Tesla has recently made a bold move to boost sales by offering a limited-time financing deal on the popular Model Y. The company is now providing 0.99% financing on the Model Y, aiming to attract more customers and increase orders.
Over the past year, Tesla CEO Elon Musk has pointed to high interest rates as a major factor affecting the company’s demand for vehicles. With interest rates typically ranging from 5 to 7%, the cost of purchasing a new vehicle can increase significantly due to interest payments.
Last month, Tesla introduced 0% loans in China to stimulate sales in that crucial market. Now, the company is extending a similar offer to the US market with the announcement of a special 0.99% APR financing option for the Model Y, available until May 31.
According to the terms outlined on Tesla’s website, customers can secure this financing deal with a $4,250 down payment and a 72-month loan. For the Model Y Long Range RWD, this translates to monthly payments of $603 before any incentives. Eligible customers who qualify for the Federal Tax Credit may enjoy even lower monthly payments, as low as $499.
With this move, Tesla is responding to calls for more competitive financing options rather than outright price cuts. The 0.99% APR loan represents an attractive opportunity for potential buyers, offering a monthly payment of around $500 to $600 for the best-selling electric vehicle in the world.
This financing deal could potentially pave the way for Tesla to introduce further incentives towards the end of the quarter, driving more sales and increasing market share.
