According to recent research by CarsDirect, it appears Tesla's interest rates and financing terms are better than many offers on competing vehicles. Obviously, the best deals on new cars have the lowest interest rates, and many people seem to prefer longer loan terms to keep the monthly payment down, especially when it comes to the purchase of a more expensive car, such as a Tesla.
Interest rates are rising, and many automakers are quoting higher rates than they were just a few months ago. Some people may say that the days of 0% financing deals on new cars are over. However, while there are far fewer low-interest offers than there once were, there are still some out there. That said, most have plenty of special restrictions, and few are available on EVs and other new models.
Tesla's website reveals that all of its vehicles are available with an interest rate of 2.99% APR. The term for the loan is 72 months (or six years). CarDirect's math says that a $50,000 Tesla Model 3 when financed at 2.99% for 72 months would cost about $4,700 extra in interest. Keep in mind that Tesla's quote includes the $1,200 destination fee, but excludes taxes and other fees, and it doesn't account for any EV rebates.
At any rate, financing the cheapest Model 3 ($46,990) with this deal would result in an estimated monthly payment of $664, according to Tesla. However, that's after putting $4,500 down at signing. You can lease the same Model 3 for $499 per month for 36 months with the same money down, though you won't be able to buy it when your lease is up.
The publication compares the Tesla deal to a deal on Toyota's bZ4X. Toyota's website says it will have a monthly payment of $692. According to CarsDirect's analysis, this equates to purchasing the vehicle with a $43,215 MSRP, putting $2,000 down, and securing a 6.44% interest rate. The overall interest cost on a ~$50,000 Toyota would work out to over $10,000, which is more than double it would cost with Tesla's lower interest rate.
CarsDirect notes that Tesla's rates also beat other rivals, and even value leaders, such as Kia and Hyundai. The South Korean automakers have been known for years to have some of the best lease and financing deals available on our shores. However, the Kia EV6 currently has an interest rate of 4.99%. The rate on the Hyundai Ioniq 5 is better, at 3.15% over 72 months.
Meanwhile, the Ford Mustang Mach-E's interest rate on a 72-month loan is as high as 5.9% if you choose a GT model. Tesla's interest rates and loan terms remain the same no matter which vehicle or trim level you choose.