Tesla Financing: In-House And Third-Party Options

While their share of the EV market continues to decrease over the last year, Tesla remains one of the most popular routes to driving electric, with the automotive brand’s share of EV sales at 43.5 percent in the first quarter of 2025, according to Cox Automotive. However, with prices close to $40,000 for those wanting to purchase new, securing an auto loan is the right first step for most drivers.

Consider the available options for getting behind the wheel of a Tesla and whether in-house or third-party financing is best for your needs. 

Tesla in-house financing

Tesla offers its own financing through its online platform. Buyers can finance and arrange vehicle delivery all in one place. While this option is not available in all states, it can be a good option for shoppers who prefer convenience. 

• States that offer Tesla financing
  

  AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, KY, MA, MD, MI, MN, MO, MS, NV, NJ, NM, NY, NC, OH, OR, PA, RI, TN, TX, UT, VA, WA.

Tesla outlines a few basic steps for drivers who choose in-house financing: 

1. Submit an application: Once you have started your online order and designed your Tesla, you can prequalify for financing. This is done under the ‘Payment Method’ section of your account. Once you choose ‘Tesla’ as your financing option and provide how much you would like to borrow, you can submit your application.  
2. Receive confirmation: Following the application step, your credit will be reviewed and a decision will be made in the “Payment Method: section of your account. 
3. Accept offer: You can accept the offer within your account and a Tesla Advisor will connect to arrange for vehicle delivery. If you have not received approval, an advisor will contact you within one business day. 

Tesla does not charge any prepayment penalties or fees. It also allows borrowers to choose a preferred monthly payment in the application process. It’s smart to calculate how much you can afford ahead of applying with an auto loan calculator. 

However, do not focus solely on the monthly payment. Remember that a longer loan term will result in a smaller payment but more spent over the course of the loan.

More than that, every extra dollar that goes toward interest over a longer period of time is a dollar not going into an emergency fund or an investment portfolio. If you are worried about overextending your budget and having less available for your savings, consider a shorter-term or less expensive vehicle. 

Third-party Tesla financing 

If you live in one of Tesla’s serviced states, in-house financing can be a strong option. However, to get the best auto loan rate, it is smart to compare auto loan rates with other lenders.

Tesla in-house financing may be a good option if you live in a qualifying area, as they offer competitive rates and you can purchase and finance your vehicle all in one place. However, you can check with other lenders for different loan options and rates. Your down payment amount and credit score may also impact your interest rates for your auto loan. 

If you are opting for a third-party auto loan, applying with a lender is necessary before you can purchase through Tesla.

1. Secure loan approval: Before your vehicle can be delivered, you must apply for and secure financing. If you have a relationship with a bank or credit union, it can be wise to start your shopping there. Otherwise, compare offers from online lenders and loan aggregators. 
2. Share lienholder information: After you have secured approval with a lender, you must share that information with Tesla. The institution will have a lienholder address that needs to be confirmed and shared. 
3. Arrange for payment: Lastly, you will be asked to share the payment with Tesla as soon as it is arranged to be delivered. You are responsible for submitting the amount due and the balance ahead of delivery. Also, at this point, it is important that you sign the provided Motor Vehicle Purchase Agreement.  

Benefits and risks of financing a Tesla

As with any sort of loan, there is an inherent risk that comes with financing a Tesla. But if you have crunched the numbers and feel confident in your ability to keep up with the monthly payments, it is a sound way to purchase an EV. Consider the pros and cons of financing a Tesla. 

Pros

• Can help you afford the most advanced Tesla available.
• Spreads out the high expense over time rather than all at once.
• The car will be yours once the loan ends.

Cons

• Puts you at risk for damaged credit in the future.
• You will be stuck with a Tesla for longer than if you chose to lease.
• Expensive monthly payments.

How to get the best Tesla financing rates

When searching for the best auto loan rates, keep in mind that a higher credit score and down payment will lead to the best rates. Continue making consistent payments on any current debts to keep your credit score steady. Don’t open any other new debts or loans before applying for auto loans. 

You may also be able to find the best rates for your Tesla financing by shopping multiple lenders. Different auto lenders may offer better rates. If you find a better rate from one lender, you may be able to use that as leverage to negotiate with other lenders. 

Bottom line

Buying a Tesla is an attractive option for shoppers who want to cut down on gas costs while also preserving the environment. But luxury comes at a cost. If you choose to finance a Tesla, determine which auto loan fits your needs and keep up with your payments to mitigate any future financial issues.