Tesla launches “Buy Now, Pay Later” option for vehicle service in North America

Tesla is coming to the aid of its customers who need urgent service but face financial constraints. The automaker has brought the Buy Now, Pay Later (BNPL) option from its online accessories store to its service centers in the US and Canada.

The new feature, known is being introduced as part of app update 4.46 and will enable Tesla owners to access credit when they bring their cars in for repairs and maintenance.

The credit providers behind the scheme have been identified as Affirm and Klarna, according to a software engineer who works on the app.

The option appears automatically in the app's Service Estimate section when the maintenance cost estimate screen is open. Customers will see "Pay over time – see if you qualify," which, when tapped, takes them to a payment calculator. They will then be presented with potential payment plans and the associated costs.

The service payment page will now include Affirm and Klarna (depending on the region) as options alongside the usual Tesla Credit and card options. The payment plan is locked in when users confirm their choice on the final page.

While electric cars are famously less maintenance-intensive than their gas-powered counterparts, EV owners can still face a substantial bill when replacing the battery or electric motors out of warranty. Tesla's new Pay Later option can offer flexibility in dealing with such expenses.