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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

    Joined:
    Mar 15, 2016
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    United States
    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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    Location:
    Lehi, UT
    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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    NE Ohio
    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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    May 21, 2016
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    Location:
    South Florida
    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.
     
    • Like x 2
  5. HumanGenome

    HumanGenome Member

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    Oct 11, 2014
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    Location:
    Sacramento, CA
    Alliant was offering 0.99% through end of Sept.
     
    • Like x 1
  6. Paladin732

    Paladin732 Member

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    May 6, 2017
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    Tesla's configurator now shows the 0.99 for me
     
    • Informative x 2
  7. Iggbastic

    Iggbastic New Member

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    Jul 13, 2017
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    Concord, CA
    Are you an employee and already can configure?
     
  8. WileyTheMan

    WileyTheMan 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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    May 26, 2015
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    Providence, RI
    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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    Jun 8, 2016
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    Del Sur
    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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    Portland, OR
    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%
     
  12. michaelwb

    michaelwb Member

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    Apr 2, 2013
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    Location:
    Los Angeles, CA
    Exactly. No need for subsidized rates on Model 3, which has tremendous demand.
     

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