Tesla Now Allows Negative Equity in Purchases: What You Need to Know

Hey everyone, DennisCW here! In today’s post, I’m diving into some exciting news for Tesla buyers regarding negative equity in vehicle purchases. A huge shoutout to Calvin for sending us the initial breakdown and to Alex for providing further clarification. If you’re considering a Tesla or are in the middle of a purchase, this update could impact your decision. Let’s break it down!

Tesla and Negative Equity: A New Option for Buyers

Yesterday, we discussed how Tesla is now allowing negative equity to be rolled into the purchase of a new vehicle. In a specific deal on a Model Y, we found that Tesla permitted up to $7,000 of negative equity from a trade-in to be included in the financing. This is big news because Tesla didn’t offer this option previously.

Now, before you jump in, I want to clarify that I’m not saying this is necessarily a financially smart move for everyone. Rolling negative equity into a new loan often isn’t ideal, but it could make sense if the new vehicle comes with a 0% or low-interest rate. At the end of the day, the decision depends on your personal financial situation.

How Does This Work?

Thanks to Alex for shedding more light on the process! It turns out this option has always been available, but you need to specifically request it. There are limits, generally up to 115% of the Loan-to-Value (LTV) ratio in the US, and it’s subject to credit approval. So, if you’re in a situation where you owe more on your current car than it’s worth, reach out to your Tesla delivery specialist. They can work with your credit profile to see if this option is available for you.

Based on the LTV definition, it seems that for a $45,000 Model Y (depending on incentives), you might be able to roll in anywhere from $3,000 to $7,500 of negative equity. If you’ve gone through this process or are planning to, let me know your thoughts in the comments below!

Must-Have Tesla Accessories for New Owners

Speaking of Tesla purchases, did you know that your new Tesla comes with zero accessories? Not even a phone mount! But don’t worry, I’ve got you covered with some must-have items every Tesla owner should consider. Here are a few of my favorites:

• Phone Mount: Essential to keep your phone secure during those quick Tesla accelerations.
• Center Console Organizer: Without it, you’ll lose everything in that sleek but deep console.
• Invisible Underscreen Station Mount from Jowua: My newest favorite for storing sunglasses or other small items discreetly.

All of these accessories and more are available from our amazing partner, Jowua. I personally use their products, so I can vouch for their quality. Plus, if you use our promo code (check the description below), you can save some money and support the channel at the same time.

But Jowua doesn’t stop at the basics. They also offer cool extras like a wireless game controller that fits perfectly in the glove box, a portable air compressor for peace of mind on long trips, and even an electric scooter—because why walk from the Supercharger to your destination? On top of that, you can get free shipping on orders over $120. So, definitely check out the link below and grab what you need for your Tesla journey.

A big thank you to Jowua for partnering with us on this channel!

Final Thoughts

Tesla’s new policy on negative equity could be a game-changer for some buyers, but it’s important to weigh the pros and cons based on your financial situation. If you’ve recently bought a Tesla or are about to, I’d love to hear your thoughts on this update. Have you considered rolling negative equity into your purchase? Drop a comment below and let’s discuss!

Also, don’t forget to check out Jowua for all your Tesla accessory needs. Use our promo code for a discount and enjoy free shipping on qualifying orders. Links and details are down below.

Thanks for reading, and I’ll catch you in the next post!

-DennisCW