Financing options

[marveldave]

Hi all,

Just got approved by US bank (Tesla program). My question is did I get the best rate from them (2.8%)? I saw few people got 1.99% from them, but was not sure if it was for 60 or 72 months. Please advise. Thanks in advance.

LENDER	MAXIMUM AMOUNT TO FINANCE	MAXIMUM TERM MONTHS	CONTRACT RATE	APPROXIMATE MONTHLY PAYMENT
U.S. Bank, N.A.	65,509	72	2.80%	$989

 

[AlMc]

Hi all,

Just got approved by US bank (Tesla program). My question is did I get the best rate from them (2.8%)? I saw few people got 1.99% from them, but was not sure if it was for 60 or 72 months. Please advise. Thanks in advance.

LENDER	MAXIMUM AMOUNT TO FINANCE	MAXIMUM TERM MONTHS	CONTRACT RATE	APPROXIMATE MONTHLY PAYMENT
U.S. Bank, N.A.	65,509	72	2.80%	$989

I would see if you can get a better rate outside the Tesla Loan program...and if you can (you should be able to) leverage that position by asking for a lower rate. Doubt that the Tesla package will be equal to this comparable rate but you may find you can do better.

 

[discypl]

I've seen a bit of confusion regarding the maximum amount financeable by the US Bank/Tesla deal. The design studio seems to insinuate that 15% down is what you need for 72 months, but some people have been approved for less than the 85% remaining balance by US Bank and have had to put more than 15% down. Of course, none of these numbers include sales tax/title/registration.

Is that a matter of credit score, capriciousness on the part of a large bank, or just a miscommunication?

 

[shrink]

Hi all - I'm new here. This is my first post. I'm in Phoenix, AZ and am a LEAF and Volt owner. I'm considering a Model S when my LEAF lease ends in a year. I own the Volt and its doing very well. The LEAF on the other hand is wilting in the desert heat. Nissan's failure to cool that LEAF battery is just ridiculous.

Anyway, at what point in the ordering process are people applying for financing? Right after you order, or when you get delivery information? I know this is probably in other threads but about how long is it taking these days from ordering to production to delivery? If I go with a Model S to replace the LEAF, I just want to get an idea of when I should order and when to get financing by the time the LEAF lease ends.

Thanks!

 

[lefantaz]

We started the process with Alliant when we got our delivery button but could have waited much longer since there is only so much they can do before you actually have a VIN. The process with Alliant was so easy and quick once I had my VIN. I wouldn't start before getting you VIN and I wouldn't wait much longer than that either since you will have to FedEx the check to Tesla before they ship your car (since you are in AZ).

 

[B-Chicago]

Agree with everyone on Alliant. Called Jason in Chicago (recommended by several). While it took a few tries to get him, he was very quick and very helpful. They can basically finance 100% of the purchase price, and sometimes more (tax/title). Told me to call back 3-4 days before delivery and they would fedex a check overnight. 1.49% for 72mo. Seems the best rate if you want as small an upfront payment as possible and low monthlies. Have to set up a small Alliant account, but no big deal ($5 savings account).

I also was able to get 1.99% on a 60-mo from Wells under the Tesla program. Amount is 80% of purchase price. I'm pretty torn between the two due to the guaranteed repurchase option with Wells. Has anyone seen a good analysis on the repurchase program and the value vs normal expectations? For $3-4k difference over 39 months between the two leases, I would like to better understand what you are getting.

 

[marveldave]

Agree with everyone on Alliant. Called Jason in Chicago (recommended by several). While it took a few tries to get him, he was very quick and very helpful. They can basically finance 100% of the purchase price, and sometimes more (tax/title). Told me to call back 3-4 days before delivery and they would fedex a check overnight. 1.49% for 72mo. Seems the best rate if you want as small an upfront payment as possible and low monthlies. Have to set up a small Alliant account, but no big deal ($5 savings account).

I also was able to get 1.99% on a 60-mo from Wells under the Tesla program. Amount is 80% of purchase price. I'm pretty torn between the two due to the guaranteed repurchase option with Wells. Has anyone seen a good analysis on the repurchase program and the value vs normal expectations? For $3-4k difference over 39 months between the two leases, I would like to better understand what you are getting.

I don't have the answer, but I understand your dilemma. I think it all comes down to whether or not you will change your car after 3 years and don't want to go through the headache of selling it to a private party. I am actually still asking the same question myself. I feel that I want to "upgrade" my model S after 3 years, maybe to a newer (but not smaller) version of model S - I know that the smaller version of Model S will be available by 2016, but I am not interested in that one.

 

[irishstoutaz]

Just remember the key stipulation in the repurchase guarantee is that you have to have a clear title...

Agree with everyone on Alliant. Called Jason in Chicago (recommended by several). While it took a few tries to get him, he was very quick and very helpful. They can basically finance 100% of the purchase price, and sometimes more (tax/title). Told me to call back 3-4 days before delivery and they would fedex a check overnight. 1.49% for 72mo. Seems the best rate if you want as small an upfront payment as possible and low monthlies. Have to set up a small Alliant account, but no big deal ($5 savings account).

I also was able to get 1.99% on a 60-mo from Wells under the Tesla program. Amount is 80% of purchase price. I'm pretty torn between the two due to the guaranteed repurchase option with Wells. Has anyone seen a good analysis on the repurchase program and the value vs normal expectations? For $3-4k difference over 39 months between the two leases, I would like to better understand what you are getting.

 

[spaghetti]

Just remember the key stipulation in the repurchase guarantee is that you have to have a clear title...

IMO, there is a good chance that this stipulation will be waived if you will be getting a new Tesla at the time of repurchase. It would be in Tesla's interest to remove as many barriers as possible for a new car sale. Just like some ICE manufacturers waive the fee at lease turn in if you lease another vehicle from them.

 

[SUN-day Driver]

Just remember the key stipulation in the repurchase guarantee is that you have to have a clear title...

No, the key stipulation is that you get financing from Tesla's partners through Tesla.

marveldave,
Ask for a quote from Wells Fargo for 60 months with a higher downpayment. That will get you a better rate.

 

[irishstoutaz]

I read the clause differently... it makes no mention of financing through Tesla's Partners and simply states you must have a clear title. I am not knocking the Tesla financing and we would have considered it if it was available here but you have to read the details and make sure you are ok with all of them.

No, the key stipulation is that you get financing from Tesla's partners through Tesla.

marveldave,
Ask for a quote from Wells Fargo for 60 months with a higher downpayment. That will get you a better rate.

- - - Updated - - -

I do think that may be the case but you just never know...

Only 8 more days for you!!! Still hoping for Sat for us!

IMO, there is a good chance that this stipulation will be waived if you will be getting a new Tesla at the time of repurchase. It would be in Tesla's interest to remove as many barriers as possible for a new car sale. Just like some ICE manufacturers waive the fee at lease turn in if you lease another vehicle from them.

 

[B-Chicago]

Thanks all. I think the floor insurance on the repurchase is just too valuable to pass up. Hard to know what things look like 39 months (and 2 weeks) from now.

 

[SUN-day Driver]

I read the clause differently... it makes no mention of financing through Tesla's Partners and simply states you must have a clear title. I am not knocking the Tesla financing and we would have considered it if it was available here but you have to read the details and make sure you are ok with all of them.


View attachment 23288

Well, the first bullet point provision listed (and not shown in your screen grab) is that the car is financed through Tesla's direct financing program. When you finance through them you get the document spelling out your minimum guaranteed value. If you don't finance from them you do not get the document and you do not have the guarantee. Sure they might sometime in the future decide to open this buyback up to everyone, but there is no guarantee they will do that other than for those who used their financing for which this guarantee applies.

For clearing title, I assumed their purchase of my vehicle could be paid to the lender to pay off the balance of the loan, and indeed it does say title can be cleared in conjunction with their purchase of the car. I don't think you have to pay it off yourself before offering to sell it back to them.

When I bought mine, I was able to get a better rate from them than initially offered by switching from U.S. Bank to Wells Fargo, taking out a 60 month loan, and putting more than the minimum down. I'm speaking from experience. If your credit is good you should be able to do the same.

 

[Palpatine]

I called Aliant today to get the info. The loan officer I spoke to said they did over 100+ loans for Tesla Model S cars last month.

 

[Robbo]

Got the 2.8% offer from US Bank. They dropped rate to 2.2% by shortening term to 36 months.

 

[B-Chicago]

Got the 2.8% offer from US Bank. They dropped rate to 2.2% by shortening term to 36 months.

Ask for the Wells Fargo quote. They are generally 25bps lower.

 

[Ven Rala]

I would recommend going thru a credit union, I applied with Alliant and they were great but ended up going with our local credit union FedFinancial who agreed to beat Alliant's rate because we have several accounts with them.

Credit unions have several advantages over banks including no prepayment penalties, low rates and no hidden fees (at least the ones I have dealt with). They usually have better customer service too! Also look into PenFed and USAA.

 

[Robbo]

Ask for the Wells Fargo quote. They are generally 25bps lower.

Original offer from US Bank via Tesla -- $79K/72 months/2.8%

2nd offer from US Bank (after saying I would be willing to accept a shorter term for a lower rate) -- $79K/36 months/2.25%

Offer from Wells via Tesla (after asking per B-Chicago's post) -- $84K/60 months/1.99%

My primary reason for pursuing financing was to get the Resale Guaranty. Had they offered that to all purchasers, I probably wouldn't have bothered. The US Bank offer was lousy, so I figured I would just borrow the minimum ($30K).

The Wells Fargo offer, on the other hand is really attractive. Getting 5 year money at less than 2%, with the Resale Guaranty is a pretty good deal.

 

[B-Chicago]

Original offer from US Bank via Tesla -- $79K/72 months/2.8%

2nd offer from US Bank (after saying I would be willing to accept a shorter term for a lower rate) -- $79K/36 months/2.25%

Offer from Wells via Tesla (after asking per B-Chicago's post) -- $84K/60 months/1.99%

My primary reason for pursuing financing was to get the Resale Guaranty. Had they offered that to all purchasers, I probably wouldn't have bothered. The US Bank offer was lousy, so I figured I would just borrow the minimum ($30K).

The Wells Fargo offer, on the other hand is really attractive. Getting 5 year money at less than 2%, with the Resale Guaranty is a pretty good deal.

Agree Robbo. I decided on Wells $85K/60mo/1.99% over Alliant $105k/72mo/1.49%. Alliant has better loan terms on face, but the Guaranty is a nice floor and worth the difference to me.

LENDER	MAXIMUM AMOUNT TO FINANCE	MAXIMUM TERM MONTHS	CONTRACT RATE	APPROXIMATE MONTHLY PAYMENT
Wells Fargo	85,148	60	1.99%	$1,492

 

[Clint Eastwood]

I'm financing through alliant. The asked me for my purchase agreement. Anyone know how I get this? I have my vin and delivery window, but how oes one get the purchase agreement?