Understanding Tesla’s 0% Financing Offer

In a move to enhance affordability, Tesla has introduced a 0% financing incentive for buyers of the Model 3, the company’s most economical sedan. This offer, which began in late 2024, allows well-qualified buyers to finance their vehicle over a span of 60 months at zero percent interest. Additionally, Tesla is providing a competitive 0.99% APR option for loans extended up to 72 months.

Eligibility Criteria for Prospective Buyers

To qualify for this enticing offer, buyers must possess excellent credit, generally defined as a credit score of 800 or higher. Furthermore, a minimum down payment of 15% is required, which translates to approximately $6,374 for the base Long Range Rear-Wheel Drive Model 3. Interestingly, some buyers may not be required to make any upfront payment at all, as the electric vehicle (EV) tax credit can be applied towards the down payment.

Federal EV Tax Credit Considerations

Buyers looking to benefit from the federal EV tax credit must ensure their household income meets certain thresholds: no more than $150,000 for single filers, $225,000 for heads of household, and $300,000 for joint filers. This strategy positions the Model 3 as not only an environmentally friendly option but also an economically viable choice for many.

With the Model 3 experiencing a significant decline in sales in 2024, dropping to about 145,000 units from nearly 230,000 in the previous year, Tesla’s promotional financing could be a strategic effort to rejuvenate interest and sustain sales momentum as the company navigates changes in the EV market.