So, you’re thinking about buying a Tesla this year. That’s exciting, and a little overwhelming, depending on your budget. Let’s get real for a second. Unless you’re paying outright in cash, the real question becomes how you’re going to finance it without stretching yourself too thin.
The good news? There are options. A lot more than you might think. Keep reading as we look at six different ways you can pay for your new Tesla purchase (beyond using buy now, pay later).
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You won’t be financing your actual car through Klarna, but you can split things like wall chargers or floor mats into four smaller payments. Tesla partnered with Klarna for shop items, not vehicles, and it’s interest-free for six weeks. It’s not flashy, but it helps when you’re staring down all the extras.
If you would prefer to avoid third-party lenders, you can apply for financing directly through Tesla when you order your car. They’ll walk you through everything online. You’ll get loan terms between 36 and 84 months, and you can even roll in things like Full Self-Driving. It’s not always the lowest rate, but it’s fast and easy.
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Don’t sleep on your credit union. Most of the time, they’ll beat the annual percentage rate (APR) you’ll be offered by Tesla. This means it might be worth the extra steps if you want to save over the long term. You’ll need to apply and get pre-approved before placing your order, but people who’ve done it swear it’s worth it.
When leasing a Tesla, you’ll likely receive a lower monthly payment than if you purchased, but it comes with a mileage limit and no ownership at the end of the lease. This makes sense if you don’t drive many miles or want the option to upgrade after a couple of years.
If you’re sitting on enough cash to pay outright, Tesla takes wires and ACH transfers. That means no loan, no monthly payments and most importantly, no interest. This is the lowest total cost option if you’re planning to keep the car for a while.
A few folks take out a home equity line of credit (HELOC) to fund their Tesla. Rates can be lower than a car loan, but your house is collateral. Only do this if you’re comfortable with the risk and know you’ll be able to make the payments.