That calculates out as a 49% GFV and 6.9% APR.
That's optimistic after 4 years I think.. but it's their choice.
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That calculates out as a 49% GFV and 6.9% APR.
That's optimistic after 4 years I think.. but it's their choice.
On the plus side there is a good chance there will be some decent equity in the car at the end of the term. HP is still cheaper overall, but obviously much higher monthly cost. 4.9% APR either way is not too bad.
My thoughts:-
4.9% APR is not unreasonable.
Low GFV doesn't give any protection against high depreciation, but I think M3 residuals will be strong anyway, so not a major worry.
PCP makes monthly cost less painful than HP, but obviously a little more expensive overall.
Should be a little equity in the car at the end of the term and could allow early trade in if you prefer (although Tesla trade-ins are generally poor value)
With a big deposit (like £15-20k) and 3 or 4 year term I will possibly take it over straight HP.
Only thing putting me off is the balloon payment at the end, which makes it more awkward to sell privately i.e. will have to pay it off first and then sell. I don't think simply handing it back will be a sensible option with such a low GFV as I think you would lose out significantly.
Name a bank that'll loan you 44k at less than 4.9%. Even MSE reckon the cheapest at that level is 6.7%
For that amount of money it's a perfectly fine level.
You just loan the GFV and sell the car, then pay the GFV loan with the car payment and keep the difference. Since the second debt isn't against the car there are no problems selling it.
TBH you can do much the same with HP.. pay for 3 years, pay off the last 2 years with a loan then sell the car. Self-PCP if you like, except as you're paying it off faster you there's a lower overall cost. Might make more sense although you're dealing with the higher monthlies of course.
It's not a £44k loan though. Take off the PICG, take off your deposit...
If you do as they suggest and put £10k down that brings you a little under £30k, which you can easily get for less than 4.9%, even with average credit.
I don't think these deals are coming back anytime soon. They were a no-brainer at the time. I managed to get the last of the 1.5% PCP deals with 50% 4 year GFV. But now HMRC have clamped down on blatantly subsidised PCP deals they are no longer viable to offer.
Of course there are many solutions, but they all involve a degree of hassle and you are presuming people are able to get a second unsecured loan. I just gave my initial thoughts about the BH PCP deal as someone else requested above.
Personally I'm more likely to buy on a relatively short term HP with a large deposit to keep the finance cost relatively low, while still spreading the cost of the car (£52k for my spec) over a few years. I worked out the finance cost on Tesla HP would be £2,400 with a £20k deposit, 3 year term and £950 per month. I haven't looked at the equivalent PCP yet, but it will be a little more expensive overall.
OK I'll apologise up front as I've never bought a car on PCP before...
I have the Tesla/Black Horse offer at 4.9% which means a final payment of £13k. With my spec and deposit that works out at £662 per month.
I have a similar offer from Forza finance at 5.9% with an optional final payment of £18k which is £600 per month.
Both are over 4 years.
Which is best?! A slightly higher interest rate or a higher final payment? Is the final payment the GFV? Hope someone can help.
I have the Tesla/Black Horse offer at 4.9% which means a final payment of £13k. With my spec and deposit that works out at £662 per month.
I have a similar offer from Forza finance at 5.9% with an optional final payment of £18k which is £600 per month.
Both are over 4 years.
Which is best?! A slightly higher interest rate or a higher final payment? Is the final payment the GFV? Hope someone can help.
The Forza one is for 10k miles and the BH 20k which in why it wasn't making sense! At 20k miles Forza are giving a slightly better GFV but the monthlies are £669... Hmmm.
My thought from day one is that I don't ever want to be stuck owning the car, so ruled out any finance which means I carry the risk of that.
The electric market is going to be waaaaaaaayyyy to volatile in Europe over the next 3 -4 years. You will have all the big guns coming on board and the only person in their cross hair is Elon Musk, everyone will be looking to out do Tesla.
Plus battery technology at this stage is extremely new on the grand scheme of things so is still changing massively.
If you have a Model 3 that is 4 years old, probably capable of a realistic range of high 200's miles (assuming it is a long range) you could be trying to sell it in a market that has several cars capable of over 500 miles or more that are new and cost less than £30K
Up until now - Tesla has been playing against no one else is this space and that will change.
Look at cars like the Nissan Leaf, hit the market early (although with poor ranges) and after 3 - 4 years have gone from a £30K car to a £6K car. No one is going to buy one unless all they do is drive to the shops once a day.
