Tesla implements subtle interest rate hike for financed vehicles

Credit: Andy Slye/YouTube

Tesla’s list prices for its vehicles have not experienced a notable rise recently, but the EV maker has initiated a more subtle price increase for its financed vehicles nonetheless. As could be seen in Tesla’s online payment calculator, the featured financing rate is now 3.74% APR, a 0.5% increase compared to last month’s interest rate deal of 3.24%. 

Tesla’s interest rates for its vehicles have seen some increases this year. Prior to last month’s adjustment to 3.24% APR, Tesla had adopted a very compelling rate of 2.99%. Compared to that rate, Tesla’s current 3.74% APR would likely result in customers paying about $1,200 more for their vehicles over the payment period. 

At 3.74% APR, a ~$50,000 Tesla Model 3 would come to about $56,000 when the cost of interest is factored in. According to Cars Direct, this would likely result in the financing cost rising by a little over $800. This, however, would only translate to monthly car payments rising by just about $11 per month. 

Interestingly enough, while Tesla has raised its vehicles’ interest rates, the company’s lease prices have remained largely unchanged. The base Tesla Model 3 could still be leased for $499 per month for 36 months with a $5,694 upfront payment. These prices still exclude potential rebates or taxes and fees that still must be paid, however. 

Considering the trend of Federal Reserve rate hikes in 2022, it is likely that vehicle interest rates will rise further this year. Tesla would likely be affected by this, so it would not be surprising if the company ends up adjusting its interest rates for financed vehicles even further in the coming months. 

Despite the price adjustments to Teslas, however, the company’s vehicles remain popular, thanks in part to the quality and capability of the cars themselves. This is hinted at by the delivery estimates of the company’s vehicles. The Model 3 RWD, Tesla’s most affordable car today, currently has an estimated delivery date of September to December 2022. 

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Tesla implements subtle interest rate hike for financed vehicles
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