TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Financing and insurance in Hong Kong

Discussion in 'Hong Kong' started by DITB, Sep 15, 2013.

  1. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    Is it likely Tesla will offer financing and insurance in HK?

    If not, what other companies are favourable for financing/insuring a Tesla in HK?

    I never owned a car in HK, so I don't know the market at all (and I don't have a suitcase with cash waiting for the car to arrive!)
     
  2. CCT

    CCT Member

    Joined:
    Aug 30, 2013
    Messages:
    240
    Location:
    Hong Kong
    Tesla hasn't released the HK prices of the Model S yet, so how can Tesla, let alone other banks/insurers, provide us figures about any possible financing plans? Think about that.
     
  3. markwj

    markwj Moderator, Asia Pacific

    Joined:
    Apr 10, 2011
    Messages:
    3,664
    Location:
    Hong Kong
    For insurance, the car salesman will normally assist, if you need it. The bigger dealers can normally help with NCB transfers (with leeway for helping split, etc), but Tesla has been too small for that so far.

    For financing, your bank can probably help. They just care about the amount, not the car. I doubt if Tesla HK will offer financing day #1.
     
  4. lx3h

    lx3h Charged.hk TSLA Grp Rep

    Joined:
    Jan 3, 2014
    Messages:
    1,302
    Location:
    Hong Kong SAR China
    My sis bought a BMW recently, and they offer their own financing program at a very attractive rate of 2% + rebate. That being said, I don't think Tesla has enough capital to offer such program for us the prospect / buyers.


     
  5. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    I never owned a car in Hong Kong, that is why I asked initially.

    It seems industry practice is that you can get up to 5 years and 100% financing for a new car. For some, I saw that you could even include first years insurance, tax and registration fees.

    Are you all going to just write a check, so I'm the only one who needs to take a loan? I figure mine will end up around 850K HKD, as I want 85kWh, air, tech and a few other extras. Paying that over 5 years should be around 15K a month, depending on what interest is offered.
     
  6. markwj

    markwj Moderator, Asia Pacific

    Joined:
    Apr 10, 2011
    Messages:
    3,664
    Location:
    Hong Kong
    DITB: talk to your bank. Seems to be 3 levels of loans: 1) anything, 2) cars, 3) houses. The rates for 3 is better than 1 (security, I guess).
     
  7. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    Thanks, Mark, I was just hoping to get some third party advice before I am lured into some sub-optimal deal. Maybe one that combines insurance and financing, and with not too much money down.

     
  8. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    Talking to Hitachi Finance about financing.

    They will be the legal owner of the car until I finish paying it off, after which ownership is transferred to me.

    Does anyone know the sequence of payments? Already paid the 39,000 HKD - how and when is the rest paid? Mainly of interest is how much more money Tesla Motors need to finalize the order - even months before the car is actually delivered.

    I'm not sure how financing will work if the financing bank has to pay for a car that hasn't even been built yet.
     
  9. markwj

    markwj Moderator, Asia Pacific

    Joined:
    Apr 10, 2011
    Messages:
    3,664
    Location:
    Hong Kong
    What will normally happen is that they will retain the original vehicle registration document and a signed form from you to them. They can then take legal ownership of the car at any time. They will give you back the registration document when the lease is paid-up. It is a bit of a hassle for yearly license renewal (you have to go through them), but avoids having to have an ownership transfer (and another owner on the vehicle record) at end of lease.
     
  10. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    Of course, you are right, Mark, what I wrote wasn't correct. They keep the registration, but it IS registered in your own name. Which is good, because I have a personal registration waiting to be plastered on my model S.

    Hitachi Finance or Wing Hang Bank seem to be the ones to try.

    After I called Tesla today, I got these points clarified. For those of you who already know, sorry to bore you, for the rest of you, here goes:

    - Whatever date you confirm your specs, it will be 14 days from that date, and after those two weeks, 1) you won't be able to change configuration, and 2) not get your deposit back if you cancel (correct me if I am wrong, this is how I understood it)

    - No need to pay anything apart from your deposit, until the day where the car is actually ready to be handed over to you. I was afraid they would ask for more down payment, to confirm your order.

    - Insurance offered will be confirmed, as the date is closing for deliver. I tried to get something more formal, whether or not insurance is confirmed to be offered or what.

    It will be interesting to see how the Tesla model S will position with financing, and in particular, insurance premiums.

     
  11. KingKitega

    KingKitega Member

    Joined:
    Oct 31, 2012
    Messages:
    47
    Location:
    Hong Kong
    Anyone tried getting insurance quote on the Model S? I'm interested to know how much difference premiums would be for 60, 85 and the performance plus..
     
  12. lx3h

    lx3h Charged.hk TSLA Grp Rep

    Joined:
    Jan 3, 2014
    Messages:
    1,302
    Location:
    Hong Kong SAR China
    Any news on the interest rates?
     
  13. lx3h

    lx3h Charged.hk TSLA Grp Rep

    Joined:
    Jan 3, 2014
    Messages:
    1,302
    Location:
    Hong Kong SAR China
    After reading what DITB said about financing today, Linda from Tesla called me and gave me the contact of Wing Hang Bank.

    She said they will offer rate at 2% over 48 months.

    Edmund Lam (Wing Hang Bank) at 6598-1113 or 2281-9819

    Lerxt has 1.88% from Standard Chartered. Hope she can provide more info too.
     
  14. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    Just to clarify about Wing Hang Bank: They also require a 5 month payment up front. In total, after the financing, the end result is 80% financing, but not just that, there are only 43 months left then, for the remaining payments.

    Effectively, with WHB it is 80% financing over 43 months (not 48 months)

    I am pursuing other options, will get back when I hear more (60 months and 95% financing is what I am looking for, hopefully also at 2%)
     
  15. Lerxt

    Lerxt Member

    Joined:
    Feb 21, 2014
    Messages:
    952
    Location:
    Hong Kong/Australia
    Just to confirm, I have been offered a tax loan by SCB at 1.88%. The catch is you need to take it now as it is for April tax bills. I am taking it and will probably go up to 100% financing! Cheap money! I will post back about insurance when Kwiksure gets back to me...mind you the guy on the phone said " Right, the Tesla Model S, how many cc's is it?"
     
  16. lx3h

    lx3h Charged.hk TSLA Grp Rep

    Joined:
    Jan 3, 2014
    Messages:
    1,302
    Location:
    Hong Kong SAR China
    So if you take it now, do you have to start paying now?
     
  17. DITB

    DITB Charged.hk co-founder

    Joined:
    Nov 13, 2012
    Messages:
    1,568
    Location:
    Hong Kong
    How many years do you have to pay that back? Normally, it is no more than 24 months or what ...
     
  18. lx3h

    lx3h Charged.hk TSLA Grp Rep

    Joined:
    Jan 3, 2014
    Messages:
    1,302
    Location:
    Hong Kong SAR China

    I called just now and got more details.

    Wing Hang Bank said you can get maximum 48 months at 2.5% rate, which I doubt anyone want that. You can have shorter period but the minimal rate is 2% and it is a reference rate, not finalised until we almost get our car. Application takes around 2 to 3 days but can be approved immediately upon face-to-face meeting with him.

    Back office in Shaukeiwan. Specialising in auto-financing.
     
  19. Lerxt

    Lerxt Member

    Joined:
    Feb 21, 2014
    Messages:
    952
    Location:
    Hong Kong/Australia
    #19 Lerxt, Feb 24, 2014
    Last edited: Feb 25, 2014
    I got a quote for insurance from my guy at Kwiksure and they tried 8 companies. Only one got back to them with a quote. This is apparently because they are considered a very expensive high performance sports car. (to quote him)

    Royal and Sun Alliance Premium is $69,500 with a "special offer" with my 40% NCD of $18,700. Single driver only, general excess $55,000....ouch

    I think we really need to get Tesla Hong Kong to help us with this so at least the companies look at it more as a BMW 7 series not a Bugatti....

    Anyone else with an insurance quote? It may help if we all approach the same company perhaps.
     
  20. Lerxt

    Lerxt Member

    Joined:
    Feb 21, 2014
    Messages:
    952
    Location:
    Hong Kong/Australia
    #20 Lerxt, Feb 25, 2014
    Last edited: Feb 25, 2014
    It expires at the end of Feb. I will let you know when the paperwork arrives in the next day or so but they said 3 years was ok.
     

Share This Page