Did you know that Tesla was founded in 2003? It seems like it was only in the past few years that people got interested in Tesla cars, right? It gives off the impression that Tesla was invented not a long time ago, while in reality, they are on the market for almost two decades.
However, we can’t deny the increase in popularity in recent years, thus the demand for Tesla cars has been the highest than it has ever been.
Are you thinking of getting your first try with these popular electric cars? You can now make your dream come true—learn about Tesla financing in Canada.
Tesla Financing Options for Canadians
Climate change has been an ongoing issue for quite some time, and more people are looking for eco-friendly alternatives to driving.
Electric cars are a great way to combat emissions and contribute to a healthier environment, thus, many people are opting for Tesla as an excellent alternative to traditional cars. However, it’s well known that Tesla cars come at a salty price and many of us are on a too tight of a budget to afford a brand-new Tesla.
Luckily, Canadians have several Tesla financing options to help them purchase their first electric vehicle. The financing can be done either through a dealership, a third-party lender, or you can choose to lease your Tesla. Tesla does not specify the minimum required credit score. However, having a good credit score is certainly necessary for getting a loan or lease approval.
Let’s have a closer look at each financing option to help you decide which one will cater to your needs the best.
Financing a Tesla Through a Dealership
You can choose to finance Tesla through the company itself. In this case, Tesla acts as an intermediary between buyers and lenders. This type of Tesla financing is available for those who can take delivery in some of the provinces such as BC, Nova Scotia, Alberta, Saskatchewan, Ontario, and Quebec.
Here’s how to apply:
- Go to their official website to order your preferred model;
- Go to the checkout page;
- Select the “Loan” option;
- Submit your loan application including your phone number, residence information and social security number;
- Tesla will send your loan application to their lending partners;
- Expect an answer within 48 hours.
Once you get approved, you have 90 days before your credit approval expires. However, the interest rates you’re approved for are valid for only 30 days. Those interest rates will be determined based on your creditworthiness and financial history.
Tesla has its own financing programs, but those are only available for Models S and X. If you opt for this, the loan terms are between three and eight years. Expect to pay a $2,500 order payment and a $1,300 delivery fee.
Leasing a Tesla Through a Dealership
Choosing to lease a Tesla through a dealership allows you to wiggle between different models every few years, without paying for a new vehicle. You’ll be paying monthly payments for the time of the lease, and, afterwards, you can choose to buy the car, renew your lease or return the vehicle. Tesla lease approvals stay valid for 90 days. This is enough time to choose the right model for you and the best possible interest rates.
Leasing a Tesla vehicle comes with annual mileage limits of 16,000, 20,000 and 25,000 kilometres. A Tesla lease in Canada is available only in several Canadian provinces such as BC, Alberta, Ontario, Nova Scotia, Saskatchewan, and Quebec. Lease terms can last two, three or four years.
If you decide to buy your car after the lease is up, you might be required to pay some purchase fees. Regardless, it’s a great way of trying several different models before you find the one that you’re the most comfortable with.
Remember that you can lease your car in person at a Tesla car retailer or online. Before finding the best lease, shop around for the best deals and rates. The salesperson will guide you through the process, handle all financial transactions, and arrange the vehicle delivery.
Taking Out a Loan From a Bank or a Lender
If you choose the traditional way of going through a bank or lender for your Tesla financing, you’ll have better negotiating options. However, your loan may come with a limit on how much you can borrow and you might be required to put in a down payment.
Whether you decide to apply with your bank or a private lender, there are two ways to do that:
- You can apply for a car loan to get Tesla finance assistance. Of course, your credit score will play a huge part in getting approved. However, you can find alternative lenders that work with bad credit borrowers or you can try to improve your credit score first. Most lenders will pull a credit check to determine if you’re eligible, although there are few that don’t require one.
Most car loan terms range between 24 to 96 months and they are a secured type of loan. This means collateral is being used as a form of guarantee for paying off the loan.
- Your second option for Tesla financing is getting a personal loan. There are many excellent personal loan options in Canada to choose from. Most personal loans are unsecured (do not require collateral) and the same principles of work apply to a car loan. Remember, unsecured personal loans might have higher requirements than secured ones.
This usually means that by having a high credit score, you stand a greater chase of getting approved than you would with a poor credit score.
Looking for personal loan alternatives? Check out Personal Loan Alternatives: Top 5 Backups
How Does Tesla Financing Work?
We’ve run down through the best available options to get Tesla finance assistance, but how do you actually apply for one?
There are several steps you need to follow for a successful application to get the financing as soon as possible.
Submit a Credit Application
As mentioned earlier, when you apply for Tesla financing through their website, you can select “Finance” or “Loan” before you purchase your model. After you submit your application, they will send it to their partnering lenders to review your documents and determine whether you’re meeting the loan criteria.
After choosing between financing and loaning, you can decide how much you want to borrow and your preferred monthly payments. You will need to provide personal information for your loan application, and based on that, the lender will assess your application accordingly.
Wait for the Credit Decision
Once you submit your application, you’ll get a notification on your Tesla account for the final decision. As briefly mentioned, you can expect an answer anytime within a few minutes to two business days. After the credit decision, you’ll be guided on the next steps and get a confirmation of your delivery date.
In case your loan application gets rejected, you’ll be contacted by Tesla for further options or alternatives.
After your loan approval, you will complete all needed documentation at the time of your delivery. The dealership will have you sign a bunch of documents and paperwork. Lastly, before you take your delivery, you’ll be asked to show proof of insurance.
Start Making Payments
Several weeks after your delivery, you will receive a welcome pack from your lender. The package includes the loan agreement and all the specifications that come with it.
You must make your first payment within 30 days of your loan approval. Also, if you decide or you’re in the position of paying odd your Tesla financing earlier than the loan term, you can do that without any penalties.
Also, there are no prepayment penalties regarding Tesla financing and their partnering lenders.
Types of Tesla Cars to Finance
Tesla has come up with innovative concepts aimed to cater to each personal preference. Given that it’s eco-friendly, Tesla might be more costly than the standard cars.
There are five types of cars available for financing at the moment. Here’s a brief breakdown of all Tesla prices in Canada.
|Tesla Model||Price||Max speed||Acceleration|
|Tesla Model S Sedan||$121,990||322 km/h||2.1 seconds|
|Tesla Model 3 Sedan||$59,990||261 km/h||3.3 seconds|
|Tesla Cybertruck||$39,990||/||2.9 seconds in 0-60 km/h|
|Model X SUV||$132,990||250 km/h||2.6 seconds|
|Tesla Model Y Sedan||$82,990||250 km/h||3.7 seconds|
Note: The information provided in the table above refers to the basic models, not to the Plaid models.
Tesla Model S Sedan
The Tesla Model S Sedan has the fastest acceleration point out of all the other models. It’s preferred for those keen on speed and action since that’s exactly what this model provides.
With its elegant style and top-tier design, it’s no wonder why it’s among the most favoured Tesla models among drivers.
Tesla Model 3 Sedan
Tesla Model 3 Sedan looks very similar to the Model S, but there are some important distinctions.
Model 3 has a dual motor all-wheel drive and a lowered suspension. The acceleration is slightly lower than the Model S, but it still has great performance skills and speed.
The unique and sleek design of the Tesla Cybertrcuk is what catches the eye first. Similar to that of a truck but has the performance of a sports car—how amazing is that? The exterior of the Tesla Cybertrcuk is made of Ultra-Hard 30X Cold-Rolled stainless steel combined with armour glass. It’s specifically designed to offer higher protection for passengers.
Given the distinctive design, you might think the price is over the ceiling, but Cybertruck is actually among the most affordable models.
Model X SUV
This particular model also comes with an excellent acceleration point and speed. Its updated battery design provides instant torque, regardless of speed. It has a fully-kitted interior.
Moreover, you can go from 0 to 100 km/h in 2.6 seconds and take your vehicle to a 536 km distance on one charge.
Tesla Model Y Sedan
This is a mid-sized model that resembles a van look. Its slick design is aimed to cater to drivers throughout all four seasons and provides maximum safety. It has a larger cargo space than the Model 3 Sedan and an optional third row.
Can You Customize a Tesla?
Yes—it’s easy to arrange a Tesla to your personal preferences and taste. There are so many add-ons to choose from, and all are sure to enrich your basic model’s look and performance. Keep in mind that all extras will add to the overall price of your Tesla model.
- You can enhance your interior with accessories such as alarm systems, door protectors, and sunshades. The interior upgrade might cost between $1,300 and $2,600;
- If you choose to add to your exterior design, you can get roof racks, car covers, and spoilers. If you decide to paint your car colour other than the original, it can cost you $1,300–$3,300;
- For adding extra tires and wheels, you can expect to pay between $2,000 and $6,000;
- Self-driving includes features from the Basic Autopilot and the Enhanced Autopilot. Additionally, you get traffic lights and stop sign control protection. This addition can cost you around $19,000 on top of the initial price.
Before you apply for Tesla financing, think about all the extra features you want on board so you can calculate the overall expenses.
Tesla Financing Cost in Canada
Besides the initial price of the model, you must consider interest rates, if there’s any down payment required, add-ons, etc.
However, the most important aspect when determining the total cost is to learn how much your monthly payments will be, as well as the down payment amount.
Assuming you’ve got Tesla financing rates at around 4.52% for a 5-year loan term in Canada, and you’re required to put $5,000 towards your down payment, here’s a breakdown of the total cost.
|Tesla Model||Tesla Cost + Down Payment Amount||Monthly Payments||Overall Cost|
|Tesla Model S Sedan||$116,990||$2,167||$130,066|
|Tesla Model 3 Sedan||$54,990||$1,018||$61,136.42|
|Model X SUV||$127,990||$2,371||$142,295|
|Tesla Model Y Sedan||$77,990||$1,445.12||$86,707|
The total cost is based on the initial cost of the particular Tesla Model, plus the down payment. Monthly payments have also been factored in toward the final price.
Are you surprised by the affordable Tesla financing options? Whether you choose to finance your Tesla through a traditional lender or a car dealership, there are numerous variables of how to get the best deals.
Think wisely before the final purchase and tailor the financing options according to your budget.
Currently, APRs for Tesla financing start at 3.24%. The financing rates change throughout the year and can fluctuate significantly.
Not if you have a solid credit score. If you have poor credit, you can always add a co-signer to increase your chances of credit approval.
Yes. as long as you meet the loan qualification criteria, you can apply for Tesla financing through any bank.
Tesla financing in Canada comes with monthly payments between $1,100 and $2,500. However, the monthly rates will largely depend on the Tesla Model, your creditworthiness, whether you decide to customize it, and some other personal factors.