in loans for borrowers with fair or poor credit, and you can shop around for low interest rates online to find a Tesla payment you can afford.
How we calculated average monthly Tesla payments
To calculate average monthly Tesla payments, we found starting purchase prices. Then, we subtracted an average down payment from each price. According to Edmunds, the average down payment on a new vehicle was $6,907 in Q3 2023. For used vehicles, it was $4,111. The resulting figure represents the total amount our hypothetical borrowers financed.
From there, we used our auto loan calculator to figure out average monthly Tesla payments, using average APRs and loan terms as reported by Experian’s State of the Automotive Finance Market Q3 2023. You’ll find this data in the tables below. Please note that loan terms were rounded to the nearest whole number during our calculations.
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 11.86% | 9.29% | 6.88% | 5.61% |
| Average loan term | 73.87 months | 74.13 months | 70.26 months | 62.23 months |
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 18.39% | 13.53% | 9.33% | 7.43% |
| Average loan term | 66.28 months | 68.59 months | 68.56 months | 65 months |
Frequently asked questions
The cheapest Tesla currently on the market is the Model 3. As of the writing of this article, the starting purchase price is $38,990.
Yes, you can lease a Tesla in most states. Tesla does not currently offer leases in Arkansas, Delaware, Kentucky, Nebraska, New Hampshire, Oklahoma, South Carolina or Wisconsin.
You can buy and finance your Tesla entirely online. If you’re buying a new Tesla, you’ll custom order your car directly on Tesla’s website. You can select the model and customize your car with your desired paint color, interior, wheels and add-ons. When you submit your order, you’ll be responsible for a $250 order fee plus any add-ons that aren’t built in, like a wall charger.
If you live in an eligible state, you can finance your car with Tesla by submitting a financing application in your Tesla account after you’ve placed your order. You’ll need to provide your contact information, social security number and employment information in order to complete the application.