Best time to apply for financing

[Inkognito27]

Hello all. A newbie to the Tesla world here, so please be gentle
I placed an order for a Model Y Long Range on Sunday, 1/14 and today got an EDD range of 2/6 - 3/6. I have a trade-in offer pending and was wondering when is the best time to apply for financing. If I do it now and EDD is close to the end of the range, I'll have to reapply. Should I wait until that range gets narrower?
P. S. Have an active reservation for a 2023 VW ID.4 but given Tesla's pricing action last week, test drove it and absolutely loved it!

 

[evannole]

We are taking delivery this Saturday, a day ahead of the earliest date in the initial three-week delivery window we received, and we could even have had it on Friday, if we'd been available.

There are many variables in play, of course - interior and exterior colors, wheels and other options, your location, the time and date of your order, and probably others - but it does seem like they're getting the cars out the door quickly, particularly the more standard configurations like ours (white exterior, black interior, no options). This is my second Tesla, and both times they've arrived sooner than anticipated, with very little warning, so if our experience is any indicator, it's good to be ready for the car to show up somewhat unexpectedly.

We decided today to finance with Tesla, since it was a smooth, easy process with near instant approval, and will refinance a month or two down the road. I found a credit union with much better rates, and we were quickly approved for the loan, but we aren't yet members, and when I spoke to them today, they said they had quite a backlog of membership applications and couldn't be sure that they could approve our membership and then fund the loan by the weekend. We actually considered paying cash, which would make the process even simpler, of course, but decided not to, as rates are surprisingly good.

I would wait another week or so and see if anything happens with your window. It'll probably narrow. I wouldn't wait too long, though, as you'll want to be mostly ready when they give you an actual delivery date. Keep Tesla financing in mind as a back-pocket option, as they do seem to be able to get things approved quickly and of course they have seamless integration with the actual purchase process itself. The rates aren't great but it's easy to refinance after the fact.

 

[jose3030]

Tower CU?

 

[evannole]

Tower CU?

Yes, that was our initial plan. Like I said, the loan approval was pretty quick but membership approval is not done yet, and we didn't want to run the risk of not being able to take delivery because the loan wasn't funded in time, so decided to use the easy path of Tesla financing as a stopgap. We'll refinance once we actually have the car and don't have to worry about timing.

After a couple days of scrambling - looking at different lenders, selling my wife's car, and so on - we are actually relaxed now, as everything is pretty much ready. We even sent Tesla the down payment today - it was really nice to do that in the app today, via an electronic check .I don't think that was an option when we bought our first one in 2018. I certainly remember showing up with a cashier's check.

 

[Killer Junior]

We financed through Tesla since the whole process was easy and streamlined. At the time my credit score was around 750, not great but not terrible, and I wasn’t concerned about not getting approved for financing. We will be refinancing at a lower rate once my score gets back over 800.

 

[240vPlug]

Tower doesn't have the best rates. They are a good CU though. Been with them over 20 yrs.

Apply when you get VIN. Approval usually only good for 60 days. SECU of MD usually has very competitive rates for auto loan products however then will make you jump through more hoops.

 

[Inkognito27]

Thanks all!

 

[ny888]

I applied with Tower one week ago and got conditional approval but not final approval and I’m picking up car today. They are backed up and takes awhile to get through their entire process.

 

[240vPlug]

I applied with Tower one week ago and got conditional approval but not final approval and I’m picking up car today. They are backed up and takes awhile to get through their entire process.

I think I might know why. Looks like Tower is running some kind of auto loan promotion. Their rates are actually very low right now. They are also giving new car rates on used loans. They are probably inundated with application right now.

2.99 for 60 and 3.49 for 72 is very competitive. Here are the rates for Tower and SECU MD. I'm surprised because usually SECU of MD is better.

Rates & Calculators

www.secumd.org

Loan Rates - Tower Federal Credit Union

Tower Federal Credit Union MD offers the best low rates on credit cards, vehicle loans, mortgages, home equity loans and personal loans.

www.towerfcu.org

 

[Kairide]

Wait until you get a VIN assigned to begin the financing process.

 

[Cyclone]

Wait until you get a VIN assigned to begin the financing process.

Unless you want to use Tower. At lease you may want to start the membership process as that seems to be the slowest part at the moment.

 

[Bob2C]

Tower doesn't have the best rates. They are a good CU though. Been with them over 20 yrs.

Apply when you get VIN. Approval usually only good for 60 days. SECU of MD usually has very competitive rates for auto loan products however then will make you jump through more hoops.

Where do you see lower rates than Tower?

 

[240vPlug]

Where do you see lower rates than Tower?

Tower has been running a promo. Their rates have been higher the last few years but I'm glad to see they have come down. I'm not sure what their credit score and DTI requirements are to get those rates.

 

[Bob2C]

Tower has been running a promo. Their rates have been higher the last few years but I'm glad to see they have come down. I'm not sure what their credit score and DTI requirements are to get those rates.

Yeah Tower is running super low rates. I’m sure only top tier. 780+

 

[240vPlug]

Yeah believe it or not SECU...about a year ago...was doing 2.49 for 84 mo ! It was 780+ and DTI <40

Plus you had to have DD and auto pay. I like to compare all the rates every so often to stay on top of what auto loans are doing.

Years ago Tower used to give everyone the same rate. They changed that 10 years ago or so. My wife used to work for Tower a long time ago.

 

[Bob2C]

Yeah believe it or not SECU...about a year ago...was doing 2.49 for 84 mo ! It was 780+ and DTI <40

Plus you had to have DD and auto pay. I like to compare all the rates every so often to stay on top of what auto loans are doing.

Years ago Tower used to give everyone the same rate. They changed that 10 years ago or so. My wife used to work for Tower a long time ago.

2.99 is amazing now. It’s a no brainer to get that loan. Keep my money making interest somewhere else and I’m ahead of the game.

 

[240vPlug]

2.99 is amazing now. It’s a no brainer to get that loan. Keep my money making interest somewhere else and I’m ahead of the game.

Yes agree. If you can earn a higher rate of return which you can even on a savings account then it makes sense.

 

[ShareLofty]

Tower has been running a promo. Their rates have been higher the last few years but I'm glad to see they have come down. I'm not sure what their credit score and DTI requirements are to get those rates.

Are they really up to 8.49% for 60 months?