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Tesla now offers a 7-year financing term for all vehicle models

Depending on the configuration, the automaker has been offering up to $7,500 off MSRP for the more expensive Model S and X vehicles.

Tesla is producing vehicles at an all-time rate. The EV manufacturer is starting to cling to its inventory despite its excellent delivery rates. Considering the Model 3 and Y, Tesla has kept a few cars throughout previous years. However, distribution facilities now have access to a large number of submissions. 

The Austin-based automaker has recently used several incentives and discounts to get buyers behind the wheel to keep these vehicles moving. Tesla has been offering up to $7,500 off MSRP for the more expensive Model S and X vehicles, depending on the configuration. Additionally, Model S sedans and Model X crossovers are available in certain places for as little as $82,000 and $92,000.

Also on sale were Model 3s. Inventory models are available at delivery points for as little as $37,490. However, price reductions are not the company’s only motivators. Tesla has launched a new financing option with cheaper monthly rates to attract more potential buyers to the brand.

The new financing term for Tesla is 84 months. Customers can now borrow money for a Tesla over seven years. APRs of about 6.39% will also be offered to buyers along with the longer term. The Tesla website warns that “Your payments and rates may be higher,” thus the 6.39% is probably only available to highly qualified buyers. In light of this revelation, buyers may notice rates higher than the already high 6.39% figure.

Given the anticipated interest rate, financing a Tesla for this prolonged term may not be wise financially. An ideal illustration of how the loan computation works is the well-known $50,490 Model Y Dual Motor AWD.

For instance, the financed amount will be $47,380 if a purchaser makes the required $4,500 down payment. The monthly loan payment at 6.39% APR will be $703 without considering potential incentives. The owner will have paid $59,052 in 84 monthly payments. The overall cost of the car is an incredible $63,552. This is a drawback of extended, high-interest auto loans. But it does help automakers because it lowers the consumer’s monthly payment. Long-term loans are costly because they have high-interest rates and a risk of default.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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