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Financing Tesla vehicles in Canada

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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!

Its all explained in this document, pretty straight forward. If you qualify for the conditions then there is no reason not to enable it, no drawback.

http://www.teslamotors.com/sites/default/files/blog_attachments/tesla-canadian-guaranteed-resale-value.pdf

Otherwise you can get some calculations done here: Financing | Tesla Motors
 
That's the thing with Tesla it's impossible to tell as there aren't any 3 year old Model S cars yet...
Elon guessed that it should depreciate at about the rate of a Mercedes S class and based the resale guarantee on that number. but it's so hard to tell. So far Canadian Model S cars are asking $104k-134k for a used P85 with most/all the bells and whistles. I don't see it staying that way for ever, but even so that's a $140k car for $104 in about a year, (of course the first year is always the worst)
My guess is that there will be a bit of a drop in resale value of the S once the X hits the road, and again once gen III hits the road. A redesign of the S that is planned in the next few years could also lower the value of existing ones a bit.

Personally I'm waiting for a bit of a drop, I can't afford a new S, but I hope to buy a used one in about 2 years, and hope to be looking at the $50-60k range
 
Has anyone financed their MS? What was your experience like?
The order page says the interest is 4.29% via Scotia. If I remember correctly, US's interest is something like 2%. Is this reasonable??

seemed quite high for me. I'm taking delivery in "late september" and i'm going to finance through scotia too - but through my preexisting relationship with them (mortgage). they've already told me they can give me a rate at prime or below (i can't remember the specifics). I would definitely check out other avenues before committing to the advertised finance rate. check with your own bank, or any financial company you already have ties with.
 
That's the thing with Tesla it's impossible to tell as there aren't any 3 year old Model S cars yet...
Elon guessed that it should depreciate at about the rate of a Mercedes S class and based the resale guarantee on that number. but it's so hard to tell. So far Canadian Model S cars are asking $104k-134k for a used P85 with most/all the bells and whistles. I don't see it staying that way for ever, but even so that's a $140k car for $104 in about a year, (of course the first year is always the worst)
My guess is that there will be a bit of a drop in resale value of the S once the X hits the road, and again once gen III hits the road. A redesign of the S that is planned in the next few years could also lower the value of existing ones a bit.

Personally I'm waiting for a bit of a drop, I can't afford a new S, but I hope to buy a used one in about 2 years, and hope to be looking at the $50-60k range

I'm in the same boat. My calculations for a Model 3, which I'm waiting for, come out to what I think will be a more realistic price of $50K. By that time however there could be a good chance of several good used Model S being in that price range. Then we'd make to make a choice of buying something new and eating the depreciation or getting a used Model S and living with a battery with a reduced warranty....
 
Just browsed across this thread and had a couple of questions and things to confirm. I’m planning to get a Tesla by summer 2017 and finance a portion of it, a secured line of credit isn’t an option for me just yet as I don’t have enough equity for the financing amounts.


1) Some were saying that the maximum down payment you can put is 40%, is this confirmed?
2) Is the interest all pre calculated and added to the loan at the beginning? Meaning lump sum payments won’t lower interest charges.
3) Regardless of weather #2 is true or not, if you were to do a lump sum payment, are you able to lower your monthly payments afterwards or will it just make your loan finish sooner?
4) Would it be wise to loan out your EV rebate and add that to your down payment? Meaning you pay 5-8% interest on your line of credit for 8500$ for a few months until you get the rebate.

2017 is far ahead and things can definitely change but it's always good to plan ahead :smile:
 
Just browsed across this thread and had a couple of questions and things to confirm. I’m planning to get a Tesla by summer 2017 and finance a portion of it, a secured line of credit isn’t an option for me just yet as I don’t have enough equity for the financing amounts.


1) Some were saying that the maximum down payment you can put is 40%, is this confirmed?
2) Is the interest all pre calculated and added to the loan at the beginning? Meaning lump sum payments won’t lower interest charges.
3) Regardless of weather #2 is true or not, if you were to do a lump sum payment, are you able to lower your monthly payments afterwards or will it just make your loan finish sooner?
4) Would it be wise to loan out your EV rebate and add that to your down payment? Meaning you pay 5-8% interest on your line of credit for 8500$ for a few months until you get the rebate.

2017 is far ahead and things can definitely change but it's always good to plan ahead :smile:

For #1, I'm not in a position to put down 40% so I didn't run in to that restriction, but even if I was, I would likely still borrow money at 3.9% (current rate from Desjardins via Tesla Financing) and invest the cash and expect to make at least 3.9% (hopefully more from my investment).

For #2, I asked that question and I was told it's not pre-calculated and early payment would save on interested. A lot of car loans in Canada are pre-calculated so I don't totally trust that answer until I can read the fine print.

Good question regarding #3.

For #4, that's my plan and from talking to the sales guy, he seemed to think that's what a lot of people do.
 
For #1, I'm not in a position to put down 40% so I didn't run in to that restriction, but even if I was, I would likely still borrow money at 3.9% (current rate from Desjardins via Tesla Financing) and invest the cash and expect to make at least 3.9% (hopefully more from my investment).

For #2, I asked that question and I was told it's not pre-calculated and early payment would save on interested. A lot of car loans in Canada are pre-calculated so I don't totally trust that answer until I can read the fine print.

Good question regarding #3.

For #4, that's my plan and from talking to the sales guy, he seemed to think that's what a lot of people do.

Awesome, thanks for the info!
 
I'm not in a position to put down 40% so I didn't run in to that restriction, but even if I was, I would likely still borrow money at 3.9% (current rate from Desjardins via Tesla Financing) and invest the cash and expect to make at least 3.9% (hopefully more from my investment).

My advice is pay off debt rather than borrow to invest. I'd love to be able to invest in a guaranteed 3.9% rate of return. I would have never bought a Tesla unless I could do so in cash but that's just me. Starting out I scrimped, saved, bought inexpensive cars, worked my arse off, and invested extra cash that I worked for, not borrowed. The first thing I did when I started to earn decent money was pay off my mortgage. Most people I know who are successful (without family money) did it the same way. Very few people borrow their way to wealth.
 
I financed my car in spring of 2014, so I can relay what was true at that time, but please take it with a grain of salt since Tesla could easily change their rates/policies in the next couple years.

1) Correct, I had initially planned to make a down payment for 50% of the vehicle's value (financing 50%) but was told that I needed to finance at least 60% to qualify for Tesla's rate. So the maximum down payment allowed would be 40% of the value.

2) The interest per month is not pre-calcluated, so yes, it would technically be possible to save on interest by making lump sum payments. However, there is no easy (ie: online) way to do this. You would need to call Scotiabank each time to arrange for the payment. Doable, but kind of a PitA.

3) My understanding is that making extra payments would only cause your loan to finish sooner. Changing your monthly payments would require a new loan contract.

4) I cannot speak to this whether this would be advisable or not, as my province did/does not offer any incentives.

Just browsed across this thread and had a couple of questions and things to confirm. I’m planning to get a Tesla by summer 2017 and finance a portion of it, a secured line of credit isn’t an option for me just yet as I don’t have enough equity for the financing amounts.


1) Some were saying that the maximum down payment you can put is 40%, is this confirmed?
2) Is the interest all pre calculated and added to the loan at the beginning? Meaning lump sum payments won’t lower interest charges.
3) Regardless of weather #2 is true or not, if you were to do a lump sum payment, are you able to lower your monthly payments afterwards or will it just make your loan finish sooner?
4) Would it be wise to loan out your EV rebate and add that to your down payment? Meaning you pay 5-8% interest on your line of credit for 8500$ for a few months until you get the rebate.

2017 is far ahead and things can definitely change but it's always good to plan ahead :smile:
 
My advice is pay off debt rather than borrow to invest. I'd love to be able to invest in a guaranteed 3.9% rate of return. I would have never bought a Tesla unless I could do so in cash but that's just me. Starting out I scrimped, saved, bought inexpensive cars, worked my arse off, and invested extra cash that I worked for, not borrowed. The first thing I did when I started to earn decent money was pay off my mortgage. Most people I know who are successful (without family money) did it the same way. Very few people borrow their way to wealth.
If you can do it this way all the power to you. You'll never lose your money paying off your mortgage. To me it's a pragmatic cautious approach, too cautious for me but hey different strokes for different folks. To your point, I have never leased a new vehicle, always bought 2 years old, which is probably the cheapest way you can purchase a nice car. Tesla might make me reconsider.

Tesla is a tech car which is why i would lease rather than buy. Many discussions and debate on this in other threads. I also own my own business as well and could use the lease as write off. And as you advise against, invest the portion that I would be saving on the purchase (in something relatively safe)

But one point of contention MOST successful business people (without family money) harness the power of leverage and borrow to invest at some point, I'm talking more than just a home loan. That said over leverage is the death of many as well.
 
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I financed my car in spring of 2014, so I can relay what was true at that time, but please take it with a grain of salt since Tesla could easily change their rates/policies in the next couple years.

1) Correct, I had initially planned to make a down payment for 50% of the vehicle's value (financing 50%) but was told that I needed to finance at least 60% to qualify for Tesla's rate. So the maximum down payment allowed would be 40% of the value.

2) The interest per month is not pre-calcluated, so yes, it would technically be possible to save on interest by making lump sum payments. However, there is no easy (ie: online) way to do this. You would need to call Scotiabank each time to arrange for the payment. Doable, but kind of a PitA.

3) My understanding is that making extra payments would only cause your loan to finish sooner. Changing your monthly payments would require a new loan contract.

4) I cannot speak to this whether this would be advisable or not, as my province did/does not offer any incentives.

Thanks for the clarifications, your previous posts in this thread brought these questions up for me. It helps me determine the balance between saving for a good enough down payment and having a healthy debt ratio in case of future investments (2nd rental property, etc) since I probably wouldn't be able to change it for the term of the loan.
 
Thanks for the clarifications, your previous posts in this thread brought these questions up for me. It helps me determine the balance between saving for a good enough down payment and having a healthy debt ratio in case of future investments (2nd rental property, etc) since I probably wouldn't be able to change it for the term of the loan.

No problem.

I actually had these very same questions myself before I got my loan.

UPDATE:

I am wrong about #2 and #3! In the last few weeks, Scotiabank seems to have added a suite of loan tools to their website providing much more information and control than they used to over a loan.

It would appear to now be possible to both make lump-sum prepayments and change your loan payment amount using these tools! Very handy!

Please note that I just discovered the existence of said tools a few minutes ago, so I have not tried them yet, nor do I know if there are any associated fees.
 
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Lease or Finance Options in Canada

Hello Everyone

I'm exploring lease options for MS in Vancouver area other than Tesla Leasing. Please advise if anyone has any luck with other leasing companies and rates they have been offering.

Also looking at finance options other than ScotiaBank.

Thanks for the feedback in Advance.