Why would they let you do 120%? For extra accessories? After market mods? For you to gamble in Vegas? Speculate on the price of oil?
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Energy Federal Credit Union
- Thread starter Kandiru
- Start date
Why would they let you do 120%? For extra accessories? After market mods? For you to gamble in Vegas? Speculate on the price of oil?
Maybe taxes, tags, title, etc. All those extra costs. The purchase price is $120k, so if they're basing it on that. Sales tax in PA is 6%, so an extra 20% is high, but I guess you could chew it up on stuff. Destination fees as well?
KennyB-FLL
Member
I actually applied in late December, but because the loan was not being funded until this week my loan falls under their new parameters. I actually was in Rockville on January 2, and went to meet Mary Ann Johnson in person. All has gone smoothly thus far. Tesla just sent her the final paperwork to get funding issued for my pickup on 2/28.
DCU offers a further discount of 0.25% for energy efficient cars (>35mpg), reducing the 65 month or less rate to 1.24% with direct deposit. They confirmed to me the Tesla is covered. Higher rates for terms to 84 months are available.
See Energy Loans | Fuel Assistance | DCU | MA | NH and click on the details tab.
Not at all....they automatically set u up when u apply for loan. My gf did a loan from them a few months ago. Easy
KennyB-FLL
Member
Loan was funded today. Paperwork signing to check distribution took less than an hour, and I'm in FL. Check sent to Tesla, also have UPS tracking number. Now all set for delivery!
I applied at Alliant for my S85 and was approved for the full value of the car, but then I cancelled it when I switched to the 85D in October. I called them back to start the process again but I asked if they would match or beat the DCU rates for 65 months (1.24% with a checking account and direct deposit). The person I spoke with at Alliant got back to me and told me that they might be able to beat the DCU rate (as an exception) but would need to see a pre-approval from another lender in writing. So I have now applied with DCU and I am waiting to see if they approve the loan. I am not sure why Alliant thinks I would be willing to go through the application process with two lenders just to see if they can beat 1.24% for 65 months when their rate is 1.99% for 60 months.
mikeash
Active Member
I thought I'd report my own EFCU experience. I contacted them based on the advice in this thread. I worked with Mary at first, but they handed me off to another person since apparently she gets a ton of inquiries. No trouble there, anyway. They got my application today and approved me for a loan at 1.11% for $69,999.99 (their best rate, and the maximum possible loan for that rate) in about seven seconds over the phone. I'm supposed to be taking delivery on Tuesday. I happen to live pretty close by so I'll likely be dropping in to finish up the paperwork in person and make sure everything gets done on time. So far a nice and easy experience with them. I just wish I could have gotten 0.61% and a higher loan amount like folks were able to obtain last year!
That is a great loan and great service! I am hoping to borrow another $20k so that is why I didnt' contact EFCU.
I'll second mikeash's experience. I worked with Mary to get my membership and loan approval. Once the membership application was mailed in, the rest of the loan documents were electronic and e-signed. Start to finish took about a week from sending membership application to receiving check in the mail.
The whole process was very easy, and the rate was still the best I could find at 1.11%.
The whole process was very easy, and the rate was still the best I could find at 1.11%.
So seems the best rates are:
EFCU at 1.11% for 60mo up to $69,999
DCU at 1.24% for 65mo up to 120% of the price
If you have the cash but want to borrow the money and keep it invested to cover the loan rate, considering the rate difference is .13%, DCU maybe better from an investment opportunity?
Even though the rate is marginally more you get more capital to invest plus you get a longer duration to invest.
Running the numbers and assuming an average return think the difference gained is only a $1K or so, which at that point maybe the deciding factor is more convenience and service vs dollars.
EFCU at 1.11% for 60mo up to $69,999
DCU at 1.24% for 65mo up to 120% of the price
If you have the cash but want to borrow the money and keep it invested to cover the loan rate, considering the rate difference is .13%, DCU maybe better from an investment opportunity?
Even though the rate is marginally more you get more capital to invest plus you get a longer duration to invest.
Running the numbers and assuming an average return think the difference gained is only a $1K or so, which at that point maybe the deciding factor is more convenience and service vs dollars.
At a difference of .13%, it just doesn't make sense to work with EFCU any longer since you can borrow up to 120%. Who wants to tie up money when they're giving it to you for next to nothing!
$120k at 1.11% results in $3416.28 in interest over 60 months.
$120k at 1.24% results in $3840.41 in interest over 60 months.
I'll glad pay an additional $424.13 (Or $6.73/mo) over the life of the loan to not tie up $50k!
$120k at 1.11% results in $3416.28 in interest over 60 months.
$120k at 1.24% results in $3840.41 in interest over 60 months.
I'll glad pay an additional $424.13 (Or $6.73/mo) over the life of the loan to not tie up $50k!
Actually, the difference is more cause you can only borrow up to $69,999.99 at 1.11% and the rest of the cost $50,000.01 has no interest since you don't finance that part. Assuming the total cost is $120K.
So comparing total cost between the two:
$69,999.99 at 1.11% over 60m plus $50,000.01 as the rest of the payment = $121,827.58
$120,000.00 at 1.24% over 60m = $123,820.41
Your difference in total cost is really $1,992.83. Still, given you get an extra $50k to invest you need a return about ~4% return (simple interest) to break even.
So comes down to what you think the opportunity cost of that $50k will be, to be worth the extra ~$2k of cost to get it.
So comparing total cost between the two:
$69,999.99 at 1.11% over 60m plus $50,000.01 as the rest of the payment = $121,827.58
$120,000.00 at 1.24% over 60m = $123,820.41
Your difference in total cost is really $1,992.83. Still, given you get an extra $50k to invest you need a return about ~4% return (simple interest) to break even.
So comes down to what you think the opportunity cost of that $50k will be, to be worth the extra ~$2k of cost to get it.
Similar threads
