Finance Rates

[thomasw]

I've done a bit of research at least for business loans and can say for sure the ANZ green one at 3.3% is by far the cheapest. However their break fees are unclear to me still - they are saying $200 plus a amount they calculate. If their cost of borrowing doesn't change then nothing more, but otherwise there may be more, I think..... But the clarity of it doesn't give me confidence at all. And they don't do personal car loans I think.
Next best I think for both personal and business is firstmac / Clean Green Car Loan - Loans.com.au
They also have a similar deal with CEFC and on a green car are 4.29% which is about as cheap as anyone apart from ANZ, but they charge a maximum of $700 break fee from the start, then prorata that down to $0 at 12 months before the end of the loan. (I was told this in reference to a business loan but I suspect the same on personal). i.e. if on a 5 year loan it will be $700 after 1 month, down to $0 break fees if 4 years in. So unusually cheap and clear for break fees. Many others make their break fees huge or unclear. I think from memory Macquarie was 70% of the remaining interest, i.e. starts from as much as $10,000 and goes down over the term.

 

[Grenadine]

Macquarie are 4.34%

 

[Novatec]

Pepper Money are also at 4.34% same as Macquarie, both are recommended by Tesla.

We decided to go with them because the financing was easier than ANZ at 3.29%, plus ANZ wanted $350 loan fee then $6 per month for “loan administration” and we’ve been excellent customers, and then they wanted 2 weeks to process it.
Pepper Money gave approval within 30 minutes, and the repayment difference was $25 per month, and no documentation required.
Simple choice

 

[Nuclear Fusion]

I've done a bit of research at least for business loans and can say for sure the ANZ green one at 3.3% is by far the cheapest. However their break fees are unclear to me still - they are saying $200 plus a amount they calculate. If their cost of borrowing doesn't change then nothing more, but otherwise there may be more, I think..... But the clarity of it doesn't give me confidence at all. And they don't do personal car loans I think.
Next best I think for both personal and business is firstmac / Clean Green Car Loan - Loans.com.au
They also have a similar deal with CEFC and on a green car are 4.29% which is about as cheap as anyone apart from ANZ, but they charge a maximum of $700 break fee from the start, then prorata that down to $0 at 12 months before the end of the loan. (I was told this in reference to a business loan but I suspect the same on personal). i.e. if on a 5 year loan it will be $700 after 1 month, down to $0 break fees if 4 years in. So unusually cheap and clear for break fees. Many others make their break fees huge or unclear. I think from memory Macquarie was 70% of the remaining interest, i.e. starts from as much as $10,000 and goes down over the term.

ANZ charges the balance of the interest remaining on the loan

 

[meowsers]

I think from memory Macquarie was 70% of the remaining interest, i.e. starts from as much as $10,000 and goes down over the term.

This is for their business loans, but for consumer loans it caps out at around 700 dollars.

 

[Brendon]

A finance company doesn’t care if the car is green, it’s just a marketing technique. They certainly aren’t getting any incentive from government or some philanthropist.

Clean Green Car Loan - Loans.com.au are doing it and say "Our green car discount is the result of a partnership with the Clean Energy Finance Corporation" and if you go to the CEFC website Asset Finance - Clean Energy Finance Corporation (CEFC) then they also say they support the financing of electric cars.

 

[thomasw]

ANZ charges the balance of the interest remaining on the loan

That is not what I've been told, by both a ANZ employee, and a broker in reference to ANZ. And not what I've read in their terms/conditions either, though I'm a little confused with which PDFs apply to this loan, so happy to be corrected if you can find the applicable terms and conditions. I was also told that if you accept a floating monthly rate (also 3.3% as of now) then there is only a $200 early termination fee. And on the fixed rate they only charge more than $200 if the interest rate (or their cost rate maybe) has changed since signing.

I don't know why anyone would sign up to a loan where you agree to pay out all (or 70% in the case of Macquarie) remaining interest in the event of early termination. Crazy terms I think, could easily cost you more than $10000 in some cases, and the lender gets it for doing nothing for the rest of the term. I've always had car loans with sub $1000 early payout fees, and have terminated early on occasion, including once only one month in due to writing the car off, and it having to be paid out as it couldn't be replaced (long waiting list on the car at the time).

3.29% versus 4.34% is a saving of $3800 interest in my case, so worth some extra paperwork with ANZ in my view. Monthly payments in my case are about $62 less (5 year chattel with 30% balloon, on a M3P+).
With a $6 a month of fee (which they didn't quote me but may have hidden it) at $360 over 5 years, and a $401 (I was quoted $401 not $350) upfront fee they are still much cheaper. And I am pretty sure their early termination is a lot cheaper.

 

[thomasw]

Reading the ANZ terms myself rather than relying on what I'd told, I suspect the early termination is similar to Macquarie at about 70% of remaining interest - I think they want the profit they would have made if it went full term, and their current margin is 2.11%

 

[Grenadine]

Anyone got a link to this ANZ offer? Having trouble locating it.

 

[thomasw]

ANZ Equipment Finance | ANZ
Reference to 0.7% off down the page.
And other providers that partner with CEFC to do a discount here Asset Finance - Clean Energy Finance Corporation (CEFC) but doens't mean they are all cheap

 

[Nuclear Fusion]

That is not what I've been told, by both a ANZ employee, and a broker in reference to ANZ. And not what I've read in their terms/conditions either, though I'm a little confused with which PDFs apply to this loan, so happy to be corrected if you can find the applicable terms and conditions. I was also told that if you accept a floating monthly rate (also 3.3% as of now) then there is only a $200 early termination fee. And on the fixed rate they only charge more than $200 if the interest rate (or their cost rate maybe) has changed since signing.

I don't know why anyone would sign up to a loan where you agree to pay out all (or 70% in the case of Macquarie) remaining interest in the event of early termination. Crazy terms I think, could easily cost you more than $10000 in some cases, and the lender gets it for doing nothing for the rest of the term. I've always had car loans with sub $1000 early payout fees, and have terminated early on occasion, including once only one month in due to writing the car off, and it having to be paid out as it couldn't be replaced (long waiting list on the car at the time).

3.29% versus 4.34% is a saving of $3800 interest in my case, so worth some extra paperwork with ANZ in my view. Monthly payments in my case are about $62 less (5 year chattel with 30% balloon, on a M3P+).
With a $6 a month of fee (which they didn't quote me but may have hidden it) at $360 over 5 years, and a $401 (I was quoted $401 not $350) upfront fee they are still much cheaper. And I am pretty sure their early termination is a lot cheaper.

I asked to refinance an existing loan & they advised no, as the balance of the interest remaining would need to be paid out
I am going to have to investigate further

 

[thomasw]

I asked to refinance an existing loan & they advised no, as the balance of the interest remaining would need to be paid out
I am going to have to investigate further

As I said in a later post I think what I've been told is likely wrong, and they actually work out how much profit they would have made from the loan over the whole term, and charge you that. Which works out to around 70% like Macquarie do. But even if it is that and not 100% of the interest then it is very likely to be way to expensive to pay out just to refinance on a lower rate. The reality is no one you talk to knows the real answer, best off reading the T&Cs yourself, if you can work them out.....
Also I am reading the Business Asset finance Chattel mortgage terms, your loan might be something else with different terms.
Terms & Conditions | ANZ

Anyway in my mind the decision for a business loan is either ANZ with a very low rate and save $3000 or so, but with pretty high payout if not near the end of the loan term. Or higher rate with FirstMac but very cheap payout.

 

[Momentum1]

Sorry for doubting you! I had no idea the government was supporting that green discount. Incredible!

Me either. Funnily though, only one of 5 financing places I made enquiries to mentioned it to me as the others knew nothing about it.

 

[thomasw]

This is for their business loans, but for consumer loans it caps out at around 700 dollars.

Possible but I doubt it. They probably mean a $700 fee, plus their calculated payout figure on the day.
https://help.macquarie.com/article/Can-you-explain-my-car-loan-payout-figure

 

[meowsers]

Possible but I doubt it. They probably mean a $700 fee, plus their calculated payout figure on the day.
https://help.macquarie.com/article/Can-you-explain-my-car-loan-payout-figure

I have this in writing. It is essentially the fee divided by the number of months remaining. You do not pay interest. If you paid out the loan the day after it was settled, you would pay the balance due, the interest for the day, and the maximum fee. If you paid it halfway into the term you would pay the balance owed, and half of the fee. Not future interest.

Call them if you like. There is a difference between the chattel mortgage for business, and the personal auto loan.

 

[thomasw]

Fair enough, these days with the spotlight on banks they probably can't, but business loans aren't such an issue.

 

[paulp]

I have this in writing. It is essentially the fee divided by the number of months remaining. You do not pay interest. If you paid out the loan the day after it was settled, you would pay the balance due, the interest for the day, and the maximum fee. If you paid it halfway into the term you would pay the balance owed, and half of the fee. Not future interest.

Call them if you like. There is a difference between the chattel mortgage for business, and the personal auto loan.

I agree. Having paid one out last year it was an insignificant cost. I also looked at a quick sale of my new model s when the price dropped a few months ago, and noted it also had no future interest charge in the payout. Decided not to sell though....no point in attempting to chase tesla. Disclaimer: read the fine print, all contracts and loan types are different.

 

[youmi]

Anyone had contact from Tesla re: Financing for a Model 3 yet?

 

[meowsers]

Anyone had contact from Tesla re: Financing for a Model 3 yet?

Yes, a few weeks ago. All sorted and approved. Just waiting for the car now.

 

[AlexMon888]

I decided to share my experience. I hope it will help someone. The aim is Model 3 LR AWD - about $95000.
Initially I applied to Macquarie. They said that could provide about $50000 only.
Then ANZ business loan (a personal one has too high %). Even the car will be used more than 51% (about 90%) for business the loan cannot be provided as my main income is not from the business but from my full-time work. It is crazy.
The final step was Pepper - no issues. The loan was approved during 3 days including providing documents and having time to choose a proper loan (5 or 7 years, possible deposit and balloon, etc.).