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Interest rate from Tesla's Financing LESS than advertised
- Thread starter joshuaeven
- Start date
Doug Martoccia
Member
Probably won't go with Tesla financing after all. Applied and they didn't include my wife's income resulting in a larger downpayment than I wanted and only the 2.95% rate. Going with my own (very conservative) bank instead for no additional down and 2.25%.
I think if Tesla wants this new "lease-like" thing to be actually used, they'll need to sweeten it up. Right now, it doesn't appear to help anyone except people that have worries about the re-sale value three years from now who are willing to pay a premium to get that assurance.
I think if Tesla wants this new "lease-like" thing to be actually used, they'll need to sweeten it up. Right now, it doesn't appear to help anyone except people that have worries about the re-sale value three years from now who are willing to pay a premium to get that assurance.
SUN-day Driver
Member
Joshua, was that with Wells Fargo or U.S. Bank? Do you get to choose which bank? The Tesla finance application I saw didn't ask which institution I want to apply to, so I'm wondering if they give a choice or choose for you?
My first quote was from us bank. I told tesla I didn't like it and they got me a quote from Wells Fargo.
SUN-day Driver
Member
Thank you both for the info, I will try the same thing when I get my application response offer. I assume the response comes from Tesla and you reply to the email it was sent from? Or if not who do you talk to for this?
SUN-day Driver
Member
After several days of back-and-forth emails and then phone calls, I finally got 1.99% with a down that works out to about 21%. Time and patience paid off. (Some delays may have been because they were making the recently-announced major changes to the finance/buyback plan at the time.)
I have two options in front of me as of now
which one look better?
Tesla Financing by US BANK @ 2.8% for a 72 month term and finance of $78884 with Resale Value Guarantee
Financing by Alliant Credit Union @ 1.74% for a 72 month term and finance of $83240 but no resale value
Need your thoughts and input
RN544xx3 - VIN 11141 - 85kWh Model S - Blue - Air ride - 19" wheels - Tan leather - Obeche wood gloss
which one look better?
Tesla Financing by US BANK @ 2.8% for a 72 month term and finance of $78884 with Resale Value Guarantee
Financing by Alliant Credit Union @ 1.74% for a 72 month term and finance of $83240 but no resale value
Need your thoughts and input
RN544xx3 - VIN 11141 - 85kWh Model S - Blue - Air ride - 19" wheels - Tan leather - Obeche wood gloss
Reserved: 03/31/2013, sent for production : 04/21/2013 Delivery:??/??/????
Risk v reward. Save ~$800(?) per year in interest plus lower downpayment but you're on the hook if the resale value drops below the guarantee? So, it's the $4,800 + opportunity cost question? I think it's an expensive insurance policy and I'd take the lower rate and smaller downpayment. Invest or pay any higher debts down with the money saved and I think you'll come out ahead.
Thanx for your input, thats why i am leaning towards a credit union, but somewhere the feeling of resale value is kicking in and giving a second thought .....
I am in a similar boat. Here's my rationale though. More than the resale value which becomes redundant unless you plan on selling in 3 years the Tesla option becomes attractive if yo might consider going in for a new option after 3 years. Technology especially battery technology is changing so rapidly, I would wager that in 3 years we could see a substantially advanced version of the S with possibly 500 miles and rapid charging and substantially more storage . That is something I wold bet on
I got a similar 2.8% approval from Tesla. I mailed asking if they can do a more competetive rate with the deposit I had in mind but haven't gotten a reply.
One thing I noticed about the resale contract is it stipulates a clean title in order to take advantage of the guarenteed price. I don't know if they will bend the rules for a trade in for a newer Tesla but there are under no obligation to given the contract wording. Makes the contract less usefull if you have to come up with the lump sum payoff first and get it back after the resale to Tesla.
One thing I noticed about the resale contract is it stipulates a clean title in order to take advantage of the guarenteed price. I don't know if they will bend the rules for a trade in for a newer Tesla but there are under no obligation to given the contract wording. Makes the contract less usefull if you have to come up with the lump sum payoff first and get it back after the resale to Tesla.
I'm glad at least some of you are having success through Tesla's financing because it was a total joke for me. I was approved by multiple credit unions but in the end I had two options.
Wells Fargo with $44,500 (!!!!) out of pocket, 3.99% for 60 months.
Or
NuVision Federal credit union only the $5,000 initial reservation amount as down payment 1.74% for 72 months
I've said it before and I'm sure I'll say it again. **** Wells Fargo.
Wells Fargo with $44,500 (!!!!) out of pocket, 3.99% for 60 months.
Or
NuVision Federal credit union only the $5,000 initial reservation amount as down payment 1.74% for 72 months
I've said it before and I'm sure I'll say it again. **** Wells Fargo.
My experience was slightly different. However, I went with a 3 year loan. I wanted to have the 'insurance' of the Tesla buy back guarantee so I negotiated a lower rate with Wells Fargo. The best non guaranteed rate I was quoted was 1.49% from USAA. Went with Wells Fargo at 1.99%. It will cost me an extra $200-300 in interest but was worth it to me personally.
I have no previous banking relationship with Wells Fargo but this experience was positive, at least for me.
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