Tesla Introduces Interest-Free Financing for Its Cybertruck Equipped with Full Self-Driving Technology in the United States
In an effort to boost Cybertruck deliveries, Tesla has announced a new promotion that offers 0% APR financing for up to 60 months for buyers in the United States. However, there's a catch - the promotion requires the purchase of the Full Self-Driving (FSD) package, priced at US$8,000.
The 0% APR financing is a significant incentive, as it eliminates finance charges over the loan term, making the truck's effective purchase price lower by avoiding interest payments. This offer is quite rare compared to Tesla’s usual financing rates, which recently have been around 1.99% to 2.99% APR without FSD, and even higher if financed longer[1][3][4].
The deal requires adding the FSD package, which adds several thousand dollars to the initial vehicle cost. FSD currently costs around $15,000-$20,000 and is a controversial value proposition, as its full capabilities and regulatory approval are still being developed. The package is expensive and not everyone benefits equally from it[3][4].
Whether this promotion is financially beneficial depends on each buyer's financial strategy. If a buyer was planning to purchase FSD anyway, the 0% APR financing combined with getting FSD bundled in could be financially beneficial because the absence of interest costs effectively discounts both the truck and the FSD. However, if a buyer does not want or value FSD, they are effectively forced to pay a significant extra amount, which can outweigh the financing savings. This reduces the financial attractiveness of the deal.
The promotion seems to be Tesla's response to lower-than-expected Cybertruck demand, aiming to stimulate sales by bundling FSD and enticing buyers with no interest loans[3]. For buyers who want the Full Self-Driving package anyway and can take advantage of the 0% interest to reduce effective cost, this promotion could be a great opportunity. For buyers uninterested in FSD, it is likely better to opt for deals without FSD, even if the financing rates are slightly higher but do not require the additional expensive package[1][4].
The promotion requires a 4% down payment, but it can be offset by a US$7,500 tax credit if eligible. Customers who opt for the FSD bundle save money, as they also benefit from the 0% APR deal. On the other hand, customers who do not purchase FSD will pay more in interest over the course of the required five-year loan due to Tesla's currently posted financing rate of 5.54%.
It's worth noting that the promotion does not apply in Canada. However, Canadian customers can still take advantage of three months of FSD by using a referral link when buying a Tesla. The deal is not available in Canada.
Tesla is leveraging its direct-to-consumer model and software-first strategy by bundling financing incentives with software. The promotion does not affect the availability of Cybertruck inventory. The terms and details of the promotion are available for customers to review.
[1] https://www.tesla.com/financing [3] https://www.tesla.com/cybertruck [4] https://www.cnbc.com/2021/03/25/tesla-cybertruck-deliveries-expected-to-be-delayed-into-2022.html
This promotion offers 0% APR financing for up to 60 months, but requires the purchase of the Full Self-Driving (FSD) package, which is priced at $8,000. The deal, which appears to be aimed at boosting Cybertruck sales, can be financially beneficial for buyers who were planning to purchase FSD, as it effectively discounts both the truck and the FSD by eliminating interest costs. However, for buyers uninterested in FSD, the promotion could be less financially attractive due to the additional expense of the FSD package.
