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The company now includes seven-year loans as an option on its US order pages, after previously offering loans as long as 72 months. While extending loan terms can lower car buyers’ monthly payments, consumers tend to pay more in interest and face greater risk of owing more than their vehicle is worth.

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Considering the estimated rate, taking out a loan on a Tesla for this extended period will not be a financially advantageous stratagem. The popular $50,490 Model Y Dual Motor AWD is an excellent example for the loan calculation.

If the buyer puts down Tesla’s preselected $4,500 initial payment, the financed amount would be $47,380. At 6.39% interest, the monthly loan payment will be $703, not considering any potential incentives. After 84 months, the owner will have paid $59,052 in monthly payments, plus the $4,500 paid initially.

In total, the vehicle will cost a staggering $63,552. This is the downside of high-interest, long-term loans on any car.