Does Tesla prefer you to finance with them?

[newtons!]

Hi folks,

So pardon me if this is an old timer question, but I've been through the dealership purchasing process in the past and with typical auto dealers, they make a fair amount of money when you finance the car through them. One frequent scheme if you prefer to pay cash for your car is to finance your car with the dealership, cut a deal with them on the price of the car and then pay the loan off shortly after taking delivery. The general idea is that the dealer is more likely to give you a good purchase price if they believe they will make more money through the financing.

Now I know that Tesla has a much different sales approach where such incentives do not exist since there is no "dealership", but the old timer in me still wants to try to play the game. Particularly since I ordered my M3 SR+ a few days before the price cut. I'm a cash buyer, but I was thinking that I might change to financing if it would make it more likely that I might be able to get stuff like more Supercharge credits or perhaps an extension of the Connectivity. "Poor me, if I had only waited a few more days, I would gotten the car for 1K less. Can't you do anything for a poor guy like me?" Maybe if they think they will make some more money if I become a finance buyer this might have some traction?

What do people think?

 

[DoctorNomNom]

Hi folks,

So pardon me if this is an old timer question, but I've been through the dealership purchasing process in the past and with typical auto dealers, they make a fair amount of money when you finance the car through them. One frequent scheme if you prefer to pay cash for your car is to finance your car with the dealership, cut a deal with them on the price of the car and then pay the loan off shortly after taking delivery. The general idea is that the dealer is more likely to give you a good purchase price if they believe they will make more money through the financing.

Now I know that Tesla has a much different sales approach where such incentives do not exist since there is no "dealership", but the old timer in me still wants to try to play the game. Particularly since I ordered my M3 SR+ a few days before the price cut. I'm a cash buyer, but I was thinking that I might change to financing if it would make it more likely that I might be able to get stuff like more Supercharge credits or perhaps an extension of the Connectivity. "Poor me, if I had only waited a few more days, I would gotten the car for 1K less. Can't you do anything for a poor guy like me?" Maybe if they think they will make some more money if I become a finance buyer this might have some traction?

What do people think?

This won't work - the sales advisors are not paid on commission. They do not care - at least in my experience. Only people I have ever heard who have had success getting anything extra is the people who buy demo models. Other than that, they set up your order through the same portal you do.

The typical "tricks" will not work when no one cares. They would rather you pay cash as to them its all the same. The Tesla portal just sets you up with banks who are part of the group who Tesla uses - all underwriting is still done by the bank and the loan paperwork is done by the bank. If anything, paying in cash might help you get matched to a car sooner.

 

[jjrandorin]

Hi folks,

So pardon me if this is an old timer question, but I've been through the dealership purchasing process in the past and with typical auto dealers, they make a fair amount of money when you finance the car through them. One frequent scheme if you prefer to pay cash for your car is to finance your car with the dealership, cut a deal with them on the price of the car and then pay the loan off shortly after taking delivery. The general idea is that the dealer is more likely to give you a good purchase price if they believe they will make more money through the financing.

Now I know that Tesla has a much different sales approach where such incentives do not exist since there is no "dealership", but the old timer in me still wants to try to play the game. Particularly since I ordered my M3 SR+ a few days before the price cut. I'm a cash buyer, but I was thinking that I might change to financing if it would make it more likely that I might be able to get stuff like more Supercharge credits or perhaps an extension of the Connectivity. "Poor me, if I had only waited a few more days, I would gotten the car for 1K less. Can't you do anything for a poor guy like me?" Maybe if they think they will make some more money if I become a finance buyer this might have some traction?

What do people think?

No, tesla doesnt care because they dont have their own finance arm. Its all "cash" to tesla either financed through them (which actually isnt through tesla, they just farm you out to some other financial institution) paid cash, or outside financing.

makes zero difference to them.

Purchase TIMING might make a little bit of difference, as end of quarter sometimes gets some extra supercharging credits (which actually are not worth all that much, but people go gaga over them for some reason). How you finance wont matter in the slightest at tesla, unlike other car purchases you have made.

 

[OCR1]

Buying a Tesla is like buying an Iphone. You place an order online and they let you know when it’s ready for pickup. They have “sales people” just like Apple has those people in blue shirts in the stores. But you don’t negotiate with the blue shirts. They are just there to answer questions.

As @jjandorin mentioned, Tesla is end of quarter centric, so they sometimes throw a few small bones at you to pick up your car by end of quarter. And if you can find a demo model with some miles on it you may have a little wiggle room. But that’s about it.

 

[Lpmatt88]

In terms of the 1k off I purchased before it and have not picked up the car yet (your same scenario) and am doing financing setup by Tesla (not your scenario) and they automatically adjusted my price without me asking... so you definitely should be getting that 1K off.

 

[dmurphy]

If the price dropped between when you ordered and when you pick up, you’ll get the new price.

But there is no game. And it’s glorious. If I never meet another “F&I guy” in my life, it’s too soon.

Either the price of the vehicle is fair to you, enough that you are willing to purchase, or it isn’t.

This is the promise of Saturn fulfilled, from a time before GM snatched defeat from the jaws of victory.

 

[HughH]

Ford is following the Tesla lead in sales from what I heard. hey want you to build and select your car on their website and then select the Ford dealer you want to get your car...ugh! My Tesla will be delivered to my house

The just announced today Volvo XC40 is also going the Tesla sales way. Also, both Volvo and Ford have mentioned their new EV will be able to receive on-line updates a laTesla way. Hmmm, we'll have to wait and see!

 

[Gasaraki]

Yeah... no. Tesla doesn't finance anything. If you do everything from the website, all they do is find someone that is offering the lowest rate for you then tell you with what bank and what the rate is. If you agree, then Tesla will do everything for you but then you directly pay the company doing the loan.

Tesla told me i can get X% with Wells Fargo Auto. I said ok go ahead Tesla. Then Tesla did everything for me and now I just pay Wells Fargo directly.

 

[CHARLIEVET]

Yep, what you see is what you get. Ordered my 3 Plus at the sales store after a test drive. First thing the "salesman" said was none of them work on commission. You can probably invest the sales price and make more than what a loan will cost. I financed my 3 at 2.00% earlier this month. Thanks! Charlie

 

[DaveG_NJ]

Yeah, no benefit from financing with Telsa and I doubt you'll see any 0% financing from Tesla anytime soon. Manufacturers offer that when they want to move cars. Telsa will sell every car they make. My wife and son both bought new cars in 2020 with 0% financing from Subaru and VW.

 

[father_of_6]

But there is no game. And it’s glorious. If I never meet another “F&I guy” in my life, it’s too soon.

^ Ditto. @newtons! - congrats! Not sure if you've driven it or not yet, but it's a great car and I think you'll very much appreciate it.