Key Takeaways
- Tesla has reintroduced a 0% APR financing option for the Model 3 to boost sales amid competition from the Model Y.
- The new financing terms are more flexible, offering 0% APR for 3-year, 4-year, and 5-year loans with a 15% down payment.
- Buyers can use the federal tax credit as part of the down payment, and the promotional rates are available for well-qualified buyers after April 24, 2025.
- Purchasers of the Model 3 Performance version will receive $2,000 worth of additional options for free, enhancing the vehicle's appeal.
- The FSD transfer offer remains available for those upgrading from older Model 3s to the latest hardware for unsupervised FSD capabilities.
The last time Tesla presented a 0% APR financing offer, it was attempting to enhance Model 3 sales, which were declining due to the new Model Y launch and general issues with the brand.
New Financing Terms
Now, the 0% APR financing option for the Model 3 is back, and it's accompanied by more attractive conditions and some added perks. Previously, last month, the zero interest rate financing was restricted to a 5-year loan with a 15% down payment, even though sales of the electric sedan had dropped leading up to the Model Y Juniper refresh.
Expanded Financing Options
The sales of the Model 3 may still need a boost, as Tesla is rolling out a much broader 0% APR financing offer. This time, the zero interest financing is available for all popular loan terms: 3-year, 4-year, and 5-year.
Buyers of the Model 3 still need to pay at least 15% of the car's price upfront, but they can utilize the federal tax credit discount for their down payment, Tesla mentions. The company clarifies that these are "promotional rates valid for well-qualified buyers with excellent credit who order Model 3 after April 24, 2025," indicating that the 0% APR financing might extend until the end of the quarter, similar to the new free FSD transfer offer.
Special Offers for Model 3 Performance
To make the deal even better, those purchasing the high-end Tesla Model 3 Performance version will receive $2,000 worth of options at no additional cost. This includes the Deep Blue Metallic and Pearl White multi-coat colors, as well as a black and white interior, each valued at $1,000, when buying a Model 3 Performance.
Instead of providing a direct $2,000 discount like it does for the new Model Y for buyers coming from older legacy models, Tesla is offering these options for free. However, the FSD transfer offer is still available for those upgrading from an older Model 3 to the HW4 suite of cameras and computer, which will allow operation of unsupervised FSD without any retrofitting.
Source: Link