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Noob financing question

ivy_

Member
Sep 25, 2019
144
142
Michigan
First, thank you all for the information I've read in this forum. It's helped me make the decision to order a Midnight Gray SR+ a few days ago.

I have a financing question. Is the Tesla loan rate variable? The order screen is showing 3.99%, but I've seen some talking about rates closer 3.25%. My credit union's rates recently change from 'as low as' 2.8% to 'as low as 3.5%', making them fairly unappealing, if I can get better from Tesla

My credit rating is very good, normally between 810 and 830. Are the Tesla rates negotiable? How do I approach this with discussion with Tesla?

Is the rates tied to the loan term?

I'm planning on placing 25 to 50% down, and finance the remainder on a 48 month loan, and pay it down faster than planned.
 

avalpert

Member
Oct 7, 2019
44
48
Silver Spring, MD
It is a fixed rate - the rate you actually get won't be shown until approval. Getting approved doesn't require you to use them and if you submit multiple applications for the same credit type in a short period (15-45 days) are treated as one inquiry by credit agencies so it won't impact your score.

Tesla's rate isn't negotiable, but they do have a policy of matching other approved rates that you get. If you show it to them before delivery they say they will just lower your rate, if you do it within 7 days after delivery they say they will send you a check for the difference in interest over the life of the loan. I plan to test this policy this week, but haven't done so yet so can't comment on how easy it is.
 

ivy_

Member
Sep 25, 2019
144
142
Michigan
It is a fixed rate - the rate you actually get won't be shown until approval. Getting approved doesn't require you to use them and if you submit multiple applications for the same credit type in a short period (15-45 days) are treated as one inquiry by credit agencies so it won't impact your score.

Tesla's rate isn't negotiable, but they do have a policy of matching other approved rates that you get. If you show it to them before delivery they say they will just lower your rate, if you do it within 7 days after delivery they say they will send you a check for the difference in interest over the life of the loan. I plan to test this policy this week, but haven't done so yet so can't comment on how easy it is.

Thanks. Re-reading my question, did not write it clearly. I understand that the rate is fixed for the term of the loan, but, from your answer, the rate they offer appears to vary based on applicant, presumably on credit score and perhaps the length of the loan.

It sounds like I should apply, and see what I get. It's not clear if they offer financing in my state however. I'll give it a shot.
 
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mreynolds767

Member
Jul 11, 2019
728
403
Boston
Yes you won’t know the rate until you apply
Once you do apply you will see the rate and can choose to use them or your own financing
You actually in most cases have weeks to think about it/ change your mind re the financing
I got less than 3.99 on 72 months so yes it is applicant/credit score dependent
Some I am sure got higher than 3.99, some get less. 3.99 is probably what the majority gets.

They use large banks, mine is Chase (Chase could be all they use) so I doubt they are flexible about lower the rate once they assign you one
 

KenC

Active Member
Sep 4, 2018
3,753
3,487
Maine
First, thank you all for the information I've read in this forum. It's helped me make the decision to order a Midnight Gray SR+ a few days ago.

I have a financing question. Is the Tesla loan rate variable? The order screen is showing 3.99%, but I've seen some talking about rates closer 3.25%. My credit union's rates recently change from 'as low as' 2.8% to 'as low as 3.5%', making them fairly unappealing, if I can get better from Tesla

My credit rating is very good, normally between 810 and 830. Are the Tesla rates negotiable? How do I approach this with discussion with Tesla?

Is the rates tied to the loan term?

I'm planning on placing 25 to 50% down, and finance the remainder on a 48 month loan, and pay it down faster than planned.
With your credit rating and down pmt, you should shop around. You may or may not get a good rate offer from Tesla, but that shouldn't preclude you from trying to get a better rate, that they may try to match.
 

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