Tesla has announced another extension of its 5-year, 0% interest loan offer in China, now running through November 30, 2024. This incentive has already been extended multiple times in China this year, demonstrating its effectiveness in fueling demand for Tesla’s locally produced Model 3 and Model Y.
As before, the 0% interest loan allows buyers to finance their Model 3 or Model Y over a five-year period without paying any interest, a benefit usually reserved for high-end or short-term loan promotions. With this deal, a Model Y can be financed for as little as ¥95 (C$18) per day, and a Model 3 for around ¥85 (C$16) per day, with a minimum down payment of ¥79,900 (C$15,500).
Additionally, Tesla is offering a lower down payment option of ¥45,900 (C$8,900) with interest rates starting from as low as 0.92%.
While Tesla offers this interest-free loan for the Model 3 and Model Y, only the Rear-Wheel Drive and Long Range All-Wheel Drive models of each are eligible. The Performance models remain excluded.
China remains a key market for Tesla, accounting for a significant portion of its global sales and home to Giga Shanghai, which produces the Model 3 and Model Y for the region, as well as international markets. Sales in China this year have been strong, especially in the second half of the year, seemingly in part because of these promotions.
Given its apparent success, it would not be surprising to see the offer extended again until the end of the year. This would match the offer in the US, where customers there can also get 0% financing on a new Model 3 or Model Y until December 31, 2024, now without requiring the purchase of Full Self-Driving (FSD).
