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Advice on the financing process?

Hey folks,

I'm in California and put a deposit for a red SR+ with the 19" wheels a couple of days ago. I've uploaded all the required documents and have gotten to the financing part. I'm hoping to get a low rate from a local credit union but I'm having a bit of difficulty finding out about the next steps from my sales advisor.

My local credit union advised me that you can often apply for financing with a credit union through the dealership using the CUDL system (CUDL Overview DLR - CU Direct) which avoids your credit having to be run multiple times - is this something that Tesla support? Otherwise is it a case of applying for loans independently and then taking that approval to Tesla? Do they have a number you can call them on to talk to one of their finance advisors?

Cheers!
 
Upvote 0

commasign

TeslaAdviceBlog.com
Aug 31, 2013
3,202
4,291
Davis, CA
Easiest way is to just take delivery with Tesla financing, then apply for a loan through your CU, send proof of loan approval to Tesla and get a check back for the difference in interest. You can also try to do this before delivery but your CU will probably want a VIN which may not be available until right before delivery. If you do it pre-delivery, Tesla may just lower your interest rate to match. This happened to a family member that used this program.

Best Rate Guarantee
 

notrhj

Member
Apr 17, 2019
276
224
NYC
Tesla Financing is simple interest.
No penalty for paying it off early but you won’t save any interest.

Most cu loans are amortized like a home mortgage.
Pay it off early and save some interest.
The initial rates are better too.
Tesla only matches so they don’t lose the business.
 
Tesla Financing is simple interest.
No penalty for paying it off early but you won’t save any interest.

Most cu loans are amortized like a home mortgage.
Pay it off early and save some interest.
The initial rates are better too.
Tesla only matches so they don’t lose the business.


So you'd rather pay compounding interest? No thank you!

So yeah, you're payment won't decrease when paying more than your monthly required amount, but the amount of time you make payments do decrease and thus the overall interest is reduced accordingly. Time-cost is lowest with simple interest.

With amortizing/compound loans, you pay more interest than principle initially and then over time, the amount of payment that goes to principle increases. With simple loans, this is fixed per month and doesn't change.

Simple Interest vs Compound Interest | Top 8 Differences + Infographics
 
Tesla Financing is simple interest.
No penalty for paying it off early but you won’t save any interest.

Most cu loans are amortized like a home mortgage.
Pay it off early and save some interest.
The initial rates are better too.
Tesla only matches so they don’t lose the business.

Not sure about elsewhere, but California allows no penalties on advanced payments. So if you take out a load for $100k for 30 years, and pay it back in a month you only have to pay the interest on that money for 1 month. So you save a TON of interest.
 

davewill

Active Member
Feb 5, 2014
1,829
2,082
San Diego, CA, US
It was easy for me. Went to the credit union, got approved for a bit more than I actually thought I would need. Entered online that I was using third party financing and the amount I was willing to put down. Tesla generated a Motor Vehicle Purchase Agreement (MVPA) which shows all of the financial details, which I forwarded to the CU. I'm supposed to take the signed copy to the CU shortly before delivery day, and pick up a check to take with me to pick up the car.
 
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cevM3

Member
Jun 11, 2019
13
8
TN
It was easy for me. Went to the credit union, got approved for a bit more than I actually thought I would need. Entered online that I was using third party financing and the amount I was willing to put down. Tesla generated a Motor Vehicle Purchase Agreement (MVPA) which shows all of the financial details, which I forwarded to the CU. I'm supposed to take the signed copy to the CU shortly before delivery day, and pick up a check to take with me to pick up the car.

This is the stage I'm at. All approved, provided initial documents required by CU. But they want copies of the title and an MCO (manufacturer's certificate of origin) prior to cutting me a check to take to pickup. I wouldn't have thought any of this would be available before I go to the showroom and get the car, but maybe I'm just missing something, or am just not keeping up in the world of online auto purchases. All past purchases, i did the pre-approval, went to the dealer and got my car, then left. Dealer and CU worked out the actual funding of the purchase.

Anyone know what I'm missing or how/if I can get these docs ahead of time? I have a week til pickup...
 

Mr X

Future Martian
Jan 18, 2013
2,318
2,511
Simi Valley, CA
Easiest way is to just take delivery with Tesla financing, then apply for a loan through your CU, send proof of loan approval to Tesla and get a check back for the difference in interest. You can also try to do this before delivery but your CU will probably want a VIN which may not be available until right before delivery. If you do it pre-delivery, Tesla may just lower your interest rate to match. This happened to a family member that used this program.

Best Rate Guarantee


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They really don't want to sell SR
 
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