Tesla Owners Prefer Financing Options for Their Vehicles

Thu 30th Jan, 2025

In Germany, Tesla vehicles are notably financed through loans more frequently than any other brand, highlighting a significant trend in the automotive financing market. According to a recent analysis by the comparison portal Verivox, Tesla owners are more than twice as likely to take out auto loans compared to the average across all car brands.

The study, which examined loans taken out in 2023 and 2024, revealed that the proportion of Tesla vehicles financed through loans is 122% higher than their share of registered vehicles in Germany, as reported by the Kraftfahrt-Bundesamt. Other premium brands such as BMW and Audi also show a higher tendency for financing, with loans being 59% and 55% more prevalent than their respective market shares.

In contrast, brands like Mitsubishi, Toyota, and Opel are among those least likely to be financed through loans. In fact, Mitsubishi's share of auto loans is less than half of its vehicle share in the German market.

The significance of vehicle ownership in Germany cannot be overstated. As Oliver Maier, the managing director of Verivox Finanzvergleich GmbH, points out, the choice of car often reflects personal status, particularly with high-end and prestigious brands. This inclination leads many consumers to consider loans as a viable method for acquiring their desired vehicles. Data from the German Banking Association indicates that about half of all installment loans are utilized for car purchases.

Currently, the average interest rate for a car loan with a term of 36 to 48 months stands at around 7%, although rates can vary widely from approximately 5% to 12.7% depending on the lender.

Interest rates for loans are influenced by several factors beyond market conditions, such as the term of the loan, the amount borrowed, and the borrower's creditworthiness. Some banks offer dedicated auto loans with more favorable terms than standard personal loans. By specifying the purpose of the loan when applying, buyers can often secure better rates, with dedicated auto loans averaging 14% lower in interest costs compared to general installment loans.

Nevertheless, Tesla now faces challenges related to brand image and declining sales figures, which may impact the future financing trends for their vehicles. There are reports of some Tesla owners expressing their discontent with the brand by using stickers to distance themselves from the company amidst controversies involving CEO Elon Musk's associations with political figures.


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