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Tesla has a bit of a black eye lately. The brand’s global sales are hurting and CEO Elon Musk’s deeds are bruising the image of the automaker’s EVs. However, if you’re one of the shoppers that still wants one, Tesla just made it much more affordable to buy its cheapest car: the freshly updated Model 3. 

Tesla’s most affordable car, the Model 3, just got cheaper– for now

Tesla wants you to buy a Model 3. So much so, that the California-based automaker is offering its most affordable EV with an annual percentage rate (APR) of zero percent or zero dollars down. Notice the “or” in there. It’s one or the other, not both. 

For starters, car buyers can take home a Model 3 with zero percent APR. However, the promotion is limited to buyers who put down a “minimum down payment of 15% plus applicable taxes and fees.” 

On the other hand, the brand’s shoppers can buy a new Model 3 with zero dollars down. However, Tesla’s fine print stipulates that buyers put “$0 due at signing with 0.99% APR for [a] term of 60 months when qualified buyers apply the $7,500 Federal Tax Credit at point of sale.” 

Of course, one of President Donald Trump’s transition team promises was to kill the EV tax credit. As such, the electric vehicle incentive still has an uncertain fate, even with Trump’s close alignment with Tesla CEO Elon Musk.

Also, not every buyer can take advantage of the promotion. The Tesla Model 3’s order site says “Not all applicants will qualify.” What’s more, the EV automaker doesn’t guarantee that the incentive will be around for long. “Promotion is subject to change or end at any time, and cannot be applied retroactively,” the fine print reads. But for now, the baby Tesla is a much more affordable proposition.  

In that vein, recent buyers might be peeved to learn they can’t apply the 0% APR promotion to their late February Model 3 purchases. “Promotional rate valid only on Model 3 orders placed on or after March 3, 2025.” The 0% APR promotion also mandates that buyers put down at least 15% of the Model 3, which comes out to around $6,374 before the $7,500 federal incentive.

Tesla Model 3 trimStarting price (before $7,500 incentive)
Long Range Rear-Wheel Drive$42,490
Long Range All-Wheel Drive$47,490
Performance$54,990
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Staff Writer

Erik Sherman

Erik Sherman joined the MotorBiscuit team as an Autos Writer in 2022. An admitted petrolhead and an avid motorcyclist, Erik has owned everything from classic cars to motorcycles to modern driver’s cars. Erik also has extensive experience with military and emergency vehicles, ranging from ambulances and fire engines to MRAPs and Humvees. Erik is an eager car and motorcycle reviewer with expertise covering everything from sports cars and electric motorcycles to pontoon boats and jet skis.

Erik holds a Bachelor’s Degree from the University of Texas at Austin. He also studied Chinese, Energy, and European Politics at the University of Glasgow in Scotland. Erik’s background is unorthodox; he is a United States Marine Corps (USMC) combat veteran, water survival practitioner, and a former firefighter/EMT. Additionally, Erik is a regular volunteer and former instructor with the American Red Cross (ARC). When he’s not working, you can find Erik on his motorcycle or out for a spirited drive.