How did you finance your new Tesla?

Wha?

Hi its kinda like comparing apples an bananas there. Hire purchase and PCP.

Hire purchase has no balloon lump sum payment option at then end of 3 years so that is why it dearer, you own the car. You don't own the car on PCP without the lump sum payment.

So to afford a Model Y you would do similar to what your doing on your IX3, its possible to arrange a PCP type approach with some financial institutes or do a lease which is pretty much like PCP as some leases give an option to buy at the end of the lease period or hand it back with all the jazz on milage reasonable condition, fully service history etc.

I did a PCP on my last car would never do one again as depending on the market can get stung if you do big milage. It's good now but who knows what it will be like in 3 years time also GMFV seems to be pretty low on PCP's on EV's.

I did it on a 30k Audi A3 years ago with GMFV around 18k. From what I see GMFV on 60k ev's at the mo is around the mid 20s? Which seems low.

The GMFV is just the minimum value.

I think it is a measure of market size and financial instruments available to a less established player. Change the Tesla shop over to DE and you'll find PCP for 533/month with 5k deposit and 26k balloon payment. Increase the deposit to 15k and the monthly drops to 300 quid. I see Santander and Tesla Financial Services as lenders. Santander, I think left Ireland during the recession and Tesla FS is not here probably as it is not making sense yet. Aib not interested in PCP so you have to find yourself a lender as others did. If you check on the Model 3 thread you will find the details. It is more hassle than walking into a dealer and getting all things sorted then and there you're right. Personal decision. For me it is about the total cost and not how much I pay per month.

I don’t think you quite understand how it works.

The 25k is what is left in the car for you to pay.

you’ve 3 options

1.) pay it and own the car

2.) walk away

3.) trade it in , shouid be worth more than 25k, say 35k. And that’s a 10k deposit.

here mine: ( i’m actually paying less as I got a better rate)

ID.4 City

Cost                                      €35,300.00

Scrappage                  € 3,000.00

Deposit                               €10,000.00

Finance Amount              €22,300.00

GFV                                      €16,860.00

36 Monthly Payments   €     243.17

Aye I think it was 39k list less SEAI grant + dealer charges, them were the days pre war and covid before the world went fcukîng mad

I lease mine through my company. Technically costs nothing

Oh how we long for the days of 0% finance. Last car i had was on 0% PCP and it was simply the best deal ever. GFMV was so low at the end compared to the trade in value of the car.

Up until March this year you could get a leaf on 0% too. Thats gone now though.

0% finance is generally only available for run out models, or undesirable specs, or overstock etc

In a time where demand greatly exceeds supply, 0% finance is not going to happen. Finance (leverage) isnt free, so "0% finance" is actually the OEM paying for the cost to get you to buy their car.

The 0% is the main reason I placed an order for a Leaf. The next reason was that it was affordable (partly due to the finance deal) and the final reason was delivery was for July when I had ordered in March.

I was told the 0% would hold, but delivery date was moved to October at the earliest and the sale price was not guaranteed. In the end, I had to cancel and ordered the car I really wanted. Was very pleasantly surprised when the estimated delivery date was only a few weeks away.

That leaf looks like it is in a museum, which is where any "new" car with chademo belongs.

@icylava @thumper@Thumper Long did you both end up getting your Tesla's on PCP?

Very little online, even on finance Ireland of PCP rates for model 3.

3 years makes way more sense.

I just emailed the sales team and they got back to me in about a week or so. There's a 3 year option too but it didn't make sense for my circumstances. They're more flexible than most manufacturers in that regard.

Sound, thanks again Jog501. Annoying they don't give that option online. Will email them.

People should consider also that like for like interest rates on HP and PCP will work out more expensive on pcp as a big lump of the borrowed money is being slung out to the end of the term before being repaid

Pcp really needs super low interest to be attractive.

Simply not true. You pay the interest on the amount you borrow, not the total price of the car. You can pay off the ballon, hand the car back, sell it yourself or trade it in for a newer model at the end of the term. You can pay the balloon off at the end with your own cash so total interest paid is a lot less than HP or refinance a portion of it, again in this case you've paid less interest than with HP as long your refinance rate isn't much worse than the HP rate offered. PCP also gives you guaranteed protection against depreciation.

explained well here

Would love one, but don't have the cash for one and don't take loans for cars. So leaf it is for the foreseeable. I'll be happy with a lift in my friends one, which is probably financed through a loan of some sort.

Funny, was just discussing this with someone in work, and they laughed at the idea of not buying things with money you don't have. They couldn't believe that I had never had a car loan. I guess I've been lucky enough to be able to afford an average (or maybe below average) car from my own money without too much difficulty and having a fancier one wasn't high enough of a priority to pay the interest on a loan to get a better one. Not sure where I got this from but I've never done it (apart from the house) and might be in the minority but just think it's not for me.

And my last engagement with the post office was many many years ago.

I guess the economy needs people to keep borrowing to buy shiny new things but I'd rather not have any additional financial yokes around my neck. The mortgage is enough of a burden ;-) I figure if I can't afford it then a loan / finance etc is just making it seem more affordable but in reality it's still out of my financial league. So I'll do without.

Anyway, dragging this way OT, sorry OP.

Each to their own, and if finance makes sense to you to get your butt into a fancy leather fart on demand seat with almost autonomous driving and ludicrous acceleration for a standard production car then go for it. I genuinely hope it brings you great joy.

Anyway, back to the 80s with me and my finance free cars.

To reiterate, you only pay interest on the borrowed amount not the total amount. Handing back the car, trading it in or paying cash to pay the balloon incur no interest cost.

If you save and invest the difference between the monthly repayments (HP vs PCP) you could effectively have a good potion of the balloon ready to go anyway at the end of the term while also having the safety net of that cash during that term. The interest savings are stark if you do anything but borrow the whole amount of the balloon which someone on PCP would rarely ever do anyway and would be a terrible decision. All that said, as someone mentioned above the best option for anyone would be to put their money to work and not throw it on a depreciating asset like a car!

People don’t understand that you borrow the full price of the car less the “deposit”. The interest is calculated upfront on the full borrowed sum and hidden in the monthly payment. Monthly payment only covers smth like 40% of the borrow sum (max 30% deposit, min 30% balloon. ID plan for ID.3s had GMFV of 50% = no equity in the car free 3 years). Ballon payment generates a fair bit of interest as it’s borrowed for all 3 years. How the car dealers calculate the PCP interest I don’t know as I was never really been able to match it using online calculators. People just look at the monthly sum and overlook the total interest charged. On PCP it could be eye an watering sum and could be bigger than an HP on a much higher interest rate.

That sounds way too complicated.... I think I'll just pay cash 💲 💵.

Can the car be paid for early or is it all due in one lump sum just prior to collection ?