Tesla is already offering low 1.99% financing on six-year loans for customers looking to buy the $48,990 long-range, all-wheel-drive Model Y, the series production version of the newer car that debuted in early April. Gone are the days when Tesla had to keep hiking prices to avoid being hopelessly swamped by demand. Now CEO Elon Musk has to fight for every new customer.
Just weeks after the launch of the Model Y refresh, a slightly newer version of the five-year-old crossover, Tesla informed buyers on Sunday they can already have the car at a discounted financing rate. Interested buyers can qualify for a six-year loan at 1.99% if they put down $3,999 for the purchase of a long-range all-wheel-drive version. By contrast, financing rates for some of Tesla’s upscale models top 6%.
I’m really not sure you understand how discounts work. Or interest rates.
Tesla’s do not come with interest. Interest that you get by taking out a loan to purchase one is a price increase. You’re paying more. A lower interest rate doesn’t mean you’re getting a discount, it just means that you’re only paying a smaller amount increase. The car itself is still the same price it was before - what is changing is how much extra interest you’re repaying on top of the cars price. The interest isn’t on the car’s price, it’s on the amount of money you borrowed.
You’re just playing semantics. Lots of customers finance cars. Before the “discount” they had to pay $X/month, now they pay $(X-discount)/month. They literally pay less each month because of the discounted, subsidized rates. It’s a discount for folks that finance through Tesla. I’m not sure why you think you’re the only person that understands the simple concept of interest here. You’ve just decided that the definition of discount only applies to MSRP arbitrarily. Is a point of sale tax credit not a discount either?
I’m playing semantics? I’m not the one saying that a lower interest rate is a discount. An interest rate is by itself a price increase, not a discount. The interest rate is on the LOAN, not on the car. The car is the same price as it was. The LOAN is always more than the price of the car.
This is like saying that you get a “discount” if you pay the RRP in cash. You don’t, you’re just not paying interest on a loan. It’s not a discount.
Because you guys calling this a “discount on the price of the new model Y” clearly don’t lol. It is a simple concept, yet you guys are showing again and again that you don’t get it. When interest rates on mortgage decrease you don’t say “house prices have just been discounted!”, do you?