Finance Question

[Trufflies]

I'm ready to buy a Tesla. The only thing I'm having an issue with is financing the car. For religious reasons, I can't pay interest so I need to buy down the interest rate to make it 0%. I know other manufacturers like Honda and Toyota who have their own banks can do it. But Tesla doesn't have its own bank and they said their lenders don't really do that.

Does anyone know of a private bank I can go through that would accommodate this? Any other ideas?

I really appreciate the help!

 

[mbhforum]

You can use ANY bank you want. I don't have a recommendation but as long as Tesla gets their money, it shouldn't matter what arrangement you have with your bank.

 

[Tam]

1.49% is the cheapest I could find and listed at:

Model X - Should we take the plunge?

 

[andrewket]

It's not really 0%; you're pre-paying the interest so that the payments all go to the principal.

 

[chillaban]

Can someone explain to me how buying down interest works?

I really don't understand how it could be structured such that it makes more financial sense versus paying interest via your payments, even assuming you aren't offsetting the deferred payment via any sort of appreciating fund/asset.

I know some leases take collateral in exchange for a lower interest rate and can see how they make sense.

 

[mblakele]

I think some of y'all missed "For religious reasons".

As I understand it he'll need to find a bank that will buy the car on his behalf, then sell it to him at a markup. The markup will be roughly equivalent to interest, but won't trigger the religious objection.

 

[hmmm]

It's not really 0%; you're pre-paying the interest so that the payments all go to the principal.

That.

Having said that, op, have you explored small community lenders and credit unions? Some are "aligned" with different "world views/religions/etc" and may be an option.