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Credit union will only finance up to $70K. Help!

cybrown

Member
Jun 21, 2013
49
0
Maryland
After extensive discussions with my spouse and hours spent pouring over spreadsheets to make sure we wouldn't become car poor with the most expensive vehicle we've ever purchased, we put in our reservation on Teslamotors last night. Awesome!! Now to check for financing options...

I read on the teslamotors board that many people financed through Alliant Credit Union, even up to 100%. I joined, and put in my application. Got a call back today - they said that since I don't have a "history of high value auto loans", the maximum they will finance is $70k, although they will give me the best rate (1.49% for 72 months).

I have perfect credit, no credit card debt, and a large mortgage. What gives? I've heard people have had luck with PenFed, but their website flatly states that the maximum loan is $70k. How are you all financing 85, 90, or 100% of the value? I want to finalize my reservation right away, but until I can figure out if I can actually finance this thing, I'm in limbo. Any suggestions?
 
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cybrown

Member
Jun 21, 2013
49
0
Maryland
I don't have an edit option for some reason. I suppose I was a bit sensational to attract readers, but I was rejected for the offer that many, many other people seem to be getting. I'm in the "not a car guy, never bought an expensive car before" camp. Are expensive cars just the norm for people that are getting 90-100% financing offers?
 

Discoducky

P100DL, 2021 M3, 3 CT reservations and counting
Dec 25, 2011
3,446
3,451
Seattle
I've heard people have had luck with PenFed, but their website flatly states that the maximum loan is $70k. How are you all financing 85, 90, or 100% of the value? I want to finalize my reservation right away, but until I can figure out if I can actually finance this thing ($98k with tax, willing to put up to 15% down if necessary), I'm in limbo. Any suggestions?

I paid down the loan with PenFed to get the best rate. Read the PenFed thread as it is very helpful.
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
I had the same problem. Basically, auto loans look for other auto loans on your credit history. There's even a separate auto loan credit score vs normal credit scores. Alliant only approved me for 35k; Wells Fargo (through Tesla) approved me for 50k and PenFed approved me for 60k.

Bank of America, however, approved me for 80k and offered more. The biggest difference? Bank of America is my primary checking account and it's where my paycheck is direct deposited (and has been for 5+ years now).

Go to the bank you use the most. If you do a lot of business with them, they're far more likely to trust you with a large loan.
 

Galve2000

Active Member
May 20, 2013
1,025
328
NYC
Sounds like you got the standard Alliant deal.. if coming up with the rest of the money is a problem at this time, I would hold off on getting the car. I think it's the cosmos trying to tell you something.. not Alliant trying to reject you as the title of this thread (incorrectly) states.

You may have the best crdit it the world, but if a sizable portion of it is already "in play" that doesn't help you. and to be honest, given the offer you got from Alliant, I don't think you were penalized for ypour "history of high value car loans" -- instead, you just got the standard offer. have some people gotten "better" offers? perhaps. but I don't think it is very common.
 

cybrown

Member
Jun 21, 2013
49
0
Maryland
I know it's pointless to complain about how the financing world works, but I had no idea there was a separate "auto loan" credit score. It seems crazy to me that I am essentially a credit risk of 0, but because I have never purchased an expensive car, I cannot get a loan to purchase an expensive car. A bit of a chicken and egg problem here.
 

NigelM

Recovering Member
Apr 3, 2011
13,386
555
Northern Virginia
I don't have an edit option for some reason. I suppose I was a bit sensational to attract readers, but I was rejected for the offer that many, many other people seem to be getting.

I updated the title for you - hope that's ok?

(To avoid confusion amending thread titles is restricted to moderators.)
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
I know it's pointless to complain about how the financing world works, but I had no idea there was a separate "auto loan" credit score. It seems crazy to me that I am essentially a credit risk of 0, but because I have never purchased an expensive car, I cannot get a loan to purchase an expensive car. A bit of a chicken and egg problem here.

Generally there's a progression. First you get a ~30k loan. After you pay that off, the next loan will likely approve you for 60k. After that, 100k+ shouldn't be a problem. It's just like credit cards and spending limits. Just because you have "perfect" credit doesn't mean you are reliable. It's what's on there that matters and a history of a lot of other auto loans of sizeable amounts -- all having been paid on time -- is the most reliable way to determine if someone is good with handling auto loans.
 

Grendal

SpaceX Moderator
Jan 31, 2012
5,768
7,034
Santa Fe, New Mexico
Thanks for the heads up. The most expensive car I've ever bought in my life was $18K. My credit is exceptional so I didn't think it would be a problem getting a loan when it came to getting it. Now I realize that I will need to prepare for it. Thanks.
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
Thanks for the heads up. The most expensive car I've ever bought in my life was $18K. My credit is exceptional so I didn't think it would be a problem getting a loan when it came to getting it. Now I realize that I will need to prepare for it. Thanks.

Go to your bank that you use the most. If you have a history with them (checking account you use a lot, credit card, etc.) they're far more likely to give you a large loan. The interest rate may not be as low as Alliant but it should be around ~2% or so with excellent credit.
 

cybrown

Member
Jun 21, 2013
49
0
Maryland
Go to your bank that you use the most. If you have a history with them (checking account you use a lot, credit card, etc.) they're far more likely to give you a large loan. The interest rate may not be as low as Alliant but it should be around ~2% or so with excellent credit.

I bank with Capital One and ING (Now also Cap One, but I still call them by their old name). ING doesn't have auto loans, and Capital One had never even heard of Tesla when I called. They were astounded at the price tag and said their standard maximum loan is $40k. I thought this would be a piece of cake; can't believe this is happening! The discrepancies between loan amounts are surprising and confusing.
 
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metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
Ya, Capital One doesn't do large auto loans. I don't know what to tell you then. Bank of America didn't even blink at my loan amount. I'd say hold off on buying the car. Save up the cash and take a smaller loan. Also, stop banking with Capital One :)

Find a local credit union and start a checking account with them and *use* it.
 

sp4rk

Banned
Apr 25, 2012
1,219
3
Schaumburg, IL
I bank with Capital One and ING (Now also Cap One, but I still call them by their old name). ING doesn't have auto loans, and Capital One had never even heard of Tesla when I called. They were astounded at the $90k price tag and said their standard maximum loan is $40k. I thought this would be a piece of cake; can't believe this is happening! The discrepancies between loan amounts are surprising and confusing.
I was under the impression that Capital One is a high risk credit card.
They are clueless.
I've had a Chase United card for a decade. Limit went from, say $5k in 1995?, to $30k today. Always paid it, etc. Then I got seriously annoyed with Chase and their routine holds on my account due to my travels; so I went to switch to Capital One.
They offered me a credit line of $2k. They told me they do not offer higher limits. So I stuck it out with Chase and today I;ve not had an issue with them for years.
When I went to finance my S (cheaper to borrow at 2% than pay cash that's sitting in TSLA if you know what I mean!), I went to my local bank who know me well. I was astounded by the red tape. They even asked me for employment verification. Not for me, but for a persons name that appears on a collateral document.
They basically accused me of forging a document. So I went to B of A who know nothing about me and it was painless and inexpensive.
Best of luck to you!
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
I second BofA. They have been nothing short of fantastic to work with for my loan of my S. You may or may not have the same offer if you don't bank with them but give it a try.
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
That's usually pretty dangerous....plus most personal lines of credit will look at what you've applied for (shows up as a hard inquiry) and reject you if they detect you're trying to "double dip".

Best suggestion I can make if you must have the car is borrow money from someone you trust like a family member.
 

Krugerrand

Is Cat
Jul 13, 2012
10,852
52,891
Tesla friendly place
That's usually pretty dangerous....plus most personal lines of credit will look at what you've applied for (shows up as a hard inquiry) and reject you if they detect you're trying to "double dip".

Best suggestion I can make if you must have the car is borrow money from someone you trust like a family member.

It's not dangerous if you can manage your money and you're not over-extending yourself. Makes no difference if your 'car' payment is split or not. You can either afford the monthly payment/s or you can't. Lots of people have multiples of loans, credit cards, personal lines of credits and a mortgage. *raises hand* I also have property (paid for), savings, investments and cash under my mattress.
 

metafor

Member
Aug 13, 2012
187
18
Bay Area, CA
I meant dangerous as they have a tendency of rejecting the application if they think you're trying to apply for multiple loans for the same thing. Credit cards are different but getting 2 loans within ~6 mo of each other isn't all that common...
 

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