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Tesla Loan
- Thread starter SuperVisual
- Start date
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- Tags
- tesla loan
I originally wanted to get a Personal Loan instead and just by the car Cash. Would be more flexible as I could just sell the car when I wanted. Unfortunately I didn't qualify for it for some odd reason so decided to go the Tesla Loan route as I think it's more flexible than and has less restrictions than PCP or Leasing. I'm yet to see any proper documentation so I could be wrong.
I was hoping someone else purchased this way and could share the detailed terms and conditions of the Loan.
I was hoping someone else purchased this way and could share the detailed terms and conditions of the Loan.
NATO
Member
Personally I think PCP offers the most flexibility, to me the only benefit of the Tesla Loan is the lower interest rate if you KNOW you’re going to keep the car long term and plan to buy it outright.
The reason I feel PCP is good is because you’ve got a lot of flexibility - you have the option at the end to buy the car outright, hand it back or trade in (if there’s positive equity). You’re also not restricted to sell the car at any point (I did just that recently, sold via Motorway and the dealer who bought it settled the finance and sent me the remainder).
Just my opinion but I have tended to take cars on PCP and enjoy that flexibility - I’ve never actually taken a car to the end of its term, I’ve either traded in or sold at some point during the agreement.
PCP also protects you against any unforeseen drops in value - if something happens in future that results in a much lower residual value than expected you can simply hand the car back and let the finance company take the hit. Conversely if the value of the car is much higher than the balloon payment you can trade in or buy outright+sell to bank the profit.
This is the conclusion I came to after spending a long time looking at lease/pcp prices. If the residuals remain anywhere near where they are at the moment you get the flexibility of not having an artificial mileage limit placed on you, and a low APR.
The brokers are rinsing people on leases by not factoring in the residuals and on PCPs they are rinsing people with high APRs.
On current form, I don't think the flexible benefits of PCP apply to a car in constant demand and with high residuals. If you need or want to dispose of the car for whatever reason while on your loan, it will be quite straightforward to do so.
You might be right as this is the first time I am financing a car or for that matter buying a brand new car. Quite a few of my friends have always had high end Merc's and BMW's on PCP and have always complained about the dealership rinsing them in the end. Then there is the millage limit. I doubt I will do more than 10k miles but I just hate knowing there is a limitation.
What I really want to know with the Tesla Loan is that if I decided to sell the car in let's say 2 years, what are my options? I assume I can do what you mentioned and sell to a third party that then settles with Tesla. Or can I simply go to Tesla and say i want to exchange with a Model Y and add the extra to the loan agreement?
I tried asking my SA and he said it's basically like a Hire Purchase except you get to own the car in the end.
With hire purchase you get to own the car in the end, many don't even have a final purchase payment as it's just the cost divided by term. So there is similarity.
With residuals, the loan does look a good option. If you want to sell the car, you can and just need to pay off the loan. At any point you can ask Tesla for a settlement cost.
Likewise with trading in for a new Tesla, they generate a settlement cost, add that to any new loan on a new car, subtract the cars trade-in value and you then have a new car and new loan agreement.
You can overpay, which reduces the end date. Since the interest is calculated annually, this does save interest. However, there was another post here that Tesla's systems needed fixing (which they acknowledged) since it didn't do the maths correctly when someone overplayed. I don't think we heard back when they fixed this
You could, pay off the Tesla loan with a personal loan at a later date. If the personal loan is lower interest, this could well save.
I went there Tesla loan route.
interesting reading the early repayment terms, they can claim compensation as a result of costs incurred by an early repayment and if it exceeds £8,000.
I think the compensation would still be less than the interest saved by making a big early repayment.
Have you signed the documentation yet? I can see them in my account but apparently they are suppose to come in the email separately to sign digitally.
I have two extra documents uploaded in my Tesla account, pre contract agreement and lending agreement. I’ve made my final payment and it shows as £0 due. Next steps show as prepare for delivery. I haven’t signed anything digitally. Not sure how to, see no place in my Tesla account for that. I’ll give them a call tomorrow. What have you had come through so far?
I’ll let you know tomorrowSame position herewould be interested to hear how the call goes, I can’t find a way to digitally sign, I presume it will be a signature on the day.
Pretty much the same as you, I can see the two new documents in my account. I have not paid yet but probably will in a week or two, closer to delivery day.
I emailed my SA to ask about the documents and if I need to sign them and email them back or anything. His reply "The contract will be sent via email (echo sign) and you should be able to sign it digitally".
I told him I will wait to sign the documents and then make the payment but have not heard back from him yet or received the documents the way he mentions. Might contact him again tomorrow as I am also getting him to shift my pickup location to Southampton Docks instead of Bluewater Mall.
Does it say in your Tesla account as “Prepare for delivery”?
Very interesting. I’ll give them a call tomorrow and see if I get the same answer that you did.
hi guys.
went with the loan as well.
I am doing about 20k miles year and with these mileages personal hire and PCP becomes just too expensive. Plus I would not be very happy to have that large amount at the very end of the lease...
3.9 apr looks very compelling. none of my banks were able to match the value and apr...
went with the loan as well.
I am doing about 20k miles year and with these mileages personal hire and PCP becomes just too expensive. Plus I would not be very happy to have that large amount at the very end of the lease...
3.9 apr looks very compelling. none of my banks were able to match the value and apr...
