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Can you buy cash first, then finance after?

Discussion in 'Model 3: Ordering, Production, Delivery' started by deonb, Sep 26, 2019.

  1. deonb

    deonb Supporting Member

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    I'm looking to pick up an inventory Model 3 over the weekend while they have some of their incentives going.

    Can I pay for it cash initially, then start a financing process a week later? Is this something a bank, CU and/or Tesla can do?
     
  2. ckoval7

    ckoval7 Mild One

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    Are you saying you want to give Tesla cash for the car, then have a financial institution reimburse you?
     
  3. Chrisizzle

    Chrisizzle Member

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    If you buy the car for cash, that transaction is complete and won’t be reopened by any car dealer.

    To ‘finance’ a car you paid cash for, you can get a loan or line of credit from the bank. It won’t be favourable though. The best interest rates and incentives are always through the dealers themselves.

    Keep in mind that incentives from car dealers are usually like an a la carte menu. You can choose a special cash incentive, a special finance rate, or a special lease rate.

    I assume you are trying to get the cash bonuses (which are indeed usually the best) and then also get the special finance offer. You’ll have to choose.
     
  4. pdxrunr

    pdxrunr Member

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    Easy if you have the cash. Pay cash, take the bonus they give you, then open a heloc and pay yourself back. Rate will be slightly higher, but much longer payback term.
     
  5. Rachmaninov

    Rachmaninov Supporting Member

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    Actually it is possible to pay cash for a new car and then finance it with most local banks/credit unions not Tesla.

    Check with your bank to see what restrictions they have on mileage or time. This is not through Tesla obviously but my credit union’s offered fees that were actually less than Tesla.
     
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  6. KenC

    KenC Active Member

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    Try your bank or CU. Let them know ahead of time, as they may be flexible in offering you the new car rate financing as opposed to a used car rate refinancing. Could be a slightly better rate. Exactly a year ago, Tesla sent out those end-of-quarter text messages about having cars matching orders. Of course, it was just a fishing expedition to find out who could take a car on short notice. I immediately went to my CU to start the financing process, but they said they could finance me a week later, when I got the car, with VIN, etc., and I could still have the prior month's new car finance rate, etc.
     
  7. deonb

    deonb Supporting Member

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    Yes.
     
  8. lolque

    lolque Member

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    I’d definitely call whatever bank/CU you’re planning on going through to make sure they don’t classify that as a personal loan instead of an auto loan.
     
  9. kunzjob

    kunzjob Member

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    Yes you can- I had planned on doing that with Allegacy. I was able to get everything sent through in 2 days though. I was lucky. Give your bank a call first.
     
    • Like x 1
  10. vickh

    vickh Active Member

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    is there a time cut off to do this "refinance"?
     
  11. SilverSp33d3r

    SilverSp33d3r Member

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    I’m not sure you can show up with a briefcase full of cash to buy a Tesla .
     
  12. TMBURNSY

    TMBURNSY Member

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    Yes, many banks or CUs consider the model year to define if you get the new or used interest rate. Example...

    Auto Loan Refinancing from PenFed - Find, Compare, and Apply Today

    "Vehicle's model year is 2020, 2019 or 2018...."
     
  13. dchobo

    dchobo Member

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    Not sure if it will work with Tesla, but I remember years ago my first car was bought on a weekend too. I wrote the dealer a check for the full amount but asked them to hold it (don't cash it immediately), then talked to my credit union on Monday who promptly gave me a check to give it to the dealer. Then the original check is returned to me.
     
    • Helpful x 1

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