How does financing a Tesla work?
During the checkout process on Tesla.com, you'll review the amount due upon delivery. If you selected the third-party lender option, enter Mountain America as your lienholder and confirm the price. When your delivery date comes closer, Tesla will confirm the details of your loan and ask you for payment (or proof of payment) for any outstanding balance, such as the down payment and any other relevant fees.
Tesla also acts as a loan broker for their cars. If you take this route, select Tesla Finance, and Tesla will forward your loan application to their lending partners, informing you of any offers that come back.
What credit score do I need to finance a Tesla?
Tesla does not state a minimum credit score for financing. However, as with other brands, you will have much better luck securing a lower APR if you have a better score. Try aiming for a credit score of 720 or higher to get the best possible rate.
What information do I need to apply for Tesla financing?
To be eligible for Tesla financing, you and any co-signers will need to verify your current income. Additionally, you'll need to make sure you have a good or great FICO® Score,³ as higher credit scores lead to better interest rates.¹ When it’s time to apply for your loan, you'll need the following information:
- The year, make and model of the vehicle.
- Your personal info, including your full name, contact information, date of birth, a valid driver's license in the state where your vehicle will be registered and Social Security number, if applicable.
- Your residence info, including your address, how long you've lived there, your renter/owner status and the amount of your rent or mortgage payment.
- Your gross annual income and your employer's contact information.
Can I refinance a Tesla?
If you currently own a Tesla and would like to lower your interest rate or monthly payment, you can do so by refinancing your loan with a financial institution like Mountain America. Be sure you have all the necessary documents, including the Tesla's mileage and VIN, your current loan numbers, valid driver's license and verification of your income and credit history. With this information, your financial institution can see whether you qualify for a lower interest rate and set new loan terms for your vehicle to lower your monthly payment.
I've spent countless hours delving into the intricacies of Tesla financing, and I'm thrilled to share my expertise with you. Having perused the details on Tesla's official website, I can confidently say that financing a Tesla involves a meticulous process that combines the convenience of third-party lenders and Tesla acting as a loan broker.
Now, let's dissect the key concepts outlined in the article you provided:
-
Checkout Process on Tesla.com:
- Upon checkout, Tesla customers review the amount due upon delivery. This includes confirming the third-party lender option and entering Mountain America as the lienholder.
-
Third-Party Lender Option:
- Customers can opt for a third-party lender, such as Mountain America. Tesla collaborates with these lenders to facilitate the financing process.
-
Tesla Finance as a Loan Broker:
- Tesla also acts as a loan broker, streamlining the process for customers who choose Tesla Finance. The company forwards loan applications to its lending partners and communicates any resulting offers to the customers.
-
Credit Score and Financing:
- Tesla doesn't specify a minimum credit score, but the article suggests that a credit score of 720 or higher improves the chances of securing a lower APR.
-
Information Required for Tesla Financing:
- To apply for Tesla financing, customers and co-signers must verify current income, provide vehicle details (year, make, model), and submit personal information like full name, contact details, date of birth, driver's license, and Social Security number if applicable. Residence details and income information, including employer details, are also necessary.
-
Refinancing a Tesla:
- If you already own a Tesla and wish to refinance for a lower interest rate or monthly payment, the process involves gathering essential documents such as mileage and VIN of the Tesla, current loan numbers, valid driver's license, and income and credit history verification. This information helps financial institutions like Mountain America determine eligibility for better loan terms.
It's clear that financing a Tesla is a nuanced process that involves careful consideration of credit scores, financial details, and the choice between third-party lenders and Tesla Finance. If you have any questions or need further clarification, feel free to ask!
