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Once my 3 is ordered, what about financing / car loans?

Discussion in 'Model 3' started by timk225, Dec 18, 2016.

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  1. timk225

    timk225 Member

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    I was talking to my local bank the other day, and they said they don't do loans on certain brands of cars, like Ferraris, Bentleys, and Teslas, among others.

    My current car loan is through fifth third bank, I need to check with them to see about financing a 3.

    But my 2 big current questions are:

    1. When do I need to arrange financing? The day I place my order, or some time later? I'm sure Tesla wouldn't want to take my order, put me in the queue, build me a car, and THEN find out I couldn't get the loan. My current credit score is (or at least it should be) a little over 700, and I will have a few thousand dollars standing by for a down payment if needed.

    2. Does Tesla have a financing department? Once my order is placed, will I be able to get on the phone with someone in Tesla Finance, who will arrange a car loan for me?

    How is all this going to work?
     
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  2. Az_Rael

    Az_Rael Supporting Member

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    Buying a Tesla is slightly more complicated than buying a regular car because of the timelines involved. Odds are, once you configure, you may be several months out from getting your car, so too early to apply for financing. They normally have you apply once you are within 30 days of getting the car. You can apply through Tesla, and they work directly with several lenders (Alliant, US Bank, etc)

    If you have concerns about if you would be approved, you can apply when you order to be sure, but be aware that if you exceed the rate lock period (30-60 days depending on the bank) you will have to go through another hard credit pull when your car is ready
     
    • Informative x 6
  3. Mark C

    Mark C Member

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    When I rececntly test drove an S in Decatur, GA I asked about payment for the 3 I've reserved. The finance guy told me not to worry, my $1000 reservation money would do fine right up until I come to take delivery of the car. It is when you pickup you car that you have to pay for it. Not too difficult though. Financing can be arranged through a company they work with or you can use your favorite money source.

    As for borrowing on a Tesla vehicle, Redstone Federal CU told me they would finance any car that showed up in the book {Kelly Blue Book, I think} they use that lists vehicles and prices. I asked them to look up Tesla and they said they could finance a new Model S or X. The 3 will have to be available, I'm sure, before it will show up.
     
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  4. ModelNforNerd

    ModelNforNerd Active Member

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    I went through something similar a few years ago when buying the Audi A3 sedan. Since it wasn't on sale in the US yet when I ordered, I had to wait until I received my VIN from Audi to do any financing paperwork. I imagine the Model 3 will be very similar for financing and insurance purposes. Once you get a VIN you should be good to go. Since my car was coming all the way from Germany via Hungary, I had a few weeks to get everything settled. Seeing as you're in Pittsburgh, you'll probably have your VIN in plenty of time to get your paperwork straight prior to delivery.
     
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  5. bro1999

    bro1999 Member

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    Being on the east cost, you won't have to worry about financing for a looooong time. Maybe next Xmas you can start initial financing research.
     
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  6. gregincal

    gregincal Active Member

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    Actually, they don't worry about it. It happens, and they just sell the car to somebody else who wants it. You lose the deposit, though.
     
  7. strykeroz

    strykeroz Member

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    Is the order subject to finance appoval at that manufacturing time? How do you see what's on the list of cars that are failed orders?
     
  8. Flekoun

    Flekoun Member

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    Simple solution. First earn the money and THEN spend them. Not vice versa! I will pay for my M3 with my own money , no loans , what strange guy I am, right?
     
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  9. JeffK

    JeffK Well-Known Member

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    Not many people are or will ever be in a situation to do this especially with relatively high priced items. Bragging about your ability to do so doesn't really impress others. Globally you are in a very small minority.

    Consider a simple scenario with the premise that you are young, just starting a family, and can't possibly save enough cash to purchase the vehicle outright for three years.
    You might say: "Well I still have to work so I'll get another car but a cheap used ICE car so I can save money." This now puts you behind where you started including future maintenance and repairs causing you to have to wait longer. Chances are that this used ICE is not as safe as a Tesla so if you happen to get into an accident during this time you'd be risking the lives of yourself and your family.

    For the same cost of that used car plus the Tesla (possibly even less) you could have afforded a loan and all interest on the Tesla from the very beginning. You and your family could be safe and alive.

    It's different if you don't currently "need" a car, but if you do "need" a car and you have a stable job making enough money to afford loan payments comfortably (even make extra payments now and then) then it makes financial sense to just get the car now especially when there's still a chance for tax credits.

    cost of tesla + used car + maintenance + loss of tax credit (any percentage) > tesla + loan interest
     
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  10. Flekoun

    Flekoun Member

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    No. If you need to take loan you are doing something wrong. The loan is the indicator that you should put more effort to increase your income and stop spending money you do not have. If you have family and you need to take loan to buy a new car, you have done something wrong, probably you have spent too much time making babies and too little time increasing your income. Plain and simple. The only time it is ok to take a loan is if you want to increase your income by reinvesting the loan. If you take a loan to consume the money, game over, you have lost, sorry. "Yes majority people take loans" - This sentence alone should make you curious..... because there is also a sentence "Majority of people do not have money"... I am 26, I earned all my money, I am not super rich, I never take loans, I am not in majority, thanksgodforthat
     
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  11. bro1999

    bro1999 Member

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    Do you also advocate no one take out a mortgage and that a house should be bought with cash?
    If the cash-only thing works for you, more power to you. But to make a blanket statement saying taking out loans is bad is plain wrong.

    Sure, if you take out a $100k loan at 10% interest that exceeds your annual pay, that is a bad idea, but you can't just go "ALL LOANS ARE BAD!!" without knowing a person's specific financial circumstances.
     
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  12. Garlan Garner

    Garlan Garner Well-Known Member

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    That's a low blow.
     
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  13. JeffK

    JeffK Well-Known Member

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    Reality:
    Where are you on the global pay scale? - BBC News
    List of countries by average wage - Wikipedia
    In many countries much of that is spent on food and housing not luxury.
     
  14. Garlan Garner

    Garlan Garner Well-Known Member

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    Gloating about yourself....I can probably stomach that.

    However putting others down is personal character assassination. Spent too much time making babies? Really? WOW.
     
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  15. Garlan Garner

    Garlan Garner Well-Known Member

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    • Like x 1
  16. NeverFollow

    NeverFollow Member

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    ???? Please, explain?
     
  17. bro1999

    bro1999 Member

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    Because all families with lots of kids are automatically poor deadbeats! :rolleyes: That guy is something else.
     
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  18. Flekoun

    Flekoun Member

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    I do not care. Yes, many people have great time making babies, and when its time to actually take care of them, they just take loans. Thats reality. I am not saying that everyone who takes loan is stupid and should not do it. I am saying that when you have to take a loan to consume it, it should serve you as an alarm, that you have done something wrong that put you into this situation in a first place.
     
  19. bro1999

    bro1999 Member

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    Elon has stated initial deliveries will start in CA....then will gradually spread eastward. Being in PA, you will likely have quite a wait on your hands. If you aren't a current Tesla owner, an even longer wait then.
     
  20. bro1999

    bro1999 Member

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    I have this feeling you are single. Am I correct?

    Maybe that should have been a rhetorical question.
     
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