Tesla intros 0% APR financing rate deal to pad the Model 3 sales amidst global plunge

With the release of the Model Y Juniper refresh and Elon Musk's political engagements, the Model 3 has seemingly been caught in the perfect storm as its sales have nosedived globally.

In places like Australia, a combination of a brand boycott and the wait for the new Model Y Juniper refresh release there in May has brought the Model 3 sales down the whopping 81%, for instance. In Europe, Tesla's sales have nearly halved since the beginning of the year, despite an overall growth trend for other EV brands.

The Model 3 demand situation may be bad in the US as well, as Tesla just introduced a 0% APR financing rate offer for its cheapest vehicle, trying to move as many units of the compact sedan before it has to report quarterly sales numbers as possible.

This doesn't necessarily mean weak sales, as Tesla often introduces such Model 3 or Model Y financing deals at the end of each quarter. Given the inopportune moment, however, the 0% APR offer might very well be a reaction to a demand slump.

The 0% financing rate is valid with a minimum down payment of 15% before fees and taxes, and is applicable only for the 5-year financing term. Buyers with a suitable credit history who also qualify for the $7,500 federal EV subsidy can use the tax credit amount as their down payment. On the 72-month financing term, Tesla is offering a 0.99% APR financing rate, too.

Thus, a Model 3 Long Range RWD can now be financed for $540 a month, while the top-end Model 3 Performance version will set a buyer back $748. The average monthly car payment for a new vehicle in the US is $737, so the 0% APR financing rate offer of Tesla seems like a pretty good deal, but it remains to be seen how many takers will go for it given that the new Model Y just launched.

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