Financing Tesla vehicles in Canada

[Acoustic]

Hey, quick question regarding how a trade in would affect the price and monthly payment for the Model 3.

I'm going to pull the trigger soon on an AWD M3, I can configure any time now. I used the International Tesla Cost Estimator made by a user here, and I'm wondering if it's accurate that trading in a car will actually reduce the taxable sale price of the Model 3? I'm in Ontario, and I know I won't be getting the rebate, but I wasn't aware trading in a car will reduce the up front cost next to taxes and total cost.

Also, are people getting a lower rate financing over 7 years instead of 8?

Thanks!

 

[Jctin]

Your monthly payments are set. Your trade in will go as lump sum against the balance owing.

 

[phtp]

trading in a car will reduce the up front cost next to taxes and total cost.

Trade-in's typically will be applied to the base cost, therefore, reducing the amount of tax owed. However, trade in value is up to Tesla and what they are willing to pay for your car. From what I read from others is Telsa offers significantly less other dealers. Unless your car is sought after and holds value like an S2000.

 

[akidesir]

Mine was just taken out today also delivered on the 31st.

Ah mine was just taken out today too

 

[Acoustic]

Trade-in's typically will be applied to the base cost, therefore, reducing the amount of tax owed. However, trade in value is up to Tesla and what they are willing to pay for your car. From what I read from others is Telsa offers significantly less other dealers. Unless your car is sought after and holds value like an S2000.

Yeah this is what I was wondering, thanks for clearing it up. It's a nice bonus if it's applied to the cost, even if they low ball me a bit to take the base cost down. I wonder how much lower they would be than the CBB.

 

[McDMan]

My brother in law has a car loan with RBC and they never withdraw on the date it's due. It's always been 1-2 business day after before the tractions action occurs.



Not sure which car the person is getting, but Model 3 rates are much higher than Model S or X.

Yes...its the Model 3 I am getting. I was reading that interest rates from Tesla were in the 4.5% range now....and locked-in bank rates are not much better. Was thinking to go 3yr variable at 2.65% for 3 yrs and then refinance if I have to knowing that I can double my payments and make a 15% annual lump sum payment

Thanks

 

[Kiyi]

Yes...its the Model 3 I am getting. I was reading that interest rates from Tesla were in the 4.5% range now....and locked-in bank rates are not much better. Was thinking to go 3yr variable at 2.65% for 3 yrs and then refinance if I have to knowing that I can double my payments and make a 15% annual lump sum payment

Thanks

Which bank are you getting the 2.65% 3 years with the prepayment options?

 

[Robert2on]

Yes...its the Model 3 I am getting. I was reading that interest rates from Tesla were in the 4.5% range now....and locked-in bank rates are not much better. Was thinking to go 3yr variable at 2.65% for 3 yrs and then refinance if I have to knowing that I can double my payments and make a 15% annual lump sum payment

Thanks

Here is an earlier thread with the rates as of May. They were the same in June when I picked up my vehicle, though may have changed since then. Depends on the term, but these were from RBC earlier in June. Hope it helps.

Financing Tesla vehicles in Canada

60 Month: 3.91%
72 Month: 3.99%
84 Month: 4.14%
96 Month: 4.39%

 

[McDMan]

Which bank are you getting the 2.65% 3 years with the prepayment options?

TD

 

[Vawlkus]

Yeah this is what I was wondering, thanks for clearing it up. It's a nice bonus if it's applied to the cost, even if they low ball me a bit to take the base cost down. I wonder how much lower they would be than the CBB.

You’d get more with a private sale honestly. Tesla is kinda discouraging trading in to them because they don’t want to deal with reselling.

 

[McDMan]

In my 'Tesla Account' I have green checkmarks for everything except the payment method? I realize that have 'cash on hand' and 'borrowing from a bank' is different, but Isn't 'paying by cash' and 'bank financing' the same thing technically? In both circumstances, you are getting a bank draft in the amount of the car. What does this matter to Tesla?

 

[McDMan]

When I change the payment method to 'cash' then it gives the green checkmark. Will they care if the money is really a bank loan (already qualified for)?

 

[phtp]

When I change the payment method to 'cash' then it gives the green checkmark. Will they care if the money is really a bank loan (already qualified for)?

Don't have an answer to your question, but is the bank loan with a HELOC? Wouldn't the layer fee's, etc offset any savings?

 

[NoBeard]

When I change the payment method to 'cash' then it gives the green checkmark. Will they care if the money is really a bank loan (already qualified for)?

Haven't got that far yet, but don't they do the registration for you?
That would include listing any Liens on the vehicle, thus they'd need to know it's borrowed money, unless the car isn't being used as collateral for the loan.

 

[McDMan]

Don't have an answer to your question, but is the bank loan with a HELOC? Wouldn't the layer fee's, etc offset any savings?

Yes, the bank loan is a HELOC, but it's been in place (haven't used it in years) for a long time. My banker told me that since I have the Heloc there are no papers to sign and it's supposed to be very flexible in what term, rate, etc I choose.

 

[McDMan]

Haven't got that far yet, but don't they do the registration for you?
That would include listing any Liens on the vehicle, thus they'd need to know it's borrowed money, unless the car isn't being used as collateral for the loan.

No, the car isn't being used as collateral. I would be using my HELOC (house used as collateral). The rate on my HELOC is better than the current car rates.

 

[Eco Capitalist]

When I change the payment method to 'cash' then it gives the green checkmark. Will they care if the money is really a bank loan (already qualified for)?

No, they won't, because it isn't a loan. As far as Tesla is concerned, you are handing them certified funds equal to the total on your invoice. That's the same as paying them with a suitcase full of money.

If it was a car loan, you wouldn't be giving them funds, the bank would be on your behalf. That requires a bunch of legal documents and agreements, plus a lien against the car (unless the lender is an idiot).

As I'm sure you know (but I'm going to spell it out for the audience) a HELOC is a Home Equity Line of Credit. That's a line of credit that uses the equity in your home as collateral. Most banks will lend up to 60% of the equity in your home, many will do up to 80% with extra conditions and clauses. The interest rate on a HELOC floats with the prime rate. It is structured just like a credit card; there's a minimum monthly payment and if that's all you pay your estate will be paying off the car when you're gone.

Um, what was the original question again?

 

[savage698]

Question for anyone that can answer. Apologies if this has been answered already. When you set up financing through Tesla, did they give the option of a bi-weekly payment schedule, or is it strictly monthly only?

 

[Vawlkus]

Question for anyone that can answer. Apologies if this has been answered already. When you set up financing through Tesla, did they give the option of a bi-weekly payment schedule, or is it strictly monthly only?

Honestly, I don’t remember. It may have been floated as an option by the actual lender, but I would have gone monthly regardless.

 

[jkirkwood001]

New

Trade-in's typically will be applied to the base cost, therefore, reducing the amount of tax owed. However, trade in value is up to Tesla and what they are willing to pay for your car. From what I read from others is Telsa offers significantly less other dealers. Unless your car is sought after and holds value like an S2000.

Yeah this is what I was wondering, thanks for clearing it up. It's a nice bonus if it's applied to the cost, even if they low ball me a bit to take the base cost down. I wonder how much lower they would be than the CBB.

That was my assumption - you don't pay tax on the value of your trade-in - when I designed the International Tesla Cost Estimator. Glad it's useful!