Refinance your 2023 Tesla Model 3 loan when the new APR drops 1% to 2% or more below your current rate. Make sure you have at least 24 months left on the loan. Confirm your credit score rose, often by 40 to 100 points. Check that fees pay back in 12 months.
A lower APR cuts your monthly payment and total interest. Wait 6 to 12 months after your original loan starts. You build payment history then. Your credit rebounds after initial hard inquiries. Lenders offer good rates on EVs like the Model 3. Strong demand keeps loan-to-value ratios favorable as you pay down the loan.
Check these before you refinance
| Item | Ideal threshold | Why it helps |
|---|---|---|
| New APR vs current | Drop of 1% to 2% or more | Saves more interest |
| Months left on loan | 24+ months | Gives time to recoup fees |
| Time since origination | 6 to 12 months | Builds credit and history |
| Credit score change | +40 to +100 points | Gets prime EV rates |
| Loan-to-value (LTV) | At or under 100% | Speeds approvals, better rates |
| Fees | Under 1% of balance | Quick break-even |
Savings examples for a 2023 Model 3
Assume $30,000 balance and 60 months left.
| Scenario | Monthly payment | Monthly savings | Total interest saved | Fee break-even (est. $400) |
|---|---|---|---|---|
| 9% APR to 6% APR | $622.80 to $580.00 | $43 | $2,568 | 9 months |
| 8% APR to 6% APR | $608.80 to $580.00 | $29 | $1,728 | 14 months |
Do not extend your loan term to lower payments. Stick to your remaining term or shorten it. A longer term adds $1,000 or more in interest.
Quick action plan
- Prequalify with three lenders: a credit union, your bank, and an online lender. Use soft credit checks first.
- Seek no prepayment penalties and low fees. Skip unneeded add-ons.
- Gather documents: recent pay stubs, vehicle registration, insurance proof, and current loan statement.
- Ask for autopay discounts. Many cut 0.25% off APR.
- Calculate break-even: divide fees by monthly savings. Target 12 months or less.
- Lock your rate. Avoid new credit pulls until the new loan funds.
Sidekick tracks your loan and alerts you when savings beat fees.