0% Financing at Tesla: Which Cars and Under What Conditions?

We often forget the impact of the interest rate that quickly increases the cost of an auto loan. So when that rate is 0% at Tesla, why hold back?

Tesla promised us a spectacular return, and the manufacturer has kept its word. Beyond keeping the Model Y Propulsion at 36,990 euros for the (rare) available vehicles, the big announcement is, of course, the 0% Financing offered by Tesla and its financial partner Crédit Agricole Auto Bank, for any order and delivery before 30/09/2024.

So what are the affected vehicles and what is the impact of the measure?

First of all, a 0% interest rate means that you will spread the total cost of the car over a certain number of months. If you think this is already the case with a classic consumer loan, think again! Every month you repay part of the loan, but also fees. To simplify it extremely, when you borrow 100 euros over 48 months at a rate of 5%, you do not end up paying 105 euros but 110 euros because the rate is applied annually and not over the total duration of the loan. Painless? Not really on a car costing 40,000 euros that ultimately costs you 44,120 euros! In short, the longer you take, the more you pay. We hadn’t told you that?

Back to this 0% Tesla credit. It is offered on the Model Y range with the notable exception of the Long Range Propulsion for which the fixed TAEG rate remains at 7.22%. Revisiting our little calculation above, you will understand that this is really something! But why give discounts on a car that sells very well… It applies to any loan with a maximum duration of 48 months with a minimum down payment of 4,000 euros. This down payment is eliminated in the case of the Propulsion thanks to the ecological bonus.

Today, Thursday, September 5, 2024, on the Tesla online configurator, for a Tesla Model Y Propulsion listed at the catalog price of 40,990 euros, ecological bonus deducted, purchased on credit over 48 months without a down payment, the monthly payments amount to 854 euros. 854 X 48 = 40,992 euros. The calculation is right if Tesla offers you a coffee on the day of key handover.

Of course, written down, it’s huge when we keep hearing about cars for less than 150 euros per month. We continue to denounce LOA offers subject to down payment, trade-in, increased bonuses for low-income households,… And Tesla’s LOA is not exempt from this bad habit disrespectful to customers. But leasing is not buying!

With a loan, you own your car at the end of the repayment period, just like with a cash purchase, while with a Lease with Purchase Option (LOA) or a Long-Term Lease (LLD) you have to return the car. Therefore, you should NEVER compare the monthly payments of a lease to those of a loan purchase. If you think about buying a Tesla Model Y in cash or wanting your bank to finance it, STOP! Even financing it over 24 months with Tesla will be beneficial. If you need a car for daily use but don’t want the burden of ownership, LLD is what you need. In fact, each offer has its customers; it’s up to you to get well advised so that you don’t get scammed. Reading Mobiwisy is already a first step in this direction.