June 9, 2023


Complete News World

Tesla with the interest rate war on car loans

This article was first published in Finansavisen engine.

Tesla: With prices dumping in January, Tesla really picked up sales momentum. While the rest of the Norwegian auto industry stands almost as extras, Tesla has managed to gain complete dominance in this country.

So far this year, the US electric vehicle manufacturer has registered more cars than Toyota, Volkswagen and Volvo combined, according to figures from the Traffic Information Council (OFV).

Tesla alone accounts for nearly a third of the entire new car market in Norway.

Tesla cuts the price of the Model Y Performance by around NOK 25,000 and launches an interest rate campaign. Ford is offering a 0.25 percent interest rate on the electric Mustang. Photo: Andreas Scheele/Finansavisen

Attention to claims

It was March this year in particular that really accelerated enrollment, with a whopping 7,445 vehicle counts, mostly Model Y and Model 3 models. With the first quarter now winding down, there’s a lot to be excited about. associated with car sales in the second quarter, and Tesla doesn’t seem to be done with its price tricks.

Now the company is launching a new interest rate campaign in Norway that could make Tesla the sales winner in the second quarter as well. On the two most popular models, the 3 and Y, interest is offered at 1.99 percent for three years. “Then the product’s nominal interest floated for five years, currently at 4.79 percent,” Tesla writes on its pages. It was the site of the auto industry Pilnet who reported this for the first time.

However, it is stated on Tesla’s website that the 1.99 percent interest rate only applies to vehicles that are registered and delivered by June 30, 2023. In other words, Tesla requires cars to be registered by the second quarter in order for customers to get a lower interest rate.

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This indicates that Tesla is targeting quarterly sales and new market forays.

Sets the price up and down

Bilnytt.no writes that “the interest rate campaign is in fact a new ‘camouflaged’ price adjustment to Norway’s best-selling car model”.

The industry site also discovered that the price of the Tesla Model Y Long Range has been raised by NOK 10,000, while the Model Y Performance has been slashed by nearly NOK 25,000.

Tesla is said to be filling up with stock cars, and large deliveries to Norwegian ports are expected in the coming weeks. In addition to the aggressive price adjustment in January, Tesla had previously rolled out offers of free 5,000km charging, to get Norwegians to throw themselves into cars.

Even when sales are booming in Norway, Tesla is very silent:

– Are you satisfied with the sales and how do you imagine them in the coming quarters?

– No comment, Tesla answers.

Competitors will follow

By the way, it’s not just Tesla that is trying to arouse buying interest in Norway. Many importers and dealers are suffering from sluggish new car sales so far this year, after a huge increase in 2022 with record numbers in December.

Among the boldest is Ford, which offers a fixed interest of 0.25 percent for three years and five years of service included. The offer is valid on the Mustang Mach-E with rear-wheel drive, and like Tesla, the offer is only valid through the second quarter of this year.