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Finance thru dealer?

Discussion in 'Model S' started by irvineboy, Dec 11, 2016.

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  1. irvineboy

    irvineboy Member

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    I have heard two sides to the story. Never finance thru the dealer because they mark up the interest. Go through your own credit union is better. Some people say it's actually better to get financing through the dealer because it in incentivizes them to work with it and gives them more flexibility to come down on price. This probably won't work on Teslas because they have fixed pricing but assume used Teslas at other dealers.
     
  2. Derek Kessler

    Derek Kessler Member

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    Financing through the dealer (traditional) gives them ZERO incentive to negotiate on price — they're taking a financial risk for more money long term from interest instead of getting it all up front.

    That said, there's absolutely nothing to stop you from getting multiple quotes. I did my bank, a local credit union, and through Tesla. In the end I went with Tesla's financing because it offered me greater flexibility and a marginally better interest rate.
     
  3. mblakele

    mblakele radial cross member

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    Tesla outsources their financing, so that's out of their hands. Used to be that guaranteed resale value was a reason to go through Tesla anyway, at least for some people. But that's gone now. I'd just take the best terms you can find, wherever that is. There's at least one thread about loan deals.

    Caveat emptor if you're buying a used Tesla from a non-Tesla dealer. There was one story here about a car sitting in a dealer lot with a dead battery and no mobile charging kit. I don't recall how that worked out, but a situation like could damage the battery or maybe even brick the car.
     
  4. irvineboy

    irvineboy Member

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    I was referring to username teslas at Audi dealers, for example not through Tesla. I heard associates are sometimes more incentivized to work with you because they get paid if you finance through them.
     
  5. clyjr

    clyjr Member

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    I normally finance through the dealer, make sure there is no prepayment penalty, then see if I can get my bank to beat it. If so, refinance immediately, if not stay with the original financing. Example, my BMW was through BMW but immediately switched to state farm since they beat the rate. Tesla is financed through BMW, state farm couldn't beat the used car rate so I'm leaving it with BMW.
     
  6. fallen888

    fallen888 Member.. hehe, I said "member"

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  7. irvineboy

    irvineboy Member

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    Usually, when you go through the dealer, they say the process is smoother. However, I don't know if you can refinance right away without a penalty. Sometimes , I heard you have to wait 3-4 months before refinancing.
     
  8. clyjr

    clyjr Member

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    Just make sure there is no prepayment penalty, then you can refinance as soon as you want. You will have to pay the interest that accumulated since the last payment on the loan. So if you finance and refinance 10 days later, you will either have to pay the 10 days worth of interest or roll that into your new loan...
     

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