Tesla has started to offer 84-month (7-year) loans on its electric vehicles in order to lower monthly payments amid high-interest rates.
If you haven’t been following the world of economics lately, policies have led to extremely high interest rates, which is affecting the borrowing capacity of most people, especially when it comes to large purchases like houses and cars.
Tesla CEO Elon Musk has been complaining about it a lot – claiming that it is the main reason Tesla has to reduce prices for demand to keep up with production.
The automaker has been talking about new “financing options” to try to address the situation – sounds like that means longer loans.
Tesla has updated its online configurator to add a new 84-month loan option:
That’s a seven-year loan… on a car.
Top comment by Francois T
Fred is from Quebec, right? I'm sure he's aware that 84 month loans are the standard term for car loans up here, and have been for 10-15 years at least. 96 month loans are also a thing! Canadians have long been confronted to car prices that they just can't afford.
I'm not saying that this is a good thing. I'm saying that Tesla has no reason to act differently.
For the loan, Tesla estimates that the Annual Percentage Rate (APR) would be 6.39%.
At $551 per month for a base Model 3, you would end up paying more than $46,000 by the end of the term on of a $4,500 down payment.
Electrek’s Take
Options are options. I am glad that Tesla offers more of them than fewer. However, if you need to spread out the payments over seven years to buy a car, maybe that car is too expensive for you, especially with those interest rates.
That’s just my two cents. What do you think? Let us know in the comment section below.
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