Cheap Deal on a Tesla: With the price of gas continuing to rise, you may be considering an electric vehicle. While Tesla models start around $50,000, you don’t have to pay full price to get behind the wheel. Before 2024 ends, take advantage of tax credits, used options, and end-of-year sales to save thousands on your new Tesla.
This article outlines seven strategies to help you find the best possible deal. Learn how to capitalize on state and federal incentives, shop for pre-owned models, and time your purchase right to maximize discounts. You can drive off with the Tesla of your dreams without draining your bank account. Read on to start planning your money-saving Tesla deal today.
Shop End of Year Sales for the Best Tesla Deals
Wait Until the End of the Quarter
Tesla operates on a quarterly sales cycle, so the end of each quarter (March, June, September, December) is when they push to meet sales targets. This often means bigger discounts and incentives for buyers, especially on floor models and demo vehicles. If you can wait until the final weeks of a quarter, you’ll likely find the biggest price drops on available inventory.
Look for Discounted Floor Models and Demo Vehicles
In addition to general end-of-quarter deals, leftover floor models and demo vehicles often get steep price cuts. These vehicles may have a few thousand miles but are essentially brand new, and the discounts can be $5,000 or more off the original MSRP. Check Tesla’s inventory page frequently around the end of each quarter to spot these deals.
Check for Federal and State Incentives
Federal and state incentives for purchasing an electric vehicle can also lower the effective price you pay for a Tesla. The federal EV tax credit is worth up to $7,500 for Tesla buyers, and some states offer additional rebates up to $5,000 or more. While the federal credit is slowly being phased out for Tesla, many states still offer substantial incentives. Be sure to factor any available incentives into the final price.
Negotiate the Best Deal
Don’t be afraid to negotiate with your Tesla sales representative, especially on leftover inventory at the end of a quarter. They have sales targets to meet and will often have some flexibility on price to close a deal. Do some research on typical discounts for the specific model you want so you know a fair target price range. Politely but firmly make an offer at the lower end of that range and be willing to walk away if you can’t get close to the price you want. With patience, you can land a solid deal on your Tesla.
Consider Buying a Used or Demo Tesla Model
If you’re looking to get into a Tesla on a budget, buying used or a demo model is your best option. Used Teslas can save you thousands compared to a new model. Look for a certified pre-owned option from Tesla with a warranty, or buy from a reputable third-party dealer that specializes in used electric vehicles.
Check the Battery Life
The biggest concern with any used electric vehicle is the battery life and range. Tesla batteries are designed to last 300,000 to 500,000 miles, so a model with under 50,000 miles should still have plenty of life left. Ask for a battery health report to check the total range and whether any battery modules need replacement. Replacement battery modules can cost between $3,000 to $7,000, so factor that into your budget.
Negotiate the Best Deal
With a used Tesla, you have more room to negotiate. Check vehicle valuation guides to determine a fair price range for the specific model and mileage you’re interested in. Get multiple price quotes from different sellers to compare, and don’t be afraid to walk away from a deal that seems overpriced. Private sellers are often more willing to negotiate than dealers.
Consider a Demo Model
Tesla demo vehicles are brand new models used for customer test drives and staff travel. They typically have fewer than 200 miles and are still covered under the factory warranty. You can often get 10-30% off the retail price of a demo vehicle. Tesla frequently sells demos through their website, so check regularly for availability and pricing.
Buying used or opting for a demo Tesla is the best way to get into one of these innovative vehicles at a lower cost. With some smart shopping, you can drive off in your dream car and still have money left in your wallet.
Take Advantage of Expiring Tax Credits Before 2024
As an owner of a Tesla vehicle, you have likely already benefited from federal tax incentives like the $7,500 federal tax credit for purchasing an electric vehicle. However, these tax credits are set to begin phasing out for Tesla by the end of 2022. To take full advantage of the remaining credits, you should aim to purchase a new Tesla vehicle before December 31, 2023.
Purchase Your Tesla Before the End of 2022
The federal tax credit of $7,500 will be cut in half to $3,750 for all Tesla purchases starting January 1, 2023. To claim the full $7,500 credit, you must take delivery of your new Tesla vehicle before the end of this year. While the current tax credit applies to all Tesla models, the reduced $3,750 credit in 2023 and beyond will only apply to the Tesla Model 3, Model X, and Model Y. The Model S will no longer be eligible for any federal tax credit.
Place Your Order Now for Delivery Before 2023
Due to potential delivery backlogs and wait times, you should place your order for a new Tesla vehicle as soon as possible to ensure you can take delivery before the new year. Tesla’s delivery timelines can vary depending on the model and options selected, so the earlier you order the better to provide enough buffer room. If Tesla is unable to deliver your vehicle until 2023, you will receive the reduced federal tax credit amount of $3,750 instead of the full $7,500.
State Incentives May Also Expire Soon
In addition to federal tax credits, many states offer their own tax incentives and rebates for purchasing electric vehicles like the Tesla models. However, some of these state tax credits have expiration dates that coincide with the reduction of the federal tax credits. You should check with your local state incentives to determine if there are any expiring credits you can take advantage of by purchasing a Tesla before the end of 2022 or 2023. With tax season approaching in early 2022, now is the optimal time to make your Tesla purchase to maximize your tax savings.
Finance Your Tesla Purchase to Lower Monthly Payments
To make a Tesla more affordable, consider financing part of the purchase price. Financing allows you to pay off the cost of the vehicle over time with interest, rather than paying the full amount upfront. There are a few options to explore:
Get Pre-Approved for an Auto Loan
Apply for an auto loan from your bank or credit union before shopping for a Tesla. Come prepared with details about the specific model you want so the lender can provide an accurate rate quote. With pre-approval, you’ll know exactly how much you can borrow and at what rate. This puts you in a stronger negotiating position with the Tesla dealer to potentially get a lower price.
Consider a Lease
Leasing a Tesla may provide lower monthly payments than purchasing with an auto loan. However, you won’t own the vehicle at the end of the lease term. Tesla’s leasing partner, US Bank, offers leases on all Tesla models. You’ll pay a lower upfront amount followed by fixed monthly payments that cover depreciation, interest, and fees over a 2- to 3-year contract. You must stay within mileage limits and keep the vehicle in good condition.
Check for Manufacturer Incentives
Tesla frequently offers incentives and rebates that can lower the overall cost. Some current offers include a $1,000 credit for trading in an eligible vehicle and discounted pricing for healthcare workers, students, and military members. Tesla also frequently reduces pricing on showroom models and inventory vehicles. It’s worth checking their website for the latest deals and seeing if you qualify.
Consider Third-Party Lenders
In addition to Tesla’s partners, many third-party lenders like Road Loans, Lending Tree and Lightstream offer competitive rates on Tesla financing. Compare rates from different lenders to find a good deal. These lenders will loan you the amount to purchase a Tesla, which you then use to pay Tesla directly. You make fixed monthly payments to the third-party lender until the loan is repaid.
Exploring multiple affordable financing options for your Tesla purchase can help make this innovative vehicle a reality. With the right loan or lease, you’ll be cruising in a Tesla in no time.
FAQs – How to Get the Cheapest Deal on a Tesla Before 2024
When is the best time to buy?
The best times to purchase a Tesla at a lower price are typically at the end of each quarter or during the holiday season. Tesla sales representatives are often trying to meet sales targets during these periods, so they may be willing to provide you a better deal to move inventory. You should also consider purchasing a Tesla at the end of the model year, as the company will be trying to make room for the new models coming in.
Should you consider a used Tesla?
Purchasing a used Tesla from a private seller or third-party dealer can often save you a significant amount of money versus buying new from Tesla. Used models may have lower prices due to depreciation, even if they are only a couple of years old. However, you will need to make sure any remaining factory warranty will transfer to you as a second owner. You will also want to thoroughly inspect the vehicle to ensure the battery and all components are in good working order before purchasing.
Can you negotiate the price of a new Tesla?
Although Tesla does not negotiate pricing on their website or at their retail locations, some buyers have had success negotiating a lower price through other channels. You may be able to get a lower offer by contacting your local Tesla sales representative directly and expressing your interest in purchasing if they can provide you the best possible price. Let them know you are comparing offers from other Tesla locations as well. You can also try using a Tesla price negotiation service to help obtain the lowest offer on your behalf.
Are there any additional incentives or rebates available?
Tesla frequently offers additional incentives and rebates that can lower the overall cost of purchasing one of their vehicles. These may include vehicle trade-in credits, referral credits if a current Tesla owner refers you, and federal or state tax incentives for purchasing an electric vehicle. The available offers will vary over time, so check the Tesla website and with your local utility companies to see what types of additional savings may be available on a Tesla purchase before the end of 2024.
In summary, doing your research, buying at the right time, considering a used model, and exploring all available incentives are the keys to getting the cheapest deal on a Tesla over the next couple of years. With some patience and persistence, you can obtain a great price on your dream vehicle.
Conclusion
With all of the incentives and discounts available from Tesla, the federal government, and some states, you have plenty of opportunities to get a great deal on a new Tesla before 2024 ends. By timing your purchase right and stacking savings, you can potentially knock thousands of dollars off the price.
Do your research, crunch the numbers, and move quickly when you find the perfect discount combo. With some persistence and planning, you can drive off in a brand new Tesla for much less than you may think. The savings are out there if you stay diligent in your search. Now is the time to make your Tesla dreams a reality.
Featured image credit by: tesla.com