Compare Tesla car loans and financing options

In the ever-evolving world of automotive innovation, Tesla emerged as a pioneering force, revolutionising the way we perceive and interact with electric vehicles. Tesla's range of electric vehicles combine luxury, sustainability, and advanced technology, making them one of the most popular options for green vehicles. 

Controversial entrepreneur, Elon Musk, is a co-founder and the head of Tesla, as well as SpaceX, Neuralink, The Boring Company, and Twitter. As co-founder and CEO, Elon oversees the product design, engineering, and global manufacturing for the company's electric vehicles, battery products, and solar energy solutions.

Where do Tesla vehicles get made?

The Tesla Fremont Factory in Fremont California is where the first Tesla Model S rolled off the assembly line in 2012. Nowadays, Tesla has manufacturing plants worldwide for their vehicle products, including electric vehicles, lithium-ion batteries, solar shingles, chargers, automobile parts, and more. 

The majority of its plants are based in the United States, as well as Canada, China, Germany, Mexico and the Netherlands. 

Tesla vehicles are notoriously expensive in Australia compared to other countries, like the United States. Tesla vehicles sold in Australia are imported, meaning additional costs such as shipping, logistics, and import taxes are applied to the final price tag.

Keep in mind that in Australia, a Tesla may fall under the category of ‘luxury vehicles’, and incur the luxury car tax (LCT) as a result. As outlined by the Australian Taxation Office, the LCT is a tax imposed on cars with a value that exceeds the specified LCT threshold -  including Goods and Services Tax (GST). For the 2022-23 financial year, the LCT threshold stands at $84,916 for fuel-efficient vehicles and $71,849 for other vehicle types.

However, that doesn’t mean purchasing one is out of the question, as green car loan financing may come in handy here. Some lenders will offer discounted interest rates to eligible customers for green car loans to help make the cost of this sustainable purchase more affordable, and reward Australians making more green choices.

Note - ask the lender if you want to know more about how they determine a particular loan’s purpose to be ‘green’ or ‘eco’. 

At the time of writing, these were the current Tesla car prices in Australia:

• Tesla Model Y - From $69,300 to $98,415 for the 2023 range of models in SUV body types.
• Tesla Model 3 - From $61,300 to $91,600 for the 2023 range of models in Sedan body types.
• Tesla Model S- From $117,920 to $155,430 for the 2021 range of models in Sedan body types.
• Tesla Model X - From $148,390 to $191,730 for the 2021 range of models in SUV body types.
• Tesla roadster - Not yet available in Australia.
• Tesla cybertruck - Not yet available in Australia. 

Source: Carsguide.com.au. Data accurate as of 15/06/2023. 

At the time of writing, the cheapest Tesla model available in Australia was the Tesla Model 3. However, like any vehicle, you can find more affordable models if you are prepared to choose an older car.

For example, a 2019 Tesla Model 3 may set you back only $46,860, in some circumstances. Whereas the newest model can sell as high as over $90,000. It depends on the Tesla dealership or seller that you may be purchasing the vehicle from - especially for secondhand models.

Tesla Model 3 pricing and specs

Source: carsguide.com.au. Data accurate as of 15/06/2023. 

When it comes to electric vehicles, it’s important to keep in mind that you’re not only paying for a vehicle, but you will need to purchase charging infrastructure as well. This is why the upfront cost of an electric vehicle can be more expensive than a standard car. That being said, the expected savings garnered from ditching petrol are expected to help cover some of these costs over time. 

According to Drive.com.au, there are three main charging options for Tesla batteries, each with different speeds. Based on testing a Tesla Model 3 (RWD) the fastest charging option for a Tesla is the Supercharger, which allows you to charge the vehicle in just 20 minutes. 

Source: Drive.com.au

When you’re not at home, you may be able to charge your Tesla through destination chargers. The infrastructure to do this in Australia may not be in perfect condition as of yet, but state governments have made ongoing commitments to roll out more charging stations across the country. In regional NSW alone, a $20 million grant program is underway to fund the installation of an estimated 3,500 EV chargers across locations like motels, wineries, and museums.

Generally speaking, Tesla customers may expect at least 430km of range from a single charge of the Tesla battery. 

Source: ev-lectron.com

How much does it cost to charge a Tesla

It is said that an electric vehicle should only cost around as much as it costs to run your fridge. However, it also depends on the cost of electricity at the time of charging, your provider, and how you are charging the vehicle.

That being said, CarsGuide estimates that it costs around $20-$30 to charge your battery, which should ideally take you around 500km. This is considerably more affordable than the cost of filling even the most fuel-efficient of standard cars with petrol. 

If you’re considering purchasing a Tesla with a car loan, it is worthwhile comparing green car loan options. A green car loan is a type of car financing specifically for sustainable vehicles, such as battery electric vehicles, plug-in hybrids, hybrids, low-emissions vehicles and more.

Purchasing a low-emissions vehicle not only helps to lessen your carbon footprint, but can also offer potential financial benefits. Car loan lenders typically offer discounted or reduced interest rates on green car loans to encourage drivers to make more sustainable purchases. Alongside the reduced rates, lenders may also waive specific fees associated with the car loan.

Keep in mind the extent of interest rate discounts and fee waivers can vary depending on the lender, which is why it’s crucial you compare a range of available options to make an informed decision.

When comparing green car loan options, ensure you ask the lender for information about how it determines a vehicle to be ‘green’ or ‘eco’ and how it contributes to emissions reduction and environmental responsibility.

Some car loan options may be better suited to buying your next Tesla than others. The cost and value of your Tesla car loan may depend on a range of factors, including:

• Interest rate: This determines the interest charges on top of your principal owing. A higher interest rate means higher ongoing interest charges, increasing the overall cost of your Tesla loan.
• Comparison rate: A comparison rate combines interest costs with most standard fees and charges, providing a more comprehensive assessment of the total cost of the loan.
• Fees:These fees may include upfront fees, annual fees, and other ongoing charges.
• Features: Certain features, such as the option to make extra repayments and access redraw facilities, can enhance the value of the loan for Tesla customers.
• Loan term: Car loan terms are typically 1-5 years. Opting for a shorter loan term may lead to higher monthly repayments but ultimately result in lower total costs. Conversely, a longer loan term can reduce monthly repayments but may entail higher overall interest payments for your Tesla.

Depending on your financial circumstances, various car finance options may be available to you when purchasing a Tesla.

These options may include:

• Secured car loans: By using your Tesla as collateral for the loan, you may qualify for a lower interest rate. However, it's important to note that defaulting on repayments may result in the vehicle being seized to pay off the debt.
• Unsecured car loans: These loans do not require using your Tesla as security, but they may come with higher interest rates compared to secured options.
• Chattel mortgage: If you want to use your Tesla for business purposes, a chattel mortgage could provide additional tax benefits as a form of business finance.
• Car lease: Opting for a car lease allows you to enjoy the use of a Tesla, but keep in mind that ownership of the vehicle may not be transferred to you at the end of the lease term.