Financing the Tesla Model Y: some of the car loans options for EVs

The much-anticipated Tesla Model Y SUV has finally been priced for Australia with the first fleet of vehicles set to hit our shores in August. So, what are your car loan options when financing the Tesla Model Y?

According to Drive.com.au, Tesla will launch the Model Y SUV with two variants come August:

• Model Y - rear-wheel-drive model at $68,900, plus on-road costs, and
• Model Y Performance - all-wheel-drive model at $98,599 (Luxury Car Tax included).

Deliveries for the Model Y should occur between August and November 2022, and the expected delivery date for the Model Y Performance has been listed as “late 2022”.

How does the price of Tesla Model Y compare to other EVs?

Source: CarExpert.com.au

It’s worth noting that the starting price for the Model Y is around $5,000 higher than the currently available Tesla Model 3, $5,000 higher than the Polestar 2 and $1,000 higher than the Kia EV6.

Unfortunately, with a starting price range from $68,900, the Tesla Model Y does not qualify buyers for the electric vehicle rebate in New South Wales, but it should still qualify for stamp duty exemption for new and used electric vehicles (capped at $78,000)

Tesla has a list of detailed support and incentives for drivers looking to purchase in each state or territory. For more information on whether your state or territory offers rebates or other financial support, please read here.

How much would car loan repayments be for a Tesla Model Y?

It’s no secret that an electric vehicle (EV) typically comes with a steep price tag in Australia compared to price ranges in countries like the United States. This makes the cost of an electric vehicle one of the main barriers of entry for the update of EVs in Australia.

Luckily, car loan lenders know this and aim to incentivise borrowers to make more sustainable decisions with their next car purchases. This is done through their green car loans, which typically offer lower-than-average interest rates for eligible customers to support environmentally friendly purchases.

In fact, last month one of Australia’s biggest banks, Westpac, revealed a new, lower car loan interest rate for the purchase of hybrid or EVs. The reduction to its existing car loan rate means eligible customers may be offered rates from 4.99% (6.21% comparison rate) to borrow between $10,000 - $100,000.

So, if you were eligible for a 5-year fixed car loan rate starting at 4.99%, how much could your repayments be for the new Tesla Model Y and Model Y Performance?

Repayments on Tesla Model Y: Hypothetical 5-year fixed rate at 4.99%

Source: RateCity Car Loan Calculator. Does not factor in fees.

Purchasing an EV – especially a make like Tesla – will generally come with a higher upfront price tag than if you simply purchased a used vehicle to get from A to B. And while you may find yourself saving money over time by ditching petrol for good, you still need to cover the initial cost of the vehicle, as well as any infrastructure like a charger.

This is why it’s crucial that drivers prioritise a competitive car loan that best suits their budget and goals and keeps costs down. It’s important to take your time to research the right car loan for your needs, including comparing factors like the interest rate, fees, features like a redraw facility, and whether the repayments are fixed or variable.

Compare car loans in Australia