Do you want to make the move to an electric vehicle by purchasing a Tesla? You may feel as though purchasing an EV requires harder to access credit and financing options. However, given the strong value that EVs hold, getting approved for an auto loan is not as hard as it may seem.
However, you can look at auto loans for financing a Tesla. A good auto loan can help cover the cost of your vehicle while you take time to pay it off.
Consider some of the best places to find the best auto loans for a Tesla.
Best Auto Loans for Financing a Tesla
When financing a Tesla, you have many options to consider. Think about your current financial situation and your preferred auto loan conditions.
Then, you’ll be able to compare different loans and financing options. Soon enough, you can purchase your next Tesla and pay it off over time.
Here are some of the best auto loans for financing a Tesla.
1. Tesla Lending
One of the best ways to finance a Tesla is to go directly to the automaker. Tesla offers loans through a Tesla financier or a third-party lender. The company offers a financing calculator to help you determine the best option for you.
Unfortunately, Tesla Lending isn’t available in every state. If you do qualify, you may need to pay more than the loan amount to cover fees and taxes. And while you can get a loan quote, that amount may differ after you complete an application.
Once you place an order for your Tesla, you will need to go to the Payment Method section in your account. As long as you’re over 18 and have a social security number, you can click on “Loan” to start your application.
You can select Tesla as the financier for setting your monthly payment and the loan agreement terms. Tesla will then require your social security number, phone number, and employment details to process your application.
After Tesla approves you, you’ll be able to make payments to your account. If you choose to prepay, you can do so with no penalties.
You don’t have to pay to submit your loan application, and you can receive a decision usually within 48 hours.
Pros
- Easy to access and pay
- Open to most adults
- You don’t need to give a ton of details
- Can finance with Tesla or another lender
- The application period lasts for 60 days
Cons
- Not available in all states
- It may involve more than one check on your credit
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.6/5
- Customer Service: 4.5/5
- Value for Money: 4.7/5
See Related: What is the Average Tesla Repair Costs? Full Budgeting Guide
2. MyAutoLoan
MyAutoLoan is a website that lets you find the best car loan for your new Tesla.
You can use it to buy a new car, a used car, or refinance your current loan. If you’re currently leasing a Tesla, the service can help you buy out the lease.
To qualify for a loan, your credit score must be at least 550, which is a pretty low minimum.
Interest rates start at 1.89%, but you’ll need better credit to get that low rate. You will also need to be making at least $24,000 a year, and you can’t have active bankruptcies.
Anyone 18 or older and is a US citizen or permanent resident can apply. After you fill out an application, you can get up to four offers for an auto loan. Then, you’ll be able to choose the best loan for you.
MyAutoLoan has a helpful glossary of loan terms and a financing guide. If you don’t know where to start with a car loan, it may be an excellent resource. Even if you don’t get a loan through them, you may learn enough to help you choose the best loan.
Pros
- Low rates available
- Low credit score minimum
- Get up to four loan quotes
- Minimal requirements
- Works with new and used vehicles
Cons
- Not for low-income people
- Not the best for someone with a poor financial history
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.9/5
- Customer Service: NA
- Value for Money: 4.7/5
See Related: Best Credit Builder Loans
3. Carvana
Carvana is an excellent auto loan program for any car, including a Tesla. The program doesn’t have a minimum credit score requirement. You can get a rate as low as 3.9% or as high as 27.9%, and loan terms may vary.
Other requirements to receive a loan include being 18 or older and earning at least $4,000 a year. You also can’t have any active bankruptcies.
Those requirements aren’t as strict as some other auto loans, so more people can take advantage of them.
You can get pre-qualified for a loan by applying before you order your Tesla. Be sure to fill out the application as thoroughly as you can. That way, it will be easier for Carvana to review your driving history and credit history to approve your loan.
Pre-qualifying for a loan only takes a couple of minutes, and you can do it online. Even if you don’t go with the program, you can get a loan quote. You may find it’s the best loan you can get for your new Tesla.
Pros
- Accessible to many people
- Quick to apply
- Able to apply before ordering a Tesla
- Online application
- Minimal requirements
Cons
- High APR
- Can be expensive
Ratings
- Ease-of-Use: 4.8/5
- Features: 4.7/5
- Customer Service: 4.5/5
- Value for Money: 4.6/5
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4. CarsDirect
Cars Direct may be an excellent option if you want to compare different loans. The program can help you get multiple quotes because they work with various lenders. Because of that, you don’t need a good credit history to qualify for a loan.
However, some of the loans may have higher APRs or longer terms.
If you have good credit, you may qualify for a loan with a better APR and a better loan term. But if you want to buy a Tesla now with average credit, CarsDirect may be for you.
No matter what your credit history, you will need to show proof of income, residence, and insurance.
That way, you’ll be able to get a loan for whatever Tesla model you choose. You can apply for a loan online, and you can shop around for deals from various dealers.
That’s an acceptable option if you’re open to buying a used Tesla. You won’t have to order one and wait for delivery day, so you can get a loan and start driving a Tesla sooner. But you can still use the tool to find a loan and order a new car.
Pros
- Works for new and used vehicles
- Online application
- Open to most borrowers
- Different lenders are part of the program
- Helps with finding local loan offers
Cons
- Some loans may have poor terms
- Not the best for borrowers with a credit score
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.7/5
- Customer Service: NA
- Value for Money: 4.7/5
See Related: Tips for Buying a Used Tesla
5. Auto Credit Express
Another excellent auto loan service for Tesla financing is Auto Credit Express.
The service connects you to local auto lenders, so you can find a good match. You can fill out an application online using a form, and the process only takes a few minutes.
It only requires at least a 300 for your credit score, which is the lowest score you can have.
That makes it a fantastic choice for people looking to improve their credit with an auto loan. Of course, your credit score can affect the rates and loan terms you may receive.
You must have a guaranteed income, and the form lets you select from various ranges. The minimum on the form is $1,100 per month or $6.50 per hour. Having a higher income may help you qualify for a better loan.
US and Canadian residents can qualify for a loan through Auto Credit Express. If you have a hard time qualifying for a car loan, this may be the service for you.
Then, you can start paying off a Tesla, and you may raise your credit score.
Pros
- Open to people with poor credit
- Low-income requirements
- Some of the best Tesla loan rates
- Quick application process
- Able to apply online
Cons
- Hard to predict your loan terms
- Better loans may require good credit
Ratings
- Ease-of-Use: 4.8/5
- Features: 4.7/5
- Customer Service: NA
- Value for Money: 4.6/5
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6. Car.Loan.com
Car.Loan.com is another amazing website to consider when looking to finance a Tesla. Like Auto Credit Express, this program only requires a credit score of at least 300. If you’ve struggled with your credit, you may want to use the service to get a loan.
You can apply online, and the application only has a few steps.
If you don’t have a ton of time, you will be able to go through the process anywhere you have an internet connection. Once you apply, a network of lenders can review your information and send you a quote.
Because of the multiple lenders, your APR and loan may vary. Fortunately, you can review any loan offers you receive to choose the best one. Then, you can finance your Tesla without struggling to make your monthly payments.
To apply, you must be a US citizen with a US address. You also must have a full-time job or have a fixed income. If you work for yourself, you may qualify if you can prove you make about the same amount each month.
Pros
- Low credit requirement
- Quick online application
- Access to multiple lenders
- Can get a few quotes
- Apply anywhere
Cons
- Must be a US citizen and resident
- Not the best for freelancers or part-time workers
Ratings
- Ease-of-Use: 4.8/5
- Features: 4.8/5
- Customer Service: NA
- Value for Money: 4.6/5
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7. US Bank
If you prefer to go straight to a bank for a loan, consider US Bank. The bank offers loans on new and used vehicles. Such agreements can include a Tesla. You can get pre-approved to make sure you’ll get a loan before you order your car.
Pre-approval is free, and you don’t need to put any money down.
US Bank offers an auto loan calculator so that you can estimate your monthly payments. They also make it easy to pay your bill online, so you don’t have to write and mail checks each month.
Of course, getting a loan from US Bank will be the easiest for current customers. But you can set up a loan without having an account there. It may be harder to transfer money for your payments, but you can still do it.
Alternatively, you can open a checking account with your loan. Then, you can put money in that account to prepare for your payments. With branches all over the United States, you should be able to find a US Bank near you.
Pros
- Straight from a bank
- Branches nationwide
- Pre-approval option
- Works with new and used cars
- Easy to apply
Cons
- Not ideal for people who don’t bank with US Bank
- Not for borrowers with poor credit
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.7/5
- Customer Service: 4.7/5
- Value for Money: 4.6/5
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8. Capital One
Capital One has an online application where you can get pre-qualified for a loan. You can request approval as an individual or with someone else. Tesla is one of the many participating car brands you can choose from with the program.
To use the service, you’ll need to finance at least $4,000 for a new or used vehicle.
You should also make sure the car is a 2012 or later model and has no more than 120,000 miles. The application will ask for your personal information, residence, and employment.
It’s an excellent option if you want to use the Capital One Auto Navigator to search for Teslas. These are second-hand models, but that’s nice if you don’t want to order and wait for a new car.
Capital One is better for people with an excellent credit history. However, you may qualify for a loan if you apply with someone who has better credit. Then, you can get the car you want.
Pros
- Individual or joint applications
- Works with new and used Teslas
- Pre-approval option
- Can apply online
- Quick application process
Cons
- Not for all vehicles
- Not the best for people with poor credit
Ratings
- Ease-of-Use: 4.8/5
- Features: 4.8/5
- Customer Service: NA
- Value for Money: 4.7/5
9. LendingTree
LendingTree is another option where you can compare multiple loans in one place. It compiles loans from various lenders, and rates can be as low as 0.99%.
Most of the loans they search through have rates less than 4%, so you can get a good deal.
Depending on the loans you qualify for, you may be able to extend your term up to 20 years.
Most terms will be between 36 and 72 months, though, which is still good. Some of the loans they help you find require a credit score of at least 550 to 660, but others don’t specify a score.
Loan amounts can vary from $250 to $4 million, depending on the program. You can compare all the details to see which loan may be the best for you. That way, you can get the Tesla of your dreams and pay off the balance over time.
LendingTree also has financial resources to learn about auto loans. If you don’t know where to start, it is a superb website to check. You may find the right loan for your purchase as well.
Pros
- Easy to use
- Variety of loan options
- Low APRs
- Online application
- Big loans available
Cons
- Not the best for people with poor credit
- Options can be overwhelming
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.8/5
- Customer Service: NA
- Value for Money: 4.8/5
10. Wells Fargo
Another one of the best alternatives to Tesla’s auto loan is Wells Fargo. Like US Bank, it’s a great option for current account holders. However, you don’t need to bank at Wells Fargo to take advantage of the best car loan rates for a Tesla.
Depending on your credit, you can get a low rate on your Tesla car loan. The bank partners with thousands of dealers, which is nice if you want to get a used Tesla. You’ll be able to set up an account with online access to pay your bill and manage your account.
Wells Fargo also offers excellent customer service via phone during their business hours.
If you have questions or need help accessing your account or bill, you can get the help you need. Then, you won’t have to worry about missing any payments or ruining your credit.
Pros
- Easy to set up
- Online account access
- Phone support
- Wide network
- Works for new and used vehicles
Cons
- Somewhat high-interest rates
- Not the best for low credit
Ratings
- Ease-of-Use: 4.9/5
- Features: 4.8/5
- Customer Service: 4.9/5
- Value for Money: 4.8/5
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Methods for Finding the Best Auto Loan for a Tesla
To decide how to pick the best auto loan for a Tesla, we started with our research from our own practical experience of buying a Tesla Model 3 and then did research on Tesla Lending alternatives.
After looking at a few programs, we narrowed our list to the best choices. We considered minimum credit scores, average percentage rates (APRs), loan terms, and other requirements.
Then, we reviewed each of our picks to help you choose the right loan for you. Be sure to read about the options to compare the features and benefits.
Keep reading if you’re ready to finance a Tesla.
What is an Auto Loan?
An auto loan is a specific type of loan that you can use to buy an electric vehicle. Many people don’t have enough money to purchase a car outright, so financing lets you pay it off.
You can find loans with varying term lengths, so you can take as long as you need to make payments. Some loans have stricter requirements, whereas other loans will accept more borrowers.
That way, you can get the money you need even if you don’t have a perfect credit score. And if you have good credit, you can get the best Tesla financing terms.
See Related: Can You Use a Tesla Powerwall Without Solar?
Verdict
The best auto loans for a Tesla come from Tesla Finance. While the company itself doesn’t lend you money, they work with reputable lenders. That way, you can manage your loans and payments in one place.
You can pay off your loan or make prepayments without any penalties.
However, you may need to meet certain requirements to qualify. If you don’t meet those requirements, check out LendingTree or another loan research program to get the best Tesla loan interest rate for you.
FAQs
If you’re looking to get a Tesla, you may still have questions about auto loans. Here are some common queries and answers to help you make a financing decision.
Is It Easy to Finance a Tesla?
Financing a Tesla can be easy, depending on the loan program you select. If you have better credit, you may have an easier time qualifying for a good loan.
But there are plenty of lenders out there that work with people with poor credit. You can still buy your dream car, but you may have a higher interest rate.
Do You Need Good Credit to Finance a Tesla?
Some auto loans are only open to borrowers with good credit. However, you can find more loans with low credit requirements than you may expect.
As long as you have the money to make monthly payments, you can finance a Tesla. Then, you can take your time to pay off the balance.
How Much Do You Have to Put Down for a Tesla?
You should look at the loan paperwork to learn how much you need to pay as a down payment. Some loans may not require much of a down payment at all.
However, try to save up to 20% with a down payment on your loan. That way, you can lower your monthly payments.
Should You Lease or Buy a Tesla?
You should lease a Tesla if you know you’ll want to get the newest model every year. That way, you can move your lease to a new vehicle.
You should buy a Tesla if you want to own it and drive the same model for years. If you can’t decide, you can lease a Tesla and use a loan program to buy out the lease.
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