After 0.99% APR for the Model Y, Tesla now offers 1.99% loans for the cheapest Model 3

Tesla had a 46,000-strong mismatch between production and sales of its electric vehicles last quarter, and it initiated various promotions and price cuts to move parking lot inventory that can be seen from space.

After essentially pricing the Model Y way below the Model 3 by offering a 0.99% APR loan rate last month, it is now doing a loan rate promo to move Model 3 inventory.

Tesla first lowered the Model 3 RWD and Long Range financing rate from the regular 6.39% to 4.99% on June 6. A day later, Tesla lowered the APR by more than 50%, to 1.99%.

Unfortunately, the Model 3 LR has already dropped out of that promotion, but Tesla has stayed the 1.99% rate for the base Model 3 RWD, and the promo will run until June 16.

This is for a 36-month loan, while for the longer 48-month and 60-month financing terms the interest rate stays at the much higher 4.99%.

Thus, the promotion brings the monthly payment for a $38,990 Model 3 RWD to $1,040/month for three years, about $150 less than the buyer would've paid under the Tesla financing rate prior to June 6th.

The average car loan payment in the US currently runs at about $735/month, though, albeit for a much longer period.

Thus, payments above a grand, no matter how enticing a 1.99% APR is, might still prove a tough sell for the average American car buyer.

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