Financing - Tesla Vs Third Party? Is it complicated?

[Thebrits615]

Hey everyone,

I am planning ahead for the financing portion as soon as I get my VIN. I plan to apply directly through Tesla initially, see what rate I get approved for and then apply through my own credit union and compare.

Question is, if I apply through Tesla, do I need to accept their offer on the spot? Or does it give an option to put that to the side and shop around?

And, if I did accept Teslas offer of financing but then found a cheaper rate and wanted to change to my CU prior to delivery, is that an easy process?

Thanks so much!

 

[SpencerR]

No.
Yes.
Yes.

Just inform your SA prior to delivery of your final decision for payment method.

 

[RichardL]

One advantage of the Tesla finance is how fast they are.
We applied through our CU who do loads of Teslas, but they said it would be 3 to 5 days and require proof of income etc. Tesla offered pickup in 48 hours.
So we went with Tesla, and it took 30 minutes and I simply had to review and accept in the app.

 

[jerome8283]

From what I see, Tesla finance rates are comparable to others. They use Wells Fargo and JPMorgan Chase. The Credit Unions are not much better, rates are slightly lower.

 

[ApexProxy]

My credit union was actually faster and significantly better than Tesla while requiring almost nothing from me. I went in, gave them the info on the car I wanted and they said I was fully approved taxes and fees included as soon as they pulled my credit score and printed me the check on the spot. Tesla was brutal and only wanted to finance 70% at nearly double the APR. That's only after having a simple credit card with them for a year too.

 

[jerome8283]

My credit union was actually faster and significantly better than Tesla while requiring almost nothing from me. I went in, gave them the info on the car I wanted and they said I was fully approved taxes and fees included as soon as they pulled my credit score and printed me the check on the spot. Tesla was brutal and only wanted to finance 70% at nearly double the APR. That's only after having a simple credit card with them for a year too.

A year ago rates where much different.

 

[ApexProxy]

A year ago rates where much different.

Probably.

Though I am talking about my loan experience from 3 weeks ago. The one year thing is the timeframe of my total relationship with the credit union.

 

[Schweppes]

It depends. Looking at current "best" rates Tesla beats my local credit union by 0.50% APR. Capital One with whom I have an existing loan are currently the same as Tesla.

 

[TigerNinety]

Tesla Financing is quick, integrated, and can be highly competitive with credit unions. That last one is probably closely tied to your credit score. We've had two Teslas, did Tesla Financing for the first one, but saved enough with a credit union to go with that on the second one (a few months ago).

 

[Thebrits615]

Tesla Financing is quick, integrated, and can be highly competitive with credit unions. That last one is probably closely tied to your credit score. We've had two Teslas, did Tesla Financing for the first one, but saved enough with a credit union to go with that on the second one (a few months ago).

Thanks so much! The challenge I have is my debt to income ratio thanks to my joint mortgage. I think I’ll be approved but won’t know until I apply! Credit is very good.

 

[jerome8283]

Tesla Financing is quick, integrated, and can be highly competitive with credit unions.

This is what I’m seeing, “highly competitive”. BOA is a bit lower currently but most others are higher.

Does Tesla financing let you pay taxes out of pocket, not bundled within the loan?

 

[Thebrits615]

Is Tesla financing valid for 30 or 60 days?

 

[Tonyrd1]

It depends. Looking at current "best" rates Tesla beats my local credit union by 0.50% APR. Capital One with whom I have an existing loan are currently the same as Tesla.

I just applied at the local credit union 48 months @ 2.99%, valid for 60 days.

 

[Schweppes]

I just applied at the local credit union 48 months @ 2.99%, valid for 60 days.

Nice. Area dependent.

 

[jerome8283]

I just applied at the local credit union 48 months @ 2.99%, valid for 60 days.

What credit union did you get this rate?

 

[jerome8283]

I just applied at the local credit union 48 months @ 2.99%, valid for 60 days.

It depends. Looking at current "best" rates Tesla beats my local credit union by 0.50% APR. Capital One with whom I have an existing loan are currently the same as Tesla.

I was told Capital One doesn’t offer loans for Tesla direct customers.

 

[Tonyrd1]

What credit union did you get this rate?

Seattle credit union

 

[Schweppes]

I was told Capital One doesn’t offer loans for Tesla direct customers.

Only through their Navigator program afaik.

 

[Tonyrd1]

Only through their Navigator program afaik.

Check out Allegacy Federal credit union, look like their rate is very competitive

Term: 1 - 48 months with Payroll Deduction or Automatic Draft APR* as low as 2.49%

 

[TF92658]

I was told Capital One doesn’t offer loans for Tesla direct customers.

When I chose the self arranged financing option they said they do not work with Chase, Capital One, Santander/RoadLoans or Ally Bank