Electric vehicle giant Tesla has just announced a new financing promo for its popular Model Y electric crossover in the US, offering customers a limited-time 0.99% APR loan rate until the end of the month.
Tesla stimulates demand for the Model Y with new financing promo
Tesla officially launched its latest financing promo for the Model Y on Friday. The Musk-led company is trying to boost customer demand with a super-low APR interest rate of 0.99%.
Customers must finance the Tesla Model Y on orders made from May 10 until May 31, 2024, to benefit from this new buying incentive. The offer is applicable to loan terms from 36, 48, 60, and 72 months for all Tesla Model Y trims.
Tesla’s decision to launch a 0.99% financing promo for the Model Y comes as increasing interest rates continue to impede the wider shift to electric vehicles this year.
0.99% APR financing terms
Most customers apparently buy new vehicles with loans. However, the average 5% to 7% interest rates boost the new vehicle’s cost by thousands of dollars.
Tesla acknowledges that these high interest rates are among the main factors discouraging prospective customers from buying its offerings. In this sense, the Musk-led company made it easier and cheaper for customers to buy its top-selling electric SUV.
As the official website indicates, interested customers must only provide a $4,250 down payment for a 72 month-loan. For the Tesla Model Y LR RWD, monthly payments would only cost $603 before incentives. It will further drop to just $499/month for customers eligible for the federal tax credits.
For context, the newly launched Tesla Model Y LR RWD currently costs $44,990, excluding federal and local tax credits. The LR AWD variant starts at $47,990, while the Performance costs $51,490.
Previous offers to counteract high interest rates
Tesla launched 0% loan offers to Chinese customers in April 2024 as it seeks to stimulate demand in the highly competitive local market.
Before that, Tesla also offered a $1,000 discount on the Model Y in the North American market through the end of February 2024. Notably, these are just some of Tesla’s promotional efforts to boost its electric vehicle sales.
Excitingly, Tesla announced plans to roll out a Model Y refresh in the near future. However, internal communications revealed that the Musk-led company currently has no plans to bring the planned Tesla Model Y refresh in North America this year.
It is remarkable that Tesla is now mitigating disparity in financing interest rates instead of lowering prices, which industry followers have suggested. Its 0.99% APR loan offer will undoubtedly attract many customers to acquire the world’s top-selling vehicle for only about $500-$600 per month.
