Tesla Brings Back 0% APR Loans to Boost Model 3 Demand

Tesla has reinstated 0% APR financing for new Model 3 purchases in the US, aiming to drive demand. Find out the details, eligibility, and how this move fits into Tesla’s broader strategy.

Tesla has reintroduced 0% APR financing for new Model 3 purchases in the United States, signaling an effort to stimulate demand amid a challenging first quarter of 2025. While this promotion applies exclusively to Model 3 orders, Model Y remains excluded, likely due to its ongoing design refresh.

The new financing deal allows buyers to secure a 0% interest loan. Additionally, those who qualify for the $7,500 federal EV tax credit can access 0.99% APR financing with no down payment. However, eligibility depends on the applicant’s credit score, and Tesla reserves the right to alter or end the promotion at any time.

The return of 0% financing appears to be Tesla’s tactical response to market conditions. The company has previously used similar strategies, notably in late 2024, when it offered 0% APR financing for both Model 3 and Model Y. That promotion ended in December, suggesting that Tesla employs these incentives as a short-term demand booster when needed.

While Model 3 buyers benefit from the renewed financing offer, Model Y customers face a different situation. Tesla has started taking orders for a refreshed version of the crossover, available as a premium-priced “Launch Edition,” but without financing perks. Meanwhile, older Model Y variants are being discounted, indicating Tesla’s urgency to clear out inventory.

Tesla’s move should be viewed within the context of its broader ambitions. The company continues to expand its production capabilities, recently securing approval to extend its German factory, aiming for an output of up to one million vehicles per year. Additionally, Tesla plans to introduce more affordable EV models in 2025, reinforcing its push into the mass market.

Ultimately, the return of 0% APR financing is more than just a sales tactic—it’s a dynamic part of Tesla’s evolving strategy to navigate the shifting automotive landscape. The key question remains: how long will this offer last, and could an even more enticing deal be on the horizon?

Source: electrek.co