Last Chance to Get 1.99% APR on New Tesla Model 3?

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It’s the end of a quarter, and Tesla is sending out reminders that this is your last chance for a crazy good deal. That deal this quarter is 1.99% APR financing on a Tesla Model 3 — well, to be specific, a Tesla Model 3 RWD (for an AWD Model 3, you still have to pay the going rates, which are quite high).

Interestingly, instead of the usual Tesla requirement to take delivery before the end of the quarter, the email I received about this says that you just have to order before the end of the quarter:

You Haven’t Missed Out—Yet

There’s still time to qualify for 1.99%* APR for 36 months or 2.99%* APR for up to 60 months on Model 3 Rear-Wheel Drive. Order by June 30, 2024, to be eligible.

Prequalify or design yours to get started.

It’s an appealing offer. It could save you thousands of dollars over the life of the loan. Of course, with the federal interest rate being well above 1.99%, Tesla is simply subsidizing the buyer here, or you could say offering a big discount.

Also note that Tesla previously offered 0.99% APR financing on the Model Y, but that special offer ended at the end of May.

Notably, all versions of the Model Y and the Model 3 Long Range are now eligible for the full $7,500 federal tax credit, but the Model 3 RWD isn’t eligible for any tax credit at all. The low financing rate is a kind of temporary concession to make the lower-range Model 3 more competitive, but I have to assume almost no one is going for this model now that you can get a $7,500 discount on the longer-range one. So, what happens after June? Perhaps Tesla will mostly just sell the Model 3 Long Range, perhaps Tesla will be able to qualify the standard range version for the tax credit (though, there’s no sign of that), or perhaps Tesla will cut the price on the model or offer some other special deals.

At the moment, the Model 3 RWD is $8,500 cheaper than the Model 3 Long Range AWD ($38,990 versus $47,490), but applying the tax credit, it’s only $1,000 cheaper ($38,990 versus $39,990). Over the course of 5 years, that’s just $200/year, or $16.67 a month. I have written about how little I use the battery of my lower-range Model 3, but even I would go for the Long Range version with such a small difference in cost.

However, a much lower interest rate could mean several thousand dollars in savings. If you want to compare, you can proceed with the “prequalify” button for both models and see what they actually offer you and how much the difference would be across 5 years depending on what features and paint you want.

While Tesla’s cars get some criticism for “all looking the same,” the fact is there are still different options depending on what you prioritize. There’s now also a Tesla Model 3 Performance.

Overall, though, regarding the lower-priced models, what I think few people know is that you can now get a Tesla for quite an affordable price, relatively speaking. Naturally, it’s cheaper to buy a used car, but if you’re shopping for a new vehicle, not that many models on the US market are cheaper than a low-end Tesla. And even a low-end Tesla is worlds better than my 2019 Tesla Model 3! Yes, the Tesla Model Y is cheaper than ever, and a Model 3 or Model Y can cost about $10,000 less than the average price of a new car sold in the USA. Throw on some super-low financing, and it’s still hard to recommend any other vehicle on the market over a Tesla Model 3 or Model Y.

David Havasi and I reviewed the new version of the Model 3 a few months ago (see video above). He has now upgraded to the new model — the performance version. While the low financing and low price are appealing to me, I’m still not in the market for a new car, and I have to admit that part of me is really holding out for a Model Y Juniper and the ability to transfer Full Self Driving (FSD) to a new car again. I spent $6,000 on that software suite and suffered through years of delay — I want it applied to a vehicle with new hardware!