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Financing the P85D

Jul 2, 2014
61
12
Baltimore
This thread is for those of you who are purchasing the P85D with financing:
1. What are your financing terms for purchasing the P85D? (i.e. banking with Alliant Credit Union, the car is $130k with $13k down and financing $117k at 1.79% APR)
2. How much is your bank requiring as a down payment? I'm concerned that since the P85D is around $130k, that banks/credit unions will not treat it like they would an $80k vehicle. I'd like to put 10% down (or as little as possible) since financing at 1.79% is much lower than what my cash earns elsewhere.
3. Will I be able to qualify for a $130k P85D? How much will I need to put down? I make $150k/year, am single with 4 houses (all investment properties) and 2 mortgages--no other debt. Credit score is > 760. My cashflow is > $6,000/month after all expenses, so the monthly ~$1800 for the car is not an issue.
 

mathman

Member
Sep 21, 2014
10
1
Austin, Texas, United States
This thread is for those of you who are purchasing the P85D with financing:
1. What are your financing terms for purchasing the P85D? (i.e. banking with Alliant Credit Union, the car is $130k with $13k down and financing $117k at 1.79% APR)
2. How much is your bank requiring as a down payment? I'm concerned that since the P85D is around $130k, that banks/credit unions will not treat it like they would an $80k vehicle. I'd like to put 10% down (or as little as possible) since financing at 1.79% is much lower than what my cash earns elsewhere.
3. Will I be able to qualify for a $130k P85D? How much will I need to put down? I make $150k/year, am single with 4 houses (all investment properties) and 2 mortgages--no other debt. Credit score is > 760. My cashflow is > $6,000/month after all expenses, so the monthly ~$1800 for the car is not an issue.


You might have difficulty getting financed for one reason: income. I found out when trying to get financing for my Model S that while DTI (Debt to Income) rati is important, even with a good credit score, many credit unions or banks don't like to finance cars that cost more than 75% of gross annual income for somebody. For me, the solution was a much larger downpayment than I wanted, but it worked out. Of course, YMMV.
 
Jul 2, 2014
61
12
Baltimore
You might have difficulty getting financed for one reason: income. I found out when trying to get financing for my Model S that while DTI (Debt to Income) rati is important, even with a good credit score, many credit unions or banks don't like to finance cars that cost more than 75% of gross annual income for somebody. For me, the solution was a much larger downpayment than I wanted, but it worked out. Of course, YMMV.
What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?
 

DieAbetic

Member
Jan 16, 2014
168
16
Los Angeles
What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?

I didn't get $120K+, but did get $80K+ through Alliant with a lower gross income. They only required that I put down 5% (I put down more).

I can say that of the multiple credit unions I tried (TechCU, USAlliance, Logix, DigitalCU, and my local CU), Alliant was by far the easiest and most reasonable. The others wouldn't give the full amount I requested - although TechCU and USAlliance were close. AlliantCU also had the best rate by nearly 1%.

FYI AlliantCU just changed their rates this month. Cutoff for lowest rates (1.99-2.24%) is a credit score of 780 (previously it was 740). Anything under that you are looking at 2.24-2.99%+.

I don't think you'll have a problem with approval, but I don't know your whole situation. I'd advise putting at least 10% down and paying the taxes/fees (another ~10%).

I talked to Scott Meyer over at Alliant. Great guy, knows his stuff. Email [email protected]. Direct: 773-462-2228
 

pete8314

Vendor
Jun 4, 2012
2,360
677
DFW, ex UK
Just wanted to put a plug in for PenFed, at the time I bought (Feb 2013) many CU's and most banks had no idea what a Tesla Model S was, so PenFed were one of the few that had their act together, and had great rates, and seemed less fussy about DTI ratios. Obviously that was a while ago, and I was financing around 70% of the value of the car, but thy're worth checking out.
 

Gizmotoy

Active Member
Sep 16, 2013
3,671
883
Bay Area, CA
When I financed through Alliant, they wanted to verify my monthly gross compared to my montly rent/mortgage + car payment. If I recall the sum of those had to be less than 50% of my monthly gross, but I don't recall exactly. I suspect you'd be very close or exceeding the DTI cutoffs with most lenders.

If your score is good they'll still approve you, but might place requirement for a higher down payment to bring your monthly expenses down. I think their default minimum is 5%, so count on spending at least that.
 
Jul 2, 2014
61
12
Baltimore
When I financed through Alliant, they wanted to verify my monthly gross compared to my montly rent/mortgage + car payment. If I recall the sum of those had to be less than 50% of my monthly gross, but I don't recall exactly. I suspect you'd be very close or exceeding the DTI cutoffs with most lenders.

If your score is good they'll still approve you, but might place requirement for a higher down payment to bring your monthly expenses down. I think their default minimum is 5%, so count on spending at least that.
hmm well my monthly mortgage payment is $935/month; the other 'mortgages' are not listed on my credit report, so judging from experience with lenders, they won't care. Technically if I can afford a DTI of mortgage+car of 50% my gross income (gross is nearly $11,000/month), then I can afford $5500-935 = $4565/month Tesla payment. That's more than enough for two P85D cars. Am I doing the math wrong?
 

Gizmotoy

Active Member
Sep 16, 2013
3,671
883
Bay Area, CA
hmm well my monthly mortgage payment is $935/month; the other 'mortgages' are not listed on my credit report, so judging from experience with lenders, they won't care. Technically if I can afford a DTI of mortgage+car of 50% my gross income (gross is nearly $11,000/month), then I can afford $5500-935 = $4565/month Tesla payment. That's more than enough for two P85D cars. Am I doing the math wrong?

Oops, yeah, I read your monthly as half of $6k for some reason and have no idea why. You'll probably be OK. Won't know until you apply, I suppose.
 

http.com

Member
Oct 10, 2014
37
0
Los Angeles
What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?

Not telling you what to do of course, but if I was in your shoes with a gross income of $150k, I personally would be more comfortable with a car payment more comparable to an $80k car (max), than a car in the $120k range. But if you can swing it, and a lender will sign off, then more power to you brother. Good luck.
 

NoMoDinos

Member
Jul 5, 2013
82
0
Southern California
Look into Energy Federal Credit Union also. They have a full 1% discount for energy efficient cars, bringing the total to .61% for 5 years or 1.11% for 8 years. Some of the TM guys used it and were very happy with it.

I wasn't planning on financing the car, but with rates like this, it's hard to pass up!
 

scottf200

Active Member
Feb 3, 2013
4,215
4,049
Chicagoland ModelX S603
Jul 2, 2014
61
12
Baltimore
Not telling you what to do of course, but if I was in your shoes with a gross income of $150k, I personally would be more comfortable with a car payment more comparable to an $80k car (max), than a car in the $120k range. But if you can swing it, and a lender will sign off, then more power to you brother. Good luck.
I am also considering a used P85, but if I'm going to keep the car for 8 years then I should get what I want. Also, my gross income will be over $200k next year so I'm not too concerned.

Look into Energy Federal Credit Union also. They have a full 1% discount for energy efficient cars, bringing the total to .61% for 5 years or 1.11% for 8 years. Some of the TM guys used it and were very happy with it.

I wasn't planning on financing the car, but with rates like this, it's hard to pass up!
Nice!! I'll go through EFCU first.
 

andrewket

Well-Known Member
Dec 20, 2012
5,704
1,541
I just heard some unfortunate news. EFCU is raising their rates on 1/15. EFCU does not offer a rate lock-in; the rate on a loan is determined by the day it is funded (they cut the check). If the P85D delay stretches into the second half of January, it's not going to be good.
 

Racerx22b

@unplggdd on Instagram
Nov 17, 2014
909
1,025
West Palm Beach, FL
I just heard some unfortunate news. EFCU is raising their rates on 1/15. EFCU does not offer a rate lock-in; the rate on a loan is determined by the day it is funded (they cut the check). If the P85D delay stretches into the second half of January, it's not going to be good.

Huh, I was so excited as I read through this thread then you hit me with the major buzzkill with the last post. Do you know what there new rates will be?
 

http.com

Member
Oct 10, 2014
37
0
Los Angeles
I just heard some unfortunate news. EFCU is raising their rates on 1/15. EFCU does not offer a rate lock-in; the rate on a loan is determined by the day it is funded (they cut the check). If the P85D delay stretches into the second half of January, it's not going to be good.

where did you read that their rates are going up effective 1/15 and that they don't offer rate locks???
 

andrewket

Well-Known Member
Dec 20, 2012
5,704
1,541
where did you read that their rates are going up effective 1/15 and that they don't offer rate locks???

From my EFCU rep. I had emailed her to let her know about the P85D delivery delay. She did not say what the new rate will be. I will ask.
 

MSEV

Member
Aug 10, 2014
465
98
Nebraska
But thanks anyway for the potential for a better rate from EFCU. 1% off a low rate might still be the best; I will be doing financing in "late February" and if their rates are 3% but take off the 1% for EV, 2% is better than I have found elsewhere. But I am hoping for better than 3%-1%!
 

docgarner

Member
Oct 12, 2014
33
6
Clearwater, FL
Tough call. Here are two thoughts. EFCU has by far the lowest rates because of their 1% discount atop great rates to start, but you have to have top tier credit, have a history of large car loans, and have good D:I ratios. You also have to do a bunch of stuff by snail mail (institutional culture). Wells Fargo offers the same rate as Alliant (1.99%) for people with good credit and income but ALSO gives you the Tesla buyback guarantee. Heads up on this, BTW: you may not be told all the offers you qualify for when you apply through Tesla's website. I was initially told only one bank made me an offer. I wrote back asking, essentially, WTH, and magically there was another offer at a full 1% lower that they "just received." I'm not making accusations, but if the finance reps work on commission from the interest rates it would handily explain that situation. I'll probably go with 1.99% Wells Fargo with the buyback guarantee rather than Alliant.

Goal:
Lowest possible interest rate (high downpayment): EFCU
Modest interest rate with buyback guarantee and ~20k minimum due at signing (for P85D): Wells Fargo
100% financed (no down) at modest interest rate: Alliant
Enjoy throwing away money: Anybody charging 3%
 

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