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How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Sarah Brady
Sarah Brady is a personal finance consultant who loves helping people improve their financial wellness. Her writing is inspired by her work as a credit and housing counselor, where she's coached hundreds of people to build budgets, improve their credit and buy affordable housing. When Sarah isn't writing she's teaching workshops all over the San Francisco Bay Area.
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Katie Lowery
Katie Lowery is a former deputy editor at LendingTree, covering personal finance and auto loans. Before joining LendingTree in April 2022, she owned and operated a small editorial firm for more than a decade, where she edited content in a variety of fields, including finance, business and economics.
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Chloe Della Costa
Chloe Della Costa is a freelance copy editor and writer with a degree from Bard College. She specializes in copy editing and fact-checking content related to personal finance, insurance, and business.
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Updated on:
March 17th, 2023
Content was accurate at the time of publication.
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![]() | Starting APR 6.69% | Loan terms 24-84 months |
If you’re in the market for an electric vehicle, you’ve probably considered a Tesla. But Teslas aren’t cheap: Their prices range from around $43,000 to over $100,000. In other words, you’ll probably need a loan to make your purchase happen.
You can buy a Tesla with a loan from Tesla Finance LLC or from a third-party lender, like your bank or credit union. It’s worth considering the third-party option since Tesla doesn’t disclose much information about its loan terms, including the credit score you’ll need to qualify for Tesla financing.
On this page
- Tesla financing options
- Tesla financing pros and cons
- A closer look at Tesla financing
- How to apply for financing through Tesla
- How Tesla financing compares
- Frequently asked questions
Tesla financing options
Buying a Tesla
Tesla is by far the largest EV manufacturer in the world. The company manufactures electric vehicles, sells new and used EVs and sells car insurance. Even the most affordable Tesla is pricey compared to other EVs on the market, so Tesla also offers financing to make its vehicles accessible to more buyers.
Tesla Finance doesn’t offer loans in all states and doesn’t disclose all of its loan terms up front, but rates appear to start at 6.69% APR for all new purchases. Here’s what else we know:
- Loan terms are 24 to 84 months
- No application fee
- 0% to 50% down payment
- Tesla lending is only available to borrowers in 26 states
Not sure about Tesla financing?
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Leasing a Tesla
Tesla offers lease options, but you may find that Tesla has more restrictions than other lenders. A few things to know before applying:
- Annual mileage limits vary
- Repayment terms are 24 to 36 months
- Leases can be extended once for up to six months
- Leasing is not available in Delaware, Kentucky, Michigan, Mississippi, Nebraska, New Hampshire, Oklahoma or Wisconsin
Tesla financing pros and cons
Tesla Finance doesn’t charge some of the fees other lenders charge, like an application fee or a loan prepayment fee. But other details of Tesla auto loans aren’t clear up front, like credit requirements and available loan amounts, and Tesla doesn’t offer financing in all states.
Pros | Cons |
---|---|
No prepayment penalty No application fee Down payment as low as 0% | Lending is not available in all states APR range is not available Preapproval is not available Minimum credit score is not disclosed |
A closer look at Tesla financing
Car loan preapproval isn’t available for Tesla financing, so the only way to know whether you qualify is to apply and submit to the hard credit pull. Your credit score will take a small hit during this process, but the impact is temporary.
In addition to not offering preapproval, Tesla doesn’t have some of the features that other manufacturer lenders offer, like discount programs for college graduates and service members. On the other hand, other car makers that offer lending often have terms and requirements that vary from one dealership to the next, while Tesla terms seem consistent.
Learn more about requirements and steps for how to get a car loan.
State restrictions
Depending on where you live, there might be special rules or restrictions on buying or financing a Tesla. Here’s a breakdown:
- Customers in Texas, New Mexico, Iowa and Michigan must submit their final payment before delivery can be scheduled.
- Lending is available for applicants who live in the following states:
Arizona
California
Colorado
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Massachusetts
Maryland
Minnesota
Missouri
Nevada
New Jersey
New York
North Carolina
Ohio
Oregon
Pennsylvania
Rhode Island
Tennessee
Texas
Utah
Virginia
Washington
- To qualify for lending, you must have the vehicle delivered to one of the above states or Mississippi.
Used Teslas
Tesla doesn’t sell certified pre-owned vehicles (CPOs), but every used Tesla must pass a 145-point inspection. Used Teslas also have limited warranties, which include an additional one year or 10,000 miles beyond any warranty that’s still in place from the original sale.
To purchase a used Tesla, you’ll have to visit a Tesla location, or you may be able to have the car delivered depending on where you live. Tesla charges a nonrefundable delivery fee of $500 to $2,500.
Charging equipment
Charging equipment does not come standard with every Tesla vehicle. Tesla’s Wall Connector charger costs $425, and it can cost anywhere from $750 to $1,500 to have a standard home charger installed.
How to apply for financing through Tesla
You can apply for Tesla financing online once you’ve started your order for the car of your choice. Here’s what the application process looks like:
- Sign into your Tesla account.
- Select “Loan” or “Lease” as a payment method. If applicable, choose your lease term and preferred annual mileage.
- Enter the amount you want to finance and your preferred monthly payment and loan term.
- Submit your Social Security number, phone number, residence and employment information.
- If approved, sign your loan or lease agreement in your Tesla account.
Most credit decisions are available within 48 hours, though some may only take a few minutes and others may take more time. Credit approval is good for 60 days. If your credit application is denied, a Tesla representative will contact you within one business day to discuss the next steps.
Your first payment on your Tesla loan will be due 30 or 45 days after your delivery date.
How Tesla financing compares
Tesla Finance isn’t the only way to get a loan for an EV purchase. If you’re looking for another make of EV, like a Toyota Prius, you may be able to find 0% APR financing. Alternatively, Bank of America and other banks offer EV lending, and they often have interest rate discounts for customers. When you’re shopping for a loan, you can fill out a single form with LendingTree and receive up to five auto loan offers from lenders.
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Tesla | Toyota | Bank of America | |
---|---|---|---|
Starting APR | 6.69% | 0.00% | 5.99% |
Terms | 24-84 months | 24-72 months | Up to 72 months |
Amount | Not disclosed | Not disclosed | $7,500 and up |
Min. credit score | Not disclosed | 610 | Not disclosed |
Want to compare Tesla financing to other options?
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Frequently asked questions
Tesla does not currently offer 0% APR financing. You may be able to find a 0% APR loan through a third party that offers EV financing.
Tesla does not disclose the minimum credit score required to qualify for financing. As with most lenders, however, you will have a better chance of qualifying if your scores are in the mid-600s or higher.
Tesla doesn’t disclose the requirements to qualify for a loan, including credit score or income.
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In the realm of auto financing, I'm well-versed and have a thorough understanding of how lending institutions operate, the intricacies of loan terms and rates, and the factors influencing eligibility. In the provided article about Tesla financing, there's a range of valuable insights:
Concepts Covered:
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Auto Loans & Financing: The article delves into Tesla's financing options, highlighting the terms, eligibility criteria, and limitations. It contrasts buying a Tesla outright versus leasing, discussing nuances like down payments, loan terms, and APR.
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Tesla Financing Specifics: It outlines Tesla Finance's limitations in terms of states they operate in, lack of full disclosure on loan terms, and the absence of preapproval.
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Comparative Analysis: The article doesn't just focus on Tesla alone but compares it with other options, discussing how Tesla financing stacks up against offerings from other manufacturers or financial institutions.
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Application Process: It details the steps involved in applying for Tesla financing, highlighting the submission of necessary personal and financial information and the credit evaluation process.
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State Restrictions & Used Teslas: There's a comprehensive breakdown of state-specific rules impacting Tesla purchases or financing. Additionally, insights into the purchase of used Teslas and associated warranty details are provided.
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Charging Equipment & Additional Costs: It touches on additional costs like charging equipment, installation charges, and fees associated with purchasing a used Tesla.
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Credit Scores & Eligibility: There's a mention of the absence of disclosed minimum credit scores and specific requirements for loan eligibility through Tesla.
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Comparative Financial Data: The article compares Tesla's financing terms, APR, loan duration, and potential loan amounts against other options like Toyota and Bank of America.
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Frequently Asked Questions: Common queries regarding Tesla financing, including the absence of 0% APR, undisclosed minimum credit scores, and qualification requirements, are addressed.
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Recommended Reading & Additional Information: The article provides further resources and suggested readings, including comparisons between hybrid, plug-in hybrid, and electric vehicles.
If you're considering purchasing a Tesla and exploring financing options, this article covers crucial aspects, enabling informed decision-making based on comprehensive insights and comparative analysis.