Tesla loan application and the trade-in uncertainty

[DriveMe]

As my production date approaches, I am about to apply for financing. Hoping to take advantage of the current low-rate financing offered by Tesla. However, I haven't decided yet what to do about the trade-in. I have an initial trade-in offer from Tesla, but I think I can do way better by selling my old car privately, though this may take some time. My plan is to try selling it over the next two-three weeks, while I am waiting for my Model S, and if I fail to sell it, then I'll go the trade-in route. I'd say it's 50/50.

So, with that in mind, what would be better: to apply for financing without mentioning the trade-in, and then try adding the trade-in at the last moment, or to apply with the trade-in in play and then to refuse the trade-in at the last moment (in case I do sell the car)? Which last-minute change would be easier to implement? Did anyone have to change the trade-in arrangement at the last moment? Was that easy to do? Thanks!

 

[chillaban]

As my production date approaches, I am about to apply for financing. Hoping to take advantage of the current low-rate financing offered by Tesla. However, I haven't decided yet what to do about the trade-in. I have an initial trade-in offer from Tesla, but I think I can do way better by selling my old car privately, though this may take some time. My plan is to try selling it over the next two-three weeks, while I am waiting for my Model S, and if I fail to sell it, then I'll go the trade-in route. I'd say it's 50/50.

So, with that in mind, what would be better: to apply for financing without mentioning the trade-in, and then try adding the trade-in at the last moment, or to apply with the trade-in in play and then to refuse the trade-in at the last moment (in case I do sell the car)? Which last-minute change would be easier to implement? Did anyone have to change the trade-in arrangement at the last moment? Was that easy to do? Thanks!

Quite honestly I'd just apply without the trade in to cover the worst case scenario where you'd need the principal of the loan to be the highest, unless you're willing to fork over the cash payment equivalent of selling your car on delivery day.

 

[BruceR61]

I agree that you should apply seeking the most you could need, and you can always take less. The used car market in many areas is in a "glut" and thus you may not get what you hoped for your trade. I ended up having to pay an additional $3,500 to get out of my car. But, the Tesla offer was only about $1,000 less than what others said the car was worth.

 

[DriveMe]

That's what I was thinking too. But I just want to make sure that Tesla would still be willing to take my trade-in if I get approved for financing without the trade-in mentioned initially, and that I would not have to go through a new application process in that case.

 

[Saghost]

That's what I was thinking too. But I just want to make sure that Tesla would still be willing to take my trade-in if I get approved for financing without the trade-in mentioned initially, and that I would not have to go through a new application process in that case.

That sounds like a great question to ask Tesla.

 

[DriveMe]

I will!
I was just wondering if anyone had first-hand experience with that.

 

[hulk2k17]

In some states the trade-in value is counted as a price reduction so sales tax is calculated as:

(Tesla price - trade in value) * sales tax rate

So even though the trade in might be less than a private sale, CarMax, etc. you will want to compare it against:

(Tesla price * sales tax rate) - private sale/CarMax price

 

[STILLWISHIN']

In some states the trade-in value is counted as a price reduction so sales tax is calculated as:

(Tesla price - trade in value) * sales tax rate

So even though the trade in might be less than a private sale, CarMax, etc. you will want to compare it against:

(Tesla price * sales tax rate) - private sale/CarMax price

Do you have a list of states where this applies?

 

[Rockster]

States That Allow Trade-in Tax Credit