Tesla Increases Car Financing Rates in the United States

If you’re planning to finance your next Tesla purchase in the United States, rates have increased to kick off the fourth quarter.

As noted by Waiting4Tesla.com (@w4tsla), financing rates for Model S/X and Model 3/Y on the Tesla website in the U.S. have increased 0.25%, now showing as 4.74% (previously 4.49%). Tesla partners with major banks to get their financing rates and posted rates can change during credit applications.

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The rate change wasn’t unexpected, considering the U.S. Federal Reserve increased benchmark rates by 0.75% to 3 to 3.25%. These lending rates apply to banks and ultimately affect Tesla, which partners with the former for customers seeking financing.

The Bank of Canada increased its policy interest rate during the first week of September, and this ultimately affected banks that provided financing to Tesla as well for Canadian customers.

Higher interest rates mean higher monthly payments for your Tesla. This may discourage some from buying their vehicles if they don’t want to pay more due to higher rates, with more expected to come to help tame rising inflation.