The ‘Tesla’ effect
Seemingly out of nowhere, Tesla came screeching onto the scene back in the early 2010s – and has been revolutionising the electric motor, and then the wider luxury vehicle market, ever since.
Headed by business magnate and investment mogul Elon Musk, Tesla is now synonymous with dynamic design and cutting-edge technological advances, seen in every inch of their strategy and process. Initially founded in 2003 by Martin Eberhard and Marc Tepanning, who took their company’s namesake from famed Serbian inventor Nikola Tesla, they first began specifically creating electric cars, batteries for vehicles and homes, and solar panels.
Their first vehicular offering was the Roadster in 2008, which completely changed the trajectory of plug-in vehicles as a sought-after, luxury item. During the internal test phase, the Roadster – made of slimline carbon fibre – could reach a top speed of 125mph and maxed-out at 245 miles on a single charge.
This was unheard of for non-diesel engines before Tesla reinvented the game. Although the overall price point and the weight of the Roadster’s battery energy storage system made it inaccessible as a go-to speedster model, under Musk their prestige electric vehicle offering went from strength to strength.
Since then, they’ve introduced the Tesla Model S, Model 3, Model Y, and a slew of features including integrated autopilot and the unveiling of dedicated ‘superstations’, also known as charging ports, across the USA and Europe.
Most recently, a revamped version of the Roadster as a semi-trailer truck and a pickup truck, titled the Cybertruck, were revealed. The latter features a sharply angled design, with the aim of combining the functionality of a truck with all the performance of a sports car.
With a number of other projects set for release throughout the 2020s, there’s plenty for the discerning car fan to explore.
Why should I consider finance options for a Tesla?
Unlike its contemporaries, the Tesla manufacturing process and luxury car output truly focus on innovation.
It looks different, feels different, and most importantly, drives differently to other speedsters. With absolutely no combustion sounds and an effortless plug-in and go format, Tesla brings a touch of science-fiction made real to the road.
Explore our range of finance methods below and find out how Magnitude can get you the keys to your Tesla today.
At Magnitude Finance, we love nothing more than getting our amazing clients the experiences they deserve.
Whether that’s by helping facilitate lines of funding to get the prestige vehicle of their dreams or tailoring a flexible finance solution to help them upgrade to a model they have had their eye on, our concierge approach is perfectly placed to assist.
As standalone credit brokers, this means we can offer our clients truly exclusive deals without any overheads telling us what to do. With a fantastic panel of lenders and finance providers that simply cannot be found anywhere else – sourced and nurtured for over two decades – we can offer our clients affordable finance agreements at unmatched rates.
Your dedicated finance representative will only offer you the best advice in line with your own interests, goals, and circumstances, meaning that you are always in safe hands with Magnitude Finance.
To find out how our stress-free concierge service can help you source your prestige vehicle, get in touch today.
Is this the best way to finance a Tesla Model 3?
No matter which model is on your mind, we can help you explore, discuss and arrange finance options that work for you.
Whether you’ve previously taken out a finance product for a luxury vehicle or this is your first time navigating the market, our team of experts (and self-confessed petrol-heads) will be able to take the hassle out of sourcing finance for a number of Tesla models.
From Tesla Model 3s to the smaller, more cost-efficient Model Y, whatever marque you have your eye on, we can craft the perfect package for you.
Just pick up the phone or get in touch with a member of our team through one of our handy contact forms.
If you are considering adding an amazing feat of modern engineering to your garage – then Tesla is a perfect place to start.
But as with any luxury vehicle, the road to securing a financing contract can be long, tedious, and even stressful.
At Magnitude Finance, we take the fuss out of finding the best deal for your dream Tesla. With convenient access to dozens of top-class lenders, and bespoke options that allow us to slot into your existing plans or goals for the future.
To get a full sense of our offering, explore our full product breakdowns to see how we can get you in the driver’s seat – or find exclusive insider guidance from our experts with our Car Finance Tips.
But first, discover our range of unbeatable finance agreements we can sort for the discerning Tesla driver at Magnitude below.
For drivers who are keen to get the most out of every experience, a PCP financing contract offers a reliable but flexible alternative when compared to Hire Purchase agreements.
Whether you’ve got your eye on the Model S Hatchback or want to experience Tesla’s interpretation of a sturdy – but speedy – SUV offering with a Model X, PCP frees you from tying contracts that would limit you to one model.
Although it is based on the simple and trusted Hire Purchase (or lease) finance solution, PCP – or Personal Contract Purchase – gives you the option of switching between models.
At 24 to 48 months into your finance term, you can choose whether to hand the car back and walk away with no more outstanding fees, pay off the remaining GMFV (Guaranteed Minimum Future Value) to keep the car or part-exchange your existing vehicle.
This guaranteed value is solidified at the beginning of your contract but is held until the end, determined by a variety of different factors such as the Tesla’s age, your estimated yearly mileage, and its preliminary mileage.
If you choose to part-exchange, any existing equity can be used towards your next exciting purchase – allowing you to seamlessly switch up your driving experience and get behind the wheel of new releases.
For passionate Tesla fans – who are no doubt waiting with bated breath to see the latest batch of releases slated over the next few years – this option offers freedom of choice and finance.
With a lower-fixed monthly rate, it’s easy to save for upcoming payments throughout your contract.
As such, Tesla PCP deals are great for luxury car lovers who want to switch up their driving every two years or so – while enjoying all the budgeting capabilities of a more fixed solution.
Straightforward doesn’t have to skimp on the good stuff.
Using a Hire Purchase agreement to help get your Tesla on finance is one of the smartest ways to drive away happy, with this popular method offering easy budgeting solutions that allow you to pay off your luxury model in simple instalments.
A Hire Purchase financing deal, or Lease Agreement, means you are essentially ‘loaning’ your Tesla throughout the rental period until the final cash value is paid. Once this is completed, you are in complete ownership of the car and get to add those keys to your collection.
With financing terms lasting between 2-5 years, this form of finance is also flexible enough to meet your unique requirements. Thanks to a range of deposit options and fixed monthly finance payments, a Hire Purchase plan created by Magnitude is the easiest way to keep your prestige vehicle in pride of place.
As always, we pride ourselves on meeting our clients in the middle. Whatever your goals or circumstances, our experts will always try to pivot our solutions to help you in any way we can. So if that means you want to customise your agreement further by shortening your contract length, opting to pay off your Tesla in larger chunks so you can enjoy ownership of it sooner, we are more than happy to help.
Hire Purchase + Balloon
For drivers with their eyes on the little-less-known, be those classic or limited edition prestige cars, this outstanding finance solution offers a flexible option for those who want straightforward monthly costs with the additional help of a final ‘balloon’ payment.
This balloon plan can come in handy in regards to budgeting and it reduces outgoing costs throughout the financing term, giving you more time to save up, pay off and keep your dream car.
Created as a hybrid, Hire Purchase and a Balloon takes inspiration from its contemporaries. That means you can expect lower monthly payments when compared to a traditional Hire Purchase plan, thanks to a deferred lump sum. This amount is agreed upon by yourself and your dedicated financial account manager, which makes it a flexible choice for clients looking to buy prestige cars with incredibly strong residual values.
Get in touch with our team today to find out how we can structure a bespoke Hire Purchase and Balloon deal for your dream Tesla.
Looking to take your financing up a gear?
Perfect for experienced investors and Tesla collectors who have used various finance methods and products previously, Balanced Payments are an exciting way to get the reliability of a fixed payment on a monthly basis, which still gives you the reliability of planned outgoings throughout your finance period.
But what makes this solution stand out from Hire Purchase or Contract Purchase Financing is that you are instead subject to national interest rate changes, which anchors a variable rate on the fluctuations of central banks. This may be the Finance House Base Rate, Bank of England Base Rate, or LIBOR (London Interbank Offered Rate).
As such, many of our clients that Magnitude tailors this type of finance for are knowledgeable borrowers, business owners, and investors with existing credit, who are clear on the risks and rewards. Balanced Payment plans are a fantastic solution for those with previous experience with investment opportunities and who understand the risks involved.
The benefits of using Balanced Payments to secure top-of-the-range Teslas include the added luxuries and freedoms of a low deposit and fixed monthly payments, which allows you to keep your cash reserves topped up and budget with a clear view.
For business users, one of the most unique benefits of this financial solution is the fact it is VAT-free, as well as more savings that can be made on a number of qualifying tax benefits, too.
Aside from the risks involved, this is a dynamic payment solution that can work wonders for the experienced collector and investor, with the opportunity to make further savings should interest rates fall.
Under a Hire Purchase agreement, you usually pay a deposit at the start of the agreement. You then pay the rest of the value of the car in instalments, over a period of between 3 and 5 years.
Personal Contract Purchase
PCP is a popular way of financing a vehicle and is usually based upon a Hire Purchase agreement. The main difference is that the vehicle’s value at the end of the agreement is calculated at the start.
Balanced Payment Plan
A Balanced Payment Plan offers the benefits of a fixed monthly payment, however, tracks the changes in the finance house base rate, LIBOR or bank base, depending on the agreement.
We have access to a number of specialist lenders that will look at high value vehicles over £1 million, classic and exotic cars, refinancing existing deals, equity release or even assets other than vehicles.
Representative example Tesla Model 3 LR
|Amount of credit||£41,000|
|Total amount payable||£60,481.55|
|Final instalment/ balloon||£24,601|
|Duration of agreement||48 months|
|Regular monthly instalment||£550.65|
|Representative APR||7.4 %|
|Type of interest||Fixed|
*This Tesla hire purchase with balloon finance example is for illustration purposes only. Please contact our finance team for a tailored quotation.
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