Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register
  • Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
  • The final cut of TMC Podcast #29 is available now with topics time-stamped. We discussed the Tesla Cybertruck's expected 1 MW Ultra-Fast Charging capability, the Tesla Semi Delivery Event, the coming Model 3 refresh (project "Highland"), and more. You can watch it now on YouTube.

Delivery Date 2 - 4 weeks out, need to sell my current car for down payment

My Model 3 delivery date just updated to 9/20 - 10/4, so I am about 2 - 4 weeks away from delivery (No VIN assigned though). I set my payment method to cash, as I was seeing that this might speed the process along, even though I will actually be financing. My concern is that I will be selling my current car and using that as part of my down payment, so I don't really know what that will be until I actually get an offer on my car. I don't want to sell it too early and have to rely on other means to get around, especially if my delivery date changes again. What have you guys done? Should I go ahead and start the financing process now and hope my delivery date doesn't change? Or better to wait until I actually have a VIN # assigned to me?
 
I traded mine to Tesla because I needed to drive it 7 hours to them for pickup. I'm sure I could've gotten more from CarMax/Vroom/etc or private sale.

If I were in your position, I'd switch to financing with $0 down, get your Model 3, then sell your old car for as much as possible. Then just pay the proceeds towards your Model 3 loan.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
16,805
22,231
Riverside Co. CA
I traded mine to Tesla because I needed to drive it 7 hours to them for pickup. I'm sure I could've gotten more from CarMax/Vroom/etc or private sale.

If I were in your position, I'd switch to financing with $0 down, get your Model 3, then sell your old car for as much as possible. Then just pay the proceeds towards your Model 3 loan.

That works to reduce the overall debt of the car, but wont change the payment for the 0 down loan. It works out to be very similar money in the end, but depending on how much the OP is putting down, it could be a substantial difference in the actual monthly payment on the loan.

Its entirely possible that someone could afford to pay (completely made up numbers) $500 a month on the car loan (possible with a down payment of XX,XXX), but be "tight" on a payment of $850-900 a month, with 0 down.... even if they took XX,XXX and applied it to the loan as a principle reduction.

They could refinance shortly after taking delivery to get around that, though, depending on interest rates etc. The easiest thing is either to sell the car before hand, and deal with the logistics of that, or trade it in. This is one reason why vehicle trade ins are popular, the logistics around it can be tough if you need to execute on the car sale for the new car purchase.
 
  • Informative
Reactions: father_of_6
That works to reduce the overall debt of the car, but wont change the payment for the 0 down loan. It works out to be very similar money in the end, but depending on how much the OP is putting down, it could be a substantial difference in the actual monthly payment on the loan.

Its entirely possible that someone could afford to pay (completely made up numbers) $500 a month on the car loan (possible with a down payment of XX,XXX), but be "tight" on a payment of $850-900 a month, with 0 down.... even if they took XX,XXX and applied it to the loan as a principle reduction.

They could refinance shortly after taking delivery to get around that, though, depending on interest rates etc. The easiest thing is either to sell the car before hand, and deal with the logistics of that, or trade it in. This is one reason why vehicle trade ins are popular, the logistics around it can be tough if you need to execute on the car sale for the new car purchase.
Sell it to carmax or Vroom by the time you get a pickup date. (Have it already quoted) so that basically you go there to drop off at carmax or have it pick up by Vroom or Carvana. Keep in mind that if it is a large amount check you might get a hold on the funds for max 5 days (take that into consideration if direct deposit is not an option). Have the money on hand for the down payment, as explained before if you go 0 down and then apply that extra money as principal your Debt will go down but payment amount will stay the same. Refi after purchase is not a good idea because interest rate will be higher on refi.
 
I still say... sell the old car after you get the new one. Apply the proceeds to the principle. The monthly payment amount won't change on paper, but it will in real life.

They'll send you statements for a LONG time saying you owe $0, but you'll keep making the payments anyways (as much as you can comfortably afford).
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
16,805
22,231
Riverside Co. CA
So people that come to see the old car think you're rich and don't need the money, and then proceed to haggle you on price all day long?

Reading between the lines, I would guess its more like "Your delivery date is going to move around, and there is no guarantee whatsoever that the delivery date specified is going to be the one you get, even after you get a vin".
 
Figure out how much you can reasonably sell your car for by getting quotes from Carvana, Carmax, etc. Determine the downpayment amount.

Deep into your rainy day fund to make the downpayment if you can’t sell the old car fast enough before the pickup date is set in stone.

Then use that money to replenish your emergency fund.
 

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
Top