Yes, Tesla is offering a financing deal that’s hard to pass up. The company is offering 0.99% APR financing on a new Tesla Model Y! That’s a crazy-low financing option. Note that it’s only available on the Model Y, though, not the Model 3.
Basically, Tesla is subsidizing the financing. Confused yet? With federal interest rates at 5.3%, banks can’t come in and offer 0.99% financing to consumers. However, shifting money around a bit, Tesla can subsidize the financing instead of doing the usual vehicle price cuts . Just to end, note that this low interest rate offers big potential savings. If you put down $4,250 and get the low rate, you could be saving $100 a month, or $6,000 across five years. To be honest, this is a huge incentive . I assume it will actually drive a good surge in new Model Y sales.
I also wonder if this is a sign that Tesla is getting ready to roll out its updated Model Y . If it is going to announce that soon, it’ll probably want to move out as many of the first-gen Model Ys it has on hand as soon as possible. However, really, I think the simpler, more boring matter of Tesla needing to stimulate more sales on an ongoing basis is the core story.