APR 3.99%

[SA2USA]

Hi,

Applied for finance on the Tesla app. Instantly approved, however I see the APR is 1.6% percent higher than the 3.99% promotion.

At the bottom (Before Confirm) it states the following: Your current loan approval includes an additional APR reduction from the APR listed here. The final APR and monthly payment will be confirmed with you prior to final contract.

What do you make of that statement?

 

[SA2USA]

Issue resolved automatically after a short while.
I'm unable to delete this post as I have limited privileges.

 

[Marcopolo767]

Mine said the same thing...Very vague

 

[RoBoRaT]

Issue resolved automatically after a short while.
I'm unable to delete this post as I have limited privileges.

So, did you get 3.99% or higher?

 

[SA2USA]

So, did you get 3.99% or higher?

Got 3.99%.

 

[skytom88]

Got 3.99%.

Was there a minimum downpayment you had to do to get 3.99%?

 

[SA2USA]

The lowest allowed was to cover the sales tax of the vehicle.

 

[mgberry]

Hi,

Applied for finance on the Tesla app. Instantly approved, however I see the APR is 1.6% percent higher than the 3.99% promotion.

At the bottom (Before Confirm) it states the following: Your current loan approval includes an additional APR reduction from the APR listed here. The final APR and monthly payment will be confirmed with you prior to final contract.

What do you make of that statement?

so you were able to get 3.99 ? I just applied as well and the lowest was 5.59.

 

[mgberry]

so you were able to get 3.99 ? I just applied as well and the lowest was 5.59.

so you were able to get 3.99 ? I just applied as well and the lowest was 5.59.

Can you link to the promotion you're speaking of. I may have to give them a call Monday if there is a lower rate available.

 

[efudd]

Mine auto-updated from 5.59 to 3.99 about an hour after submission. It shows at the top of the order page along with the free SC for 3 years.

 

[SA2USA]

Mine auto-updated from 5.59 to 3.99 about an hour after submission. It shows at the top of the order page along with the free SC for 3 years.

I don't see anything about the SC for three years. Where exactly are you seeing this?
Do you have an exact delivery date? I have a date range which may be why.

 

[SA2USA]

Can you link to the promotion you're speaking of. I may have to give them a call Monday if there is a lower rate available.

Not sure if me using promotion was the right word earlier... but Model X & S have three year free SC and Low APR 3.99%. You can see this when you go to order either the X or S at the top of the page.

 

[mgberry]

Not sure if me using promotion was the right word earlier... but Model X & S have three year free SC and Low APR 3.99%. You can see this when you go to order either the X or S at the top of the page.

Ah.. That's probably the difference. I'm purchasing the MYLR but still not sure why you would get a better interest rate. Tesla doesn't have their "own" financing arm, they just work with a few third parties that they partner with. For example, you see adds on TV right now for .9% interest for car x or 0.00% interest for truck y, or what have you. There, these dealerships have their own financing arm that can drop the interest rates down to what ever they want but tesla finance said they rely on their partners "wholesale" rates and where the market is at. If that is the case, we should see same interest rates regardless of vehicle. (Depending on credit score, etc....) When I applied for tesla financing, it was actually bank of America that is offering the loan.

 

[Marcopolo767]

My Advisor called this morning and said it will update to 3.99% sometime today. I will confirm if it does. Model S.

 

[Marcopolo767]

YES! Updated to 3.99% this morning.

 

[Hickster]

Ah.. That's probably the difference. I'm purchasing the MYLR but still not sure why you would get a better interest rate. Tesla doesn't have their "own" financing arm, they just work with a few third parties that they partner with. For example, you see adds on TV right now for .9% interest for car x or 0.00% interest for truck y, or what have you. There, these dealerships have their own financing arm that can drop the interest rates down to what ever they want but tesla finance said they rely on their partners "wholesale" rates and where the market is at. If that is the case, we should see same interest rates regardless of vehicle. (Depending on credit score, etc....) When I applied for tesla financing, it was actually bank of America that is offering the loan.

Tesla seems to be offering financing on their own now. The loan for my new Model X is through Tesla Financing and even has a financing tab in the Tesla app for me to pay my bill.

 

[holeydonut]

Assuming this is for 60 or 72 months, these are attractive rates in today's climate. This type of subvention is what Tesla should be doing instead of just dropping retail pricing. Assuming Tesla is helping buy down rates with lenders, this is worth about $2,500 (assuming a 20% down and 60 months)

FWIW on this 2023 GLS I was being quoted 8.99% from Mercedes Benz Financial Services (their captive financing arm) on a 60 month term with 60% LTV and a 847 FICO-8. So you have dealers trying to make markup on new vehicles + financial services trying to make a whacky markup too. Had to use a local credit union to get a more reasonable 200 bp spread on a 5 year treasury.

 

[mgberry]

Tesla seems to be offering financing on their own now. The loan for my new Model X is through Tesla Financing and even has a financing tab in the Tesla app for me to pay my bill.

Tesla seems to be offering financing on their own now. The loan for my new Model X is through Tesla Financing and even has a financing tab in the Tesla app for me to pay my bill.

Hummm... definitely will call them today and find out. I will let you know what I find out.

 

[Hickster]

Hummm... definitely will call them today and find out. I will let you know what I find out.

Initially when I applied for financing it defaulted to US Bank and it was a higher rate. After about 30 minutes the app updated to Tesla Financing and at the lower rate.

 

[Cladbolg]

Hi did you accept the financing terms before the rate got lowered to 3.99%? I have the approval at 5.59% from Wells Fargo in the app and it has the same text as you mentioned above with additional APR reduction. Was yours through Wells Fargo too? Thank you.