Tesla offers a flexible range of financing options for individuals looking to purchase their electric vehicles. Whether you opt for in-house financing through Tesla or prefer to work with a third-party financier, there are various considerations and steps involved in securing your vehicle financing. In this comprehensive guide, we will walk you through the process, eligibility requirements, and provide answers to frequently asked questions to help you make an informed decision when it comes to financing your Tesla.
Contents
- 1 Getting Started
- 2 Eligibility for Tesla Financing
- 3 Taking Delivery of Your Tesla
- 4 Making Payments
- 5 Finance Payoff
- 6 Hardship, Delinquency, and Additional Support
- 7 Frequently Asked Questions
- 7.1 When should I start the credit application?
- 7.2 Who can apply?
- 7.3 Are there fees for submitting a credit application?
- 7.4 Will there be a hard pull of my credit?
- 7.5 Can I get pre-approved for financing before I configure and order a vehicle?
- 7.6 How do I finance my vehicle with a third-party?
- 7.7 Do I need to unfreeze or unlock my credit?
- 7.8 How long do credit decisions take? How can I check the status of my application?
Getting Started
Before you embark on your journey to financing a Tesla, you need to take a few initial steps:
1. Order Your Tesla Vehicle
Begin your Tesla experience by placing an order for the Tesla vehicle of your choice. This involves configuring your desired model, selecting options, and personalizing your vehicle to meet your preferences. Once you have your dream Tesla ready, you can move on to the financing stage.
2. Choose ‘Loan’ as Your Payment Method
During the ordering process, you’ll have the option to select a payment method. Choose ‘Loan’ to initiate the financing process. By selecting this option, you open the door to explore financing choices that best suit your needs.
3. Utilize the Tesla Financing Calculator
Tesla provides a user-friendly financing calculator in the Design Studio to help you estimate your monthly payments based on your preferences. However, it’s important to note that Tesla Financing may not be available in all states, and additional taxes and fees may apply. Keep in mind that these estimated payments are not guaranteed and are subject to credit approval.
Eligibility for Tesla Financing
Tesla Financing is available to customers in specific states. To qualify for Tesla Financing, you must take delivery of your Tesla vehicle in one of the following states:
- Arizona (AZ)
- California (CA)
- Colorado (CO)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Idaho (ID)
- Illinois (IL)
- Indiana (IN)
- Massachusetts (MA)
- Maryland (MD)
- Minnesota (MN)
- Missouri (MO)
- Mississippi (MS)
- Nevada (NV)
- New Jersey (NJ)
- New Mexico (NM)
- New York (NY)
- North Carolina (NC)
- Ohio (OH)
- Oregon (OR)
- Pennsylvania (PA)
- Rhode Island (RI)
- Tennessee (TN)
- Texas (TX)
- Utah (UT)
- Virginia (VA)
- Washington (WA)
Submitting a Credit Application
Once you’ve decided to finance your Tesla, you can proceed by submitting a credit application. This involves the following steps:
Financing with Tesla
- In your Tesla Account, navigate to the ‘Payment Method’ section.
- Select ‘Tesla’ as your financier and confirm the amount you wish to finance, your preferred monthly payment, and your desired financing term.
- Review the price details to continue your application.
- Complete your application by providing your social security number, phone number, and your residence and employment information.
Financing with a Third-Party Financier
- Review the amount due and provide your third-party financier’s information and the amount you’d like to finance.
- As your delivery date approaches, you will be prompted to confirm your lienholder’s information and provide payment or proof of payment for the amount due.
It’s worth noting that Tesla will review your credit application upon submission. If your information changes or your credit approval expires, you can resubmit your credit application by following the same steps. The credit decision will be communicated through the ‘Payment Method’ section of your Tesla Account. If approved, you can accept the financing offer, and a Tesla Advisor will guide you through the next steps for taking delivery of your Tesla vehicle. In the event of a credit application denial, you will be contacted within one business day to discuss the next steps.
Please keep in mind that to submit a credit application, you must be at least 18 years old and possess a social security number. Additionally, Tesla does not offer business-only, trust, or commercial financing options at this time.
Taking Delivery of Your Tesla
Once your financing is in place, you’re on your way to taking delivery of your Tesla vehicle. Here’s what you need to know:
Retail Installment Contract
Your Retail Installment Contract, outlining the terms of your financing, will be available for electronic signature in the ‘Payment Method’ section of your Tesla Account at least 24 hours before your delivery appointment. It’s important to note that if you are financing with Tesla, you must e-sign any required documents in your Tesla Account. All credit applicants must be present during the delivery process, and proof of insurance must be provided at this time.
Special Considerations for Texas and Michigan Customers
Texas and Michigan customers have specific requirements. Due to state restrictions, these customers are required to submit the final payment before scheduling their delivery appointment. Ensure that you are aware of and comply with these state-specific guidelines.
Making Payments
Understanding how to make payments for your Tesla financing is crucial for a seamless ownership experience. Here are some key details:
Payment Schedule
The amount and due date of your payments are outlined in your Retail Installment Contract. You can access a copy of your contract in the ‘Glovebox’ section of your Tesla Account, along with other important documents. Typically, you will receive a welcome packet and the first invoice from your financier by mail, providing payment information around two to three weeks after taking delivery. Please be aware that the mailer may be unassuming and could easily be mistaken for junk mail. Your first payment will be due 30 or 45 days from the delivery date, depending on your financier, and your subsequent monthly payments will be due on the same day each month.
Payment Methods
- Tesla Finance LLC: If you are financing with Tesla Finance LLC, you can make your monthly payments directly from the Tesla app or your Tesla Account.
- Tesla’s Indirect Partners: If you are financing through one of Tesla’s indirect partners, payments must be made to the financier as specified in your Retail Installment Contract.
Finance Payoff
Tesla financing comes with the advantage of no prepayment penalties, whether you choose to pay off your loan early or as scheduled. To obtain the necessary details and instructions for remitting your payoff amount, contact your financier directly. They will guide you through the process to ensure a smooth and hassle-free payoff experience.
Hardship, Delinquency, and Additional Support
Life can be unpredictable, and financial challenges may arise. If you find yourself facing difficulties in making your payments, there is support available to assist you. Each financier has its own customer service contact details, making it easier for you to get in touch. Here are the customer service numbers for some of Tesla’s financing partners:
- Ally Customer Service: (888) 925-2559
- BMO Customer Service: (888) 340-2265
- Chase Customer Service: (800) 336-6675
- Santander Customer Service: (888) 222-4227
- TD Bank Customer Service: (800) 556-8172
- US Bank Customer Service: (800) 872-2657
- Wells Fargo Customer Service: (800) 289-8004
- Tesla Finance Customer Service: (844) 837-5285 (Option 1)
Contact your specific financier directly if you are facing financial hardship or are experiencing delinquency in your payments. They will provide guidance and assistance tailored to your situation.
Frequently Asked Questions
Now, let’s address some of the most frequently asked questions regarding Tesla financing:
When should I start the credit application?
You can begin the credit application process once you’ve placed your order for a Tesla vehicle and have chosen ‘Loan’ as your payment method.
Who can apply?
Individuals over the age of 18 with a valid social security number are eligible to apply for Tesla financing. At this time, business-only, trust, and commercial financing options are not available.
Are there fees for submitting a credit application?
Tesla does not charge fees for submitting a credit application. However, be aware that additional taxes and fees may apply depending on your location.
Will there be a hard pull of my credit?
Yes, as part of the credit evaluation process, there will be a hard inquiry on your credit. This is a standard practice when assessing creditworthiness.
Can I get pre-approved for financing before I configure and order a vehicle?
No, the credit application process is typically initiated after you have configured and ordered your Tesla vehicle. Pre-approval is not offered as part of the standard procedure.
How do I finance my vehicle with a third-party?
To finance your Tesla with a third-party financier, you’ll need to review the amount due and provide your financier’s information and the amount you wish to finance. As your delivery date approaches, you will be prompted to confirm your lienholder’s information and provide payment or proof of payment for the amount due.
Do I need to unfreeze or unlock my credit?
If you have a credit freeze in place, you may need to temporarily lift or unfreeze it to facilitate the credit application process. Contact the credit bureaus or the relevant credit reporting agency to manage your credit freeze.
How long do credit decisions take? How can I check the status of my application?
The duration of credit decisions can vary but typically takes a reasonable amount of time. You can check the status of your credit application in the ‘Payment Method’ section of your Tesla Account, where you will be notified of the decision. If you have further questions about the status of your application, you can reach out to Tesla customer support for assistance.
We hope that this guide has provided you with a comprehensive understanding of Tesla financing and the steps involved in securing financing for your new Tesla vehicle. If you have additional questions or require further assistance, feel free to reach out to the relevant financier’s customer service, or contact Tesla directly for support. Enjoy the journey towards owning your Tesla, an innovative and environmentally-conscious driving experience.
