Audi’s EV Financing Cuts Outshine Tesla’s Rates, But Total Costs May Favor the U.S. Giant

Audi reduces interest rates on electric vehicles, however, the Tesla Model Y might still end up being more affordable. According to CarsDirect, even with Audi’s lower financing rates for electric vehicles, better overall savings might be achievable with Tesla.

A fresh notice from a dealer reveals that there's a financing offer of just under 1% for all 2024 Audi electric vehicles, available for a period extending to five years. This special offer stands in stark contrast to the higher interest rates ranging from nearly 3% to over 6% for the majority of other models from the same brand. Additionally, this financing deal is more competitive than Tesla's 1.99% offer for its Model 3 and Model Y, and significantly beats the almost 6% financing rate for Tesla's more upscale Model S and Model X, as reported by CarsDirect.

Upcoming 2024 model of the Audi e-tron

Nevertheless, a majority of the Model 3 and Model Y versions, with the exception of the standard rear-wheel-drive Model 3, qualify for a federal tax incentive of $7,500. In contrast, Audi's electric vehicles do not meet the criteria for this credit according to the new regulations that were implemented earlier this year. Consequently, opting for one of Tesla's basic electric vehicles might prove to be a more economical choice.

Taking into account the tax incentive, CarsDirect calculates that the monthly installment for a Tesla Model Y Long Range AWD on a 5-year loan would be roughly $680. In comparison, despite a reduced interest rate, the projected monthly cost for an Audi Q4 E-Tron over an identical period is estimated to be around $870.

Upcoming 2024 Model of the Audi Q8, Named

The fourth quarter E-Tron serves as Audi's foundational electric vehicle, positioning it as a direct competitor to Tesla's Model Y. This vehicle is built on the same MEB framework that underpins Volkswagen's ID.4 and ID.Buzz, all stemming from Audi's overarching company. Audi's selection of electric vehicles also features the E-Tron GT and its high-performance variant, the RS E-Tron GT. Both of these models utilize the J1 foundation and its high-capacity 800-volt electric system, which they share with the Porsche Taycan. Additionally, the lineup includes the Q8 E-Tron, which is crafted from a modified MLB framework that underlies numerous VW Group combustion engine vehicles.

For the year 2025, the Q4 E-Tron and E-Tron GT are set to get enhancements, with the Q4 E-Tron boasting increased power and distance capabilities, and the premier E-Tron GT introducing a high-performance RS E-Tron GT variant. These models will be expanded with the addition of the Q6 E-Tron crossover and the A6 E-Tron hatchback, which share the Premium Platform Electric (PPE) underpinning the fully electric 2025 Porsche Macan.

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