Answer: Tesla launches limited-time 0.99% APR loan rate on U.S. Model Y orders
So here’s the deal; Tesla’s offering a 0.99 percent APR interest rate for buyers who finance a Model Y on an order placed by May 31, 2024. The promotional financing can be used on loan terms ranging from 36 to 72 months, and it’s available on all three Model Y trim options.
What to do; Go to Tesla’s ordering website, select your preferred Model Y, sign up for the promotional interest rate for 60 months (or whatever term makes sense up to 72 months for this promotion), pay $4,250 down, and drive off with your spanking new Tesla. But that’s not the end of it…
Now that you got that once in a lifetime financing deal from Tesla, I want you to go over to Vanguard, open an account, and immediately invest all the money your just saved in a 5-year CD currently yielding 5.25%.
When all is said an done, I think this will be the least expensive car you have ever owned after factoring in car operating expenses and investment yield. Someone else will have to do the math for me, but this sounds like the best deal ever, for the best car ever!
Oh, and did I forget to mention that this car also qualifies for the $7,500 federal tax credit, which you now get at point of sale if you qualify! So what are you waiting for??
** update **
OK, I have done some calculations and think I have an answer for how much you’ll spend on interest on Tesla loan and earn on your Vanguard investment. Here’s what I came up with:
For a Long-Range AWD Model Y
- Purchase price: 47990
- Amount down: 4250
- Amount financed: 45130
- Monthly payment (P&I, 60 months, .99% promo): 772 (according to Tesla website)
- Total interest paid on the loan after 5 years: ~1153
- Amount invested (Vanguard 5 yr CD @ 5.25%): 45000
- Interest earned on investment over 5 years: ~13120
By my calculation, you’ll be ahead approximately $12,000 in 5 years versus buying your Tesla for cash today. To me, that sounds like a smokin’ deal! (Unless a math wizard can prove me wrong)
And should you actually decide to buy, don’t forget to use another Tesla owner’s referral code, preferably mine: https://ts.la/glen27381 – thanks!