Thinking about getting a Tesla Model 3 in 2025? One of the first things you’ll need to understand is the down payment. Whether you’re financing or leasing, the down payment plays a crucial role in determining your monthly payments and overall affordability. In this guide, we’ll explain everything you need to know about the Tesla Model 3 down payment, from how much to put down to the financing options available.

By the end of this article, you’ll have a clear understanding of how the down payment impacts your car loan or lease, and how to make the best choice for your budget. Ready to drive your Tesla Model 3? Let’s dive in!

What is a down payment for a Tesla Model 3?

A down payment is the upfront amount of money you pay when purchasing a Tesla Model 3. It’s a portion of the car’s total price that you pay at the start of the loan or lease. For example, if a Tesla Model 3 costs $40,000, a down payment might be 10-20% of that amount, which is around $4,000–$8,000.

Why is a down payment important?

A down payment is important because it helps lower the total amount you need to borrow. The more you pay upfront, the less you need to finance, which directly affects your monthly payments. By making a larger down payment, you reduce the amount of the loan, which means you’ll pay less each month and less interest over time.

For example:

• A $5,000 down payment on a $40,000 car reduces the loan amount to $35,000.

• Without a down payment, you would finance the entire $40,000, resulting in higher monthly payments.

In short, a down payment lowers your loan amount, making it more affordable to own your Tesla Model 3.

Tesla’s down payment requirements

Minimum down payment

When purchasing a Tesla Model 3, Tesla typically requires a minimum down payment of around 10-20% of the car's price. For example, if your Tesla Model 3 costs $40,000, you would need to pay $4,000–$8,000 upfront.

Tesla’s financing program is flexible, allowing you to adjust your down payment amount based on your budget and financing preferences. A larger down payment can help lower your monthly payments and reduce the overall cost of the loan.

Factors that influence your down payment

Credit Score : Your credit score plays a big role in determining how much you’ll need to put down. A higher credit score can lower your interest rate, which may reduce the required down payment. People with excellent credit often qualify for better loan terms and can put down less money upfront.

Vehicle Price : The price of the Tesla Model 3 you choose will affect your down payment. The Standard Range Plus, Long Range, and Performance models all have different price points, so a higher-priced vehicle will require a larger down payment.

Financing vs. Leasing : The down payment for financing a Tesla is usually higher than for leasing. When you finance, you’re paying for the entire car, which typically requires a 10-20% down payment. For a lease, the down payment is often lower, and you’re only paying for the car’s depreciation over the lease term.

Financing a Tesla Model 3 with a down payment

Tesla’s financing program

Tesla offers an easy-to-use financing program that lets you calculate your monthly payments based on your down payment, loan term, and interest rate. With terms ranging from 36 to 72 months, you can choose the best plan for your budget. The interest rates typically range from 3.5% to 5.5% APR, depending on your credit score.

Example: For a $40,240 Tesla Model 3 with a $4,000 down payment and a 3.5% APR for 72 months, the monthly payment would be around $540.
Tesla’s online calculator helps you adjust these variables, giving you a clear idea of how your down payment impacts your monthly payments.

Third-party financing options

While Tesla offers competitive financing rates, you can also explore third-party financing options like banks or credit unions. These lenders may offer lower interest rates depending on your credit score, sometimes as low as 2.5%. However, you’ll need to shop around to find the best deal.

Pros of Third-Party Financing:

• Lower interest rates could save you money in the long run.

• You may have more flexibility with loan terms.

Cons:

• The application process might take longer compared to Tesla’s in-house program.

• Pre-approval is often needed, which could be more work.

By comparing Tesla’s financing rates with those from banks or credit unions, you can find the best deal that suits your financial situation.

Leasing a Tesla Model 3 with a down payment

Tesla leasing program

Tesla’s leasing program is a popular option for those who want to drive a new Tesla Model 3 every few years without the long-term commitment. The typical down payment for leasing a Model 3 Standard Range Plus is about $5,594 due at signing, with monthly lease payments starting around $399/month.

Key Points of Tesla Leasing:

• Mileage Limits: Standard leases often come with 10,000 miles/year. If you need more, you can choose higher-mileage options for an additional cost.

• Lease-End Options: At the end of your lease, you can either return the car, buy it, or lease a new Tesla.

Leasing offers the advantage of lower monthly payments compared to financing, but you won’t own the car after the lease term ends. If you prefer driving a new car every few years with minimal long-term commitment, leasing may be the way to go.

Pros and cons of a higher down payment

Benefits of a larger down payment

Making a larger down payment on your Tesla Model 3 can have several financial benefits:

• Lower Monthly Payments: By putting more money down upfront, you reduce the loan amount, which directly lowers your monthly payment.

• Less Interest Paid: With a smaller loan amount, you'll pay less interest over the life of the loan. A larger down payment means a smaller total loan, so you end up saving money in the long run.

• Lower Total Loan Amount: The more you pay upfront, the less you need to finance, which means you’ll be paying off less debt overall.

Example: If you put down $8,000 on a $40,000 Tesla Model 3, your loan amount would be reduced to $32,000, lowering both your monthly payment and the total interest paid over the life of the loan.

Potential drawbacks of a larger down payment

While a larger down payment has its advantages, it also has some potential drawbacks:

• Less Cash Available for Other Expenses: By tying up more money in the down payment, you may have less liquidity for other important expenses, such as emergencies, investments, or larger purchases.

• Opportunity Cost: The cash you use for the down payment could potentially earn a return if invested elsewhere. Spending that cash on the car may mean losing out on other opportunities for growth.

Example: If you use $8,000 for the down payment, that money is no longer available for investments or to cover unexpected expenses. Depending on your financial situation, you may prefer to keep more cash on hand.

Can you put $0 down on Tesla?

Yes, Tesla offers options for $0 down through special financing promotions or leasing programs, but these are usually subject to certain terms and conditions. Here’s what you need to know:

1. Leasing a Tesla with $0 Down: Tesla’s leasing options sometimes allow you to lease a Tesla Model 3 with $0 down, although this typically results in higher monthly payments. You may still be required to cover other initial costs, such as fees or taxes.
   
   

2. Financing a Tesla with $0 Down:  Tesla’s financing program may offer $0 down promotions, but these are often limited to certain regions or time periods. A higher interest rate may apply, and good credit is usually required to qualify for this option.
   
   

3. Impact on Monthly Payments: While $0 down reduces your upfront costs, it often leads to higher monthly payments. This is because the full price of the Tesla Model 3 will be financed, increasing the amount you pay each month.
   
   

Use the Tesla Model 3 Loan Calculator to estimate your monthly payments based on the loan amount, down payment, interest rate, and loan term. Get an accurate breakdown of your financing options and find the best plan for your budget. Start calculating today to see how affordable owning a Tesla Model 3 can be!

Try the Tesla Model 3 Loan Calculator here

Conclusion

Understanding the down payment requirements for a Tesla Model 3 is an essential part of your car-buying journey. Whether you’re considering financing or leasing, the down payment can have a significant impact on your monthly payments, the total loan amount, and the interest you’ll pay over time. A larger down payment offers benefits like lower monthly payments and less debt, but it’s important to balance your upfront costs with your long-term financial goals.

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