I would not accept a consumer loan with those terms. Banks get away with that crap for mortgages, but for consumer debt it's ridiculous.
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I would not accept a consumer loan with those terms. Banks get away with that crap for mortgages, but for consumer debt it's ridiculous.
Mayhemm
Model S P85+ "Lola"
Quick question:
Is the $2500 reservation deposit supposed to be included in the purchase agreement anywhere?
It isn't mentioned anywhere on mine; just the cost of the car minus my down payment.
When I inquired where the deposit went, I was told not to worry, just pay the full amount now and they would sort it out later. Seems a bit sketchy to me.
Thoughts?
Is the $2500 reservation deposit supposed to be included in the purchase agreement anywhere?
It isn't mentioned anywhere on mine; just the cost of the car minus my down payment.
When I inquired where the deposit went, I was told not to worry, just pay the full amount now and they would sort it out later. Seems a bit sketchy to me.
Thoughts?
iKhalid
Member
Mayhemm
Model S P85+ "Lola"
As soon as I get my car on Friday, this will be the first thing I ask about.
I thought perhaps it was getting included in my down payment amount, so my actual down payment would still equal the agreed-on amount but I'd actually only have to pay that amount less the $2500. Nope, they still want the full down payment. Weird.
KenN
Member
As long as you have documentation of the deposit, I expect you'll be okay. They do have their quirks when handling the payment paperwork, but they will make it right where there's a mistake.
For my purchase of a demo vehicle, I didn't like the wheels that came with it and asked for an upgrade. Some emails when back and forth about costs and credits for the upgrade, but it never got included in my final purchase docs. At delivery, I got a separate invoice which wasn't in the amount I had expected, which I brought to their attention. So we proceeded to complete the delivery with the understanding that it would be worked out "later".
After a week or so, I got a call and the final settlement was well above and beyond what I had envisioned as a fair resolution.
For my purchase of a demo vehicle, I didn't like the wheels that came with it and asked for an upgrade. Some emails when back and forth about costs and credits for the upgrade, but it never got included in my final purchase docs. At delivery, I got a separate invoice which wasn't in the amount I had expected, which I brought to their attention. So we proceeded to complete the delivery with the understanding that it would be worked out "later".
After a week or so, I got a call and the final settlement was well above and beyond what I had envisioned as a fair resolution.
Canuck
Well-Known Member
The only "down payment" I made was the $2,500 deposit. How did you make a down payment other than the deposit?
Hello Mayhemm,
So, is it correct that you have to pay interests on the initial amount even if you pay early?
We wanted to finance 30% of the car but if it is the case it will be way to expensive to finance with Scotiabank / Tesla.
Also I was not able to get all the financing conditions written trough my DS.
Delivery is in 2 weeks so we need to decide soon.
Thank you for your canadian experience!
Fabien
So, is it correct that you have to pay interests on the initial amount even if you pay early?
We wanted to finance 30% of the car but if it is the case it will be way to expensive to finance with Scotiabank / Tesla.
Also I was not able to get all the financing conditions written trough my DS.
Delivery is in 2 weeks so we need to decide soon.
Thank you for your canadian experience!
Fabien
bsd
Member
I just looked at my documents and the $2500 deposit is listed on p1 at the bottom:
TOTAL PURCHASE PRICE: $X
Deposit: $2500
AMOUNT DUE ON DELIVERY: $<<X-2500>>
That's the amount Tesla wants, regardless of whether it comes from you and/or your financier.
On the financing agreement with ScotiaBank, the deposit plus the additional down payment I made were removed from the total purchase price to calculate the total amount being financed.
Financing & "Resale Value Guarantee" in Canada
Wanted to know whether any Canadian buyers out there have subscribed to the 3 year "Resale Value Guarantee" provisions. Also interested in what motivated your decision either way....
In addition, for those that are financing - are there any reasonable Canadian alternatives to the offer from Scoiabank?
Wanted to know whether any Canadian buyers out there have subscribed to the 3 year "Resale Value Guarantee" provisions. Also interested in what motivated your decision either way....
In addition, for those that are financing - are there any reasonable Canadian alternatives to the offer from Scoiabank?
P85+ | Pearl White | Black Performance Leather | 21" Silver Turbines | Pano | Tech Pkg | Premium Lighting | Parking Sensors | Piano Black | Fog Lamps| Sub Zero | Alcantara Headliner & Upper DT | UHFS | Smart Air | Dual Chargers | Parcel Shelf | CF Spoiler | RB Calipers | Delivery - late July |
Kalud
Active Member
I did, because there were no real drawback for me. I "just" had to reduce the load term from 84 to 66 months and give at least 15% down payment. If you can do these, then its a no-brainer as you have to option to return the car after 3 years but technically its still a regular financing with a bank.
In the period between 36 months to 39 months you can exercise the option where:
Who knows where Tesla will be in 3 years, and what the latest Model S will be. I might swap for a newer Model S or keep this one, I prefer having the option available.
green1
Active Member
Problem seems to be the financing. I keep hearing about ridiculously low rates thrown around in threads south of the border, but the Canadian rates suck.
Kalud
Active Member
Yes that's true. It was still high at 3.9% late last year and its now 4.29%, as far as I know the only financing option in Canada with Tesla is Scotia Bank. Unless you pay cash there is not much options...
I've looked around for better rates, but Scotia at 4.29 seems to be the best. I was talking to my BMO buddies, and even the employee rate is 4.25%
I remember just walking into a Scotia to ask for a ~100k car loan, and they said it would be around ~5.5%.
So I went with Scotia which funded my purchase at 100% and 4.29% rate.
I remember just walking into a Scotia to ask for a ~100k car loan, and they said it would be around ~5.5%.
So I went with Scotia which funded my purchase at 100% and 4.29% rate.
green1
Active Member
Unlike in the US where they pay less than half that for financing, at those rates it makes more sense to pay cash if you can...
Mayhemm
Model S P85+ "Lola"
As others have reported, there really aren't any viable alternatives to the Scotiabank offer. The next closest rate I found was over 8%!
Regarding the Tesla RVG, I have no idea whether I have it or not. The Tesla people I dealt with never even mentioned it. I financed ~50% for 60 months. Paid the rest off in cash.
Honestly, the Tesla financing process was one of the most frustrating experiences of my life! It took not ONE, not TWO, but THREE versions of the loan paperwork just to get it settled properly! The first version did not factor in my down payment, the second did not do the taxes correctly, and the third was finally mostly correct, though it didn't reflect my $2500 reservation deposit. However, that's not the version Tesla submitted to the bank; they took the pages I signed and stuck them on an earlier (incorrect) version of the documents (which is probably illegal)! This resulted in my whole loan being incorrect so I've recently had to have it voided and submit a FOURTH version of the paperwork which is essentially the same as the third version but with different dates.
As result of all this nonsense, my first payment is set to come out on August 5 (a full 3 MONTHS after accepting delivery of the car).
Place your order at a Tesla store if you can and someone will probably be able to go through it all with you. I placed my order from home, so all my financing correspondence was via e-mail. I would NOT recommend THAT to anyone!
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If you own a house, taking out a line of credit against it will reduce that 4.29% noticeably. Same, of course, with a regular mortgage these days, because you can almost certainly get a rate lower than the Tesla/BNS rate. (Of course, this doesn't work if you already have a mortgage on a house.)
hingisfan
hingisfan_Mark_V
Isn't a secured line of credit usually Prime +1%? So, that would be 4% anyway. I guess if you were up for renewal on your actual mortgage you could take more on your house (if you have the equity), and use the cash for the Tesla. I like to keep my actual mortgage separate though.
Can someone further explain the resale value guarantee? I can't seem to wrap my head around what your actual options are and why.
Thanks!
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