Tesla Finance and APR

Tesla Finance and APR

Got approved for finance via Tesla finance but the rate they offer is 3.3% (.2 more if < than certain amount). This seems half-point higher than advertised 2.95 so is it good idea to get loan from outside banks.

Is it true that to get Tesla resale vehicle guarantee one needs to finance through Tesla only.

Any other suggestions for good rates.

cwmenne | September 15, 2013

Yes, to get the guaranteed buyback offer, you must finance through Tesla. I was quoted 2.49% through Tesla in July and ended up going with Alliant credit union in Chicago. Better terms and a better rate.

soma | September 15, 2013

The thing I found out from the store is that to get the buyback guarantee, you not only have to use Tesla financing, you have to have the Tesla service every year. I'm not sure what I believe about the depreciation, but it's sounding like a guarantee that costs >$3000 more than you would otherwise finance and pay on your own.

Flyshacker | September 15, 2013

Also, the buy back requires you to pay off your car loan in full before they will buy back the car. Read the fine print.

SarahsDad | September 16, 2013

+1 Alliant Credit Union - got a great rate (<2%) and was hassle-free.

thranx | September 16, 2013

Alliant Credit Union. They're doing Tesla loans as fast as they can process them. Entire procedure took me less than 5 business days from signing up with the Union ($10 donation) to getting the loan approved. Full amount I requested, 1.49%.

PSP | September 16, 2013

1.49% thru my credit union. (SafeAmerica CU)

T3SLA | September 16, 2013

Tesla finance offered me 2.8% at up to 85% value for 72 months. This was through chase and is not a bad offer.

Alliant offered 1.49% at up to 95% value for 72 months. I've heard of people getting 1.49% at 100% value for 72 months.

They have an 84 month offer too. That would have cost a little higher interest and 85% LTV. My goal was lowest interest rate. Invest the money that I would have otherwise put toward the down payment.

Tesla4me | February 11, 2014

I just refinanced a tesla with Robert Hardy at Alliant Credit Union. Fastest and easiest car loan at 1.49% for 60 months. His contact is 773-433-0208 or hope it helps.

Joe H. | February 11, 2014

From what I've read elsewhere in the forums the buy back program is available to anyone with a clear title. Wells Fargo financing is the only lender with a lien on your car that works with the buy back program. My advice, finance through Alliant for 1.49% and save up the remaining balance of your car over three years and clear your title if you choose to take advantage of the buy back.

Alliant requires a 740+ credit score for Equifax Pinnacle 2.0 which ranges up to 950 or 990. They will finance up to 95% and requires income verification.

1LuckyGuy | February 11, 2014

Anyone get financed at or above 90% with a credit score less than 700?

Rocky_H | February 13, 2014

I was glad I heard on here about the Alliant financing. I contacted one of the Alliant people to get confirmation details of the loan offer in an email, and then I forwarded that to someone at my local credit union I already have my accounts with, so I could leverage it. They wouldn't quite meet 1.49%, but they offered 1.94%, which I was happy to go with to keep everything together with my credit union that I already like.

michael1800 | February 13, 2014


Your interpretation is incorrect. The car doesn't have to be paid has to not have other liens or claims against it (other than US Bank, Wells Fargo). Remember, the clear title can occur in conjunction with the resale process, and isn't mandated to happen before. Please read the fine print carefully and considering interpreting it in its entirety.

mrojeh | February 13, 2014


I just got approved through Alliant. They said my credit score was 695. Other banks said my fico score was around it depends on their formula. Financed up to 95%!

Joe H. | February 13, 2014


Congrats on your financing. They do not use FICO, as I mentioned above, they use Equifax Pinnacle 2.0. The score ranges from a 400 - 950 where a FICO score ranges from 300 - 850. It is possible something negative (legit or not) is only posting to Equifax. It may be worth pulling all of your reports to check. The score I got from Alliant was 50 - 80 points higher than my monitored FICO.

1LuckyGuy | February 13, 2014

Oh great, another credit scoring system. Well hopefully it is better than the ridiculous system that FICO is!

pinnacle_fitness | February 13, 2014

i ordered my model s and will be going through the financing process in another month or so. i had a question for those who financed through alliant, did they ask for anything other than 2 recent pay stubs for proof of income? and also for those who don't mind saying what they were approved with what kind of income are they requiring to finance a p85 about? FICO is high 700's


Joe H. | February 13, 2014

They also require 2 years of W2s and that the new car payment doesn't exceed 45% of your monthly net income. This includes any mortgages, credit cards, student loans, etc... A FICO in the high 700's will most likely relate to a high enough score on their system.

Gadfly | February 14, 2014

This is the 16th car I have bought in my lifetime and the first for which I have not paid cash. I could've easily paid cash for this, and paying cash is always cheaper than financing a car.

However, I view this not as a financing but as a relatively cheap Put option if the car doesn't work out. I put down the maximum permitted under the program-40%-and so the cost of the put option is 2.9% of the balance for three years.

And so if I am unhappy for any reason, I can put the car back to Tesla between months 36 and 39 and walk away with about $21,000 after clearing the finance balance.

Everything about this car is unique, including their financing program.

plusplusjames | February 14, 2014

The owner's consultant told me that Tesla buyback is ONLY available if financed with US Bank or Wells Fargo. This contradicts the info above. Can anybody clarify?

Joe H. | February 14, 2014

As I mentioned, my response was based on what I've read elsewhere on the forums. It could very well be you must finance through Wells Fargo.

kwoo4424 | February 14, 2014

@++James - when I was financing my MS, my TM person unequivocally said that TM buyback program ONLY available with Wells Fargo or Union bank loan. IF you have good credit score then Alliant CU at 1.49% @ 72 mos 5% down is a good deal. Never looked back.

DallasTXModelS | February 14, 2014

I used Alliant Credit Union too. 1.49%. They give you $5 to open the account. They give you $100 for taking out a car loan as a new member. They are incredible to work with and have no surcharge ATMs all over the US. Kroger, 7-11, Target, Walgreen's, CVS...

plusplusjames | February 14, 2014

I have the impression that the put is overvalued. These cars, based on Roadster experience, hold their value very well. Might as well save the interest expense!

Gadfly | February 17, 2014

Tesla also uses Technology credit union for this program.

And yes, the car does appear to hold value well. But what if they come out with a 500 mile battery which cannot be retrofitted?

Gadfly | February 17, 2014

Tesla may have approved vendors for the finance program that cannot operate in your specific state if they are not licensed to do so.

Joe H. | February 17, 2014

"And yes, the car does appear to hold value well. But what if they come out with a 500 mile battery which cannot be retrofitted?"

I envision pitchforks and torches from all of the owners who expect the car they purchased to never become outdated.

Khalid | February 17, 2014

Guys, you're so lucky to have such financing options. I have a good credit score but we don't have these financing offerings in Canada. Even if I had the $100K to buy one, i would rather invest it and finance the car for 1.49%.

Anyone from Canada got a good deal? I wouldn't consider Scotia Bank with their high 5% as a good deal at all!

crmohler | February 17, 2014

When I financed in December 2013 the buy back was available through Tesla only, Wells Fargo or U.S. Bank. I got 60 months at 1.99% with the guaranteed buy back. I figured that the extra .5% was worth it for the peace of mind, although after driving the car for a day all of my concerns melted away. It is still nice to know that the option is there.