Tesla Model Y Financing and Lease Questions

[mra1991]

Hi folks,

So I have delivery coming for a model y next week. I have been waiting for this since 09/2021. I have been in a dilemma on financing my model y due to some religious issue. Long story short, I can’t take a loan with any interest involved. I can however pay higher purchase price(I.e. sale price + total interest accumulated) to avoid paying interest on a month to month basis but no bank will structure their loan like that, unfortunately. I have looked into leasing the vehicle which will be fine from a religious pov but I know that leasing a model y makes no sense.

There are couple of banks out their who provides 0% interest loan by partnering with you in the purchase of the vehicle. So in this instance, I will own let’s say 10% and the bank will own 90% and I will pay a rent fee for using the vehicle for the duration of whatever month term we’ve decided to complete the transfer of full 100% of that vehicle ownership. But these banks are state specific. They might open up to other states but could take years.

My question to you, should I take the risk of leasing the model y in the hope of Tesla might change their “no lease end buyout” in the coming years or compromise my belief to finance the model y with traditional bank and hope that those 0% interest banks will expand their services to my state?

Sorry I know it’s a loaded question and it is a very unique situation but would love to hear your thoughts. Thanks again for all your help.

 

[ATPMSD]

My question to you, should I take the risk of leasing the model y in the hope of Tesla might change their “no lease end buyout”

The lease agreement says what it says. Unless you like gambling, and I would call that a bad bet.

 

[mngoalie]

I've never heard of a bank structuring a loan like that. You definately are taking a huge gamble with the lease. Can you get some sort of ok on the interest from a religious leader?

 

[Shekhawat Mx]

There are some Islamic banking in NYC area which are sharia compiled so check with them for the financing.

 

[ElectricAnt54]

Hi folks,

So I have delivery coming for a model y next week. I have been waiting for this since 09/2021. I have been in a dilemma on financing my model y due to some religious issue. Long story short, I can’t take a loan with any interest involved. I can however pay higher purchase price(I.e. sale price + total interest accumulated) to avoid paying interest on a month to month basis but no bank will structure their loan like that, unfortunately. I have looked into leasing the vehicle which will be fine from a religious pov but I know that leasing a model y makes no sense.

There are couple of banks out their who provides 0% interest loan by partnering with you in the purchase of the vehicle. So in this instance, I will own let’s say 10% and the bank will own 90% and I will pay a rent fee for using the vehicle for the duration of whatever month term we’ve decided to complete the transfer of full 100% of that vehicle ownership. But these banks are state specific. They might open up to other states but could take years.

My question to you, should I take the risk of leasing the model y in the hope of Tesla might change their “no lease end buyout” in the coming years or compromise my belief to finance the model y with traditional bank and hope that those 0% interest banks will expand their services to my state?

Sorry I know it’s a loaded question and it is a very unique situation but would love to hear your thoughts. Thanks again for all your help.

do not compromise your religious beliefs to get the car. You’d be reminded of your transgression daily and I suspect you would eventually sell the car to feel better.

I’d think there are religious financial institutions you could use? Perhaps they buy the car and you pay back interest free & you give them something of value as a token of appreciation? It’s not interest right?

Also ask a religious leader in your community, I’m sure the topic has come up and they might have solutions you wouldn’t have considered.

 

[FatherTo1]

Hi folks,

So I have delivery coming for a model y next week. I have been waiting for this since 09/2021. I have been in a dilemma on financing my model y due to some religious issue. Long story short, I can’t take a loan with any interest involved. I can however pay higher purchase price(I.e. sale price + total interest accumulated) to avoid paying interest on a month to month basis but no bank will structure their loan like that, unfortunately. I have looked into leasing the vehicle which will be fine from a religious pov but I know that leasing a model y makes no sense.

There are couple of banks out their who provides 0% interest loan by partnering with you in the purchase of the vehicle. So in this instance, I will own let’s say 10% and the bank will own 90% and I will pay a rent fee for using the vehicle for the duration of whatever month term we’ve decided to complete the transfer of full 100% of that vehicle ownership. But these banks are state specific. They might open up to other states but could take years.

My question to you, should I take the risk of leasing the model y in the hope of Tesla might change their “no lease end buyout” in the coming years or compromise my belief to finance the model y with traditional bank and hope that those 0% interest banks will expand their services to my state?

Sorry I know it’s a loaded question and it is a very unique situation but would love to hear your thoughts. Thanks again for all your help.

I can respect your religious reasons, although I am a little confused why paying lump sum interest is permitted. Isn’t it still interest at the end? Sorry, I don’t intend it as a criticism of beliefs but am genuinely unclear about the definition of interest.

If I were in your shoes, I would borrow interest free loans from relatives (just like how I’ve loaned money interest-free to family members), and pay the car in full.

Do you have a home you can pull money out of? But then that would still involve interest. Which makes me also wonder, how do you purchase a home in a manner that is religiously acceptable? Whatever way you can achieve a home purchase, do it the same way for the car.

I wouldn’t bank on Tesla changing their lease terms, no pun intended. Like the earlier poster said, don’t compromise your beliefs for a car. Driving the car will just be torture in your case. Where there’s a will, there is a way. Stay true and you’ll find the answer you seek. That was also good advice earlier, to speak with a religious leader. I second that.

EDIT: This is a very interesting dilemma so I keep updating my reply. Okay, if paying lump sum interest is acceptable (as in your example of sale price + total interest accumulated), then can’t you calculate the total expected interest and just prepay that as part of a larger down payment on the car? In essence your monthly interest will already be accounted for and paid all at once. It is still interest to me but seems to follow the allowed scenario of one-lump sum interest payment.

 

[Happy Hippo]

Hi folks,

So I have delivery coming for a model y next week. I have been waiting for this since 09/2021. I have been in a dilemma on financing my model y due to some religious issue. Long story short, I can’t take a loan with any interest involved. I can however pay higher purchase price(I.e. sale price + total interest accumulated) to avoid paying interest on a month to month basis but no bank will structure their loan like that, unfortunately. I have looked into leasing the vehicle which will be fine from a religious pov but I know that leasing a model y makes no sense.

There are couple of banks out their who provides 0% interest loan by partnering with you in the purchase of the vehicle. So in this instance, I will own let’s say 10% and the bank will own 90% and I will pay a rent fee for using the vehicle for the duration of whatever month term we’ve decided to complete the transfer of full 100% of that vehicle ownership. But these banks are state specific. They might open up to other states but could take years.
My question to you, should I take the risk of leasing the model y in the hope of Tesla might change their “no lease end buyout” in the coming years or compromise my belief to finance the model y with traditional bank and hope that those 0% interest banks will expand their services to my state?

Sorry I know it’s a loaded question and it is a very unique situation but would love to hear your thoughts. Thanks again for all your help.

What transaction did you use for your other cars or your family members in the past? Is this your first car ever? Can you just pay cash for the car so you don't have to pay interest?