Cash Back at Delivery?

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#1
I apologize if this has been brought up somewhere, but does anyone know if Tesla is willing to give back cash, credit, or a check at delivery? I don't necessarily "need" the money, but at 2.25% interest, I'd almost rather use the $3,500 down-payment to pay off a higher interest debt or put it towards some home renovations.
 

MelindaV

☰ > 3
Moderator
Joined
Apr 2, 2016
Messages
9,682
Location
Vancouver, WA
Tesla Owner
Model 3
Country
Country
#2
I would expect no...

so your ideal is to finance 100% the cost?
I could be wrong, but think there are specific things that can not be financed (tax or licensing... ?)
and typically, the lender wants $x as a downpayment. I believe financing thru Tesla is $5k down minimum (but again, could very well be wrong).
 

RandyS

Active Member
Joined
Apr 6, 2016
Messages
153
Location
San Diego
Tesla Owner
Model 3
Country
Country
#3
Don't they apply the $3,500 you've paid to the price of the car at delivery? So if the total price was $60K, you would have to pay $56,500 at delivery? That's the way it worked when I bought my S 4 years ago. As far as I know, they don't hold your $3,500 to send you a check back later...
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#4
I would expect no...

so your ideal is to finance 100% the cost?
I could be wrong, but think there are specific things that can not be financed (tax or licensing... ?)
and typically, the lender wants $x as a downpayment. I believe financing thru Tesla is $5k down minimum (but again, could very well be wrong).
My credit union finances up to 125% of the value of the car.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#5
Don't they apply the $3,500 you've paid to the price of the car at delivery? So if the total price was $60K, you would have to pay $56,500 at delivery? That's the way it worked when I bought my S 4 years ago. As far as I know, they don't hold your $3,500 to send you a check back later...
Right, but if I finance $60k with my credit union and write them a check for $60k, then they owe me $3,500. So, I guess the question is that if I wrote them a check for $60,000, would they have a means of getting me the $3,500 back that I overpaid, or would they say, 'no, you can't do that, you have to write us a check for $56,500'?
 

RandyS

Active Member
Joined
Apr 6, 2016
Messages
153
Location
San Diego
Tesla Owner
Model 3
Country
Country
#6
It's been 4 years since I bought my car, but even back then they wanted a bank transfer for the final payment. They told me the exact amount, and I transferred the funds a few days before factory pickup.

It will be interesting to see if they'll even be willing to take a check and give you the car without time for the check to clear...
 

Dogwhistle

Top-Contributor
Joined
Jul 2, 2017
Messages
444
Location
Delaware
Tesla Owner
Model 3
Country
Country
#7
I would expect no...

so your ideal is to finance 100% the cost?
I could be wrong, but think there are specific things that can not be financed (tax or licensing... ?)
and typically, the lender wants $x as a downpayment. I believe financing thru Tesla is $5k down minimum (but again, could very well be wrong).
I routinely buy new cars financing everything, including taxes, $0 out of pocket at time of sale. Sometimes the dealer has to cut me a check depending on my trade-in value, if I have one. Whatever makes the numbers work out right. And I pay off the car early soon after, in case your wondering.
 

Dogwhistle

Top-Contributor
Joined
Jul 2, 2017
Messages
444
Location
Delaware
Tesla Owner
Model 3
Country
Country
#8
Right, but if I finance $60k with my credit union and write them a check for $60k, then they owe me $3,500. So, I guess the question is that if I wrote them a check for $60,000, would they have a means of getting me the $3,500 back that I overpaid, or would they say, 'no, you can't do that, you have to write us a check for $56,500'?
I don’t see why they wouldn’t, or why they would care. As long as the sum of all debts and checks equals 0. Other banks/dealers do it all the time.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#9
I don’t see why they wouldn’t, or why they would care. As long as the sum of all debts and checks equals 0. Other banks/dealers do it all the time.
My concern is that Tesla is not other dealers. They don't have cash on hand and do everything electronically and doubt they have a checkbook there to write you a check. Buying the car takes 5 minutes, so they may be opposed to adding work on their side that they don't need to add.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#10
It's been 4 years since I bought my car, but even back then they wanted a bank transfer for the final payment. They told me the exact amount, and I transferred the funds a few days before factory pickup.

It will be interesting to see if they'll even be willing to take a check and give you the car without time for the check to clear...
I bought mine two years ago. The credit union gave me a blank check with a not to exceed amount. At delivery, I filled out the check for the amount Tesla told me and handed it to them. No electronic transfer required.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#12
Really?

In my mind that seems like a horrible idea. The collateral is a depreciating asset that is immediately so far upside down.
I guess you didn't see what the S/X sold for for months after deliveries started? Over MSRP. Way over. That may not hold true on the TM3 for as long because of the eventual production ramp up, but the prices should stay inflated for months due to lack of supply and 500k in demand. Unless you take delivery at the end of 2018 or 2019, I doubt this is going to be a car that is worth 75% what you pay for it the second you drive it off the lot, like most other cars.

Regardless of whether you're upside down, which I doubt, it's money at 2.25% interest. You can't get even get an equity line for 2.25% interest. Why not take the $3,500 and pay off a 12% credit card, 7% student loan, or 5% equity line?
 

SoFlaModel3

@Teslatunity
Moderator
TOO Supporting Member
Joined
Apr 15, 2017
Messages
9,819
Location
Florida
Tesla Owner
Model 3
Country
Country
#13
I guess you didn't see what the S/X sold for for months after deliveries started? Over MSRP. Way over. That may not hold true on the TM3 for as long because of the eventual production ramp up, but the prices should stay inflated for months due to lack of supply and 500k in demand. Unless you take delivery at the end of 2018 or 2019, I doubt this is going to be a car that is worth 75% what you pay for it the second you drive it off the lot, like most other cars.

Regardless of whether you're upside down, which I doubt, it's money at 2.25% interest. You can't get even get an equity line for 2.25% interest. Why not take the $3,500 and pay off a 12% credit card, 7% student loan, or 5% equity line?
Oh no I agree with you on the concept for sure, I’m just saying it seems crazy for the bank/credit union to take the risk on lending too much money.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#14
Oh no I agree with you on the concept for sure, I’m just saying it seems crazy for the bank/credit union to take the risk on lending too much money.
Sorry, I misunderstood your disagreement. I assumed most credit unions had similar guidelines, but maybe mine is just nuts. And it's loan to value ratio, not loan to cost. So, I could conceivably even make the argument that it's worth $80k and finance $100k (I won't, but just hypothetically speaking). When I did the app prior to configuring, I just entered a worst case scenario of $64k for the "value", and the credit union just took my word for it.

upload_2017-11-29_13-28-56-png.4209


https://www.suncoastcreditunion.com/personal/borrow/vehicle-loans
 

SoFlaModel3

@Teslatunity
Moderator
TOO Supporting Member
Joined
Apr 15, 2017
Messages
9,819
Location
Florida
Tesla Owner
Model 3
Country
Country
#15
Sorry, I misunderstood your disagreement. I assumed most credit unions had similar guidelines, but maybe mine is just nuts. And it's loan to value ratio, not loan to cost. So, I could conceivably even make the argument that it's worth $80k and finance $100k (I won't, but just hypothetically speaking). When I did the app prior to configuring, I just entered a worst case scenario of $64k for the "value", and the credit union just took my word for it.

View attachment 4209

https://www.suncoastcreditunion.com/personal/borrow/vehicle-loans
Separate off topic (but we’re there anyway) question for you. Do you have a final figure from Tesla yet to work with?

I’m just curious on timing as this will be my first time seeking financing outside (looking into credit union) and my goal would be to try to be as exact as possible.
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#16
Separate off topic (but we’re there anyway) question for you. Do you have a final figure from Tesla yet to work with?

I’m just curious on timing as this will be my first time seeking financing outside (looking into credit union) and my goal would be to try to be as exact as possible.
Nope, this is all I have:

upload_2017-11-29_13-45-50-png.4210


That is for paint, wheels, PUP, LR, and EAP. Those numbers have accounted for my $3,500 down payment as well, so it's really $61,000 + TTT. I figure it's $64-66k OTD. In my prior experience with the credit union, you don't need to be that exact. As long as you have good credit and make enough to afford the car, I'd be liberal with your numbers just in case. You can always write the loan check for less. e.g. on the application, input the value at $66k and your loan amount for $62k. If it works out that you only need $59k at closing, you write that amount on the check and that is all you are financing.
 

SoFlaModel3

@Teslatunity
Moderator
TOO Supporting Member
Joined
Apr 15, 2017
Messages
9,819
Location
Florida
Tesla Owner
Model 3
Country
Country
#17
Nope, this is all I have:

View attachment 4210

That is for paint, wheels, PUP, LR, and EAP. Those numbers have accounted for my $3,500 down payment as well, so it's really $61,000 + TTT. I figure it's $64-66k OTD. In my prior experience with the credit union, you don't need to be that exact. As long as you have good credit and make enough to afford the car, I'd be liberal with your numbers just in case. You can always write the loan check for less. e.g. on the application, input the value at $66k and your loan amount for $62k. If it works out that you only need $59k at closing, you write that amount on the check and that is all you are financing.
Hold on now you’ve got me...

The highest priced spec you can build right now is $59,500.

$56,500 is max spec minus FSD.

They show the $1,000 for delivery. They also show taxes and fees are not included yet.

I don’t think your $3,500 is considered yet there.

PS thanks!!!
 

danzgator

Top-Contributor
Joined
May 17, 2017
Messages
612
Location
Largo
Tesla Owner
Model S
Country
Country
#18
Nope, this is all I have:

View attachment 4210

That is for paint, wheels, PUP, LR, and EAP. Those numbers have accounted for my $3,500 down payment as well, so it's really $61,000 + TTT. I figure it's $64-66k OTD. In my prior experience with the credit union, you don't need to be that exact. As long as you have good credit and make enough to afford the car, I'd be liberal with your numbers just in case. You can always write the loan check for less. e.g. on the application, input the value at $66k and your loan amount for $62k. If it works out that you only need $59k at closing, you write that amount on the check and that is all you are financing.
You're absolutely right, I was going off of my terrible memory. $56.5k + $1k delivery + TTT. So, $61-62k OTD less $3,500 down payment.