Key Takeaways
1. Tesla has reintroduced a 0% APR financing option for the Model 3 to boost sales amid competition from the Model Y.
2. The new financing terms are more flexible, offering 0% APR for 3-year, 4-year, and 5-year loans with a 15% down payment.
3. 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.
4. Purchasers of the Model 3 Performance version will receive $2,000 worth of additional options for free, enhancing the vehicle’s appeal.
5. 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.
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