Tesla has introduced new promotional financing in the United States for its best-selling electric vehicles, the Tesla Model 3 sedan and Tesla Model Y SUV, offering interest rates well below typical auto loan levels to attract buyers.
Under the promotion, all variants of the Model 3—including Rear-Wheel Drive, Premium RWD, Premium All-Wheel Drive, and the Performance model—are eligible for financing at 0.99% annual percentage rate. Such low rates are typically limited to select trims, making the inclusion of the high-performance version notable.
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The Model Y receives even more aggressive terms. Buyers can obtain 0% financing on the Rear-Wheel Drive and All-Wheel Drive variants, while Premium RWD and Premium AWD models qualify for 0.99% financing. The Performance version of the Model Y is excluded from the offer.
Both promotions apply to loan terms of up to 72 months (six years), according to an email Tesla sent to customers on Sunday. The incentives effectively reduce monthly payments by lowering borrowing costs at a time when interest rates remain higher than in the early 2020s.
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Automakers have increasingly relied on subsidized financing to maintain sales momentum as vehicle prices and borrowing costs rise. By offering near-zero interest loans, Tesla absorbs part of the financing expense to remain competitive against both established manufacturers and newer electric vehicle entrants.
The offers are currently limited to the U.S. market. Canadian buyers do not have access to similar terms, with the most recent promotion in Canada offering about 2.99% financing on Model Y purchases late last year.