If you are new to car financing but want to get yourself a new car, especially a Tesla, you are at the right place.
Certainly, car finance is one of the most important topics that comes up at least once in everyone’s life. Above all, having your own car can be really handy, as you can use it for both daily life purposes as well as special occasions like trips and so on.
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However, this topic can be confusing for many people. And, that’s where our article comes in, as we’ll be trying to explain it to you in the simplest way possible. Not to mention, every car company has its own policies for finance.
So, we will be taking you through everything you need to know about Tesla financing.
Getting into our topic, did you know almost 90% of new cars and half of used cars are financed? That is, most people buy new or used cars by paying them off in installments rather than paying a lump sum in cash.
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Likewise, keeping this in mind, Tesla also provides their customers with three different options to pay for their vehicles. But before we get into that, make sure you have the Tesla app installed, as all of these methods require the app to make your transaction.
The first available payment method is to purchase a Tesla vehicle by paying upfront in cash. Further, this method includes paying with an electronic check, wire transfer, or bank-certified check.
Secondly, you can lease a Tesla vehicle for a period of 24 to 36 months. While Tesla does offer several affordable terms and conveniences, keep in mind that it’s not available in all states. And depending on that, additional fees could also apply.
The third option for making a payment is by securing a loan with a Tesla financier or a third-party lender. Once you get through the approval process, you can purchase the Tesla vehicle over the course of 36 to 72 months.
Note: Only one account is allowed to make the final payment. Whereas electric vehicle tax incentive completely depends on the state and local incentives the customer is eligible for. Also, you can use the Tesla financing calculator to see what suits you best.
Great job! Now, you clearly understand the three ways to purchase a Tesla vehicle. And now, it’s time to discuss how you can make your purchase using all the above-mentioned methods.
Purchasing with Cash
This process is really simple, as all you need to do is make sure you have enough balance to purchase the Tesla vehicle. Afterward, just confirm your method of payment with your Tesla representative, and your new car will be right outside your door the next day.
Make sure you have the Tesla app installed, and you can use either an electronic check, a wire transfer, or a bank-certified transfer. Also, credit cards only work for the initial order fee. Whereas you also need your reference number and name on the memo line of a bank-certified transfer.
Important Note: Keep consulting with your Tesla representative and make sure all your questions get answered.
That’s all about purchasing a Tesla vehicle with cash. But certainly, you might be more interested in a lease or loan. And if that’s the case, you will need to be more cautious, as you also need credit application approval for these payment methods.
A credit application can be simply understood as submitting all the details regarding the lease or loan. For instance, if you are planning to lease a Tesla vehicle, you will need to provide additional information, choose your lease term, and submit your preferred annual mileage.
Meanwhile, purchasing a Tesla vehicle with a loan will require you to select your financier in the Tesla app. In addition, you will also need to provide your social security number, phone number, residence, and employment information.
Purchasing with Lease
Now that you are clear about the credit application, we can move toward making a purchase with a lease. But, as mentioned before, leasing is not available in all states. So, make sure you are eligible to purchase with a lease.
These are the states where Tesla leasing is available:
AK, AL, AR, AZ, CA, CO, CT, DC, FL, GA, HI, IA, ID, IL, IN, KS, LA, MA, MD, ME, MN, MO, MT, NC, ND, NJ, NM, NV, NY, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WV, WY.
Once you verify your eligibility, log into your Tesla account and choose “Lease” under the financing options available. Afterward, select Tesla as your financier and go through the credit application process.
Tesla will review your application, and once they make a decision, you will receive a notification in the “Payment Method” section of your Tesla account. If it doesn’t, you can resubmit your application by following the same steps above.
Purchasing with Loan
Just like Tesla leasing, lending is only available if you take delivery in one of the following states:
AZ, CA, CO, FL, GA, HI, ID, IL, IN, MA, MD, MN, MO, MS, NV, NJ, NY, NC, OH, OR, PA, RI, TN, TX, UT, VA, WA.
Now, select “Loan” under “Payment Method” of your Tesla account. Afterward, select “Tesla” if you are financing with Tesla. Otherwise, provide your lender’s information and the amount you’d like to finance.
You will get a notification once your credit application has been approved. If not, resubmit the application by following the above steps. Nevertheless, a Tesla advisor will reach out to you to discuss taking delivery of your Tesla vehicle.
These are the three ways you can finance a Tesla vehicle. And, make sure to e-sign any required documents in your Tesla vehicle. Whereas you will need to be present and provide proof of payment at the time of delivery.
Also, we are always here to help you in case you have any inquiries. Good luck!