Has anyone financed after purchasing?

Has anyone financed after purchasing?

Is it possible to pay cash and they take a loan out on the car after the fact?

Hodas | June 25, 2013

Note that my understanding is that in order to get the repurchase guarantee, you must finance at least 30% of the purchase price through Tesla's bank partners.

AmpedRealtor | June 25, 2013

I know that some credit unions offer this, it's called an auto equity loan or something along those lines.

riceuguy | June 25, 2013

I did this with Amplify Federal Credit Union; paid cash, then had them loan me 106% of what I wrote the check for (in Texas you have to pay the sales tax separately on a Tesla, so the extra 6% was for that). As long as it's not yet titled, it should be an option, though you won't get the repurchase deal as Josh noted...

AmpedRealtor | June 25, 2013

I looked at the numbers, I'm saving over $1,500 in interest over 3 years if I go with Alliant vs. Tesla financing. The Tesla repurchase guarantee is at 43% of the original sales price, correct? In that regard, I'm sure the car will be worth quite a bit more on the secondary market. So the repurchase guarantee is not a big deal for me. It's great insurance for people who are freaked out and want to know they will have an out in 3 years if things go sideways. I don't feel that way.

Vicelike | June 25, 2013


Not only insurance for things not working out but for things working out too well.

Imagine a car that improves at the rate of a computer. What can you get for your top of the line computer 3 years later??

After market value of the car depends on existing alternatives at the time of sale.

Reilly McHugh | June 25, 2013

Cool, thanks guys. Just running into an issue on my credit report that's taking longer than expected to fix! Looking at alternatives for Fridays delivery :) waiting isn't an option!

Brian H | June 25, 2013

I believe the guarantee has been bumped to 50%.

Cattledog | June 25, 2013

I refinanced about 70% of my purchase a few months after paying cash. Seemed too good to pass up the 1.49% as the cost of money for 6 years. Took a couple of steps but worked out fine in the end. I used PenFed.

S4WRXTTCS | June 25, 2013

I thought it was 15% of the purchase price you had to put down to get the repurchase guarantee.

Where the repurchase was 50% of the base value of the car, and 43% on the options (whether it was 85, P, or whatever).

For myself I'm still deciding whether to save money to go with a different loan company, and just risk the resale value dropping. While it would be an unlikely event it has happened in the automotive market before. It also could happen with Tesla if some unexpected problem suddenly cropped up. It doesn't matter if it's Tesla's fault or a user fault. Just look at what happened to Audi, or to Toyota. I don't think there was any evidence that the car company was at fault (with exception to maybe the floor mats leading to unintended acceleration).

olanmills | June 25, 2013

My credit union allows this. The only difficulty you may run into is that, at least last year, the Model S was not in whatever systems some of these banks/credit unions use to determine value of the car, depreciation etc. So if they allow it, then it will have to be based on stated value, and then I think the decision is much more up to the judgment of an underwriter than it normally would be. That may have changed since the Model S is more well known now. I dunno.

hpatelmd | June 25, 2013

@cattledog, did you already have the full title, & was there option to refi 100% of the purhcase price?

jjaeger | June 26, 2013

I did the same as Cattledog. Paid up front as I did not have time to get the financing in place when I got the call that the car was ready (the next day!). Went with PenFed and had no issue (and was also not in a hurry to complete things). Title was issued to me free & clear - and after I received the PenFed check, they were placed on it as a lien holder. Fairly easy to do.

@hpatelmd - not sure what PenFed's limits were as I only wanted to finance about 70% @ 60 months.

Brian H | June 27, 2013

Yes, it's basically a loan using the car as collateral.