Tesla Financing - Simple Interest?

[Jager]

Can those of you who have used Tesla financing please confirm

1. There is no pre-payment penalty?
2. The loans are simple interest?

I am trying to understand what the implications might be if one were to take out a loan with minimal downpayment, accept delivery, and then make a very large payment very quickly - days or weeks - later. I realize that making such a rapid, large payment would probably require receipt of the (processed) loan documents and so one would have to eat the significant interest for that first month. I'm okay with that.

My situation is that I have the invite, but have been reluctant to pull the trigger on configuring until my funding is in place - and that's still a couple weeks out. And since I anticipate a cessation of Foundation Series on or around July 1, and a reset of the queue when that happens... it's rapidly becoming a "speak now or forever hold your peace" kind of moment.

Ergo, contemplating using Tesla Financing to bridge that two-week gap I'm staring at.

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[UberNoob]

Tesla doesn’t. Finance directly, they use 3rd party. It would be 3rd party who stipulates the terms of the contract.
You can bring your own financing at a bank or credit union of your choosing.

 

[Jager]

Tesla doesn’t. Finance directly, they use 3rd party. It would be 3rd party who stipulates the terms of the contract.
You can bring your own financing at a bank or credit union of your choosing.

Thanks. I'm aware that Tesla uses third-party lenders.

But it's highly unlikely that Tesla is going to accept broadly divergent loan terms and conditions from those lenders, leading to very different customer experiences. Interest rates might vary a tiny bit across Tesla's bank partners. But I'd be surprised if there were material loan condition differences beyond that.

Let me re-phrase my question...

1. Has anyone received financing through Tesla which which DID include a pre-payment penalty?
2. Has anyone received financing through Tesla which was NOT simple interest?

Thanks!

 

[UberNoob]

Suppose I should rephrase also, when getting my M3P through Tesla. Dec 3 2021, Tesla was just the middle man whom sublimated my info to Wells Fargo, Bank of America and a few others, Tesla does not write the contract or supply any moneys. Therefore, Wells Fargo would be whom would have a pre payment condition if there was one as Wells Fargo simply cut Tesla the check paid in full to Tesla.

In my case I put 50k cash down paid through Tesla plaid on the app and WF cut tesla the remaining 18k on 5 year loan at a 318$ payment. Signing the loan documents was part of my delivery day tasks at the delivery center.

When my balance reached 15k roughly 1.5 years in, I cut them the check paid in full. Wells Fargo did not have a pre payment penalty in my situation.
I will do the same for my beast order.

 

[Guylouis]

lol… you can pay it off whenever you want and there is no pre payment penalty.

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