670 Credit score and 50k for Model 3 RWD.

[JTesmod3]

Do you have any idea how much APR will I get for 670 credit score with %10 downpayment? (669 Transition, 677 Experian) My credit utilization is around %40 and have a excellent payments on time.

Not going to tell you what to do but my wife and I have six figure incomes individually, 820+ credit scores, and we are putting 20% down...Even I can't justify the purchase other than the fact that I JUST WANT IT (and the wife does to)

out of curiosity what did you calculate your monthly payment to be?

 

[JoeCoolMan24]

Pure craziness and financially about the same as shoveling money into an oven, but everyone needs a hobby I guess

Hell yeah man, I'll be homeless within 12 months.

 

[Thomas Edison]

Hell yeah man, I'll be homeless within 12 months.

Full time camper mode? Sign me up!

 

[systemBuilder]

I got offered 4.5% with a similar score (buying 2 cars this year and my wife canceled our oldest credit card, nuking our credit). That was at XCEED (Xerox Federal Credit Union), which has offices in LA / El Seguno I believe. They are now a national credit union but it's easy to join in Los Angeles ( I used to write SW for Xerox and never closed my account ). With auto-payment, you get a 0.5% rate discount so it should be a 4% loan.

I don't see a problem with a $75k income and a $50k car; with a $10k down payment and current interest rates and a 5-year loan the car payment is probably $839 and monthly income is $6.25k so car is 13.3% of gross income. If you can find a cheap place to live its totally do-able. Just make sure you're also able to save 10% for retirement and you'll be fine; the sub-30 years are the most important savings-years of your lifetime!

 

[astrn]

What bank or credit union did you go with?
Thanks,

I choose Tesla Financing so they handled eveything.

 

[astrn]

Not going to tell you what to do but my wife and I have six figure incomes individually, 820+ credit scores, and we are putting 20% down...Even I can't justify the purchase other than the fact that I JUST WANT IT (and the wife does to)

out of curiosity what did you calculate your monthly payment to be?

Around 750 a month. If I add incentives and other savings it will be actually 600ish, 150 more than my 2015 Corolla.

 

[Jedi2155]

Not going to tell you what to do but my wife and I have six figure incomes individually, 820+ credit scores, and we are putting 20% down...Even I can't justify the purchase other than the fact that I JUST WANT IT (and the wife does to)

out of curiosity what did you calculate your monthly payment to be?

I'm in a similar boat, but decided to protect myself with GAP. My monthly payment is estimated to be ~$1600-1700 .....it's not that I can't put money down..but rather with a 1.74% interest rate, my cash can be better invested elsewhere and have the depreciation protection.

 

[Evoixse]

84 months @ 3.54 for full 73k - local credit union

 

[cab]

These threads mean Dave Ramsey will have a job for the rest of his life...

 

[xyeahtony]

People seriously buy cars that cost 2/3ds of their annual income?
That´s completely nuts!

Don`t do it. It`s just a car and you´ll regret it.

Why is that a problem?

Lets say for arguments sake i make $150k a year, thats $12,500 a month. Lets say after taxes its $7000/month.

A 6 year car loan for a $100k Tesla (2/3rds of $150) is about $1600/month. Why again does someone who make $7k a month not be able to afford a car that costs $1600/month?

 

[adaptabl]

These threads mean Dave Ramsey will have a job for the rest of his life...

There will always be an endless supply of financially irresponsible people.

 

[xyeahtony]

There will always be an endless supply of financially irresponsible people.

Again, why does someone who takes home $7k a month not be able to buy a car that costs $1600 a month?

I'm assuming you make more than $130k CAD if you own a Tesla model 3. I guess you dont' want the middle class having the same car as you.

 

[TexasEV]

Median take home pay in the US $59k, and the median new car transaction is ~$36k - so at least some number of people are likely.... completely nuts!

Median income people usually don’t buy median price new cars. They buy used cars or lower price new cars.

 

[JTesmod3]

I'm in a similar boat, but decided to protect myself with GAP. My monthly payment is estimated to be ~$1600-1700 .....it's not that I can't put money down..but rather with a 1.74% interest rate, my cash can be better invested elsewhere and have the depreciation protection.

why is your monthly payment so high? $1600-$1700 should be getting you a P100D

 

[Randy7fx]

why is your monthly payment so high? $1600-$1700 should be getting you a P100D

Perhaps he is financing for 36 months...

 

[adaptabl]

Again, why does someone who takes home $7k a month not be able to buy a car that costs $1600 a month?

I'm assuming you make more than $130k CAD if you own a Tesla model 3. I guess you dont' want the middle class having the same car as you.

I don't own one yet but I do make enough that a 45K-50K car will be less than a 1/3 of yearly income. I could afford a 70K-90K car but would never do that. Being financially responsible is more about controlling spending than income levels.

 

[adaptabl]

Perhaps he is financing for 36 months...

He said 6 years.

 

[JTesmod3]

Perhaps he is financing for 36 months...

that makes sense...forgot the majority of people now get 72 month + loans.

 

[voip-ninja]

I got offered 4.5% with a similar score (buying 2 cars this year and my wife canceled our oldest credit card, nuking our credit). That was at XCEED (Xerox Federal Credit Union), which has offices in LA / El Seguno I believe. They are now a national credit union but it's easy to join in Los Angeles ( I used to write SW for Xerox and never closed my account ). With auto-payment, you get a 0.5% rate discount so it should be a 4% loan.

I don't see a problem with a $75k income and a $50k car; with a $10k down payment and current interest rates and a 5-year loan the car payment is probably $839 and monthly income is $6.25k so car is 13.3% of gross income. If you can find a cheap place to live its totally do-able. Just make sure you're also able to save 10% for retirement and you'll be fine; the sub-30 years are the most important savings-years of your lifetime!

wrong.

 

[jbcarioca]

All this advice about financial prudence is interesting. I clearly remember when I came to the US with little income and bold aspirations, living in New York. If I had been fiscally 'prudent' then I would have missed on some fo the outstanding experiences of my life. Later I become lucky and began to live very well within my means. Now I'd never borrow money to do anything at all. I pay cash for everything.

So, I cannot and will not judge how much financial risk or leverage someone else takes. Young people almost invariably have much higher risk tolerance than do older ones. Less well-established people have higher risk than do more established people.

In one of my incarnations I developed credit policies for, among other things, auto lending. One thing people tend not to notice is how much different in risk there is depending on what collateral is used. Hence, a Tesla purchase will be substantially lower risk than will be, say, a Chrysler or a Hyundai even if the credit scores and incomes are identical. Bluntly, choosing a better value itself demonstrates lower risk. I used to have reams of data about that, all of it from years ago, but those relationships still apply.

Re-read the OP posts and there is a clear indication of those relationships. With a total of four years of credit history the purely generic risk factors will be high. The choices the OP is making seem sound. That said, a car is a depreciating asset. The OP knows that.

BTW, enjoy your Model 3!!