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Auto loan should be ready when you order a Tesla? What is the current best rate?

Discussion in 'Model X: Ordering, Production, Delivery' started by jabberwky, Jun 29, 2018.

  1. jabberwky

    jabberwky Member

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    Hi, I may order model X today or tomorrow.
    I am not sure when I should prepare the auto loan?
    Probably not needed until the delivery of the vehicle but not sure.

    Another question is what is the best loan rate and where I can get the best one?
    My quick check up was around 3~3.5%. But I heard there are some federal unions offer better rate for EV.

    I am considering $40K or $50 for 5 or 6 years.
    I think the interest has already gone up recently and will go up sooner or later.
     
  2. ek993

    ek993 Member

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    I got 1.75% with my local Federal Credit Union - this is a reduced rate for EV's
     
  3. jlmbsn

    jlmbsn Supporting Member

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    If you do it through Tesla, they will contact you when you are about 30 days out from delivery. Tesla has pretty good finance rates, 2.99% for the MS and 2.49% for the MX. You have to put down $2500 when you order and then up to 10% down upon delivery. The $2500 goes towards that 10%. But their finance offer is only good for 30 days - that's why you don't do it when you order.

    We did research and Tesla was cheaper than a private lender and we have really good credit. They will also do it for longer than 60 months which is the most we could find privately. So we are going with Tesla financing.

    You will also want to use a referral code from someone who already ordered/owns a Tesla - it will get you free supercharging for life. We just ordered ours a little over a week ago so I just went through all this. Feel free to private message me if you have more questions! Best of luck!
     
  4. jabberwky

    jabberwky Member

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    Hi,
    Thanks for the explanation.
    Is that meaning I cannot lock the rate when I order the car? I think I should wait 2-3 months for the delivery, then I believe the rate might change at the delivery time when I need to loan arrangements. Because the rate is already 3.5% according to the web site.
     
  5. jlmbsn

    jlmbsn Supporting Member

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    I think it depends on the institution where you're going to finance - the loan offer will be good for a certain amount of time. Like I said, we went with Tesla because it was 2.49% but we can't secure the financing until 30 days out from delivery. That made us a little nervous but we couldn't find a cheaper interest rate. Our bank was 3.5%. They also did 72 months and our bank would only do 60. So that's why we went with them. If you're going to do private financing, you'd have to ask them what the terms of the offer are.
     
  6. sidmini

    sidmini Member

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    if you go with the Tesla loan rate that should lock in the APR %
     
  7. TexasRat

    TexasRat Member

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    I am in a similar situation as you. I placed my order on the 1st of the month. My car still hasn't entered production, but it's estimated to enter production next week and ship to me before the end of the month. Tesla doesn't do financing in Texas, but they have a partner Alliant credit union. I just got done doing my loan application through them, because since they're Tesla's partner in Texas, the loan approval is good for 45 days. That means I have up to 45 days to approve the process and continue with the loan. If however, my delivery is postponed, I'm screwed. I either lose the 2.99% (it ends on 6/30) or will have to start making payments on a car I don't own yet.

    I would be careful if I were you. Just do your research and be prepared to lock in a rate. most places will only lock in your rate for 30 days though, and it takes WAY longer than that to get your car. If you are in a state where you can finance with Tesla, I would do that. That should save you a lot of headache and hassle. But then again, I'm lazy.
     
  8. jabberwky

    jabberwky Member

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    Thanks, that is a great info. I am in CA, but not sure Tesla loan money even in CA. They probably have partners here too. But I will check tomorrow. I think recently the rate has gone up to 3.5%, that is .5% up since I got an initial quote about 1 month ago. My concern is it may go up at least .5% soon.
     
  9. tpham07

    tpham07 Active Member

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    Tesla does not loan money because they are not a bank. All the financing done with Tesla is thru preferred lenders. My dad's is done thru US Bank via Tesla. I did mine on my own thru Penfed.
     
  10. Anzir

    Anzir Supporting Member

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    Not financing the X but my last vehicle was done through PenFed. 0.99% 3 years ago. Once you have your VIN then just contact PenFed and they do it all online. Not sure how they are these days but usually very competitive. I have friends who purchased Ferraris through them.
     
  11. dethman

    dethman Member

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    I used penfed on my last 2 cars but their rates are less competetive now. Ended up with schoolsfirst, lower than both tesla (chase) and penfed.

     
  12. jabberwky

    jabberwky Member

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    I made an order today. The manager told me that the interested will be locked even I get the car Aug. But actually I am not sure how.
    But I believe him.
    The rate was %2.99.
    Anyway I will search for if I can get a better rate as I have at least 2 months before the delivery.
     
  13. tpham07

    tpham07 Active Member

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  14. dethman

    dethman Member

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    When you apply through tesla they specifically will say loan rates are valid only for 30 days. There is no 'lock' until your car is ready.

    Tesla is not the bank they have no control over the rate. Chase is their lender.
     
  15. Brave Ulysses

    Brave Ulysses Member

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    Tesla’s rates increased again today.
     
  16. logan

    logan Member

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    I got 1.49% through Tesla via Wells Fargo for a P100D about 10 days ago.
     
  17. Brave Ulysses

    Brave Ulysses Member

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    Wow. That's the lowest I've seen in months. Was the car an inventory model?

    I hope I can get a similar rate, but I doubt it.
     
  18. logan

    logan Member

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    No it was a custom order. :)
     
  19. jabberwky

    jabberwky Member

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    The rate is really good.
    The best rate I got from Wells Fargo was 2.99. Even my credit score is >800.
     
  20. sidmini

    sidmini Member

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    jabberwky did you place your tesla order? I hear that the free supercharging will end on 15th July and that offer won't be coming back! PM me for a referral code if you need one.
     

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