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APR for Financing Model 3

Discussion in 'Model 3: Ordering, Production, Delivery' started by WierdMobile, Jul 30, 2017.

  1. WierdMobile

    WierdMobile Member

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    The Model S configurator currently uses 1.99% to estimate monthly payments. While the screenshots posted in this thread show that the Model 3 configurator uses 2.74%. I was expecting to be able to get the same financing rate on the Model 3 as the Model S, but it looks like the offer for the Model 3 is 0.75% higher. I wonder why that's the case. From the lender's perspective, wouldn't a smaller loan be less risky?
     
  2. mrongey

    mrongey Member

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    Loan rates have been going up the last several months. It's possible that Tesla secured a rate for the S and X that they are still able go use, but had to open new negotiations for the 3. Another possibility is that there is probably a higher risk of default for people that are buying the 3 vs. the S or X.
     
  3. dsvick

    dsvick Active Member

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    Keep in mind too that that is just an estimate. Your real rate will depend on several other factors and different lenders will, undoubtedly, have different rates so it never hurts to shop around.
     
  4. John E.

    John E. Member

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    I remember reading in one of the MS threads that it was cheaper to go to a credit union for financing instead of using Tesla's program.
     
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  5. HumanGenome

    HumanGenome Member

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    Alliant was offering 0.99% through end of Sept.
     
    • Like x 1
  6. Paladin732

    Paladin732 Member

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    Tesla's configurator now shows the 0.99 for me
     
    • Informative x 2
  7. Iggbastic

    Iggbastic Member

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    Are you an employee and already can configure?
     
  8. WileyTheMan

    WileyTheMan Peanut Gallery Member

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    Pretty sure they are talking about the loan for the S/X. It is at 0.99%.
     
  9. jtpassat

    jtpassat Member

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    I'm hoping the Alliant rates will stay low going into Nov. On the plus side, no new rate increases from the Feds.
     
  10. DAMON FELKER

    DAMON FELKER Member

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    As of today (9-23-17)there is no leasing options for the Model 3 according to the Tesla store in San Diego UTC. Does anyone plan on using a banks or credit Union to pay for their model 3?
     
  11. rolson1011

    rolson1011 2016 P90DL, Model 3 on reservation

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    Tesla subsidzes the Model S and X considerably with their partner banks. They can chalk up the losses as expenses at the end of the year vs directly discounting vehicles.

    Model 3 will have zero subsidies so will have the prevailing market rate for new vehicles which currently hovers around 2.5%
     
    • Helpful x 1
  12. michaelwb

    michaelwb Member

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    Exactly. No need for subsidized rates on Model 3, which has tremendous demand.
     
  13. c1916

    c1916 Member

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    At the risk of bumping an old thread back to life, I wonder if anyone with a recent Model 3 delivery date (or shortly upcoming delivery date) has stumbled upon deals that they might be willing to share regarding financing outside of Tesla.

    I used Alliant for my Model S, so I'm not averse to going that route again, but the current rate there doesn't seem terribly enticing.

    For the sake of argument, let's assume I have bullets credit and would be looking at a 24 or 36 month loan for something in the 55K range.
     
  14. SlicedBr3ad

    SlicedBr3ad Member

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    Btw, the rates went up or so I hear. Anyone financed through tesla and can confirm this rumor?
     
  15. EscoguyS75

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    I did a four year at 1.75% with PMCU. Anyone can join.
     
    • Like x 1
  16. S3XY

    S3XY Active Member

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    It looks like you have to live in Southern California to join.
     
  17. Blurry_Eyed

    Blurry_Eyed MS Sig #267, MX Sig # 761

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    #17 Blurry_Eyed, Jan 16, 2018
    Last edited: Jan 16, 2018
    Financed my Model 3 today with Tesla. Received a 2.99% loan for 72 months ($53,000 financed). Loan provider is US Bank for my loan thru Tesla.

    I looked around a bit and was seeing local bank and credit union rates around 3.45% to 3.99% with the recent rise in rates.
     
    • Informative x 2
  18. smak

    smak Member

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    US Bank shows they give you .5% off for a green loan. Did they mention anything like that to you?

    That could be the difference.

    It looks like Tesla's 72 month rates are usually pretty good, but they aren't as competitive when it's a 60 month period.
     
    • Informative x 1
  19. bhzmark

    bhzmark Supporting Member

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    Penfed has 1.49 for 36mo
     
  20. Pinot.Noir

    Pinot.Noir Member

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    Livermore, CA
    I did 1.44% for 24 months with UNCLE Federal Credit Union in the tri valley.
     

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