How To Afford A Tesla?
Tesla has become the most talked-about electric vehicle brand in the world and its cars are coveted by many. The impressive performance, long driving range, and luxurious interiors put them at the top of many dream car lists. But for many, the hefty price tag may seem like an impossible barrier. Thankfully, there are ways to make affording a Tesla more achievable. Read on to find out how to make your Tesla dream a reality.
Plan Your Financing
Tesla cars can cost up to six figures, but there are several financing options that can make it more achievable. Before going car shopping, it pays to plan your financing in advance.
First, you should determine how much car you can realistically afford and calculate how much money you will need as a down payment. Many lenders require ten to 20 percent of the car’s total cost as a down payment. Next, you should check your credit score and pay off any outstanding debt so that you are in a good position to qualify for a loan. Consider doing a few practice runs via online loan pre-qualification calculators so you can craft a budget to fit your chosen Tesla model.
Trade-In Your Current Vehicle
If you find yourself in the fortunate position of owning a vehicle currently, you may be able to use it as a trade-in which can reduce the cost of buying your Tesla. This can be an effective way to offset some of the cost and help you to stay within budget.
Before you visit the showroom, research the value of your current vehicle so that you know how much you can ask for it in a trade-in. Then, use an online service such as Kelley Blue Book, Edmunds or CarMax to get a price estimate. Once you have visited the showroom, you will be able to settle on a final trade-in value.
Look Into Used Models
A great way to get behind the wheel of a Tesla for much less than the cost of a brand new model is to buy used. Many used Tesla models can be had for as much as 50 percent less than the original sticker price, depending on the model’s age and condition.
Searching for a used Tesla can take some time, as they don’t remain on the used market for long. But it’s worth the effort, as you could potentially save tens of thousands of dollars.
Utilize Tax Credits
For buyers in the United States, federal and state tax incentives can help to reduce the cost of a Tesla. Buyers may qualify for a federal tax credit of up to $7,500 on the purchase of a new electric car. Tesla also offers its own referral program, which is open to anyone who purchases a Tesla before the end of the year and provides them with a $250 credit.
These credits may be available for both new and used models, but it’s best to check online or with a tax specialist to make sure you are eligible.
Check for Local Discounts
In addition to federal and state credits, many cities and regions offer local incentives or discounts that can be used toward purchasing a Tesla. You can search online for local programs, or ask at the Tesla showroom. These discounts may vary by state, so it pays to do your research and make sure you don’t miss out on an invaluable opportunity to save money.
Look For Other Affordable Options
If you’re dreaming of an electric car but are unable to afford a Tesla, there are still some other options. There are now several affordable electric cars on the market, such as the Hyundai Kona Electric, the Nissan Leaf, and the Chevrolet Bolt. While these cars may not offer the same luxurious feel that a Tesla does, they are still a great way to switch to electric driving and will save you a significant amount of money.
Buying a Tesla may seem out of reach, but it is possible to make it happen with a little bit of planning and research. Taking the time to explore financing options, considering trade-ins, and looking into used models are all effective ways to reduce the cost of a Tesla. For many buyers, taking advantage of tax credits and local discounts can be the deciding factor in making their Tesla dream a reality. If you are unable to make a Tesla fit in your budget, there are still plenty of cheaper electric car options to consider.
