Can I Change Finance Down Payment Amount?

[REM]

What bank has agreed to allow you to make 3 years of future amortized payments?

And how does borrowing less from the bank to buy the vehicle from Tesla give the bank a bonus?

And what is this “bonus”?

They don't have to agree with it; it's the law.

I'm out of ways to explain this. Figure it out for yourself at this point ?‍

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[canyoncarver]

You have enough money to gamble in the stock market, but you take out a loan for a vehicle? To each his own.

If you don't have the cash to pay for this truck outright, but you have quite a bit saved up, then heed my advice above and hedge your bet towards your own default insurance. Rather than gambling it.

I have enough money just in savings to write a check for multiple cyberbeasts. I have 20+ years of investing track record to know that if the interest rate is low enough then I will definitely be better off investing the money rather than tying up a ton of cash in a rapidly depreciating asset like a truck.... especially a truck that has a completely unknown track record for reliability and resale like the Cybertruck.

It is for all of these reasons that I opted to lease the Cybertruck that I am picking up today.

The $7500 pass through of the tax credit in the form of cap reduction ("down payment" for those unfamiliar with intricacies of leasing) covers the cost of the very high lease interest as well as all leasing fees and still leaves extra money in my pocket.

Additionally the lease guarantees the residual of the truck after 3 yrs and 30K miles of 68%.

It is my personal opinion that residual value will not be 68% after three years... and if it somehow turns out to be higher than that, then I'm okay with the gamble that I lost a bit of extra re-sale value.

 

[REM]

I have enough money just in savings to write a check for multiple cyberbeasts. I have 20+ years of investing track record to know that if the interest rate is low enough then I will definitely be better off investing the money rather than tying up a ton of cash in a rapidly depreciating asset like a truck.... especially a truck that has a completely unknown track record for reliability and resale like the Cybertruck.

It is for all of these reasons that I opted to lease the Cybertruck that I am picking up today.

The $7500 pass through of the tax credit in the form of cap reduction ("down payment" for those unfamiliar with intricacies of leasing) covers the cost of the very high lease interest as well as all leasing fees and still leaves extra money in my pocket.

Additionally the lease guarantees the residual of the truck after 3 yrs and 30K miles of 68%.

It is my personal opinion that residual value will not be 68% after three years... and if it somehow turns out to be higher than that, then I'm okay with the gamble that I lost a bit of extra re-sale value.

Your position is a very rare exception to the rule ?

 

[canyoncarver]

Your position is a very rare exception to the rule ?

Well, that might be the case. Many people purchase more automobile then they can actually afford.

On the other hand, people waste money on all sorts of frivolous things, like fancy vacations, expensive clothing, or fine dining.

 

[OriginalWheelCoverFan]

I'm out of ways to explain this. Figure it out for yourself at this point ?‍

Interesting

 

[OriginalWheelCoverFan]

The bonus makes no sense to me because you either have large down payment or make the same extra payment (principal in theory) in the next month or two.

Truly curious. Of all the savings and investment strategy I’ve picked up over the years, I’ve never heard of “sticking it” to the bank like this.

No loan contract will allow you to take a 3 year holiday from payments unless they either make up their interest at the front or back end of the loan, otherwise they’d want their collateral (the vehicle) during the holiday!

If I default on the loan, I’m still responsible for the balance of the loan. If I default on the loan with a one dollar balance to go, the bank would theoretically take back the truck, but then cut me a check for the value of the truck minus one dollar.

If I had a massive chunk of cash in my account, why would I elect to give it to the bank as “insurance” for myself?

 

[tingmo13]

depreciation depends a lot on how much of owners/ones own money is sucked into the products-ICE vehicle is definitely not an investment while EVs do not peel off much of ones income.

 

[REM]

No loan contract will allow you to take a 3 year holiday from payments unless they either make up their interest at the front or back end of the loan, otherwise they’d want their collateral (the vehicle) during the holiday!

You might want to call Navy Federal and explain to them that my last vehicle loan seemed to slip through the cracks then; because I did exactly that. I took out a loan, and after the first payment, I dropped more than 20K, which pushed my next payment out to more than 2 years ahead.

I then continued to make regularly scheduled payments until it was paid in full about 8 months (or thereabouts) later.

Again, I'm not sure how else to express to you the value and idea of making a lump sum payment on an auto loan that pushes your "next" payment far ahead on the amortization schedule. Loans are often confusing for most people, so I guess chalk it up to that.

 

[OriginalWheelCoverFan]

You might want to call Navy Federal and explain to them that my last vehicle loan seemed to slip through the cracks then; because I did exactly that. I took out a loan, and after the first payment, I dropped more than 20K, which pushed my next payment out to more than 2 years ahead.

I then continued to make regularly scheduled payments until it was paid in full about 8 months (or thereabouts) later.

Again, I'm not sure how else to express to you the value and idea of making a lump sum payment on an auto loan that pushes your "next" payment far ahead on the amortization schedule. Loans are often confusing for most people, so I guess chalk it up to that.

lol I’ve been with NavyFed for a while, all you did was pay down more of your principal on a larger loan! Any interest you saved that way can be accomplished by taking out a smaller loan in the first place!

Seriously you may want to consider that most people - even with massive amounts of cash in hand - don’t do it this way for a reason

 

[REM]

lol I’ve been with NavyFed for a while, all you did was pay down more of your principal on a larger loan! Any interest you saved that way can be accomplished by taking out a smaller loan in the first place!

Seriously you may want to consider that most people - even with massive amounts of cash in hand - don’t do it this way for a reason

Did you miss my entire point about hedging that lump sum as a personal insurance against the possibility of defaulting on the loan should you enter financial hardship?

If you give that money to the bank up front, and you get in financial trouble, you next payment will be weeks away instead of years away. What about this don't you understand?

 

[scottf200]

You might want to call Navy Federal and explain to them that my last vehicle loan seemed to slip through the cracks then; because I did exactly that. I took out a loan, and after the first payment, I dropped more than 20K, which pushed my next payment out to more than 2 years ahead.

I then continued to make regularly scheduled payments until it was paid in full about 8 months (or thereabouts) later.

Again, I'm not sure how else to express to you the value and idea of making a lump sum payment on an auto loan that pushes your "next" payment far ahead on the amortization schedule. Loans are often confusing for most people, so I guess chalk it up to that.

lol I’ve been with NavyFed for a while, all you did was pay down more of your principal on a larger loan! Any interest you saved that way can be accomplished by taking out a smaller loan in the first place!

Seriously you may want to consider that most people - even with massive amounts of cash in hand - don’t do it this way for a reason

Interest paid in those two scenarios is the "same". Row 7

 

[OriginalWheelCoverFan]

If you give that money to the bank up front

You keep saying “bank”. You don’t give money to the bank, you give it to Tesla. You borrow money from the bank, and make loan payments to the bank.

What about this don't you understand?

I understand perfectly. I would never - never - hedge against financial hardship by freezing significant liquid into years of an auto loan payment plan.

 

[robbiec]

Wow this thread has really gotten spicy. I can see why we don’t talk about finances at thanksgiving. Let’s chat about something less personal… maybe politics or religion?

 

[OriginalWheelCoverFan]

Wow this thread has really gotten spicy. I can see why we don’t talk about finances at thanksgiving. Let’s chat about something less personal… maybe politics or religion?

Sorry man ?
I’m actually interested as well in how Tesla handles the forms of payment. I believe canyoncarver is correct, the loan application might dictate the maximum loan you’re approved to borrow, but you’re likely able to change the precise amount when they prepare the actual loan document.

 

[REM]

You keep saying “bank”. You don’t give money to the bank, you give it to Tesla. You borrow money from the bank, and make loan payments to the bank.

I understand perfectly. I would never - never - hedge against financial hardship by freezing significant liquid into years of an auto loan payment plan.

Good, then you do you. Some people recognize the importance and freedom of being as debt free as possible. And any debts taken on can be personally hedged by making massive lump sum payments up front while continuing to make scheduled payments (in the amount originally owed) to crush a loan in a matter of a few months rather than years.

You are free to bank how you see fit. Just because most people give the bank a $50,000 bonus at the start of the loan doesn't mean it makes the most sense.

Go to any loan shark used car lot. They are only interested in the amount of money you can pay each month. Thus, the financial trap.

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