Financing Question

Financing Question

After submitting application for Tesla finance I got the following numbers

P85 with options etc - ~$90,270
US Bank would finance $76,730 @2.9 with 72 months
Down Payment is ~13.5K which is about 15%

So far so good. However from what I understand, Sales Tax and Registration is extra and is NOT included as part of financing. In CA this would be about 9-10K
So now the down payment is $24K.
My impression was that the taxes and registration would be part of the financing and so my down paayment would be 15% of $100K which is $15,000.

Is the above what others on this forum have experienced? The extra 10K has thrown my planning off... Havent tried other lenders. Will my experience be any different?

FWIW- have a 795 Credit Score.

Thanks in advance.

J.T. | June 14, 2013

Unless you're married to the idea of getting the guaranteed resale value after 3 years you can do much better with Alliant Credit Union. 1.49% for 72 months. I just financed 80,000 but I think I could have gotten up to 100% of the purchase price, excluding tax and tags. My car came to $89,320.

Also 795 credit score.

Hope this helps.

michael1800 | June 14, 2013

That's the canned offer from US Bank for a good credit score. Like JT said, there are better rates out there for your profile...however, the choice to go elsewhere is usually made based on whether one wants the buy-back guarantee or not more than money saved. You'd be looking at decreasing your monthly payment by around $30-50 by going elsewhere based on rate alone, however, when you factor in the 'additional' minimum down payment if you go through US Bank, the payments would be relatively similar.

Since your issue is regarding the down payment and not about monthly payment/buy-back, applying elsewhere seems to fit your situation. Alliant seems to be one of the best rates and common around the forums. Starting there might be good--although keep in mind your credit score drops 2-3 points for each hard credit inquiry...make your applications count!

fuellss | June 14, 2013

USAA @2.25% 72 months for 83k loan. Similar priced car and credit score. US Bank was 2.8%

nyannitello | June 14, 2013

I will echo the others...unless you are married to the buy back...Navy Fed, Alliant and USAA have rates in the 1.49-2.25 range for 72 months with up to 100% financing. Multiple inquiries into your credit (in the same line i.e. mortgages) in a short amount of time are typically grouped as one inquiry.

kidjay | June 14, 2013

Your taxes and registration are going to be around 8k give or take. I just paid my downpayment and taxes for the good state of California on a MS with similar price tag. I got a great rate from Alliant and a good rate from Tesla but decided to stay with Alliant because I plan on keeping the car for over 3 years and saving $40-$50 a month is a big deal and I consider that savings to go back into purchasing the 4 year service plan which almost comes out to equal amount after the savings. My credit score was 796.

Mathew98 | June 14, 2013

Alliant Credit Union financed mine at 1.49% for 72 months (up to 100%).

FYI, New Jersey residents do not have to pay state taxes for EV. This is in addition to the federal credit.

ajayv | June 14, 2013

Thanks to all who replied. I'm a bit concerned about resale so like the Tesla Guarantee. But finance terms could be better.... I guess I want to eat the cake and have it too!! :)
Trying to negotiate with Tesla finance and see if they can finance total cost including taxes and fees. Not very hopeful though...
In the meantime checking out Alliant.
Thanks again!

kjin7117 | June 14, 2013

is tesla/musk trying to limit the buy back guarantee or has the rates just gone up?

i remember in previous posts that people were getting <2% rates through tesla financing, but they seem much more strict now.

alliant recently gave me 1.49% but tesla financing would not go below 2.8% for me.

ajayv | June 14, 2013

Cost Inc. Taxes Down Balance Rate Monthly Total Over 3 years
US Bank 90270 98394.3 21664 76730 2.8% 1159 63389

Alliant 90270 98394.3 14759 83635 1.49% 1214 58463

So with the above math, 9% of base cost as taxes and fees, if I go with US Bank
1. I pay about 7K extra down and my monthly goes down by $55
2. Over 3 years I pay $4925 extra with US Bank.

So in the worst case even if I get 5K less selling it after 3 years I am breaking even. And a much lower upfront down. I know what I'm doing... Goodbye USBank

ajayv | June 14, 2013

Hopefully This table looks better.... Reposting

Bank |Cost |Inc. Taxes |Down |Balance |Rate |Monthly |Total Over 3 years
US Bank |90270 |98394 |21664 |76730 |2.8% |1159 |63389

Alliant |90270 |98394 |14759 |83635 |1.49% |1214 |58463

So with the above math, 9% of base cost as taxes and fees, if I go with US Bank
1. I pay about 7K extra down and my monthly goes down by $55
2. Over 3 years I pay $4925 extra with US Bank.

So in the worst case even if I get 5K less selling it after 3 years I am breaking even. And a much lower upfront down. I know what I'm doing... Goodbye USBank

AmpedRealtor | June 14, 2013

Don't forget to add your tax credit amount back into any numbers shown on Tesla's configuration page - Tesla deducts your state's tax rebate from the price shown on the web site. In my case, a final configured price of my non-Performance Model S came to just over $86,000... need to add the $7,500 credit back in, so that takes me to $93,500... plus tax and license, which takes me to approximately $103,000... then my maximum loan amount through Alliant is $80,000, so my down payment will essentially be $23,000 on a $103,000 final "out the door" price with an $80,000 financed amount at 1.74% interest.

AmpedRealtor | June 14, 2013

@ ajav, how did you get a final configuration price of just over $90k on a P85 with options? I just visited the Tesla configuration page and the cheapest P85 (with no options selected) is over $93,000 without factoring in any tax credits. You cannot apply your tax credit towards your down payment requirement or a reduction in the sales price. I called Tesla corporate and they confirmed the same. The tax credit plays no part in reducing your purchase price or paying any portion of your down payment.

ajayv | June 14, 2013

@AmpedRealtor -
My bad. I meant regular 85 and not P85.

Regarding the EV Credits, are you sure you need to add the 7.5K back? I just called Tesla Finance and confirmed about 3 times that they have not deducted 7.5K. So in my case total cost is 90K and then extra taxes and fees.

Note that the 90K is the price I have after confirming the delivery.

AmpedRealtor | June 14, 2013

@ ajayv,

Oh shoot, I was hoping you found a way to get a better deal! I am in the process of reserving and noticed that the price it shows when you build your vehicle has been lowered by your EV tax incentive, which is somewhat misleading if you are looking for a final vehicle price (before tax and license) on which to estimate your financing. You're much farther along this process than am I. I was just approved for an $80k loan amount at 1.74% for 72 months with Alliant. I'm not building the car online and trying to stay within my budget - if you can call a $90k+ car to be in a "budget" of any kind.

My only regret is not getting the Performance upgrade, but that costs an extra $12,000 based on the options I'm getting and I can't justify the extra $12,000 cash outlay for 1 extra second in a 0-60 race. Since I have to write a check for anything over $80,000, the Performance upgrade feels especially painful. I keep telling myself - YOU DRIVE A PRIUS, DORK, YOU DON'T NEED A P85!


Tâm | June 14, 2013

If you hate down payment, then don't forget

gibbs | June 15, 2013

Woah. Please keep the financing options coming.

Not to hijack the thread, but it seems that no one knows what to in south western PA.

AlMc | June 15, 2013

The rates through tesla finance are somewhat negotiable depending on your credit score/down payment amount. However, in general, the rates have gone up slightly since the 'buy back guarantee' started from I have gathered.

I too feel that I will keep the car over three years but did decide to go through Tesla financing figuring in three years there may be additional options available (battery technology improvements, more features, maybe even a S2) that may make me want to use my current S85P+ as a trade in.

gkspanos | June 16, 2013

I second that comment by admjr. Lets say the second generation comes out in less than 3 years or a smaller version that is just as fast... Elon Musk guarantees a certain residual value after 3 years through Tesla, even if the market cannot support decreased demand if everyone wants to buy the cheaper better model.

teslamonkey | June 16, 2013

So how do you do the financing?

Do you work out the best rate first and then commit to buy or do you have to commit before any lender will discuss rates?

I'm not ready to commit unless I know what rates I will be eligible for.

J.T. | June 16, 2013

I believe if yuu can't find suitable financing your deposit will be fully refunded.

teslamonkey | August 23, 2013

Alliant offered me the 1.49% rate but requires 10% down, not the 100% financing I have read about. They said it was not my credit rating but rather based on the cost ($107K with tax) of my car.

Any place I can get a similar rate with less than 10% down?

MichaelN | August 23, 2013

The savings through Alliant is about $4000 over six years so that helps make up for the buy back - If the car is worth X to Tesla it should be worth X on the resale market, or near that amount - Pentagon Credit Union had 1.99% - I believe there will be a second tier of buyers for like new Model S's - time will tell -
Also, outlook depends on age - at 66 I wanted everything including the extra 1 second of fastness, because I may not buy another new car (we usually keep ours for 10 years +) I ordered a loaded P85 - if I were 40, I may have waited until my third Tesla -

Sanjuro88 | August 23, 2013

Another vote up for the Alliant Credit Union.

1.49% 72 month financing, approved in 24 hours. When you consider inflation and the opportunity cost, it's like a free money!

The traditional banks cannot compete with credit unions in terms of rates; the best I have seen is 1.99%, 60 months, 20% down, when I was shopping around.

Re: the buy back guarantee, I don't think it is valuable as you think it is. Since the Model S is a fantastic car with minimal wear & tear parts (compared to ICE cars), you could easily sell it for we'll over 50% of the purchase price to Tesla/Carmax/private buyers in 3 years.

This buy back guarantee is for the non-committal people who want to "lease" the model S for 3 years, but wants to reap the benefit of the tax rebates.

Just my 2 cents.

jq5073 | August 23, 2013

How are most of you folks qualifying for membership at Alliant?

AmpedRealtor | August 23, 2013

Alliant qualified me to a maximum of $80,000 @ 1.8% for 72 months w/ min. 10% down

USAlliance qualified me to a maximum of $105,000 @ 1.89% for 84 months, no down
- interest rate is lower for shorter term loans

I went with USAlliance because I wanted to have the ability to use the down payment funds to generate income to more than pay for the interest. I'll need to make an 8% annual return on $25,000 in order to cover the 1.89% interest on the full financed amount. Easy peasy, I'll pick up another rental property or use it for flipping. By the time all is said and done, it's free money.

I would recommend contacting:

Jon Krumdick
USAlliance Federal Credit Union
Senior Manager - Sales and Service
Phone: 800.431.2754 ext. 2319
eFax: 914.881.3475

Here is the promotional flyer from USAlliance:

ev4life | August 23, 2013

August 2013
USAA 1.49% on $49,500 loan

They originally quoted us 2.99% based on my husband's lower credit score 760 vs. mine 795. Since our home and cars are insured with USAA, I asked if they would match other rates we'd been seeing here of 1.49%. Two minute wait to talk with their supervisor and they matched the 1.49% rate.

Never hurts to ask.

Schedule to take delivery 9/16. Can't wait!

Mathew98 | August 23, 2013

@jq5073 - Just answer a few pages of qualifications (which you won't) to join ACU. The final page will ask if you would like to donate $10 to a charity in order to join ACU.

Once an ACU account is opened, a $5 credit will show up in your account. In essence, you donate 5 bucks to join ACU and get the 1.49% loan over a span of 6 years (or shorter).

perf_guy | September 10, 2013

Has anyone recently gotten a rate quote from Tesla financing? I am going through them (need the buy back guarantee) and wanted to know what rate they are quoting (I have great credit history)

cwmenne | September 10, 2013

@Ajayv, I was in exactly the same situation as you, unfortunately, there is no getting Tesla finance to understand, even though TechCU was willing to finance the taxes if Tesla would put them in the purchase agreement. they wanted 20% down, plus tax, at 2.49%, not that great. So, unfortunately, I dropped Tesla finance and went to Alliant and they are great! 10% down & 1.49% interest for 66 months. They financed the amount I asked for, no questions asked. My credit score is over 900 and I have no debt.

ftlug | October 26, 2013

I did my financing with US BANK due to the buy back guarantee.
Not happy with them.
Such an advanced car
dealing with such a retro bank.
Been trying to set up automatic payments. "they don't have a digital means of doing this"
This has taken me longer than then entire buying of the car took me.
TESLA should partner with a more advanced bank.

TeslaTEK | October 27, 2013

@ftlug, I'm currently on track to go with USBank when I take delivery in Dec. So do they have autopay and it's just a pain, or do they not have it at all? Thanks

pcrocks | October 21, 2014

i have just finished buying my Tesla from Alliant CU with Phong Chieu and he's great. Rate is great with $100 bonus but service is even better. I'm happy. Anyone who wants a smooth and easy process and someone who answers your calls and emails, it's him. his email is

pcrocks | October 21, 2014

i have just finished buying my Tesla from Alliant CU with Phong Chieu and he's great. Rate is great with $100 bonus but service is even better. I'm happy. Anyone who wants a smooth and easy process and someone who answers your calls and emails, it's him. his email is

sharkeyj | October 21, 2014

Thanks for the info guys! | October 21, 2014

What is your rate @pcrocks?

P85D | October 21, 2014

I got 1.75% for 84 months at Point West Credit Union in Portland OR.

Sully | October 21, 2014

Alliant proposed numbers
1.99 for 60 mo
2.24 for 72 mo

Credit score is 850 so these seem high. What did you lick in pcrocks?
Rates are up as of about a month ago.

Checking EFCU to see where they will be... Rates still low just not as low as 3-4 months ago :(

P85D | October 21, 2014

EFCU sucks ass.

2050project | October 21, 2014

Credit Union USAlliance is worth checking out:

aarnold | October 21, 2014

I went with out of Boston. I live in VA, so since I am not affiliated with anyone with I had to be a member of something. All I had to do was join an educate the kids foundation in MA for $10 and I am now a member of DCU. I got a loan for $90k at 1.24% for 65 months. They give discounts for hybrids and for Direct deposit. Easy Peasy...

Several weeks ago Alliant raised their rates right after I was approved and ready to go. I decided to look elsewhere and found Give them a shout. You will not be disappointed.

Sully | October 21, 2014

Thanks aarnold on the suggestion

Sully | October 21, 2014

Thanks 2050Project

avanti5010 | October 21, 2014

I got 2.25% from USBank and the written buyback guarantee. Making payments to USBank is not difficult at all - just add them to your bank's online payment plan. That's it.

nchu | October 21, 2014

Ask tesla finance to check TD bank - main reason is they will finance 100% of the car including taxes like everyone else @ 3% or less plus you still get to keep RSV at the end of 36months

Not as good as other banks but one that works with tesla