I will, but that is also variable and will increase over time. As you tap into your home equity, you need to see if you need that equity for other purposes in the next couple of years or not.
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It may be better in the short term, but given the outlook for interest rates it will likely get more expensive sooner rather than later.
Cost of borrowing is getting expensive and the days of 0% interested to buy a car are long gone. 4.7% over 96 is a ton of money towards interest.
Assuming you have a prime + 0% HELOC, it may be better because prime is 2.70% right now, but that is going up another 0.5% to 3.2% in a couple weeks, so you're not far off the fixed rate from Tesla (4.7% over 8 years). The odds of that 3.2% rate increasing over the next few years is likely, so unless you're planning on just making min interest payment towards your HELOC, I would just bite the bullet and get a fixed rate from Tesla.
Assuming you have a prime + 0% HELOC, it may be better because prime is 2.70% right now, but that is going up another 0.5% to 3.2% in a couple weeks, so you're not far off the fixed rate from Tesla (4.7% over 8 years). The odds of that 3.2% rate increasing over the next few years is likely, so unless you're planning on just making min interest payment towards your HELOC, I would just bite the bullet and get a fixed rate from Tesla.
Just fill out the information on their website, you will get an approval back quickly. I assume its mostly based on your credit score, you do key in your yearly earnings, etc but they do not ask for any documents
Unless rates go crazy I do not see it, if someone is financing a vehicle and a 1-2% difference is really make or break they are already spending too much in my opinion.
Took a quick look, a 6 year loan for 70K you are looking at approx $60 difference per month with a 2% interest swing.
I am just getting up to speed with tesla ownership, I am going to try and lock in an order soon.
I had no idea the rates have gone up so much!! I got a quote for a SR+ last summer, they quoted 2.49% for 72 months. Argh I kind of wish I went through with it last summer :/
And on a related note, if I defer delivery of the car until next year after locking in my order, does that lock in the interest rate as well? Sorry if this might be a dumb question, this will be my first new car.
No, interest rates are only held for 30 days. It's recommended you don't apply for financing until you have a scheduled delivery.
Hmm I see, so I will not know the final interest rate until I have confirmed the delivery. Ok thanks for the info.
wow that did go up quick - glad I scraped through with my 3.25% in back end of Feb. My ODD was Apr when I put in my order in early Jan - but then changed quickly. Between this, and the price hike, the car is getting more valuable…
To fellow canucks frustrated, and unhappy at the rate high, if its any consolation - the car is worth it
To fellow canucks frustrated, and unhappy at the rate high, if its any consolation - the car is worth it
GhostSkater
Member
Hey Guys, how is financing over there for those with no credit score? I couldn't find much online
I will be moving there soon(tm) and I foresee that being a big problem, keep in mind that is not bad a credit, but no credit, and all I've seen no bank takes credit from other countries in account
I will be moving there soon(tm) and I foresee that being a big problem, keep in mind that is not bad a credit, but no credit, and all I've seen no bank takes credit from other countries in account
Likely you'll need to look towards another option than what Tesla offers or a co-signer who can get approved on their own.
With a new SIN, limited to no Canadian credit, employment, or residence you will be deemed to have no creditworthiness. As someone who is new to Canada you haven't been able to demonstrate the following; Positive past Canadian credit, a proven + consistent income to support repayment, a large down payment, or similar assets, showing you have repaid a Canadian debt under the same term and payment amount.
You need to start with a credit card and build, it will be next to impossible to get 50k+ auto loan without the 5 C's ( Credit, capacity, capital, collateral, conditions, and character)
Good luck in your search.
GhostSkater
Member
Thank you
I actually have enough money to buy in cash, just would prefer not to since the rates are so low, colateral I need to look, but if it's possible to use a investment portfolio that's easy, the rest I will need to work out
Guess I will be driving a 2013 Leaf for a while
Graham J
Member
If it helps, a month ago I bought a '21 M3 used from a dealer and got 3.53% through CIBC. Might be worth looking at financing options other than whatever Tesla provides.
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