Tesla advertises low promotional interest rates on its website, and as of October 2025, that meant 3.99% APR for 72 months on the 2026 Model S, Model X, and Model Y, provided you put down at least 3% of the purchase price. Skip the down payment and the rate rises to 4.99%. These offers move often, sometimes month to month, so the number Tesla shows you at checkout may not match what’s written here. Check Tesla’s own financing page for the current offer before you assume anything.
The bigger question is whether that rate is actually good. Bankrate’s weekly survey put the average interest rate on a 60-month new-car loan at 6.96% as of July 22, 2026. Measured against that average, Tesla’s promotional rate is a real discount, if you qualify for it. Tesla’s advertised rates typically require strong credit, and the terms shift with each promotion cycle.
A credit union loan is the other side of the comparison, and it’s worth getting a number before you walk into the financing conversation. Navy Federal Credit Union lists new-vehicle rates as low as 4.29% APR for 37-to-60-month terms and 4.59% for 61-to-72-month terms, as of July 24, 2026, for borrowers with strong credit histories. That’s higher than Tesla’s best promotional rate, but not dramatically so, and if you don’t qualify for Tesla’s top tier or don’t want to tie up cash in a down payment, a credit union pre-approval can end up cheaper overall.
Rates vary by credit score, loan term, and lender, so the only reliable way to know which is cheaper for you is to get pre-approved by your bank or credit union before you order. Tesla lets you finance through outside lenders; it doesn’t require Tesla Financial Services. A pre-approval in hand gives you a real number to compare against whatever Tesla quotes at delivery, instead of guessing which one is the better deal.
Photo by RDNE Stock project.