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Tesla Loan as a financing option?

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Quick question, has anyone used a Tesla Loan to finance their purchase? I am looking at M3LR £9k down and balance financed over say 6 years. Do Tesla Loans work the same as normal car loans? so if i want to change out my car for a new car in say month 36, do i just get a settlement figure from tesla finance (or underwriters) and then trade the car in? The finance rate of 3.99 seems to at least be competitive, are they ok to deal with? Does anyone with issues or experience of this in the UK?
 
Do Tesla Loans work the same as normal car loans? so if i want to change out my car for a new car in say month 36, do i just get a settlement figure from tesla finance (or underwriters) and then trade the car in?
They don't work in quite the same way as a bank loan. Tesla's t&cs state that they will only allow you to overpay by a maximum of £8k per annum without the possibility they will apply charges. So if you wanted to settle early you'd need to write to them to understand what, if any, penalties they'd apply.
 
I did this last march. £9k down, about £507 per month for an SR+. Just sold it. Got a settlement figure from Tesla and paid it off - its just been confirmed settled. Didn’t get any issues with penalties etc. I assume for settlement they probably apply some small extra amount in lieu of interest you’d save otherwise?

I think I’ve paid maybe half the interest there would have been for the full term - haven’t done the maths.
 
Quick question, has anyone used a Tesla Loan to finance their purchase? I am looking at M3LR £9k down and balance financed over say 6 years. Do Tesla Loans work the same as normal car loans? so if i want to change out my car for a new car in say month 36, do i just get a settlement figure from tesla finance (or underwriters) and then trade the car in? The finance rate of 3.99 seems to at least be competitive, are they ok to deal with? Does anyone with issues or experience of this in the UK?
I was very tempted by the 3.99% with 15-20k down to bring the monthly payment and overall cost of the car down over the loan period (lower the interest as much as I could). What really put me off from going down that route was the fact that you still don't 'own' the car up until you have settled the amount and I couldn't bear that for a 6 year term. So I've gone down the route to get a bank loan at 3.9% on 50% of the value of the car over 6 years but for personal peace of mind I know that I can sell it to anyone within that period (not just Tesla under their loan option) and then settle the bank loan.

Not a benchmark to compare to per say but I did that for my two previous cars since 2017, both part funded by bank loan then upon selling I lost around 3k in depreciation and interest for the first one (VW GTD added 16k miles on it in 18 months). Second one I topped up the loan and with GTD part ex, got Polo GTI which I just sold for 2k more (global shortage and all) than I paid for it in 2019 (10k miles added on to it from new). Just settled the bank loan after selling the Polo - I did get a very low rate back then so total interest was way lower than the appreciation of the vehicle.

I should emphasise that its all based on personal financial circumstances and preferences - for me personally funding with a bank loan works, knowing that over the period I own the car. If I needed to pay the bank back for whatever reason - I can sell the car back to Tesla or other traders and settle the balance with the bank.

Get a spreadsheet out and see what works best for you - took me a few days to really get my head around it properly to decide what works for me best.
 
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? You own it as much as you own the car with a loan through your bank. I sold mine to a dealer earlier this week, they transferred the money direct to tesla to settle (as could I) and it was cleared off my account by the next morning.

If I could have got a better rate from a bank I’d have considered it, but most have caps around 25-30k for good rates, and I couldn’t hit that with my deposit. Tesla loan rate is very competitive at the moment for the amount they’re willing to lend vs banks
 
? You own it as much as you own the car with a loan through your bank. I sold mine to a dealer earlier this week, they transferred the money direct to tesla to settle (as could I) and it was cleared off my account by the next morning.

If I could have got a better rate from a bank I’d have considered it, but most have caps around 25-30k for good rates, and I couldn’t hit that with my deposit. Tesla loan rate is very competitive at the moment for the amount they’re willing to lend vs banks
Thanks, good point.

Is this Tesla's own funds or is it underwritten by someone else?
 
? You own it as much as you own the car with a loan through your bank. I sold mine to a dealer earlier this week, they transferred the money direct to tesla to settle (as could I) and it was cleared off my account by the next morning.

If I could have got a better rate from a bank I’d have considered it, but most have caps around 25-30k for good rates, and I couldn’t hit that with my deposit. Tesla loan rate is very competitive at the moment for the amount they’re willing to lend vs banks

Oh totally I nearly pulled the plug on Tesla finance (they’re already showing on my bank account as a standing order as I went through on a loan form with them and after much deliberation, I asked for the payment option to be reset on the order. For me, if I went with Tesla Loan, it tied to to only being able to return the car to Tesla within the agreement period whereas if I financed with bank loan I could sell it to other parties other than just Tesla. As I’ve stated, I’ve had to fork out more (50% value of the car) on the ‘deposit’ to then fund the rest with the bank loan.

But as I said it’s all down to personal preference and financial situation.
 
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Oh totally I nearly pulled the plug on Tesla finance (they’re already showing on my bank account as a standing order as I went through on a loan form with them and after much deliberation, I asked for the payment option to be reset on the order. For me, if I went with Tesla Loan, it tied to to only being able to return the car to Tesla within the agreement period whereas if I financed with bank loan I could sell it to other parties other than just Tesla. As I’ve stated, I’ve had to fork out more (50% value of the car) on the ‘deposit’ to then fund the rest with the bank loan.

But as I said it’s all down to personal preference and financial situation.

Yeah if I had half for deposit it would have opened up slightly cheaper options and I’d have gone that way. But you don’t have to return the car to tesla. I sold it to a third party dealer in nottingham. Tesla don’t care as long as you pay the finance off which is all wire transfer.
 
Yeah if I had half for deposit it would have opened up slightly cheaper options and I’d have gone that way. But you don’t have to return the car to tesla. I sold it to a third party dealer in nottingham. Tesla don’t care as long as you pay the finance off which is all wire transfer.

That’s interesting- so you can sell then settle with Tesla? Or settle (to own it outright) then sell? That’s what put me off from going down the Tesla finance option route as they state that they own the car until final payment on the loan term.
 
All car loans work like that.. owned by the lender until you pay them off. That's why they're relatively easy to get because the loan is secured on the value of the vehicle.

Most dealers/resellers are well used to settling HP with the lender directly (some might trust you to do it but selling cars with finance on them and doing a runner is a thing that happens).
 
That’s interesting- so you can sell then settle with Tesla? Or settle (to own it outright) then sell? That’s what put me off from going down the Tesla finance option route as they state that they own the car until final payment on the loan term.

yep. Dealer came down from nottingham on Monday morning, checked the car over, then they rang their boss who transferred the settlement figure to Tesla then drove off in the car. I got the DVLA notificaiton I no longer owned the car that afternoon, the money showed up in my Tesla account within an hour, and the loan was settled the following morning. Super simple.
 
That’s very helpful to know - when I was speaking to the SA they gave me slightly different steer on what I can/can’t do on the various options but seems like the Tesla Loan may be back on my list. I have until next week to settle in full or change to Tesla loan (though that might affect credit history if I fill in another request for credit search after the bank loan(application approved but I’ve not accepted it yet))

Thanks for sharing @Mrklaw
 
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@J200George I've gone for a Tesla loan over 6 years. I don't like leasing (I know it's all pretty much the same), but I don't like mileage limitations and I plan to pay off the car in 3-4 years anyway. I spoke to Tesla finance and they are very helpful (I found), they don't charge early repayments even though their contract has the standard UK ERP in. Since most of the £4-6k total interest is on the first couple of years due to the higher loan amount, paying off in 4 years would save me a £1-2k in interest which is better than nothing.
For me, it was the lowest rate (cost over the life of the car) I could get to purchase the car. If I decide to sell in in a few years I would get a bank loan to pay off the remaining (if I didn't have the available cash) and then pay off the bank loan with the money from the sale of the car. As I would probably sell private to get a better price.
I tend to keep my (normally used) cars for 8+ years anyway and I don't want the Tesla to be any different.
 
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@J200George I've gone for a Tesla loan over 6 years. I don't like leasing (I know it's all pretty much the same), but I don't like mileage limitations and I plan to pay off the car in 3-4 years anyway. I spoke to Tesla finance and they are very helpful (I found), they don't charge early repayments even though their contract has the standard UK ERP in. Since most of the £4-6k total interest is on the first couple of years due to the higher loan amount, paying off in 4 years would save me a £1-2k in interest which is better than nothing.
For me, it was the lowest rate (cost over the life of the car) I could get to purchase the car. If I decide to sell in in a few years I would get a bank loan to pay off the remaining (if I didn't have the available cash) and then pay off the bank loan with the money from the sale of the car. As I would probably sell private to get a better price.
I tend to keep my (normally used) cars for 8+ years anyway and I don't want the Tesla to be any different.
absolutely same situation as me. word to word :D

PS why your signature says RYMAN chip, when it is Ryzen?
 
I spoke to Tesla finance and they are very helpful (I found), they don't charge early repayments even though their contract has the standard UK ERP in. Since most of the £4-6k total interest is on the first couple of years due to the higher loan amount, paying off in 4 years would save me a £1-2k in interest which is better than nothing.
This is good to know. I also financed mine in exactly the same way as I felt that lease providers weren't passing on the higher GFVs and PCP providers were taking the biscuit on interest rates.
 
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Thanks, good point.

Is this Tesla's own funds or is it underwritten by someone else?
I have a Tesla PCP. Latest EDD is July. I thought I would set up the "New Recipient" on my internet banking from the details provided in my Tesla Account and was informed by my on line bank that they did not recognise this particular account and that scammers set up new accounts all the time. My bank is happy to proceed with a transfer at my own risk. So I sent off a fiver.

Presumably, all Tesla Financial Services Limited customers are given the same payment details and I don't suppose that the Tesla App or my Tesla Account has been hacked somehow but.....but one hears of stranger things.
So just to check, the account number I have been given is: 17559895 have any other Tesla Finance customers been given this account number?

Thank you.