Can You Refinance Your Tesla Auto Loan?

Tesla does not do refinancing of their own auto loans. However, you can still refinance your Tesla by using a different lender. 

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When you buy a Tesla, you can apply for financing through the app. But many drivers find that the interest rates they get with Tesla financing are higher than they might qualify for with other lenders. 

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If your car payment or interest rate is too high, refinancing your Tesla with another lender may help bring them into a more comfortable range. Learn more about the Tesla refinancing process and what steps to take next to lower your payment.

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Key takeaways

• Tesla does not offer refinancing for its auto loans.
• If you have a Tesla loan and you’d like to refinance it, you’ll need work with another lender.
• Refinancing your Tesla lets you change the monthly payment, loan terms, or interest rate to something that works better for your situation.
• When you’re ready to look for a new lender, make sure you have your current Tesla loan information on hand, as well as your driver’s license, Social Security number, and proof of insurance.

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Does Tesla offer refinancing?

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Tesla doesn’t refinance existing auto loans. Tesla financing is aimed at helping you purchase your vehicle, which is why it offers the ability to place an order and apply for financing all at once in its online platform. First, you prequalify through the app; if you prequalify, you submit a credit application. If you’re approved for Tesla financing, you select a term and payment amount that works for you. But once you’ve selected your Tesla loan offer and received delivery of the car, you can’t change the financing through Tesla.

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If you financed your car through Tesla, you either received Tesla’s in-house financing or, depending on the state you live in, third-party financing from another lender. But regardless of the financing company you selected, you won’t be able to refinance through Tesla. 

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Can you refinance a Tesla loan with another lender?

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Yes, you can refinance a Tesla loan with another lender. In fact, that’s the best way to change your interest rate, loan term, or monthly payment amount for your Tesla. 

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Comparing multiple loan offers is the key to refinancing your Tesla with a rate and payment that suits your current needs. Look for at least three different refinance offers, and compare them based on the following details:

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• APR: What is the annual percentage rate (APR) for the new loan compared to your existing Tesla loan? APR accounts for not only the interest rate, but also any loan fees charged for the new loan, making it easier to compare the cost of borrowing.
• Loan term: Shorter terms may have higher monthly payments, but they can cost you much less in interest. Longer loan terms can help you find a lower monthly payment.
• Monthly payment: If your budget is tight, lowering your monthly payment can be worth it for some breathing room.

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When you’ve found a refinancing offer that fits your criteria, submit a formal application and wait for approval. Once you’re approved, accept the loan, sign your documents, and ensure the original Tesla loan is paid off before you start making payments to your new lender.

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Why Tesla owners choose to refinance

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You might choose to refinance a Tesla for a number of reasons:

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• Payment: Maybe the monthly payment is too high. That might be because your income changed, or maybe you have new bills that are squeezing your budget. Refinancing to lower payments could free up some of your monthly income.
• Interest rate: Sometimes people get so excited about purchasing a new Tesla that they charge forward with the financing. Later, they realize that they could have gotten a lower interest rate somewhere else. 
• Lender preference: You may discover you prefer working with a different lender, like your local credit union. 
• Improved credit: If your credit score has improved since you bought your EV, you may find you can qualify for better interest rates and loan terms now compared to when you bought the car.
• Lowering overall interest: Refinancing may be able to save you money on overall interest, lowering the amount you repay.

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Whatever the reason (and there could be more than one), refinancing a Tesla may be smart move for your bank account.

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What you’ll need to refinance a Tesla loan

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When you’re ready to move forward with a Tesla loan refinance, you’ll need to make sure you have some important information and documents close by.

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• Current Tesla loan information: Loan amount, loan terms, monthly payment interest rate, number of payments remaining, and loan payoff amount
• Personal information: Your driver’s license, address, date of birth, and Social Security number
• Proof of income or employment: Pay stubs, W2s, tax return forms, or bank statements
• Vehicle information: The model name, date of purchase, vehicle identification number (VIN), and mileage
• Proof of insurance: Your valid insurance card

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If you’ve frozen your credit report in the past, make sure to unfreeze it before you apply for a refinance. That way lenders can see your credit history, and there won’t be a delay in moving forward with the loan.

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Explore your Tesla refinancing options

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You can refinance a Tesla loan as soon as you’re ready. Refinancing is a great way to make your Tesla purchase more manageable. You might find that you can lower your monthly payment, decrease the interest you pay, and save money by refinancing your Tesla dealership loan with a new rate and terms. 

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To begin the refinancing process, enter your current interest rate, loan amount, and payments remaining into our auto refinancing calculator to see how much you could save. Then, when you see a monthly payment you like, just apply for a preapproval to start the process and compare lenders. You’ll be able to upload your documents and fill out a formal loan application online.

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FAQs

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Below are some of the most common questions we receive about refinancing a Tesla loan.

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Does Tesla offer refinancing for auto loans?

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No, Tesla does not offer refinancing for existing auto loans. If you’d like to refinance your Tesla loan, you’ll need to go through another lender.

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Is there any difference in the process for refinancing an EV?

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The process for refinancing works the same for an EV as it does for a regular gas-powered car. You’ll apply for the refinance loan, provide proof of identity and income, and use the funds to pay off your old loan. The main difference with refinancing an EV is the battery life, which can affect its resale value and therefore your loan terms.

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Can I refinance my Tesla loan with another lender?

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Yes, you can refinance a Tesla loan with another lender. In fact, this is the only way to refinance a Tesla loan, since Tesla doesn’t offer refinancing.

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Will refinancing my Tesla loan hurt my credit score?

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Refinancing any loan can temporarily cause your credit score to dip by a few points, but most people only see a drop of 5 points or less. If refinancing helps you make your payments each month, it can actually help you improve your credit over time as you show yourself to be a responsible borrower.

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What do I need to be able to refinance my Tesla auto loan?

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Before you begin comparing offers, gather your Tesla loan information, including rate and remaining balance. You’ll also need your driver’s license, insurance card, and recent paystubs.

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