How to get a Tesla Model Y for less than 400 euros a month?

Thanks to a new Propulsion version with a single electric motor, the Tesla Model Y is cheaper in France than a Model 3. Let’s study the possibilities of financing, LOA and credit to get the Model Y for less than 400 euros per month.

A few days ago, Tesla surprised France by revealing a new version of its Model Y. In reality, it’s not really a surprise, as we knew this version was coming, but it’s more its starting price that surprised us, to the point of making it one of the most cost-effective electric cars of this return.

Indeed, the Model Y, which is hierarchically above the Tesla Model 3 in the range, is presented at prices lower than the latter, in this case in a starting price of 49,990 eurosexcluding the ecological bonus of 2,000 euros.

Like many other manufacturers, Tesla offers financing in the purchase process. And since most cars today are financed by LOA (rental with option to buy), conventional loans or even LLD (long-term lease), many customers are interested in this type of service. -the-range car without wiping out all your savings at once.

As you may know, unlike other manufacturers (even if this is less and less the case), Tesla does not offer promotions and it is not possible to trade. Therefore, in order to reach monthly payments below 400 euros per month, we played with the manufacturer’s financing simulator and, as we will see, the conditions are not so extravagant to arrive at this type of financing, especially for a rather sophisticated product .

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The Tesla Model Y offered less than 400 euros per month

As stated above, this is the basic modelthat is, a propulsion model whose autonomy is announced in 455km in the WLTP cycle. As usual at Tesla, power and battery data are not officially communicated, but a quick internet search can find them. Thus, the Tesla Model Y propulsion offered in our regions would produce just under 300 hp and benefit from a battery with a capacity of around 60 kWh.

As this is not a promotional offer, it is also not a specific model. So, if you really want to stay below 400 euros a month and opt for some nice options, like a color for example or even bigger rims, it’s quite possible. On the other hand, the few options offered by the Model Y are expensive, such as the improved autopilot for 3,800 euros (which adds more than 60 euros a month in monthly payments spread over 60 months) or the option of fully autonomous driving capability at 7,500 euros that adds one hundred euros to the monthly fees.

On our side, for this file, we chose to start with a basic Model Y, i.e. with standard white paintwork and 19-inch rims (optional 20-inch rims at 2,100 euros reduce the range by around 20 km). Its basic equipment is complete with standard cruise control, Premium interior with heated front and rear seats, heated steering wheel and Premium audio system. On the other hand, the maximum charging power is limited to 170 kW against 250 kW for the above versions. But since the battery is smaller, the 10 to 80% is similar, in about thirty minutes.

What are the conditions?

As this is not an offer, we had to modulate with the simulation system on Tesla’s website. And we managed, without much difficulty and without much compromise, to pass below 400 euros per monthand without blowing up the contribution further.

Long-term rental was not available for this model at the time of writing, so we opted for an option-to-buy rental in 60 months and 100,000 km, or 20,000 km per year. A mileage much closer to reality compared to the 10,000 km per year offers from other manufacturers. At Tesla it is also possible to go down to 10,000 km per year, which will reduce your monthly payments, but everything will depend mainly on your use.

We started with a larger contribution compared to what we usually see, premium model obliges, with 12,000 euros, all reduced to 10,000 euros thanks to the ecological bonus of 2,000 euros. Here, the financing is not subject to the conversion premium that obliges you to dismantle an old diesel or gasoline model, and in addition to complying with a tax reference limit.

In the end, we arrived at monthly payments of 386.41 euros per monthmore than 60 months and with 20,000 km per year.

How much will the Tesla Model Y LOA cost?

More than five years long lease with option to buy, your Tesla Model Y will cost you € 33,184.60. Tesla displays its car from 49,990 euros on its website, ecological bonus of 2,000 euros not deducted. This gives us, once deductions have been made, a model displayed at list price in € 47,990.

From this rate, you will pay during the five years of rent 69.15% of the price of your car. As the offer is an LOA and not an LLD, you have the option to repurchase the vehicle you choose to pick up, or not. If you don’t raise, you will therefore return the car to start again on a new model, or not. Also pay attention to restoration costs that can be expensive at the time of return. We advise you to do this first at a bodybuilder, as it will cost you less than at your dealership in general.

If you wish to exercise the purchase option, Tesla specifies from the outset that the final price of the car at the end of the financing and the exercise of the purchase option will be € 55,294. This way, the call option is 22,109.40 euros if you want to become the permanent owner of the car. So, doing a quick calculation, your Tesla Model Y propulsion with LOA will come at a cost € 7,304 more compared to a cash purchase.

Screenshot 2022-09-05 at 16.47.35
The interior of the Tesla Model Y we selected

Should we privilege LOA or classic credit?

Rare are customers who buy their new car in cash. In the vast majority of cases, these cars are financed by an LOA, an LLD, or a conventional loan. And precisely, compared to a classic credit, what is more interesting?

Let’s start with Tesla’s captive bank, that is, its own financing organization (it’s usually a traditional bank that hides behind all this) that also makes it possible to offer credits in addition to an LOA. Always on the same basis of 60 months (Tesla can go up to 96 months on loan) and with a contribution of 10,000 euros (12,000 euros, minus the bonus of 2,000 euros), we arrive at monthly payments of € 674.05, excluding insurance. Up front, it’s more expensive than an LOA, but after five years, the car definitely belongs to you. And making a quick calculation, at the end of the financing, you will have paid € 50,443. The credit will therefore have a cost to you € 2,453that is, practically 2.5 times lower than the LOA.

Now let’s take a look at a traditional bank, and even though the rates have increased a lot in the last few months, they are still interesting, especially if you buy an electric car. For example, at Crédit Agricole, thanks to the “Auto Vert” loan and its 1.990% APR, there is certainly a way to get more attractive monthly payments.

Thus, by financing 37,990 euros (with a contribution of 12,000 euros, reduced to 10,000 euros with the bonus of 2,000 euros), still over 60 months, we arrive at monthly payments of € 665.41, without insurance. The total amount due is € 39,924.60 (the contribution is not included directly in the financing) the credit will therefore have a cost € 1,934.60which is about 500 euros less compared to Tesla’s captive bank and 3.5 times cheaper than the LOA.

things to remember

To summarize our explanations more succinctly, we have summarized the three types of finance studied in a summary table.

LOA Tesla Credit Bank credit
Bring €10,000 €10,000 €10,000
Mileage 20,000 km/year No Boundaries No Boundaries
Duration 60 months 60 months 60 months
monthly payment € 386.41 € 674.05 € 665.41
purchase option € 22,109.40 No No
financing cost € 7,304 € 2,453 € 1,934.60
Total cost € 55,294 € 50,443 € 49,934.60

As can be seen, from a purely financial point of view, conventional credit at a bank, in this case Crédit Agricole and its “Auto Vert” offer, is the best solution. Your fixed APR lower than Tesla credit allows you to post monthly payments that are also lower. They will never reach those of the LOA, as it only finances 69.15% of the car’s price, the rest being paid at the end of the financing.

LOA is usually not a good deal, especially if you return the car at the end of the financing. This “simple” allows you to display the car at more competitive prices. The other side of the coin, we have several years later when you have to return the car or exercise the option to buy. Purchase option that it is also possible to finance later with a conventional loan, but again it will cost more as it will still be necessary to add financing after financing.

A classic loan, despite its higher monthly payments, can be interesting, on the one hand because some captives offer to go beyond 60 months and reduce monthly payments even further, but it also allows you to have your car from start to finish, and therefore be able to resell it as you see fit. Returning an LOA during funding inevitably carries penalties. Mainly because a Tesla Model Y should maintain an excellent residual value at resale, with rare opportunities and increasing demand with the energy transition that begins.

LOA can be useful if you are not confident in the price of your used car and you already know it will be selling in a few years. So with LOA, you know in advance the total cost of ownership (TCO for total cost of ownership) of the car. On the other hand, in cash or on credit, you cannot know this price, as it will depend on the resale value of the vehicle.

Is the new Tesla Model Y Propulsion the good deal for the start of the school year?

Its arrival in France will undoubtedly not go unnoticed, and for good reason: the Tesla Model Y Propulsion becomes the most affordable car from Elon Musk’s company. Let’s take stock together…
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