Remove tax and fees from loan?

[fsb1]

I ordered a MYLR and am using a Tesla loan to finance a chunk of the price. I want to pay all taxes and fees upfront and not include them in the loan amount (I have the money and don't want to pay interest on those items).

On previous car purchases I could do this during the sales process. This is my first Tesla and I can't see how to remove those extra charges from the loan amount (in the app or website).

I'm in the US and I've tried calling Tesla a few times (the only number I can find is (888)51-TESLA) but the hold time is crazy. Does anyone know if this is possible to do before I tap Confirm on loan terms?

 

[siriuszero]

Just have your down payment include the cost of those items so the financed amount is just the cost of the car

 

[fsb1]

Just have your down payment include the cost of those items so the financed amount is just the cost of the car

Thanks, I tried that but all it did was increase my down payment amount and still add all the fees and taxes into the total loan amount.

I can't seem to get the total loan amount to only include the financed total.

 

[siriuszero]

So when you up your down payment, the financed amount doesn’t go down? Total Cost of the Vehicle minus your down payment should equal your EST Amount Financed.

Also worth noting, these numbers aren’t necessarily final. When I ordered my MY I switched from Tesla financing to my own 3rd party a few times as I shopped for the best rate. The MVPA is what you really need to match.

 

[shyboy]

When you buy a car, the bill of sale reflect the price, then they add freight and taxes. At the end they deduce your down payment amount whatever left is what amount you financed through your loan.

You can add up the taxes number and use that numbers as your down payment.

 

[fsb1]

So when you up your down payment, the financed amount doesn’t go down? Total Cost of the Vehicle minus your down payment should equal your EST Amount Financed.

When I up the downpayment, the financed amount does go down but it still includes the taxes, fees, etc in the total amount.

Also worth noting, these numbers aren’t necessarily final. When I ordered my MY I switched from Tesla financing to my own 3rd party a few times as I shopped for the best rate. The MVPA is what you really need to match.

Thanks, that's what I wasn't sure about. It's written so that you can only hit 'Confirm' and then wait for them to respond. I'm not able to see the MVPA at this point, I'm sure I will in the next step in the process.

 

[fsb1]

When you buy a car, the bill of sale reflect the price, then they add freight and taxes. At the end they deduce your down payment amount whatever left is what amount you financed through your loan.

You can add up the taxes number and use that numbers as your down payment.

Being it's the first time I purchased a car outside of a dealership, I wasn't sure when I'd get to see the bill of sale. I was nervous to tap the Confirm button, not knowing the exact details of what's included in the loan (vs my upfront costs). Thanks @shyboy .

 

[shyboy]

you can put whatever number as down payment (in this case your taxes) and hit submit. You can always go back and edit these number until the day you will be picking up the car.
I had the trade-in which was putting $8000 trade-in value as a down payment. In my case the taxes are on the sale price (not sale price minus trade-in). so it was the same amount. I had nfcu check with me to financed. but when I showed up, they reduced the trade-in value.
I ended up refusing to trade-in, decided to pay in cash, and they modify the numbers at the spot.

In my case, I was using third party lender, if you using tesla financing then you will end up getting refund weeks later.

So, decide wisely.

 

[siriuszero]

Yes, the taxes, fees, etc *are* part of the total purchase price of the car. What’s important though for you is that those amounts are not being financed as you’d like to not pay interest on them. There is no itemization of items for amount financed. Just a dollar amount and you just need to make sure the amount financed equals the sale price of the car before extras.

 

[jjrandorin]

When I up the downpayment, the financed amount does go down but it still includes the taxes, fees, etc in the total amount.



Thanks, that's what I wasn't sure about. It's written so that you can only hit 'Confirm' and then wait for them to respond. I'm not able to see the MVPA at this point, I'm sure I will in the next step in the process.

I think others have explained this, but for clarity sake, Taxes, fees, etc all have to be paid, so they will never just "disappear" from the paperwork entirely. If you dont want to finance them, just make sure you are putting enough money down to include at least those numbers.

With some made up numbers to illustrate:

Price of car = $10,000
Taxes and fees = $2500
Total price of purchase = $12,500
Downpayment =$3500
Amount financed = $9000

In this completely fake, made up example for illustrative purposes, you can see the amount financed is less than the price of the car originally.

If you dont want to finance your taxes and fees, you just need to see what those numbers are and increase your down payment to cover at least that much money. Its all money in the end, and there will not be a circumstance where those taxes and fees "disappear" from the paperwork / total. You just wont be financing them if you make a down payment large enough to cover that total (or more).

Now, where this can get a bit more complicated is if you have a trade in, and it has negative equity (upside down) etc. You didnt say that, but for example, if you had a trade in that was upside down (you owe more than its worth), and it was upside down $3000, you would have to put at least $3000 down just to "get back to zero" so to speak. In this continuing made up example, with a trade of 3k negative equity, if you didnt want to finance any taxes and fees, you would have to put down the 3k negative equity, AND the 2,500 in taxes and fees, so $5,500, just to be financing only the 10k the car cost in the fictitious example above.

 

[TacoGuy]

Thanks, I tried that but all it did was increase my down payment amount and still add all the fees and taxes into the total loan amount.

I can't seem to get the total loan amount to only include the financed total.

By conversely applying the associative rule of addition you are taking away the value of those fees as you increase the down payment amount.

2+2 must be = to 4 on the opposite side of the equation. However Tesla computes the bottom line balance of the loan is not relevant to what fees you intended to pay upfront are.

 

[CuriousWren]

I keep reading that people are saying Tesla is lowering trade in value on day of delivery. How is this possible? When I went to a local showroom, the Tesla employee told me they appraise the car before hand and give you a value. How are they able to lower the value later after it’s been agreed upon?

 

[Mike728]

I keep reading that people are saying Tesla is lowering trade in value on day of delivery. How is this possible? When I went to a local showroom, the Tesla employee told me they appraise the car before hand and give you a value. How are they able to lower the value later after it’s been agreed upon?

I think you're misunderstanding. They give you a range when you order. They then give you a final offer when they send you your VIN. My issue, they were >$2k below their lowest range estimate.

 

[CuriousWren]

I think you're misunderstanding. They give you a range when you order. They then give you a final offer when they send you your VIN. My issue, they were >$2k below their lowest range estimate.

Oh I see, thank you for explaining. I'm going to be trading in my current car (which is fully paid off) for my MYP in a few weeks so trying to be prepared. I'm hoping they don't try to pull that crap on me.

 

[shyboy]

Oh I see, thank you for explaining. I'm going to be trading in my current car (which is fully paid off) for my MYP in a few weeks so trying to be prepared. I'm hoping they don't try to pull that crap on me.

They will, so have your plan B ready.

 

[flai54]

I didn't think that this concept was so hard to understand. If you don't want to finance the taxes and fees in your loan, then just up your downpayment to include all your taxes and fees included. Say for example if your MSRP of a car was $30K and the taxes/fees were $2K making the total car purchase to be $32K, and you planned to put a downpayment of 20% of the purchase price ($6K)....well now you have to up that downpayment to from $6K to $8K to include all taxes/fees so that your core downpayment towards the car is still 20% of the original price of $30K.

 

[fsb1]

I didn't think that this concept was so hard to understand.

The concept is not hard to understand. In fact, it appears that you're not understanding what I'm trying to do. That's ok, you just restated what others already wrote.

 

[Mike728]

The concept is not hard to understand. In fact, it appears that you're not understanding what I'm trying to do. That's ok, you just restated what others already wrote.

What exactly are you trying to accomplish? Please enlighten us as it seems to be crystal clear we're having a disconnect.

 

[fsb1]

What exactly are you trying to accomplish? Please enlighten us as it seems to be crystal clear we're having a disconnect.

My question has already been answered, thanks.

 

[nanookfire]

Oh I see, thank you for explaining. I'm going to be trading in my current car (which is fully paid off) for my MYP in a few weeks so trying to be prepared. I'm hoping they don't try to pull that crap on me.

It seems to be a common practice just by reading about the experience of others on here. It seems that the old car dealer workers may have infiltrated into the Tesla experience. Sad face