Looking to finance a Tesla? While you can get a car loan through Tesla’s website, it’s possible that you could find a better deal if you seek financing from a bank or credit union.
Tesla: the king of electric vehicles. It’s a sleek head-turner that’s basically a high-tech gadget on wheels. Everyone seems to have an opinion about Teslas, but the general consensus is that they’re really fun to drive—and can even drive themselves!
The options for financing a vehicle are so plentiful that it can be hard to know what the right choice is. To find the best deal, car insurance comparison app and licensed broker Jerry is giving you a breakdown on how to get a car loan for your Tesla.
How to get a Tesla car loan
Maybe you’re considering the immensely popular Model 3 or the larger Model Y. Either way, getting a car loan for your Tesla isn’t overly complicated. You’ll want to check your credit score, compare rates and loan terms from no less than three different lenders, and get preapproved for a loan.
Check your credit
Before you begin loan hunting, it’s crucial to know what your credit score looks like. Your credit score has a major impact on the terms and interest rate of your car loan. In general, anything over 660 is viewed as a good credit score for a loan.
If you have a credit score that’s below 660, you may still be able to qualify for a car loan for your Tesla if you finance it through their website. Tesla Lending may approve you for a loan if you can prove that you’re able to make payments. Proof of income or a co-applicant are both great ways to demonstrate financial reliability.
Let’s take a look at the table below to see the average APR and monthly payment amounts for different Tesla models based on your credit score. Keep in mind that Tesla currently only offers loans for models 3, S, X, and Y or used Teslas. Financing outside of these parameters would require going through a third-party lender.
| Credit score | Average Annual interest rate | Average monthly payment |
|---|---|---|
| Any | 8.86 | $365 |
| Fair | 17.46 | $423 |
| Good | 8.88 | $364 |
| Very good | 5.19 | $341 |
| Excellent | 3.91 | $333 |
Compare lenders
Now that you’ve seen the kinds of loans you could qualify for, you’ll need to choose a lender. A car loan is available to you through Tesla’s financier, through a credit union, or through your bank. Be aware that if you are placing a car order on Tesla’s website and financing your purchase, your vehicle can only be delivered to specific states.
Make sure you compare offers from at least three lenders before you make a final decision. Here are some qualities of a good car loan:
- Short loan term: 60 months or less
- Low annual percentage rate (APR): 4.93 percent or lower
- Manageable monthly payment: No more than 10 to 15 percent of your monthly income
It’s not just about the numbers! Take customer service into consideration. A lender with low payments and a high rate of approval might not be the best option if they have poor customer reviews or you have trouble getting into contact with a representative.
Get preapproved
If you’re able to get preapproved for a car loan this gives you the opportunity to negotiate better loan terms when you actually sign the agreement. In order to get preapproved, start by filling out a loan application. You’ll need to include the following information:
- Social Security Number
- Proof of employment
- Copy of your driver’s license or a valid photo ID
- Income documentation (paystubs, etc.)
Key TakeawayTo get a loan for a Tesla, check your credit score, compare rates from lenders, and look into getting preapproved. Remember—Tesla’s financing and purchasing processes are both done online.
Average loan term for a Tesla car loan
Currently, the most common loan term in the United States is 72 months or six years. This is not an ideal length if you’re hoping to pay your loan off quickly. As a general rule, if you can manage higher monthly payments, loan terms that are 60 months or less are best because you pay less interest.
Tesla is unique in that the loan terms they offer are restrictive compared to other car companies. Not only is financing not available in every state, but it’s also not available for all Tesla models. Also, there are certain models, like the Model X, for which 60 months or 72 months are the only loan terms offered by Tesla Lending.
If these terms aren’t sitting well with you, Tesla allows you to secure financing through a third-party lender—like a bank or credit union.
To get a better idea of what your monthly payments and interest rate could be based on various loan terms with any credit score, check out the table below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 11.7 | $701 |
| 36 | 9.1 | $474 |
| 48 | 8.53 | $366 |
| 60 | 8.46 | $304 |
| 72 | 8.78 | $266 |
If you’re approved for a loan and you have fair credit, you’ll likely have slightly higher interest rates and monthly payments, as seen below.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 21.6 | $772 |
| 36 | 17.91 | $4532 |
| 48 | 16.88 | $3421 |
| 60 | 16.84 | $361 |
| 72 | 17.48 | $327 |
With good credit, you’ll be able to secure more favorable interest rates, and your monthly payments will be lower.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 12.31 | $701 |
| 36 | 8.94 | $472 |
| 48 | 8.41 | $365 |
| 60 | 8.39 | $303 |
| 72 | 9.04 | $265 |
If you have excellent credit, you’ll likely qualify for the lowest interest rates, and your monthly payments will be lower than average.
| Loan Terms | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 24 | 5.62 | $660 |
| 36 | 4.14 | $442 |
| 48 | 3.81 | $336 |
| 60 | 3.71 | $273 |
| 72 | 3.61 | $231 |
Finding a Tesla car loan in your state
Your car loan payments and interest rates differ depending on what state you live in. Having a local lender is helpful because they understand the financial climate where you live and may be able to offer you the lowest APR your credit score will allow.
Take a look at what you could pay for a Tesla car loan in your state.
| Credit Rating | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| Fair | 17.46 | $423 |
| Good | 8.88 | $364 |
| Very Good | 5.19 | $341 |
| Excellent | 3.91 | $333 |
Tesla car loans: new vs. used
As mentioned, car loans are only available for new Tesla models 3, S, X, and Y or used models if you’re financing your purchase through Tesla Lending.
Interested in a car loan for a used or older model Tesla? It’s probably a good idea to consult a bank or credit union. The APR will be higher for a used car loan, but the total sum will likely be smaller.
If you’re curious about how a car’s age affects a loan, the table below shows how your monthly payment and APR could be broken down based on the model year of your Tesla.
| Car Year | Average Annual Interest Rate | Average Monthly Payment |
|---|---|---|
| 2021 | 7.97 | $308 |
| 2020 | 8.4 | $312 |
| 2019 | 8.6 | $312 |
| 2018 | 8.4 | $310 |
| 2017 | 8.61 | $312 |
| 2016 | 8.76 | $313 |
| 2015 | 8.97 | $315 |
| 2014 | 8.94 | $383 |
| 2013 | 9.02 | $384 |
| 2012 | 9.92 | $515 |
| 2011 | 9.92 | $515 |
| 2010 | 9.92 | $515 |
How to calculate the costs for a Tesla loan
Now that you know your monthly payment and APR will depend on your credit rating, loan term, loan amount, and location, you can use Jerry’s car loan calculator to see what you could pay with a Tesla car loan.
| Average Annual Interest Rate | Average Monthly Payment |
|---|---|
| 8.86 | $365 |
Mary Cahill is an insurance writer specializing in general automotive knowledge and insurance and finance topics. Mary produces informative and useful content to help car owners make smart choices when buying cars and car insurance. She has written over 700 articles for Jerry on topics ranging from state driving laws to EV supercharger locations across the states. Before joining Jerry, Mary authored two novels while working as a case manager at the United Way.
Brittni Brinn is an insurance writer with experience in a variety of industries. Her writing for Jerry covers a broad range of auto and insurance-related topics, all aimed at helping car owners cut down on expenses and make smart decisions. Brittni has authored nearly 600 articles for the Jerry team on topics ranging from tips on how long to keep your insurance records to first-time car buyer programs. When she’s not writing for Jerry, Brittni is hard at work writing for radio, theater, and film. Brittni has also penned and published two novels with Adventure World Press.
