Fortunately, it's not an excessive increase.
There's no doubt that the best electric cars in the world are produced by Tesla, but the competition is increasing at a steady pace. To help solidify its position in the market, Tesla needs to innovate and improve, and one of the ways it plans to do that is through EV batteries that are much cheaper than what is currently available. Then again, Tesla is so popular that some dealers are adding $10,000 markups to used models, knowing that demand is outpacing supply. On top of that, Tesla has been forced to quietly raise prices too.
Fortunately, you can avoid the increase by simply paying cash.
As reported by CarsDirect, Tesla's online payment calculator now shows a financing rate of 3.74% APR, which represents an increase of 0.5% compared to last month's interest rate of 3.24%. For people buying in June onwards, that means that a $50,000 Tesla Model 3 will cost $56,000 with interest, which means an overall increase of just over $800 and a rise of $11 for your monthly payment. While that may seem negligible, it's worth remembering that this is the second interest rate increase of the year so far. A few months ago, its interest rate was 2.99%, which worked out to around $1,200 less in overall costs.
Lease prices have remained unchanged, with the base Model 3 still listed at $499 for 36 months with a $5,694 upfront payment. Remember that these prices exclude potential rebates and do not account for any taxes and fees you may have to pay. It's unlikely that interest rates have reached their peak considering the way Federal Reserve rates have been climbing. It's also fair to be wary of future price increases, as Tesla has been asking more money for its cars every few months. Supply chain issues were blamed for these constant increases, and that challenge still has a long way to go before being overcome. If you're keen on buying a Tesla at a reasonable price, you may want to decide soon.