How much should buyers expect to pay in financing costs when shopping for a luxury electric SUV? Tesla’s current offering on the Model Y Performance provides one answer: 5.99% APR for 72 months on 2024 models in the U.S. This rate sits notably higher than Tesla’s promotional 1.99% APR available on some Model 3 and Model Y trims, showing the company uses tiered financing based on model and trim level.
The 5.99% rate applies to the Model Y Performance as well as Rear-Wheel Drive Long Range and Dual Motor All-Wheel Drive Long Range variants. This mid-range APR contrasts with widely promoted low rates around 1.99% on other mass-market EVs, shifting expectations about luxury EV affordability. Additionally, potential buyers should consider that charging with a generator may lead to significant fuel-to-power losses, impacting overall cost efficiency.
Despite the higher financing rate, the Model Y Performance remains competitively priced with a base MSRP of approximately $59,130 without federal tax credit eligibility. The vehicle delivers 0 to 60 mph acceleration in about 3.3 seconds, placing it among the fastest compact luxury electric SUVs. Its EPA-rated range reaches approximately 306 miles, balancing performance with practical driving needs.
Standard features include 21-inch Arachnid wheels, sport seats, and heated rear seats. Tesla includes many luxury and tech features standard without additional add-on costs, positioning the Performance model as cost-effective relative to competitors. The 72-month financing term aligns with industry standards for premium vehicles, balancing monthly affordability and total loan cost.
Tesla also offers leasing options, with monthly payments at $599 for the Model Y Performance. This flexibility remains uncommon in the luxury EV sector, where many manufacturers favor lease-only offers or more conservative financing rates.
The company’s approach may pressure competitors to adjust their financing terms or offer other financial products to maintain market share. By combining a mid-range APR with competitive vehicle pricing and strong performance features, Tesla challenges traditional luxury EV pricing models. The Model Y Performance competes with more expensive models while surpassing vehicles like Polestar 3 in features, speed, and design. The promotional financing options align with Tesla’s broader effort to maintain quarterly delivery momentum as the company pursues its 2024 sales targets.