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Model 3 Pre-payment

Model 3 Pre-payment

Hello,

It would be really great to start paying for my Model 3 while I wait. Is there anyway that Tesla can setup a pre-payment plan for those who would like to start paying off their Model 3 immediately. This would make paying for the Model 3 feel even more affordable when it is actually available for delivery and it would allow Tesla to increase their revenue immediately rather than have to wait until deliveries begin.

I really hope that something like this can be established. I'd be happy to pay $500-1000/month for a whole year before launch!

Thank you,

JC

stelling | 18 juin 2016

You ought to consider prepaying into a certified deposit account where you'll get interest on your money. A pre-payment to Tesla would be an interest free loan to them just like our $1,000 deposit.

KP in NPT | 18 juin 2016

I agree - just start a Tesla savings account. Earn a little interest and lower your finance amount if you're not paying cash.

joey | 18 juin 2016

That's what I've been doing. I bought a Savings Bond (and will buy another one end of the year) and will cash both of them in when it comes time to buy the car. I will have over half of it paid. And will allow me to choose options if I so desire.

jsanford | 18 juin 2016

We're also saving with CDs, since there's enough time predicted before delivery and it "locks up" the $.

yongliangzhu68 | 18 juin 2016

joeycathcart: As I have posted before for all the people who seem to have missed budgeting 101 (or is it budgeting 099). I will happily secure you funds for you. You can just send me $500 - $1000 a month. As soon as you are ready to buy I will send you the amount you deposited with me plus 0% interest and NO service fees so you can buy the M3.

jsl6v8 | 18 juin 2016

@wj: I laugh every time I see these threads and then your response. It blows my mind that people don't seem to understand finance or budgeting or interest even in the slightest sense.
On that note, with the military in the overseas car buying program you can pay ahead and they pay you interest on the money you put forward, a pretty significant amount actually too.

warren_tran | 18 juin 2016

I will offer to pay you .5% interest if you send me you money as prepayment. Let me know if you are interested.

bj | 18 juin 2016

@joeycathcart - if you want to lend Tesla some money you could become a stockholder. Who knows, if Tesla stock does really well over the next 2 years, your Model 3 might pay for itself.

Haggy | 23 juin 2016

If your employer offers direct deposit, consider changing it to a split direct deposit where a fixed portion goes into a savings account and the rest goes wherever you would normally put it.

vi.veri.univers... | 28 juin 2016

This is a fantastic idea. I had a similar thought when the Tesla Roadster was launched and TM was accepting reservations but would need a few years before delivery. I considered that if the typical autoloan is about 1.00% simple interest, it should be possible to pay for a car in advance, with the a sort of reverse loan: you pay the manufacturer an amount that at the time of delivery has appreciated to the price of the vehicle. Thus, the cash value of the total amount paid is lower than the actual sale price as you have had the advantage of interest earnings.

Unfortunately, no such provision existed then, nor does one exist today. It would be worth discussing, especially since this would reduce the capital that Tesla must raise in addition to current reserves to sustain its current investments.

On a side note, I have begun paying about $564 a month into a CD offered by Nationwide which has a 3.5% return (just started actually). I assumed that the vehicle cost after all the features would likely be around $45000 and thus, if I were to take a 72 month loan at 2.99% simple interest, the payments would be $684. Saving at $564 a month into the CD would likely pay for $10k of the car price assuming delivery in December 2017. If indeed delivery is made at that time, then the loan payment would be about $530 a month on the residual purchase price (less the accumulated amount in the CD).

Effectively, by saving today, I am able to reduce my monthly payments by $100 odd though I am sort of creating an artificial arrangement where I pay for the car over 7.5 years rather than 6 though there would not be any sudden increase in monthly expenses a year from now.

Of course, if by some turn of luck I get the tax subsidy, and I likely wont, (but so want to get it, that instead of buying a second Tesla Model 3 for The Woman, I would be open to a BMW i3), the price of the vehicle would not be the estimated $45000.

And of course this assumes that the cost of customizing would be $10k. This i think is reasonable. I will want the AWD version since regen is a lot better on the the AWD version and the maintenance of the mechanical parts would be lower as lesser frictional braking would be applied. Or so I presume.

N.B. I do not work for Nationwide. Nor do i consult them.

vi.veri.univers... | 28 juin 2016

@Haggy, thats is what i did.

Badbot | 28 juin 2016

I need a link to a 2.99 % CD nationwide shows 1% and change

vi.veri.univers... | 28 juin 2016

Badbot, I mispoke, it is not a CD, it is a product they offer as a part of their 457 plan. I bargained with my wife's 457 administrator that if she is to use Nationwide as her 457 administrator (she had a choice of two other brokerages), I wanted to be able to put after tax money into the 3.5% and they made a small concession to allow me access.

I am even considering withdrawing the amount from my wife's 457 that will result in a tax of $7500 assuming I am able to get the tax rebate. effectively paying for the car with before tax, interest earned money.

https://www.nrsforu.com/iApp/rsc/profileView.x?fundId=10000002

try the link above, that is the fund fact sheet.