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Financing

Discussion in 'Model S: Ordering, Production, Delivery' started by sam46217, Aug 28, 2013.

  1. sam46217

    sam46217 Member

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    IN
    I am expected to take a of Model S in next two to three weeks. Is there other options our there then just two banks Tesla is recommending? Also I am Indian residence, I was wondering how does the $7,500 tax credit works?
     
  2. JPP

    JPP Active Member

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    Please search these forums and also use volkerize.com to search the Tesla Motors site--lots of pre-existing great info. No shortage of financing options from banks & credit unions.
     
  3. neroden

    neroden Happy Model S Owner

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    The tax credit works only if you are filing US taxes. ("Indian residence"? Does that mean India or what?)
    You will also have to owe at least $7500 in US federal taxes for the year you purchase the Model S in order to get the credit.
    You will have to pay out the full amount of the car's price (including the $7500, which Tesla misleadingly subtracts from its advertised prices). You get the $7500 when you file your taxes on April 15 the next year.
     
  4. LV2SF

    LV2SF Member

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    @neroden is right but it's not an all or nothing game. If you have very low tax liability, say you owe $2000 in federal tax, you get a $2000 credit to offset it. The remaining $5500 of available tax credit is lost and can't be rolled over in to next year. It's just gone. It's a NON-refundable tax credit and that's the way they work.

    Unfortunately it's not a refundable tax credit where if you owe less than the credit amount, you get a check for the rest! Oh well. I'll have a Tesla to make me feel better.
     
  5. MattMDK

    MattMDK Member

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    Tesla offering 1.73%

    Just locked in my loan with Tesla Finance today and got a great rate. Chase through Tesla is offering 1.73% for a 36 month loan.
     
  6. landover

    landover Member

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    So lets say I will be getting money back from the federal. Lets just say for a one child credit, witch I think is 2,500.00 and do not pay in will I still receive the 7,500 back also?
     
  7. Atebit

    Atebit Member

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    I don't see Chase listed as a finance partner? How did you engage Chase through Tesla?
     
  8. MattMDK

    MattMDK Member

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    At teslamotors.com click on My Tesla tab, go to your dashboard and click on Finance now. I did this on Monday, answered a few questions and within 2 hours was approved through CHASE. I confirmed that this was part of the Tesla 3 year buy back program. You can also call Tesla finance. They were very helpful.
     
  9. talhas3

    talhas3 Member

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    Did you have excellent credit?
     
  10. smsprague

    smsprague Member

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    Alliant Credit Union will financed for 1.74% for 72 months 95% of MSRP.
     
  11. talhas3

    talhas3 Member

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    Did you have to speak to them in person or just did it over the phone?
     
  12. smsprague

    smsprague Member

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    All done over the phone - nothing in person
     
  13. Josh_k

    Josh_k Member

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    Location:
    Santa Clara CA
    I just got a quote from WellsFargo directly (Not through Tesla) 85% loan and 1.79APR for 72mo
    Not sure if I apply this though Tesla, what rate will be.
     
  14. Haggy

    Haggy Member

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    Not necessarily. You could end up owing $7500 less. Or if your deductions throughout the year are realistic for what your tax bill will be, you can change your W4 so that your payroll taxes drop by about $600/month. If you are making car payments, that should help out.

    I financed through DCU. I got a rate of .99%. That's with excellent credit, and they give a discount for very low emission vehicles, so the rate is lower than what's on their website. This also assumes direct deposit to a checking account over there. Realistically what they care about is that the money will be there for the loan payments, so it would be up to you whether to use them as your primary checking account. I don't see any reason not to, and they are a credit union, so doing so would help keep rates down for others.

    This has nothing to do with India, but that transaction is long since gone, so hopefully this will help people who are finding this thread now.

    For me, the bottom line was that it was cheaper to finance than to sell securities and pay a 15% capital gain, and then reinvest over time.
     

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