Current Best Tesla Loan Rate?

[thinktwice]

Came to say exactly this. The extra $1400 over 5 years is better off being invested than it is paid out just for a slight convenience.

Those that think of $1400 as trivial over a 5 year time period either have way too much money and should have paid cash in the first place, or are probably living paycheck to paycheck as it is and don't realize that every dollar saved adds up in the long run. I'll rate chase all day everyday as it makes more sense to invest than it does to pay it out, but I want to make sure I'm investing every penny that I can.

I do get what you're saying, but that literally comes out to $280/yr... Is an extra $280 per year worth the convenience? It may be for some, I don't think that means you have way too much money .

 

[solodogg]

I do get what you're saying, but that literally comes out to $280/yr... Is an extra $280 per year worth the convenience? It may be for some, I don't think that means you have way too much money .

It’s the same as swapping a 1.5% cash back card for a 2% card. It’s the same as skipping a toll route on the way home from work costing nothing more than an extra 5 minutes of your time.

Yes, every little bit helps. Without doing these things, I know I wouldn’t be in the financial position I’m in now. The “it’s only $280 per year” mentality eventually snowballs into “why don’t I have any money left over” when you continuously say the same thing about every small financial difference.

 

[jessepotter]

This conversation is going no where. We should all agree to disagree. No two people will ever agree on how they spend their money. Reference: Any marriage ever.

 

[theocguy]

One more detail that I need to add is that my model Y deliver date was to be March 2022 but I got a text for early delivery for Dec 2021. I had to take the default 2.5% from Tesla which uses US Bank. I took delivery in this manner. The following week , I called up my credit union and had them pay off my US bank loan and then moved my car loan over. It took 5 weeks due to my license plate to be mailed out which included the official DMV registration to make the transfer valid.

when you placed the order, did you indicate you would do financing via tesla or cash?

 

[faimui]

when you placed the order, did you indicate you would do financing via tesla or cash?

placed the order with cash payment but upon delivery date requested Tesla to change me to financing

 

[OCJeff]

Indeed, DCU is still 1.24% when you have a direct deposit; I just got my MY loan sorted. I started the direct deposit (whole paycheck, but not sure if it matters) about a month ago and I must say it’s a pain to get my money out of the account and into my usual Bank of America account. You can’t just Zelle your pay check and you also can’t simply “transfer” it via any method without incurring a charge. You also can’t go withdraw a typical paycheck out of an ATM (limits, fees, etc). Depending on what branch credit unions are local to you, you might be able to go inside a branch and withdraw your entire paycheck at once, but what a freaking hassle. I found somewhat of a work around… I complained to DCU and because I was direct depositing my paycheck they offered to send me a free book of checks (100 of them) and I just plan on cashing a check on my phone into my Bank of America account to avoid all the lame fees and the hassle of going to a branch and then to my bank.

I did the same analysis but at the time never did my net paycheck - that sounds like such a hassle. I had only a % of my net pay deposited to DCU and qualified for Plus benefits for the .5% rate discount.

Before my loan was set up I used People Pay to just transfer the deposits to myself (I created a payment account to myself) and that was the easiest way. transfers took 1-2 days to deposit. I’m not sure if there is a limit on people pay that may prevent that from being viable for the "net paycheck" to get back to your primary bank.

 

[MrPDX]

Indeed, DCU is still 1.24% when you have a direct deposit; I just got my MY loan sorted. I started the direct deposit (whole paycheck, but not sure if it matters) about a month ago and I must say it’s a pain to get my money out of the account and into my usual Bank of America account. You can’t just Zelle your pay check and you also can’t simply “transfer” it via any method without incurring a charge. You also can’t go withdraw a typical paycheck out of an ATM (limits, fees, etc). Depending on what branch credit unions are local to you, you might be able to go inside a branch and withdraw your entire paycheck at once, but what a freaking hassle. I found somewhat of a work around… I complained to DCU and because I was direct depositing my paycheck they offered to send me a free book of checks (100 of them) and I just plan on cashing a check on my phone into my Bank of America account to avoid all the lame fees and the hassle of going to a branch and then to my bank.

Hi pcmike,

Thanks for sharing your updates and tips. Very helpful. Some questions:
1) Have you tried rate matching your DCU 1.24% with Tesla?
2) And idea if DCU insists on DD-ing the entire paycheck or do they not care what amount it is?
3) Any chance you could share a DCU referral link?

Cheers

 

[OCJeff]

Hi pcmike,

Thanks for sharing your updates and tips. Very helpful. Some questions:
1) Have you tried rate matching your DCU 1.24% with Tesla?
2) And idea if DCU insists on DD-ing the entire paycheck or do they not care what amount it is?
3) Any chance you could share a DCU referral link?

Cheers

1) Tesla discontinued their rate match program.
2) Minimum sounds like $500. I did $350 semi-monthly and that triggered the benefit.
3) I can share a referral link if you need one.

 

[slacker775]

FWIW, I DD just $50 from my check to DCU just to have that established for when it comes time to execute in a few months and DCU says I'm on a Plus membership already, so I should be eligible for the discounted rate. Then it's just a matter of if they dub me creditworthy enough for the lowest rate.

 

[khattak]

1) Tesla discontinued their rate match program.
2) Minimum sounds like $500. I did $350 semi-monthly and that triggered the benefit.
3) I can share a referral link if you need one.

Can you please share the referral link? taking delivery next week.

 

[OCJeff]

Can you please share the referral link? taking delivery next week.

Referrals are down right now with a DCU re-design. I took delivery with Tesla financing, made 1 pmt and then re-financed into DCU 45 days after delivery. May be the easiest process right now.

 

[jjrandorin]

Please do not make any offers to share or request DCU referrals. That is not allowed here on TMC. I have slacked off on banning people who do, but will pick it back up if I continue to see people posting about DCU referrals.

I dont believe a referral is needed for that credit union anyway, so its 100% not needed (and we dont allow it here anyway).

 

[ebNautilus]

After reviewing DCU's rates I noticed the following verbiage: Rate is subject to change after consummation.

Are DCU's auto loan rates variable?

 

[OCJeff]

After reviewing DCU's rates I noticed the following verbiage: Rate is subject to change after.

Are DCU's auto loan rates variable?

No, they are fixed, but if you lose any qualifying discounts (like .5% for PLUS membership) then the rate will increase as those discounts are removed.

 

[ebNautilus]

No, they are fixed, but if you lose any qualifying discounts (like .5% for PLUS membership) then the rate will increase as those discounts are removed.

Thank you, OCJeff. Just applied and was approved for 1.99%. I guess it will drop to 1.49% once I become a member.

 

[OCJeff]

Thank you, OCJeff. Just applied and was approved for 1.99%. I guess it will drop to 1.49% once I become a member.

Yep, just call that out when you talk with someone for the final approvals. Also, the EV should give you an additional .25% discount. I'm not sure if the 1.99% includes that discount or not. I just completed my Re-Fi into DCU @ 1.24%. Pretty easy, and they got the check mailed quickly (2 days) to pay off my original loan.

 

[wiesert]

Yep, just call that out when you talk with someone for the final approvals. Also, the EV should give you an additional .25% discount. I'm not sure if the 1.99% includes that discount or not. I just completed my Re-Fi into DCU @ 1.24%. Pretty easy, and they got the check mailed quickly (2 days) to pay off my original loan.

What is the minimum required direct deposit to get the .5% membership discount?

 

[OCJeff]

What is the minimum required direct deposit to get the .5% membership discount?

One person on TMC did $50 and seemed to trigger. I did $325 (every other week) and it was enough as well, automatically triggered after about 4 deposits.

 

[wiesert]

One person on TMC did $50 and seemed to trigger. I did $325 (every other week) and it was enough as well, automatically triggered after about 4 deposits.

Got it. So basically just DD a little more than the monthly loan payment will be.
Do you know if you can go with Tesla financing with a 72-month term just for easy delivery, then re-fi to a 65-month term with DCU? I've never refinanced a loan before. And are there any fees associated with refinancing?

 

[preilly44]

Got it. So basically just DD a little more than the monthly loan payment will be.
Do you know if you can go with Tesla financing with a 72-month term just for easy delivery, then re-fi to a 65-month term with DCU? I've never refinanced a loan before. And are there any fees associated with refinancing?

You can but then you increase the risk of DCU raising their rates (which will probably happen in the next couple weeks (assuming the Fed raises the rate in their meeting next week).