Tesla and the Long Haul: Can You Really Finance for 84 Months?
Thinking about cruising into the electric future with a shiny new Tesla? You’re not alone! These innovative vehicles have captured hearts (and imaginations) worldwide, but the price tag can be a bit daunting. That’s where financing comes in – and you might be wondering if stretching out your payments for 84 months (a whopping seven years!) is an option.
Let’s break down the Tesla financing landscape and see what’s possible:
Tesla’s Financing Flexibility:
While Tesla doesn’t directly offer 84-month financing terms, they do provide a range of loan options through partner lenders. These partners typically offer terms ranging from 36 to 72 months (3 to 6 years).
Why Not 84 Months?
There are a few reasons why Tesla might not offer 84-month financing directly:
* Depreciation: Electric vehicles, like all cars, depreciate in value over time. A longer loan term means you’ll be paying off the car for longer while its value decreases, potentially leaving you “underwater” (owing more on the loan than the car is worth).
* Interest Rates: Longer loan terms often come with higher interest rates. This means you’ll end up paying significantly more for your Tesla over the life of the loan.
* Tesla’s Focus: Tesla focuses on delivering cutting-edge technology and performance, not necessarily catering to the longest possible financing terms. Their goal is likely to encourage customers to upgrade to newer models with the latest advancements as they become available.
Alternatives to 84-Month Financing:
If a shorter loan term feels financially tight, consider these alternatives:
* Larger Down Payment: Putting down a bigger chunk of money upfront can significantly reduce your monthly payments and potentially open up shorter loan terms with lower interest rates.
* Lease Options: Leasing a Tesla might be a more budget-friendly option if you’re not looking for long-term ownership. Leases typically last 36 months, allowing you to experience the latest technology without committing to a lengthy financing agreement.
* Used Tesla: Exploring certified pre-owned Teslas can also save you money upfront, potentially making a shorter loan term more attainable.
* Shop Around for Loan Rates: Don’t settle for the first financing offer you receive! Compare rates from different lenders (banks, credit unions) to find the best deal.
Making an Informed Decision:
Ultimately, the best financing option depends on your individual financial situation and priorities. Carefully consider:
* Your budget and monthly payment comfort level
* Your desired loan term and interest rate
* Whether you prefer ownership or leasing
* The potential for future upgrades and technology advancements
Remember, purchasing a Tesla is a significant investment. Take your time, weigh your options carefully, and don’t hesitate to seek advice from financial advisors if needed. Happy driving!
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