The deferred payment is a financing option allowing you to defer a portion of the loan, typically up to 20% of the value of the vehicle, in exchange for lower monthly payments. On average, our clients lower their monthly payment by about $200/Month! This option is made possible due to the higher residual value of fully electric vehicles. The deferred payment is part of the loan principal and accrues interest, which can then be paid off at the end of the loan term. The most popular option customers take is to defer $7,500, which is the amount of federal tax credit for new electric vehicles. By deferring this payment, you can reduce your monthly payments during the loan term and then pay that portion of the principal loan once you receive the tax credit.
Example of a loan offer with and without the Deferred Payment Option
The example below illustrates an amount financed of $40,000 with a Credit Score of 760+
| Standard loan | With deferred payment |
Monthly payment | $953.22 | $880.40 |
Est APR* | 6.75% | 6.75% |
Total interest | $5,754.42 | $6,258.98 |
Deferred payment | $0.00 | $8,000.00 |
Term | 48 months | 48 months |
Benefits of Tenet’s Deferred Payment Option:
Lower monthly payments, which may help you budget better.
Flexibility to prepay the deferred amount without penalty.
Potential to use tax credits to pay down deferred amount.
Things to consider:
Larger final payment due to deferred amount.
Higher total interest payments due to extended loan term.
Deferred eligibility is not available in all states.
Does the deferred portion of the loan accrue interest?
Yes, Tenet's deferred payment option does accrue interest. Let's unpack this a bit to fully understand how it works.
The Deferred Payment Option is a unique financing tool that Tenet offers, allowing you to defer up to 20% of your electric vehicle's value. This means that portion of the loan won't need to be repaid on a monthly basis throughout the loan term, instead it becomes due at the end of the term. This feature contributes to lowering your monthly payments, making EV ownership more affordable.
However, it's important to note that while the deferred amount isn't being paid down monthly, it's still part of your overall loan balance. Just like the rest of your loan, it accrues interest over the term of the loan.
This arrangement can be particularly beneficial if you're planning on using something like an EV tax credit to pay off that deferred amount. You can prepay it at any time during the term without any penalties, potentially saving on the accrued interest.
Examples
Example shown below is based on a 2023 Tesla Model Y Performance with at least 10% down payment, 72-month loan term, a loan amount of $50,000, and excellent credit with an APR of 7%.
