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Financing with guarantee buy back

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Just wanted to share latest on Tesla financing w/ guarantee buy back - my car is scheduled for pickup May 23rd so set up financing today ( need to do <30 days to delivery). Got 2.19% 60 months from Chase - I think just a little bit higher than the lowest rates around, but I really wanted the security of the buy back. Thoughts?

tennisman
 
Just wanted to share latest on Tesla financing w/ guarantee buy back - my car is scheduled for pickup May 23rd so set up financing today ( need to do <30 days to delivery). Got 2.19% 60 months from Chase - I think just a little bit higher than the lowest rates around, but I really wanted the security of the buy back. Thoughts?

tennisman

You will pay an interest premium for the ability to insure the buy back. Not much else I can say. I did the 'buy back' as well because it was a new product and I liked the idea that if I really found problems cropping up I could just 'sell it back' in three years. As soon as the six months was up (had to keep the loan active for 6 months) I paid off the loan. The insurance cost me about $500 in interest. Just 'hedged my bet'.
 
Unfortunately, with the guarantee buy back now, the loan has to be "active with a balance open" in the 36 to 39 month buy back period - so I will incur the interest in that time period and cannot pay off loan till month 40. I guess too many people were doing the buy back financing and paying it off before then.
 
Unfortunately, with the guarantee buy back now, the loan has to be "active with a balance open" in the 36 to 39 month buy back period - so I will incur the interest in that time period and cannot pay off loan till month 40. I guess too many people were doing the buy back financing and paying it off before then.

If you calculate the difference in interest payments between say the 2.19% rom Chase and the 1.79-1.99% you may get elsewhere you may find the 'cost' of insurance gives you peace of mind.
 
If you are stretching financially to buy it, just know that the buy back scenario can be done once you pay off the whole loan and have title in hand during months 36-39. They don't pay off the loan for you, you do that first and then present the car and title to Tesla for the buy back. And at that time, your other option is to sell it for private sale to attempt to get more than 50%. That is possible if it is low mileage. But if it is low mileage after three years, why were you driving it in the first place?
 
Speaking of the buy-back, I found some new information in a financial article today and was curious if it was true.

"Last year, Tesla introduced its Resale Value Guarantee, which allows owners of its Model S to sell their financed vehicle back to Tesla between the end of months 36 and 39, regardless of the loan's term. That buyback price is 50% of the original base purchase price of the 60 kWh Model S plus 43% of the original purchase price for all of the options, including the upgrade to the 85 kWh battery pack -- not including taxes, fees and accessories. What it isn't, however, is an auto lease."

Based on this, it says that the upgrade to the 85kwh battery is technically an option - so you only recoup back 43% compared to 50%. There is a lot of talk on here about "resale" and the 85kwh battery, but this statement by Tesla kind of points to a less recoverable premium for the upgraded battery vs. the 60kwh. And, is the above statement true?
 
Hi I just put deposit for a Tesla S in Hong Kong. I am confused about the Guarantee Buyback program. Some friends say that Tesla only provides a credit to buy the next Tesla after 3 years. The sales say that the Guarantee Buyback program pays CASH and there is no obligation to buy a Tesla with it. The small print T&C does not mention anything on cash buyback. Can any owners or lawyers shed light ?

thanks
TC