Tesla: Last Chance for 0% Financing on Model Y or Model 3 Approaching — Maybe – CleanTechnica

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Tesla is on its December blitz to move more vehicles into customer homes. As part of that, it’s advising that this is the last chance to get 0% APR financing when buying a new Model 3 or Model Y. (My assumption is that this is not the last chance for this incentives, but I’ll come back to that in a moment and the one key thing that may well be a last chance.) Frankly, 0% financing is pretty bonkers. Of course, it’s subsidized by Tesla. It’s just another way of wording a discount, but it’s an eye catching one and one that I imagine does pull in a large number of buyers. Who doesn’t like 0% interest on a long, large loan?

“There’s still time to get 0% APR* financing on a new Model Y or Model 3 when you order by December 15, 2024, and take delivery by December 31, 2024,” Tesla writes in an email to me. The small print for that asterisk is: “0% APR promotional rate available for well-qualified buyers with excellent credit who order a new Model Y or Model 3 between October 21, 2024, and December 15, 2024. Must take delivery by December 31, 2024. Model Y available only for terms up to 60 months and requires a minimum down payment of 20% ($7,500 Federal Tax Credit will be applied, if eligible). Monthly payment of $16.67 per $1,000 financed at 0% for 60 months. Model 3 available only for 36-month term and requires a minimum down payment of 20% ($7,500 Federal Tax Credit will be applied, if eligible). Monthly payment of $27.78 per $1,000 financed at 0% for 36 months. Not all applicants will qualify. Promotion is subject to change or end at any time and cannot be applied retroactively. Used vehicles and enterprise sales not eligible.”

You can also get a $1,000 discount on a Model 3 or Model Y when using an existing Tesla owner’s referral code (up from $500 until a week ago). If you need a referral code, feel free to use mine: https://ts.la/zachary63404. You can also read my recent 5-year review of a Model 3 SR+ to understand more about the medium-term ownership experience.

Tesla is also providing 3 months of free Supercharging and 3 months of free Full Self Driving (FSD) with purchases completed by December 31, 2024. So, you’ve got quiet a pile of incentives there that Tesla is offering. Funny enough, though, the company hasn’t mentioned what is probably the biggest incentive for buying this month and not waiting any longer. …

It’s widely expected that Donald Trump and Republicans in Congress will kill the $7,500 US EV tax credit/rebate. If they do that, there’s a good chance this is the last month you can get that $7,500 discount off of a Tesla Model 3 or Model Y. And it’s definitely not possible for Tesla to make up for that by dropping prices by $7,500. Not even close. Frankly, Tesla seems to already be stretching it with current incentives, and the company isn’t close to maximizing its existing production capacity.

With all of this in mind, I’ll be blunt about it: I think US demand for Tesla vehicles will take a hit in 2025. The company expects 20–30% growth worldwide in 2025, according to Elon Musk, and expects that to be on the back of ramped up Cybertruck production and sales as well as more demand/sales of its core models (probably driven by a Model Y refresh). However, in the US at least, I don’t see Tesla getting more sales in 2025 than in 2024 without the EV tax credit. But we will see! As far as other markets (primarily China and Europe), well, that’s a discussion for another day.

Getting back to Tesla’s 2024 sales push, just a few days ago, the company sent another email advising that “Tesla vehicles are ready for immediate delivery nearby.” The days of US demand for Teslas far outstripping supply are long over. There’s no more waiting weeks for delivery. As far as I’ve seen, there’s no longer a dramatic delivery rush at the end of the quarter. Instead, there are available vehicles sitting on Tesla lots (like other cars are sitting on traditional auto dealer lots) and there’s a peppering of emails and text messages offering a variety of deals to get you into a new car ASAP (like there are from traditional auto dealers).