Nationwide — A woman has gone viral after celebrating her new Tesla Model Y, which she called “affordable,” with a $40,000 deal. The full cost, though, is a staggering $94,000 due to high interest stretched over 90 months.
Her excitement started at the dealership with $4,000 down and $1,000 monthly payments, according to EURWeb. On the surface, it looked like an affordable EV. In reality, the high interest and 90-month loan turn a $40,000 car into a $94,000 commitment.
The real cost comes from financing $36,000 at 15% APR over nearly eight years. That adds up to more than $36,000 in interest alone, while the car loses value the moment it leaves the lot. By the time the battery warranty ends, the car’s resale value will be far below what she still owes.
This scenario is a classic case of focusing on monthly payments instead of total cost. Experts suggest calculating the full price, including taxes, interest, insurance, and, for EVs, home charging and battery considerations.
Pre-approval can help buyers avoid dealership traps. With good credit, interest rates in early 2026 hover around 5–7%, not 15%. Shorter loans and larger down payments reduce the risk of being upside down. Red flags include pressure to sign immediately and sales pitches that ignore the total cost.
A low monthly payment can be misleading. Understanding the full cost, securing better rates, and keeping loan terms short can save tens of thousands. While the woman may be thrilled now, that $1,000 payment could become a heavy financial burden long before the loan ends.