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Tesla Finance with Model 3

Discussion in 'Australia & New Zealand' started by lonewolf313, Feb 24, 2016.

  1. lonewolf313

    lonewolf313 Member

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    I am hoping there will be Tesla Financing available with the release of Model 3 in 2017 or 2018

    I am using half the cost of a current fully loaded Model S 70D ($165,000) as a base costing for my Model 3 with a few options added ($80-90,000 max) using Tesla Finance

    30% deposit - up to $30,000

    3 years Monthly repayments - around $850 pm

    Balloon Payment in 2020 or 2021 - around $38,000

    My Model 3 specs
    * Largest available battery pack
    * Supercharging enabled
    * Autopilot Enabled (if available)
    * Premium Sound
    * Dual Motor (if pricing permits and availability)

    All other items I can do without such as leather seats, sunroof, optional alloys or low profile tyres

    This option would allow me to be behind the wheel of a Tesla sooner than having to save up and pay the full purchase price up front
     
  2. paulp

    paulp Member

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    Most automotive financiers will do a lease or loan on a tesla. You wont need to rely on tesla finance.
     
  3. EcoCloudIT

    EcoCloudIT Member

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    I think you'll do much better than those figures also in terms of less money in and a smaller monthly commitment.

    -ECIT
     
  4. lonewolf313

    lonewolf313 Member

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    Yes, but will they be able to match the 4.75% interest rate currently offered.

    That is very close to home mortgage interest rates.

    This will be new territory for me as I have paid cash on all my new car purchases since the late 1980's
     
  5. Az_Rael

    Az_Rael Active Member

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    #5 Az_Rael, Feb 24, 2016
    Last edited: Feb 24, 2016
    Edit: ignore me, I didn't notice this was in the Australia forum.
     
  6. Mark E

    Mark E Member

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    2 quick questions;
    1. Do you own property?
    2. Do you use the car for business purposes?

    If the answer to #1 is yes then you are probably better off securing a loan against property than going through leasing. Current interest rates are below 4.5% and the car is unencumbered.
    If the answer to #2 is yes then you are probably better off getting an interest only loan over 5 years (max time) to buy the car and claiming interest and depreciation. When you get your tax cheque back you can either pay down the interest only loan or put the money aside somewhere else so that when the time comes to sell the car you have the cash ready. You need to declare any income from it if you do the latter.

    When you are tired of the car you can sell it at any time and repay the loan. If you like the idea of paying for the car as you go, then in scenario #2 pay the interest back and put aside $x per month into a term deposit - or the offset.

    Personally, I'd rather keep the money that the leasing company make as margin myself.
     
  7. EcoCloudIT

    EcoCloudIT Member

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    Mark

    I thought there was a law against getting an interest only loan on cars? For example the largest ballon one can now get is 40% (suits me okay as I wouldn't go beyond this anyhow).

    I have a lease (or whatever it is called now done via my business) with BMW (managed to get 4.15% due to being a preferred customer) over a 5 year term and a 40% ballon at completion. Put in quite a few dollars upfront and the beauty of the BMW loan is you can pay it out at any point with no penalties....so basically when the accountant tells me it is best to move the car on and the payout equals the current market value (and gaining most of the initial in dollars) I then turn it over.

    Obviously I also tax deduct the interest, GST and depreciation at my business use percentage.

    The car is 90% business use, a log book is kept for the first 3 months of ownership.

    I've done this on all my business use cars for as long as I can remember.

    -ECIT
     
  8. Mark E

    Mark E Member

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    The loan is secured against property for business purposes so it can be for anything. You just need to have the equity. The balloon payment is a financial construct designed to keep your principle repayments down - that's all. I only finance up to the LCT limit as that's all you can claim - cash for the balance.
     
  9. EcoCloudIT

    EcoCloudIT Member

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    Hmm, ok...but you can claim the whole interest component not just up to the LCT... personally one can do better using their money invested and claiming the interest rather than paying a heap of cash out. I usually put in 20% and no more, just didn't stack up when I have a car that is 90% business use and interests on the totally amount is claimable.

    -ECIT
     
  10. PJF000

    PJF000 TOCA Member

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    Back yourself and finance the lot and put the cash into TSLA shares (Nasdaq). You could end up with a free car :biggrin:
     
  11. paulp

    paulp Member

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    Or a very expensive one.
     
  12. PJF000

    PJF000 TOCA Member

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    Its called double or nothing :eek:
     
  13. Mark E

    Mark E Member

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    Interesting - I was advised that the LCT limit was as much as could be claimed.
     
  14. paulp

    paulp Member

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    or half of everything. I guess the remnants could go toward a model 3.
     
  15. EcoCloudIT

    EcoCloudIT Member

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    Mark E, you can depreciate up to the LCT and you can claim the whole interest component on the whole amount at the percentage of your business use (why claiming and keeping a log book is worth while).

    -ECIT
     
  16. Mark E

    Mark E Member

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    Hmmm - I'll look into restructuring. My thought was that I'd never borrow more than can be claimed.
     
  17. PJF000

    PJF000 TOCA Member

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    Worst case doesn't look to bad ($120), best case is blue sky (beyond $280)
     

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  18. paulp

    paulp Member

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    The recent dip is a result of the market realising china is in trouble. When the chinese false repairs fail, $120 will be a distant dream.
     

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