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Paying for the Roadster

Discussion in 'Roadster' started by dpeilow, Oct 16, 2008.

  1. dpeilow

    dpeilow Moderator

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    This seems strange:

    1) People getting cold feet thanks to the economy can now pull out without penalty.

    2) There will be a transition period of people who have to pay early to those who pay on delivery.


    Both could create a hole in the company's cashflow, which given the events of yesterday I would think is the last thing they want.
     
  2. graham

    graham Active Member

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    Yes, I am not entirely sure the rationale behind it all.

    My guess reading between the lines of our conversations is that they are afraid that many people are like me, and intend to pay for much of the balance with stock sales or other investments which are currently very unhappy. Giving people more time to arrange funds will allow fewer people to pull their deposit now. It will also allow for people who intend to get a car loan for part of the balance (another question I was asking about) to have a "pink slip" to give the banks at the time of the loan.

    Personally, I was going to have some issues to pay my balance in December (or my original horror, next week) for a car I was not going to see until May. My stock value has more than halved recently, and it would be difficult to obtain a car loan when there would be no car title to give to the bank at the time of the loan.

    But of course, this is all speculation on my part.
     
  3. malcolm

    malcolm Active Member

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    Yes I think it's a good move to keep potentially anxious customers on-board. I wonder how the crunch may affect the terms and conditions of the Tesla Owners Club - a possible area for cut backs.
     
  4. SByer

    SByer '08 #383

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    I'm in the same boat as Graham. Got my color kit, definitely don't want to sell stock to cover the balance, will be looking at getting a loan instead. Have a note in to get date updates for myself so I can plan that out better.

    Looked at the credit union (KeyPoint) for loan rates - ticked me off that they have a "green car" bonus on the loan rate, but then you look at the list, and not only is it a joke, guess what's not on it?
     
  5. graham

    graham Active Member

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    As I recall, your original number and mine were so close together that our cars will probably be produced within the same week. If that is the case, yours should also be built in March for a May delivery.

    I went by my credit union (BayFed) a few weeks ago to get some preliminary info about a possible loan. They informed me that they would not give car loans for a Tesla because it is an electric car! I have a feeling I could get them to change their mind on that if I felt like arguing the point, but first I thought I would try my other credit union (San Mateo). Since Tesla is in San Mateo, they will hopefully be better informed than Santa Cruz.
     
  6. SByer

    SByer '08 #383

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    They may be thinking "electric car" is equivalent to NEV, which I could see not giving a car loan for. If it's not that, well, that's so embarrassingly stupid on their part...
     
  7. graham

    graham Active Member

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    Yes, I was very clear to them that this was a highway capable car, registered with the DMV, I showed them the Tesla web site etc. I am pretty sure I just got an idiot that day and if I went back to a different branch and talked to someone with half a brain that it wouldn't be a problem.

    But I am going to check with my old credit union in San Mateo first. I think they may be able to give me a better deal, anyway. They give a quarter point off "hybrid cars" that I might be able to convince them to give to a pure electric car as well.
     
  8. tomsax

    tomsax Member

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    If your stock value is high enough that you could use it to pay for the car, but you don't want to sell at the market bottom, you might consider a loan against your stock value.

    We've done it a couple of times. You move some assets into a collateral account, then take a loan out against that value at a very favorable interest rate. Obviously, it limits what you can do with those assets, you can't just yank them out and take away the collateral backing the loan, but you can certainly sit on them waiting for the market to go back up, then pay off any remaining balance on the loan.

    It's a great way to finance things when the market is down and you don't want to lock in a poor return or loss, and you don't want to pay car loan interest rates.
     
  9. graham

    graham Active Member

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    Great advice! Thanks, tomsax!
     
  10. graham

    graham Active Member

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    As an update:

    I did speak with San Mateo Credit Union today. They were very aware of Tesla. They are happy to give loans for the car, and they will give the extra quarter point off the rate discount that they give hybrid cars.

    In other news: I also stopped by the Menlo Park store to look at their inventory and determine my color lock-in for next week. They have at least 15 new Teslas in their service bay, and probably another 5 in the building out back.

    The salewoman confirmed that they have ramped up to 10 per week.
     
  11. vfx

    vfx Well-Known Member

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    So Ted you had a deposit on a Roadster and have canceled like Tony?
     
  12. TedK

    TedK Member

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    Yeah, tough decision as I had the best price. Financing was becomming a concern in this environment since we are just now starting on a garage and house remodel. So, I decided to put the garage first and let the EV dust settle for a few years before buying. I was also breaking my own rule of never buying the first year of any model car.

    Cheers,
    Ted K
     
  13. dpeilow

    dpeilow Moderator

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    I wonder how many others there are like you? We seem to be hearing from other people here that they are getting slots higher up the list than they expected.
     
  14. TedK

    TedK Member

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    Well, if someone was planning on financing their balance due using something like Capital One or some other online lender, the availability of credit compared to a year ago is significantly less. That might trip some people up. For example the current maximum available at Cap One is 50k, no matter what your FICO is. That is not enough to complete a purchase for those that put down 30k. Personally, I am going with my garage remodel as the cash use priority, plus you can currently get better pricing from contractors as many are out of work.
     
  15. graham

    graham Active Member

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    This has been my experience as well. And reading between the lines talking with Tesla it is not uncommon. I think this is partly the reason they are now only asking for cash upon delivery instead of so far ahead of time. Too many people wanted to pull out now due to lack of credit/current funds, while waiting allows people more time to raise the money.
     
  16. graham

    graham Active Member

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    It is possible they have changed this policy only for the 2008s. But they have modified the terms many times in the past 4 weeks, it is possible that they haven't fully made up their minds yet, and/or they haven't propagated this information well yet.
     
  17. donauker

    donauker Member

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    It doesn't look like a policy change for the 2008s from my experience. My Tesla Motors owners car page has always shown my "balance due on delivery." My signed agreement doesn't indicate any additional payment due prior to delivery nor has anyone from Tesla Motors ever told me that there would be any additional payment required prior to delivery.
     

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