Financing Questions, the process

Financing Questions, the process

Hi so i sold my old car at CarMax this past weekend and im ready to release my car from being on hold.

For those who have financed the car through the Tesla program (Us Bank or Wells)...
- at what point are you contacted about financing
- how long does it take for approval
- do hey require a down payment
- what are the rates

im thinking im going through my credit union but any info would be helpful.


jnb | April 29, 2013

I emailed tesla auto finance with the same questions a while back. This is the email that I got:

A few details about our financing offered:
- amount up to 90% loan to value (based off of your Model S’ cash price)
- loan does not include applicable sales tax/official fees
- term up to 63 months
- no prepayment penalties or additional fees

Each applicant is reviewed individually, but solid credit could involve: multiple trade lines in good standing, previously auto loan history, capacity to take on additional monthly payments.

A recommended timeline would be to apply within 30 days from our delivery date, as our credit applications expire after 30 days. Some customers have opted to request a “preapproval” to obtain an estimated finance option (knowing that if we needed to reapply another credit inquiry would be submitted and terms could change). A good indication would be when your My Tesla account invites you to complete your delivery tool online, which will prompt a link to apply afterwards.

Please feel free to contact us with additional questions.

Tesla Auto Finance Team
3500 Deer Creek Road | Palo Alto, CA 94304

prytog | April 29, 2013

The "apply for financing" link magically appeared in My Garage about 30 days prior to my outside maximum delivery date
I applied for financing online, and upon submitting, the web site said Tesla would get back to me in 24-48 hours. It actually took 4 days, but we were approved with Wells Fargo for 60 months at 1.99% for up to 90% of the full purchase price. Which at this max level meant I had to bring an additional $4400 personal check (to go with with my $5,000 deposit) when I pick up the car. I didn't ask questions about 60 vs. 63 vs. 66 months or where they came up the 1.99%.
I did ask about the minimum amount I could finance and Tesla said $30,000.
No down payment.
Just tell them how big a check you will bring at delivery and Tesla will draw-up the loan paperwork in advance of delivery. I am not clear whether the loan gets signed at delivery or before.
I am at the stage waiting to see the loan paperwork, with my MS scheduled for deliver on 5/15.
So far it's been effortless.

shilo_js | April 29, 2013

Save yourself the hassle - go direct: Alliant Credit Union; 1.49%, 72 months, up to 100% financing. Easy approval, easy process and easy to join.

KOL2000 | April 29, 2013

I had exactly the same experience as prytog. The only reason I didn't go with Alliant is that I want the buy back guarantee.

Just in case...

prytog | April 29, 2013

Yes, exactly. I get the buy back guarantee.
Over 3 years the extra interest 0.5% (1.99 vs. 1.49) costs me an extra $261/$100,000/year ($22/month/$100,000), and I get the 43% buy back guarantee.

Plus, the Tesla financing is effortless (so far). If they complete the paperwork accurately and I don't waste time correcting their typos and arithmetic (like almost every other loan transaction I've ever gone through), I will save $100's of my time.

If their paperwork is bogus, then maybe I will go to my bank or credit union and waive the buy back guarantee, but I don't think so.