TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Business lease vs Business finance?

Discussion in 'Model X: Ordering, Production, Delivery' started by jmcclureXPA, Mar 13, 2017.

  1. jmcclureXPA

    jmcclureXPA Supporting Member

    Joined:
    Jan 7, 2017
    Messages:
    19
    Location:
    Harrisburg, PA
    My X is in transit and Tesla is ready to schedule delivery. I'd like to register the vehicle in my business name and finance it. I haven't had great success getting good options through the delivery specialist who seems more like an order taker...

    The lease program does not seem like a good financial decision though it's an "easy" transaction through Tesla. I'm in PA and wondering if anyone else dealt with a similar decision? I am seeing other people use US Bank or others but it seems like Alliant is the only "Tesla" option and they don't offer business loans?

    What's the best financial decision for a business purchase?

    Thanks ahead of time for any help!
     
  2. jmcclureXPA

    jmcclureXPA Supporting Member

    Joined:
    Jan 7, 2017
    Messages:
    19
    Location:
    Harrisburg, PA
    Just an update... My delivery specialist punted and said to talk further with the credit specialist with Tesla in CA. I shared my frustration and he said they did have a work-around for PA business financing.

    I was able to get 1.99% for 72 months through TD Bank with the vehicle registered in the business name but it did require 10% down.
    More than I would have liked but the lease was over $10k down too, with a higher monthly payment, a mileage restriction, no depreciation, and you won't receive the full tax credit.

    I appreciated the service from the "Regional Credit Specialist" located at Tesla in CA. I'm just surprised that the team at the Philly Tesla store basically told me they don't offer business financing. They said lease, pay cash or come up with your own business financing. Seems like I wouldn't have that unique of a situation and they would be better informed of all options?

    Hoping this might help someone in PA/NJ area?
     
  3. Cowby

    Cowby Member

    Joined:
    Jun 2, 2015
    Messages:
    480
    Location:
    ATL, GA
    General rule is if you have a small business, then purchase....if you have a large business, then lease it. Small i'd wager is under 1-2 mil/year.
     
  4. jmcclureXPA

    jmcclureXPA Supporting Member

    Joined:
    Jan 7, 2017
    Messages:
    19
    Location:
    Harrisburg, PA
    Thanks for the response. I know "small business" can be a relative term. We are $5m + with less than 50 employees but I still believe the finance option is a better for us?

    Again, thanks for chiming in!
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC