Tesla is now offering heavily discounted 0.99% financing on Model Y for a limited time in an attempt to boost orders.
For the past year, Tesla CEO Elon Musk has mostly blamed the company’s demand issues on high interest rates.
Most people buy new vehicles with loans and the 5 to 7% interest rates are currently adding thousands of dollars to the cost of any new vehicle.
Last month, Tesla brought 0% loans to China in an attempt to boost sales in the critical auto market.
Now, Tesla is doing something similar in the US with the announcement of a new 0.99% APR financing product for Model Y until May 31:
Here are the terms on Tesla’s website with a $4,250 down payment and 72 month-loan:
For the new Model Y Long Range RWD, it comes down to monthly payments of $603 before incentives.
If you are eligible for the Federal Tax Credit (single income $150,000 or under, or $300,000 for joint-fillers), your monthly payment will be just $499. That’s all before gas savings if you are coming from a gas car.
Electrek’s Take
People have been arguing that Tesla should cover the difference in interest rates in financing rather than slash prices, and it looks like the company is finally resorting to that.
A 0.99% APR loan is near free cash. It’s attractive to many. Between $500 and $600 a month for the best-selling vehicle in the world, which also happens to be electric.
Not a bad deal. I think that might enable Tesla to come up with more end-of-quarter incentives this quarter.