Tesla has once again increased loan interest rates on the Model Y, lifting the annual percentage rate for the base and Premium trims to 2.49% as promotional incentives continue to diminish. The Performance configuration remains unchanged at 3.99%.
The adjustment, effective October 23, marks the fifth rate increase in under three months. Earlier in the year, buyers could secure 0% APR financing, a perk that was reduced to 0.99% in August, 1.49% in early September, and 1.99% later that month. Over a 60-month term on a $45,000 loan, the cumulative increases add $3,500 in total interest costs compared to the terms available at the start of the year.
The decision to unwind lower rates follows disclosures from Tesla during its third-quarter earnings call, where executives pointed to a significant order backlog alongside production constraints. Because the automaker absorbs the cost of promotional financing, dialing back interest discounts enables the company to improve its profit margins for the fourth quarter.
Securing the new 2.49% rate requires a credit score of 720 or higher. Customers who do not meet required down payment criteria may see effective interest rates climb toward 3.49%.
Source: Notebookcheck
