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Financing options
- Thread starter chmod a+wrx
- Start date
What is the proposed rate on the home equity loan? Auto loan rates are super low right now...
Exactly!
PenFed will let you get the 1.49% for 5 years.
Their HELOC rate is 3.99% at this time....
gg_got_a_tesla
Model S: VIN 65513, Model 3: VIN 1913
I stand corrected on the tax deductibility part; thanks!
Another option - don't think PenFed offers it though - is something like this "Auto Tax Advantage" loan (from my alma mater's CU):
Auto Tax Advantage
That way, you don't have to take a formal HELOC; the auto loan lender simply places a courtesy lien on the home thus getting you auto loan rates but, with tax deductible interest.
Another option - don't think PenFed offers it though - is something like this "Auto Tax Advantage" loan (from my alma mater's CU):
Auto Tax Advantage
That way, you don't have to take a formal HELOC; the auto loan lender simply places a courtesy lien on the home thus getting you auto loan rates but, with tax deductible interest.
Well yesterday when I was looking into it, you could get 1.99% on home equity at Penfed, but you had to have at least 80% LTV to get that. They just raised the home equity rate to 2.49% today, along with the straight car loan rate to 1.79, so now those rates are a little farther apart. I'd have to run the numbers, but the fact that you can deduct the interest might possibly make the home equity loan a better deal. Just something to think about.
Keep in mind, HELOC is not the same as a home equity loan. A home equity loan is a fixed rate loan based on the equity in your home, whereas a HELOC is a line of credit with a variable interest rate. I wouldn't want to do a HELOC for this as the rate could end up going way up later. Those are two different products that Penfed offers.
Keep in mind, HELOC is not the same as a home equity loan. A home equity loan is a fixed rate loan based on the equity in your home, whereas a HELOC is a line of credit with a variable interest rate. I wouldn't want to do a HELOC for this as the rate could end up going way up later. Those are two different products that Penfed offers.
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When punching in numbers to this home equity vs auto loan calculator, http://autos.aol.com/calculators/home-equity-car-loan-calculator/
Using $103,000 car with $11000 down ($92k loan), at a 60 month term , comparing the 1.79% auto loan to a 1.99% home equity loan, and assuming 25% tax bracket, the home equity loan will be about $1182 cheaper due to tax savings minus any cost of setting up the loan (if there was a $299 loan fee, then it would still be $883 cheaper to use the home equity loan instead of auto loan).
I ran the same calculator with 1.79% auto rate versus 2.49% home equity rates (published rates as of today) on a 70K principal with $399 appraisal fee (that's really the only fee you'd have to pay if you go through Penfed and have the 80% LTV, that's also slightly excessive for an appraisal-- but it depends on what type of house you have) I came up with $1216 in savings. Not bad...
Correction, I was looking at "Total Tax Savings" when I said $1216, the net difference is closer to $300 - which may not be worth the trouble....
Correction, I was looking at "Total Tax Savings" when I said $1216, the net difference is closer to $300 - which may not be worth the trouble....
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fluxemag
Member
I noticed a lot of people financing with PenFed but they only offer upto $70K.
I'm looking to finance for 60-72 months at <2% interest rate for the rest of my car (I only put down the initial 5K deposit, so I'm showing $116K including taxes). I could probably put down another 5-10K if needed but I would really like to finance the rest of the amount. Any recommendations on banks?
I'm looking to finance for 60-72 months at <2% interest rate for the rest of my car (I only put down the initial 5K deposit, so I'm showing $116K including taxes). I could probably put down another 5-10K if needed but I would really like to finance the rest of the amount. Any recommendations on banks?
Alliant credit union. 1.99% 72 months. 2.99% 84 months. I financed 92k of 103k. very easy to join if non-member ($10 donation + opening savings account). I was never told about any cap or any minimum % down. However, I put about 10.5% down (which was $11k). Definitely worth a call to them. I recommend them, it was very easy for me, very easy to deal with on phone. I really searched around for rates too. The only bank or credit union that I found that was *possibly* better was Keypoint credit union in CA (as low as 1.99% for 84 months with all discounts applied I think) but you have to live in specific counties in CA to get it. Since you're in Ithaca that won't be possible. I spent many hours researching this and looked into probably 30+ banks and credit unions. Hope that helps you.
Got rejected financing from them! No idea why, my credit score is 760+. What should I do now? I need to have a decision about financing by Monday which is when the car goes into production, otherwise I'll be taken off the reservation list and have to start the entire process from the beginning.
Stanford Credit Union is currently offering 2.49% for up to 84 months and 100% financing.
did you apply online and get rejected at the last stage where it asks you to verify some information about yourself? if so, mine failed there too. I think it's a bug in their system, or that its unable to verify some info in one of the steps like your affiliate thing. when I submitted mine, it was like 5:30pm and I had to wait until they were in the office the next day. They get in around 9:30am eastern. When I called them the next day, they said it actually did not fail and that it was under review and they would get back to me very soon. It was approved several hours later that day. They were very easy to deal with on the phone. I would recommend calling them and finding out why it failed. It was probably the same reason as me.
regarding "decision about financing before it goes into production or else you get taken off the reservation list and have to start over", who told you that? I was never given any restriction like that. In fact, I didn't even bother calling around for financing until my car was DONE production and already on the truck out to the east coast.
a quick note: if I recall, when I got the approval email from alliant later that day, I called them back immediately to get my membership #. (otherwise you need to wait to get the info packet in the mail which takes like 10 days). So they told me my # over the phone, which I used to create an account online. Once I was logged in, I applied for the car loan. I believe I was approved for that the same day. Again, best thing you can do is call them in the morning.
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hmm thats better than what I got at Alliant. I thought I looked at Stanford .. can't remember though or if there was a reason why I couldn't join. I cant seem to find any eligibility requirements on their site. That 2.49% reflects a 1% dicount I think though. I think the actual rate is 3.49% but you can get up to 1% discount for various things. I don't see any 'cap' on max finance amount but when I was calling around to other banks that was the #1 reason I had to rule most banks out as they all had lower caps at $60 or $70k. can't remember if Stanford was one of those so its worth calling to find out.
I did that already.
No one told me that, I would just like to get my financing together before it goes into production, so that if I can't pull together the money, then I still have a chance of talking to Tesla and getting my deposit back. I highly doubt they will be as cooperative once they have manufactured the car and are trying to sell it to me. I spoke to my DS over the phone today, and he told me the car goes into production on Monday, so if I wanted to cancel before that for whatever reason, it wouldn't be too much of a problem to get the deposit back, or be moved back to the end of the waiting queue.
Also, as a side note, I'm worried that multiple applications will start affecting my credit score. I have applied to several places online already. Any ideas on how it affects your credit score?
First off, if yo've already finalized, it will be tough to get your deposit back regardless of whether your car has gone to production or not. Signing the Pre-MVPA essentially locks your deposit in, and they won't give it back.
As for multiple apps for credit, usually, credit requests are "grouped" and multiple car loan requests in a single short period of time (say 2 weeks) don't count much more negatively than a single credit pull. Supposedly, the score allows for applying to multiple places to "shop" for a loan. That's what I had been told before.
As for multiple apps for credit, usually, credit requests are "grouped" and multiple car loan requests in a single short period of time (say 2 weeks) don't count much more negatively than a single credit pull. Supposedly, the score allows for applying to multiple places to "shop" for a loan. That's what I had been told before.
correcto. have at it within 2 weeks, score only gets affected as if it was 1 pull. Surprisingly, over the last 2 weeks, my score went up 1 point despite having 3 new credit pulls. pulls barely affect score if any maybe by a few points at most. its the "not paying your bills and having high amounts of credit card debt" that's really going to pull it down.
For those who live in the SF Bay Area or Tucson, work for a technology company in California or Arizona, or have a close family member who does, Meriwest Credit Union has decent rates:
- Bill
Code:
Auto Loan Rates
Consumer Auto Loans | Effective Date: March 1, 2013
APR* as low as
Term New Auto Loans
01 - 24 Months 0.99%***
25 - 36 Months 1.24%***
37 - 48 Months 1.74%***
49 - 66 Months 1.99%***
67 - 84 Months** 2.49%***
85 - 96 Months** 3.74%***
* APR = Annual Percentage Rate
** 72 month financing available for loans exceeding $15,000. 84 month financing available for loans exceeding $20,000. 96 month financing available for loans exceeding $25,000.
*** Rates, terms and conditions of loan will be based on individual credit worthiness. No further rate discounts apply. Current rates reflect promotional rate.- Bill
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