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Financing Outside of Tesla is Weird - Advice on Lenders?

Discussion in 'Model 3: Ordering, Production, Delivery' started by RobbS, Aug 6, 2018.

  1. RobbS

    RobbS Member

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    Location:
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    I'm finalizing the specifics on order my P3D (Black Obsidian Pearl with EAP) and am rather befuddled with the loan process when choosing an outside lender. Below are the specifics for my particular scenario:
    • Vehicle: $70,500
    • Taxes: $4,230
    • Delivery: $1,200
      • Sub-total: $75,930
    • Reservation: -$2,500
    • Down payment: -$5,000
    • Total Financed: $68,430
    Mo | APR | Payment
    84 | 3.74% | $922
    72 | 3.7% | $1034

    I'd just go with Tesla, except I'm more interested in an 84 month loan instead of the 72 (Before I get berated over this, it's just my preference. I keep vehicles for long periods of time and trust in the reliability of EVs), plus the extra $112, though affordable, pushes me over what I want to comfortably spend.

    I looked into Alliant, but was saddened to learn that they don't service my state (Pennsylvania) for Tesla loans.

    A lot of what I'm finding is that it's difficult to find a lender to secure financing that would last the 2-4 months quoted for delivery. Most expire within 45-60 days of quote, meaning that I would have to apply later in the buying process and risk not being approved. I don't expect life to change enough to change an approval into a deny, but my store reps were unable to tell me if the $2,500 reservation would be refunded if a VIN has been issued, and that's not exactly chump change.

    Recommendations on how to approach the financing aspect or recommendations on a trusted credit union (or one that works with Tesla) that finances on 84 mo terms?

    (x-posted on Reddit in case you couldn't tell)
     
  2. tentimesodds

    tentimesodds Member

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    What is your credit like? If you can rate beat with LightStream and get an unsecured loan then you can get the cash up front and not worry about delays.
     
  3. Ejl80

    Ejl80 Supporting Member

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    Thats what I did. Much easier having the money ready before hand.
     
  4. RobbS

    RobbS Member

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    Depends what agency gets polled. Last soft pulls I checked rang up with 800+ on Equifax, 695 TransUnion, 720 FICO.

    I never heard of LightStream, so I'll look into that for sure.
     
  5. Ejl80

    Ejl80 Supporting Member

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    They use Experian and Equifax.
     
  6. Big Dog

    Big Dog Member

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    check the thread on rates, as many lenders are listed. However, not sure if any will give a 120-150 day rate lock.

    Let's talk financing rates
     
  7. glide

    glide Member

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    I’ve never heard of a lender that will give >60 day rate lock.

    >30 is probably unusual

    Why are you applying for the loan before VIN assignment?
     
  8. RobbS

    RobbS Member

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  9. RobbS

    RobbS Member

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    Jeez, can't find the edit on mobile. Didn't mean. For that quote to come off terribly, I just forgot some words lol.

    I'm just concerned about a deny (probably overly concerned, honestly) and don't want to lose the $2,500 deposit it I couldn't secure financing in my desired range.
     
  10. soulstar

    soulstar Member

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    I think you're assuming a bit too much on the loan process. At the end of the day, going through Tesla or finding your own financing isn't that much different. Going through Tesla just means that you're applying to bunch of places that Tesla partners with for loans and they give you the offer based on what those partnering banks determine through your credit. Getting your own financing is pretty much that, except you're shopping around yourself.

    There aren't that many lenders (to be honest, I'd say almost nobody) that will hold your approval for 2-4 months. Interest rates change, and lenders follow the trend based on that.

    Just relax and wait until you have your ISA tell you to start submitting your loan documents (or if going through Tesla, they'll handle the timing for you when its time -- but it's basically the same time either way.) Most ISAs will specifically tell you not to apply for any loans until it is near delivery time specifically because you'd have to apply all over again if you got approved too early. I doubt you'll lose your $2500 for one denial. If you do get a denial, you'd have to find a lender that will eventually give you a loan. Basically, it'll delay the process of you getting the car -- not outright deny you a car right away. Only time that would happen is if not a single lender will give you a loan.
     
  11. glide

    glide Member

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    If you are that concerned about being denied, if it is even a remote possibility, you should not even consider buying the car.
     
    • Like x 1
  12. RobbS

    RobbS Member

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    Thanks, but I'm not asking for this portion of financial advice. I've never worked with the majority of these lenders and feel that any form of concern is reasonable.
     
  13. RobbS

    RobbS Member

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    You're probably right on this. The gentlemen in the showroom were just so unsure with every question I had about the lending process and unable to give me concrete answers on what happened with the deposit (if I didn't see a number I liked in terms of APR, etc) since I've read horror stories on the subject.

    And yes, I specifically agree with the holding approval. Tesla's approach to buying a vehicle is just different that what I've dealt with in the past, so the little bit of learning curve is foreign to me.

    Thanks for the thought out response!
     
  14. Padresfreak01

    Padresfreak01 Member

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    San Diego Metropolitan Credit Union 2.99% 84 months.

    Thank is what I got.
     
  15. 97Monty

    97Monty Member

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    I was quoted 2.99% for 72-months from Everence with a 3-month rate hold. Still planning on going through Lightstream rate match in hopes of simplifying the process.
     
  16. Jedi2155

    Jedi2155 Please Insert a Model 3 into Avatar

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    I went with them as well working with Grady. I did a 1.74% at 48 months. Was originally planning on doing a $15k down payment but decided to take a bigger loan, 0.25% discount, and take the $450 hit on gap insurance. This provides me more protection in case I do get in an accident (especially with all this FSD/EAP hardware....)

    Monthly is going to hurt at $1200+ but I'm aiming to pay it off in a 2 year time frame anyways. I had a chance to go at it again, I probably would've went P-AWD since that damn test drive got me hooked but seeing that I've never spent more than $17k on a single vehicle prior to this Model 3, paying $80k (after taxes) is still kinda crazy to me. On the flip side........$15k more than my current configuration...lol....
     

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