Financing options

[irishstoutaz]

You will get the MVPA sometime soon... we received ours 10 days after our VIN. You will receive a contact name for a Product Specialist which will confirm everything as far as how much you will be paying cash vs. financing and who the financing is going through. All electronic signatures and easy process.

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?

 

[Whom]

Note that through the Tesla financing program, the minimum you can finance is $30k. I wanted to finance only $20k, so I had to go elsewhere.

 

[Robbo]

Note that through the Tesla financing program, the minimum you can finance is $30k. I wanted to finance only $20k, so I had to go elsewhere.

Although you could have financed the $30K and then after six months pre-paid $10K with no penalty, and still get to keep the Resale Guaranty (my DS said the loan had to be fully outstanding for 6 months to get the guaranty).

 

[Whom]

Although you could have financed the $30K and then after six months pre-paid $10K with no penalty, and still get to keep the Resale Guaranty (my DS said the loan had to be fully outstanding for 6 months to get the guaranty).

Yes, but I still pay all the interest on the extra $10k. And it doesn't reduce the payments, it only shortens the term. Which isn't exactly what I was looking for.

 

[metafor]

Wait, there are prepayment penalties? I thought those don't exist on loans other than really really sketchy ones.

 

[spaghetti]

Wait, there are prepayment penalties? I thought those don't exist on loans other than really really sketchy ones.

No prepayment penalties according to the financing FAQ - Frequently Asked Questions - Financing | Tesla Motors

 

[metafor]

So how does prepayment work? I've only had 1 auto loan from Capital One for a trivial amount (14k) before. I prepaid a lot and I didn't really keep track of the interest paid. Do they still charge interest on the prepaid amount? That is to say, if I pay off a loan 2 years early (for, say, a 5 year loan), would I pay less interest than if I were to make the regular payments only?

 

[spaghetti]

So how does prepayment work? I've only had 1 auto loan from Capital One for a trivial amount (14k) before. I prepaid a lot and I didn't really keep track of the interest paid. Do they still charge interest on the prepaid amount? That is to say, if I pay off a loan 2 years early (for, say, a 5 year loan), would I pay less interest than if I were to make the regular payments only?

The easiest way to think about this is that you pay interest only on the outstanding loan amount. So, yes, if you pay off a 5-year loan in 2 years, you will pay significantly less interest than if you were to make the regular payments (unless you got 0% financing :smile. I have personally done this on at least 4 previous occasions. The key here is to ensure that there is no prepayment penalty. If you come across a lender who is charging a prepayment penalty, you should take your business somewhere else.

 

[metafor]

That's what I thought. The previous comments made me think otherwise. I had thought prepayment penalties were only for the sketchiest of loan-shark like loans.

 

[AlMc]

That's what I thought. The previous comments made me think otherwise. I had thought prepayment penalties were only for the sketchiest of loan-shark like loans.

There are no prepayment penalties but the Resale Guarantee indicates that the loan must not be paid off in full for six months. I will assume you can prepay any amount during the first 6 months but that it can not be paid off in full until six months has passed.

 

[wpoveromo]

So if you're comparing the Tesla plan vs. other lower interest rates, and the trade-off of the guaranteed trade-in, here is a good analysis. I used Bankrates for the amortization table. Basically, at the 36-month mark, you would have paid ~$2,400 more with Tesla. Personally, I think that's worth the ease of mind knowing I can get out if needed, or upgrade. Hope this helps.

Loan Amount Rate Terms Payment Total Interest Paid 36 Month Interest Paid Where
$70,000 2.95% 72 $1,061 $6,463 $4,867 Tesla
$70,000 1.49% 72 $1,016 $3,219 $2,435 Alliant
$70,000 1.49% 60 $1,211 $2,683 $2,272 Alliant

 

[Mordi]

Has anyone heard that Wells is requiring 50% down for their 1.99% loan? I am dubious of some input I've heard on the finance side of things.

 

[VRK]

Does anyone know if we still have to put in a 2500 dollar deposit to test drive?

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Does anyone knoe if we still have to place a 2500 dollar deposit to test drive?

 

[jammerdjc]

Does anyone know if we still have to put in a 2500 dollar deposit to test drive?

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Does anyone knoe if we still have to place a 2500 dollar deposit to test drive?

Definitely not. I drove in Menlo Park w/o any questions about money.

 

[sajeevar]

Does anyone know if we still have to put in a 2500 dollar deposit to test drive?

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Does anyone knoe if we still have to place a 2500 dollar deposit to test drive?

I test drove at short hill nj - no deposit required.

 

[Robbo]

Has anyone heard that Wells is requiring 50% down for their 1.99% loan? I am dubious of some input I've heard on the finance side of things.

The loan Wells/TMC offered me was for ~ 90% of the car's price (before sales tax).

 

[marveldave]

The loan Wells/TMC offered me was for ~ 90% of the car's price (before sales tax).

What is the term? 60 month?

 

[metafor]

I got approved by BofA for 60 mo at 2.49% for 90% of the value. I've read a lot both here and in other places about people having trouble with Bank of America but I gotta say, they were by far the easiest and most flexible loan agency I delt with. I tried Alliant, PenFed, USAA, not only would they not approve a 70% loan (which is what I asked for), the application process wasn't nearly as flexible.

The BofA agent I talked to was just as excited as I was that I was getting the car. He knew the entire process specific to Tesla and was willing to extend the approval offer for as long as it takes for Tesla to make and deliver the vehicle. He even offered 90% financing instead of the 70% I was asking for. I think I'll still take the 70% loan though as it looks like the stock market's going to flail soon and 2.49% isn't stupidly low.

That being said, perhaps the reason I got so far with BofA may be because they're my primary checking account as well as credit card.

 

[B-Chicago]

Has anyone heard that Wells is requiring 50% down for their 1.99% loan? I am dubious of some input I've heard on the finance side of things.

My Wells Quote was for 78% of the purchase price before tax/title. A 60mo term at 1.99%.

 

[Clint Eastwood]

I got approved by BofA for 60 mo at 2.49% for 90% of the value. I've read a lot both here and in other places about people having trouble with Bank of America but I gotta say, they were by far the easiest and most flexible loan agency I delt with. I tried Alliant, PenFed, USAA, not only would they not approve a 70% loan (which is what I asked for), the application process wasn't nearly as flexible.

The BofA agent I talked to was just as excited as I was that I was getting the car. He knew the entire process specific to Tesla and was willing to extend the approval offer for as long as it takes for Tesla to make and deliver the vehicle. He even offered 90% financing instead of the 70% I was asking for. I think I'll still take the 70% loan though as it looks like the stock market's going to flail soon and 2.49% isn't stupidly low.

That being said, perhaps the reason I got so far with BofA may be because they're my primary checking account as well as credit card.

Alliant in ten minutes approved me for up to 100% of car cost for 72 months at 1.49%. Couldnt be much easier. All they need are my last 2 pay stubs and the purchase agreement. Unfortunately no one can tell me how to get my purchase agreement and the delivery specialist isn't returning my calls or emails. I have my vin and production week.