Tesla Solar 10-year loan, 10% down, 0.99 APR

[jjrandorin]

The point here is the take advantage of leveraged money at a fixed 0.99% , in a high risk inflationary time period. The bank (tesla) is getting eaten alive on this 10 year-fixed-rate loan. One would be beyond insane to pay any more than the bare minimum towards the down payment, or actively work to pay extra on the principal.

I received the credit approved green check mark and have received permit approval - though I am still going through a small panel re-design. The PA mentioned that since we already have permits for the install, then can simply install as I want, and then re-permit prior to PTO (eek).

I am sure they can do that ( re permit ), just be aware that is going to make your time between install and PTO take "some indeterminate amount of time" longer. "Eyes wide open" as the saying goes.

 

[bryan995]

I am sure they can do that ( re permit ), just be aware that is going to make your time between install and PTO take "some indeterminate amount of time" longer. "Eyes wide open" as the saying goes.

Agreed, that is a major risk in my eyes. I will push for them to re-permit prior to install/completion.
Though with my existing solar already, I don't think the PTO process is technically the same as if this were a brand new PV install.

 

[jjrandorin]

Agreed, that is a major risk in my eyes. I will push for them to re-permit prior to install/completion.
Though with my existing solar already, I don't think the PTO process is technically the same as if this were a brand new PV install.

If you have existing solar and PTO, I am not quite sure if the paperwork is different, but most of us (at least here in this section) tend to think there is much less "risk" running the system after installation (but before PTO).

If you already have PTO on a PV system at the residence, you already (in theory) have the proper meter on premises for back feeding to the utility, your account is already setup for some sort of net metering plan, etc.

Most of us see going from "Solar /PV with PTO" to "More solar / PV" differently than going from "Nothing" to "solar / pv".

 

[skiingj]

I tried calling my advisor, no answer as usual, spoke to another and was now told I can put more down on this new loan. Happy camper now.

 

[KHYE]

Out of curiosity, i did a quick chat with Tesla. They are telling me that I can't prepay the 10yr loan. I asked what if I sell my house in next 5 yr, they said I have to transfer the loan to the buyer, this can cause issue down the road.

 

[jjrandorin]

Out of curiosity, i did a quick chat with Tesla. They are telling me that I can't prepay the 10yr loan. I asked what if I sell my house in next 5 yr, they said I have to transfer the loan to the buyer, this can cause issue down the road.

So the loan has a repayment penalty?

 

[bryan995]

Out of curiosity, i did a quick chat with Tesla. They are telling me that I can't prepay the 10yr loan. I asked what if I sell my house in next 5 yr, they said I have to transfer the loan to the buyer, this can cause issue down the road.

Say what! I never came across that in any of the docs. Though I have not yet finalized things with loan vs cash.

 

[Zer0t]

Say what! I never came across that in any of the docs. Though I have not yet finalized things with loan vs cash.

I haven’t seen that in the loan agreement but will call and validate. If that’s the case I’ll go cash or have someone else do the install.

 

[Pyser]

The RIC I signed specifically says this (I did the 10 year, 0.99% loan through Tesla):

4. You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your paymen

 

[jjrandorin]

So, it appears that there must be some sort of miscommunication between @KHYE and tesla. Either that, or there is some detail that is being left out in the conversation.

 

[KHYE]

So, it appears that there must be some sort of miscommunication between @KHYE and tesla. Either that, or there is some detail that is being left out in the conversation.

I was surprised the tesla chat agent told me that I can't prepay with their in house loan. That's why I came here to get clarification. I noticed that their chat agent gave different answers depends on who u talk to, it's not consistent.

 

[dareed1]

The RIC I signed specifically says this (I did the 10 year, 0.99% loan through Tesla):

4. You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your paymen

When is the Finance Charge earned? For some loans (not necessarily Tesla's) , the contract calls for the entire amount of interest to be considered "fully earned" at the beginning of the repayment period. If that were the case here, prepayment can be made without penalty, but all of the expected interest has to be repaid.

 

[Pyser]

When is the Finance Charge earned? For some loans (not necessarily Tesla's) , the contract calls for the entire amount of interest to be considered "fully earned" at the beginning of the repayment period. If that were the case here, prepayment can be made without penalty, but all of the expected interest has to be repaid.

Here are the relevant sections I see in my contract:


How late payments or early payment change what you must pay. We based the Finance Charge, Total of Payments, and Total Sale Price shown on page 1 of this Agreement on the assumption that you will make every payment on the day it is due. Your Finance Charge, Total of Payments, and Total Sale Price will be more if you pay late and less if you pay early.


Penalties for prepayment. If you pay off early, you will not have to pay a penalty and you may be entitled to a refund of part of the finance charge.

 

[Notadog]

So this new term is directly from Tesla Finance and the old high rates terms are from Mosaic. I found about this only because for some reason my PA assigned me a "hybrid" term with 0 down 10yr 0.99% and I of course signed and got approved last week. Got a call back yesterday saying in order to get 0.99%(which is Tesla finance direct) I have to put down 10%...

@Nocokewh Was Tesla able to renege on their initial agreement and force you to pay the 10% down?

 

[Bitslizer]

Hi folks, what's the turn around time from credit check approval to getting the actual loan doc to sign (online) you guys have been seeing with this 10 years loan from Tesla Finance? This is the only thing holding up my install scheduling

 

[Zer0t]

Hi folks, what's the turn around time from credit check approval to getting the actual loan doc to sign (online) you guys have been seeing with this 10 years loan from Tesla Finance? This is the only thing holding up my install scheduling

Mine was a few hours.

 

[Notadog]

Hi folks, what's the turn around time from credit check approval to getting the actual loan doc to sign (online) you guys have been seeing with this 10 years loan from Tesla Finance? This is the only thing holding up my install scheduling

I got a green credit check approved notification on my Account page the next day but I never received any loan specific documents stating the loan terms (note I'm also waiting for installation).

 

[Zer0t]

I got a green credit check approved notification on my Account page the next day but I never received any loan specific documents stating the loan terms (note I'm also waiting for installation).

You should get something to e-sign at somepoint.

 

[Notadog]

You should get something to e-sign at somepoint.

Do you mean the Solar Loan Agreement? If so, that document only says that my system "WILL be financed" but that document does not say it's a 10-year, 0.99% loan or include any loan specific terms.

 

[Zer0t]

@Notadog a few days after my approval I received a retail installment contract that shows the term and total amount of finance charges over the period.

I showed in the doc folder after eSign as Tesla RIC New Jersey. I am in New Jersey.