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Currently in a Financed Vehicle Experience?

Discussion in 'Model S: Ordering, Production, Delivery' started by Cnasty, Jun 24, 2016.

  1. Cnasty

    Cnasty Member

    Joined:
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    Location:
    Dallas
    I am very happy to be part of this amazing community after hearing about it from Reddit I find the details here are overwhelming and so much to see and research!

    With that being said. Here is my current scenario.

    • I have a Model 3 reservation from day 1
    • Currently in a loan for a financed 2015 vehicle
    • I owe about $23k on it
    • I have been given estimates in the range of $16k to $20k on the vehicle to be bought outright
    • I want to get into a Model S 60 or 60D, financed not leased
    • I would easily be able to afford and finance a Model S but currently upside in this other loan
    Has anyone come from a current financed vehicle, ordered and customized a Tesla, and then applied for another loan or have you had to sell the other vehicle first before proceeding?

    I am upside due to a longer loan term that I hadn't planned on getting out of until I have been absorbed by going all EV in my household.

    Any advice on how to make this work or steps in making this as seamless as possible?

    I have a test drive scheduled for next weekend and know right after that I will finally press "reserve" after configuring one of these things like 97 times on the website. :)
    Thanks in advance!!
     
  2. CapeOne

    CapeOne Member

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    Location:
    New England
    As long as your credit is ok and your debt to income ratio (adding in the proposed Model S loan) are acceptable to the lender, you shouldn't have a problem getting approved. Are you looking to finance through Tesla/Alliant or somewhere else?
     
  3. Cnasty

    Cnasty Member

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    I was looking to go through Alliant after all the positive feedback here.

    I have a very high credit score the last time I checked and think I will be fine there as the ratio should be great. Problem I have is getting rid of the other vehicle first.
     
  4. ZBB

    ZBB Emperor

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    I would recommend seeing how you can pay off as much of that loan as possible in the next ~2 years and before you take delivery of your Model 3. You don't need to pay the loan completely off -- but make extra payments (or add on to your monthly payment) enough so that 2 years from now your loan payoff will be at or below the value of the car.

    For example, since your car is currently worth $16-20k, it will likely be worth ~$10-12k in 2 years (even if it may be worth more -- assume the worst…). Your loan is currently at $23k and it sounds like you are about year or so in to a 5-6 year loan. I don't know your interest rate, actual loan term or initial loan amount -- so I'm assuming you borrowed $27.5k at 4% for 6 years -- which is a ~$430/month payment, and would be ~$23k balance 1 year in. If so, your loan balance will be ~$14.5k about 2 years from now -- so you would still be underwater on th loan (by $2.5-4.5k…).

    But you have ~2 years to get caught up. Can you make payments of an extra ~$100-180 per month against this loan? If so, that will help you be in a position where you don't owe more than this car is worth when you take delivery of your Model 3.

    Hope that helps!
     
  5. Cnasty

    Cnasty Member

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    This helps a bunch buuuuuttttt I want to get an S now and also get the 3 in the future and replace my other SUV with that one.

    I was thinking of selling it for the $20k if I can find it, pay the difference of the $3k, start fresh on the financing for the S now and go from there.

    I am just not sure if thats the smartest move and fight the desires and pay the loan down a little more but as you said, I will always be behind unless I pay an extra $200 a month or so now.
     
  6. zambono

    zambono Member

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    It's not a problem you just have to pay the difference, it's only a problem if you don't have the $ which means you over extended yourself and will do so again with the model S.
     
  7. CapeOne

    CapeOne Member

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    This looks to be more of an emotional debate than a financial one as you seem pretty well determined to order a Model S and there doesn't appear to be any loan 'barriers' here. Since you won't need your current car once getting the Model S, you might as well sell it now and cut your losses and not have an extra car, extra loan, extra insurance, etc. to deal with. Is the $20K offer from a dealer? Did you try to sell it yourself?
     
  8. Cnasty

    Cnasty Member

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    It is kind of both. Trying to get an idea of how much my tesla financing will be and then getting the best offer for my current car and paying the difference.

    It is from a dealer. It's a very fair offer.

    My other option as you stated is to pay more each month for 6 months to a year and wait on the model s. My current payment is only $350 so I could go as high as $500 or so to help alleviate that gap but the emotional part as you stated is I don't want to wait 6 months to a year :)
     
  9. Cnasty

    Cnasty Member

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    Location:
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    Yes I have the money so it's more so trying to set up my future financing for the tesla to the best amount I can get it at without leaving a huge chunk in savings if I can secure that $20k offer.

    Going to Carmax today to see if they offer more with that other offer in my back pocket.
     

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