Can you help me finance Tesla Model 3?
In this real-life transcript, a customer got in touch to ask about
financing Tesla Model 3 through company car finance. We’ve removed names and key details, but this is how the conversation went…
Customer
Hi, I have my own business and I’m thinking of going for Tesla as my company car. I’ve looked at leasing but financing is maybe more tax efficient.
JBR Capital
Understood. Let’s run through some scenarios on here then follow up with a quick call?
Customer
OK that’s great. Will company car finance work if the company is less than a year old? I’m an Information Security contractor on a fairly good contract.
JBR Capital
We always try to find a way to make it work. It helps that we’re an independent lender – so we can assess each case individually.
Customer
Does that mean you are not a broker?
JBR Capital
That’s right. We loan our own money, which we feel gives us an advantage in terms of flexibility and bespoke funding options. In this instance, we appreciate that your company is new – and would look to a Personal Guarantee to ensure you get the deal you want. Can you chat through your criteria?
Customer
Sure. I’m looking at 20k miles per annum and low deposit.
JBR Capital
Sure thing. What is the cost of the Tesla you are looking at?
Customer
It’s a Model 3 Performance, with full self drive, black and white interior, black paint. Cost is approx. £60k. Happy to put down £10-12k.
JBR Capital
That sounds like a great spec. It’s no wonder the Model 3 is a runaway success for Tesla – nothing gets close for the price. I’ll work up some figures for you.
Customer
Yeah – the car makes total sense to me especially as I can charge it up fully for less than a tenner. I was ideally looking to do 60 months / 5-years if that works? Also, just to confirm, is it an HP agreement I need in order to offset against Corporation Tax? Or is it PCP?
JBR Capital
Hire Purchase agreements allow you to offset. Quote “You can claim capital allowances for your business when you buy vehicles that are used in your business. This allows you to deduct the cost of cars you purchase to help your business from your profits before you pay tax.”
Customer
I see. Is there a balloon payment? And if i don’t want to pay the balloon payment at the end of three years can I give the car back?
JBR Capital
There is a balloon. We don’t offer PCP there is not the hand back option. Our customers tend to part-ex the car, sell privately, make the payment or potentially refinance it.
Customer
OK understood. Let me have a think on that.
JBR Capital
No problem at all. It sounds like we can get finance approval in place for you. Then you can give us a shout when you find the right car and pay a holding deposit while we sort out the paperwork. You would then pay the remainder of the deposit when we pay the amount financed and collect the car.
Customer
So, I’ve ordered a Model 3 … last night! They tell me I need to pay them the deposit once the car arrives in the UK so I guess I apply for the finance now? And then how much do I have to pay to you now if i get approved?
JBR Capital
That was quick! Happy to help – and we’re glad you’ve found the car you wanted. That can often be the longest part of the process. Is it OK for me to call you for a couple of minutes? I’ll run you through the options over the phone?
Customer
Yes – no problem. I’m getting excited now!
JBR Capital
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*The figures shown are purely for illustrative purposes. For your personalised rate please give our team a call on 020 3603 0074 – you may discover savings beyond those shown by the examples.
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