How To Finance A Tesla In Canada

How To Finance A Tesla In Canada

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated May 5, 2022

Tesla vehicles have become increasingly popular in Canada for their style, performance and environmental friendliness. While electric vehicles are often more expensive than their gas-fueled counterparts, companies like Tesla seem to be closing the price gap. And with financing options available, you may be able to get your hands on your own Tesla with affordable payment options. 

Let’s take a closer look at how you can finance the purchase of a Tesla in Canada.

Tesla Financing Options In Canada

If you’re not making an all-cash transaction and need some financial assistance to buy a Tesla, you have a few financing options available:

Finance Your Tesla Through A Tesla Dealership 

Tesla has its own financing programs for its Model S and Model X. Loan terms range from 3 to 8 years, and the interest rate varies based on your financial and credit profile. A $2,500 order payment is required, which is included in your down payment, and a $1,300 delivery fee will apply.

Lease Your Tesla Through A Tesla Dealership 

For qualifying applicants, you can also choose to lease your Tesla instead of financing it in certain provinces, like AB, BC, NS, ON, QC, SK. Lease terms are 2, 3, and 4 years, and mileage limit options include each 16,000, 20,000, and 25,000 km/yr. 

If you so choose, you may have the option to buy your leased Tesla when your lease term ends. This option is available if you leased your vehicle before April 15, 2022. Any vehicle delivered on or after April 15, 2022 is not eligible for an end-of-lease purchase. A $350 purchase fee applies to vehicles delivered after April 13, 2019. 

Loan Through A Bank Or Private Lender

If you prefer to use a lender outside of Tesla’s offerings, you can apply with your bank or a private lender. You may be able to have a little more negotiating power when it comes to snagging a lower interest rate by taking this route. It should be noted, however, that there may be a limit on the loan amount and a hefty down payment might be required. 

Whether you choose a private lender or a bank, you can finance your Tesla using either a: 

  • Car Loan – You can get a car loan with either lender to finance your Telsa. Depending on the lender, you may be able to finance it over 24 to 96 months. A car loan is secured against the car you’re purchasing and may require a hefty down payment
  • Personal Loan – A personal loan is typically unsecured and thus may have higher interest rates than a car loan. While it works the same as a car loan, there is no collateral for the lender to claim if you default on the payments. As such, requirements for a personal loan may be higher and harder to qualify for than a car loan.  

How To Buy Or Lease Your Tesla? 

As mentioned, you can choose to either purchase or lease your new Tesla. Either way, you have two ways to buy or lease your car:

In-Store 

The traditional way of buying or leasing a vehicle is by visiting a Tesla car dealership in person and dealing with a salesperson to complete the transaction. Once the financials are handled (either an outright purchase, financing, or lease), delivery options will be arranged to have the vehicle delivered to your home

Online

You also have the option to complete your order online via the Tesla Canada website. Follow these steps to order your Tesla online:

  • Visit the Tesla Canada website
  • Choose the model you want 
  • Choose the features you want to add to customize the vehicle
  • Choose whether to pay in cash, via a loan, or lease (if you want to work with a private lender for financing, choose “cash”)
  • Provide all required personal information
  • Choose your delivery preference
  • Place your order

Types of Tesla Cars You Can Finance

There are a few different Tesla models to choose from that have various features. The following are the 5 main Tesla models and their associated features and prices: 

Tesla Model S Sedan 

The Tesla Model S sedan is for speed, quick acceleration, and performance, and has a sleek, refined design. It can reach speeds up to 322 km/h and has a peak power of 1,020 hp. You can go from 0 to 100 km/h in as little as 2.1 seconds. 

Pricing for the Tesla Model S Sedan in Canada starts at $121,990.

Tesla Model 3 Sedan

The Tesla Model 3 charges very quickly and has a vast range of up to 576 km. The AWD dual motor vehicle also boasts quick acceleration: you can go from 0 to 100 km/h in 3.3 seconds.  

Pricing for the Tesla Model 3 Sedan in Canada starts at $59,990.

Tesla Cybertruck

The Tesla Cybertruck is truly the most unique-looking vehicle to date. It’s designed with the utility of a truck but the performance of a sports car. 

The vehicle has an “exoskeleton” exterior shell built for durability and passenger protection and made with Ultra-Hard 30X Cold-Rolled stainless steel and Tesla armour glass. The cost of the Tesla Cybertruck is much more affordable than you may think thanks to its flat steel sheets all over. 

Pricing for the Tesla Cybertruck in Canada starts at $39,990.

Model X SUV

Tesla also has a couple of SUVs on its roster, starting with the Model X SUV. This particular model boasts the most power and fastest acceleration. All Model X powertrains can deliver instant torque, no matter the speed (with updated battery architecture). Moreover, you can go from 0 to 100 km/h in 2.6 seconds and take your vehicle 536 km in one charge. 

Pricing for the Model X SUV in Canada starts at $132,990.

Tesla Model Y Sedan

The Model Y is a mid-size, fully electric sedan with an SUV look and lots of cargo space. It’s got the same frame, interior, and powertrain as the smaller Model 3, but with more cargo space, an optional third row, and more of an SUV aesthetic.

Pricing for the Tesla Model Y Sedan in Canada starts at $82,990

Tesla ModelMax SpeedSpeed Acceleration
(0 to 100 km/h)
Cost 
Tesla Model S Sedan322 km/h2.1 seconds$121,990
Tesla Model 3 Sedan261 km/h3.3 seconds$59,990
Tesla Cybertruck2.9 seconds (0 to 60 km/h)$39,990
Model X SUV250 km/h2.6 seconds$132,990
Tesla Model Y Sedan250 km/h3.7 seconds$82,990

Can You Customize Your Tesla

Once you’ve chosen your Tesla model based on the look, features, and price of each, it’s time to customize it according to your needs and budget. Here are a few extras you can include in your new Tesla: 

  • Interior vehicle accessories. Each model has its own interior accessories to add. There’s a ton to choose from, including alarm systems, sunshades, and door protectors.
  • Exterior vehicle accessories. Add components like spoilers, roof racks, mud flaps, and car covers to your model of choice.
  • Tires. If you need extra tires, you’ll pay anywhere from $2,000 and $6,000 for a new set of tires and wheels
  • Self-driving capability. Take your Tesla to the next level by adding full self-driving capability for an extra cost. This feature includes auto lane changing, auto parking, auto navigating, and more. 

Tesla Financing Costs In Canada

To finance a Tesla – much like any other vehicle – you’ll need to factor in the interest and fees associated with your car loan. 

To illustrate, let’s see how much your Tesla would cost if you financed it at 4.25% for 5 years, with a down payment of $5,000.The following chart will break down the costs and provide you with the total cost of your loan:

Tesla Price – Down PaymentMonthly PaymentTotal Cost 
Tesla Model S Sedan$116,990$2,167.77$130,066.36
Tesla Model 3 Sedan$54,990$1,018.94$61,136.42
Tesla Cybertruck$34,900$646.68$38,800.89
Model X SUV$127,990$2,371.60$142,295.87
Tesla Model Y Sedan$77,990$1,445.12$86,707.20

Tesla Financing FAQs

Should I use Tesla Financing?

Financing directly through Tesla makes things convenient, especially if you plan to order your vehicle online. But if financing is not available for the model you want or where you live, you may need to use a separate lender for an auto loan. 

How long is Tesla’s car warranty?

The base warranty for a Tesla is 4 years or 80,000 km – whichever of the two comes first.

How much can I expect to pay for my Tesla car insurance?

Most insurance providers offer auto insurance for Tesla models, but expect to pay luxury vehicle premiums. Tesla also has its own in-house “InsureMyTesla” coverage plan. 

Final Thoughts

If you thought a Tesla was only something the wealthy drive, you may be surprised at some of the more affordable options available. And when paired with financing that fits comfortably within your budget, you may be able to take your very own Tesla out on the road sooner than you think. Look into the various financing and lease options for a Tesla to find out what you can afford.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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