Frustrated by Financing

[othat1prct]

I'm still super excited about getting my Tesla, but very frustrated about the financing. Their online calculator claiming it will be $5,000 down and 1.49% for 72 months, and the OAs saying 5-10% down at that rate as long as you have good credit is just inaccurate and while I realize they are trying to sell cars they should be more honest.

Just got my Tesla financing offer for my model X delivering this month, and the only one that was 1.49% required 20% down (when you live in Cali and your taxes are 10k, that plus 20% is around 30k which I just don't have lying around during the holidays). The ones that would finance the full amount were 3.9% which is just ridiculous comparatively. This is with an 800+ credit score, a previous auto loan (though only 26k), and a large revolving student debt that I pay off every month, and a DTI of 15% (adding the Telsa will only make it 24%)

I'm looking at outside financing institutions: Alliant, TechCU, USAA. Anyone counter with the Tesla financing and succeed? Did you go through the Tesla finance person or talk to banks directly?

 

[Need]

I am in California too. Our offer was 5K down, and we pay the sales tax + all fee up front to get the 1.49% for 72 months. I don't know why they made you pay 20% instead of 5K.

 

[Joshib]

I bought a Model S in September and was able to get 0.99% Financing thru US Bank after some crazy quote from TD Bank and Alliant Credit Union even with a high credit score like you. Have Tesla Financing try US Bank. I did however put $10K out of Pocket - $ 5K down and Almost 5K for PA Sales Tax.

 

[othat1prct]

I am in California too. Our offer was 5K down, and we pay the sales tax + all fee up front to get the 1.49% for 72 months. I don't know why they made you pay 20% instead of 5K.

If you don’t mind me asking which bank was that through? They gave me TD and Wells Fargo

 

[othat1prct]

I bought a Model S in September and was able to get 0.99% Financing thru US Bank after some crazy quote from TD Bank and Alliant Credit Union even with a high credit score like you. Have Tesla Financing try US Bank. I did however put $10K out of Pocket - $ 5K down and Almost 5K for PA Sales Tax.

Thanks! I will ask them if they can run US bank. If you don’t mind me asking, had you had large auto loans like this before? I think that’s my limiting factor, I’ve had auto loans but nothing luxury like this.

 

[Need]

If you don’t mind me asking which bank was that through? They gave me TD and Wells Fargo

Chase.

 

[andrewket]

My guess is your lack of history of comparable auto loans is what is causing the bank’s request for a larger down payment. 26k vs 80-100k is a big jump.

 

[bariiings]

I was financed for .99% in August through US bank. I had to put 10% down, im guessing due to my largest previous auto loan was only around 40k. Also have a great credit score.
USAA didn’t come close to US banks offer, they didn’t seem interested in the large loan.
I drive a ton for work (40k) a year or so.
I also paid the PA sales tax of 7%. I had an influx of money however from selling back one of our two “dieselgate” vehicles back.

 

[P100DHG.]

They would not offer me 1.49% for 72 months despite having perfect credit without providing 3 years of tax returns (Chase bank). 1.49% for 60 months (TD Auto finance) required no paperwork (this is the option I went with) so I paid sales tax and DMV fees and financed the entire car. Not that my taxes would have been an issue but who wants to go through all that extra paperwork. So payment is high but I at least get it over with quicker. All of this was done through Tesla’s finance department.

I also check USAA but they are a total scam. I have them for my insurance and like the rates for the coverage but their lending department is full of it. They take into account your status or relationship with USAA so that means the only way to get the half decent rate they claim to offer is to have my investments with them, banking, insurance, mortgage, basically my whole life just to get a satisfactory interest rate on an auto loan.

 

[othat1prct]

My guess is your lack of history of comparable auto loans is what is causing the bank’s request for a larger down payment. 26k vs 80-100k is a big jump.

Yeah, I realize that but I'm sure there are many people that if not for a Tesla would never consider a 100k loan for a car. So it can't be a new issue. I think they should be honest about that being a consideration when they give you general guidelines before you put the deposit down (my OA told me it was all credit score and income).

 

[othat1prct]

They would not offer me 1.49% for 72 months despite having perfect credit without providing 3 years of tax returns (Chase bank). 1.49% for 60 months (TD Auto finance) required no paperwork (this is the option I went with) so I paid sales tax and DMV fees and financed the entire car. Not that my taxes would have been an issue but who wants to go through all that extra paperwork. So payment is high but I at least get it over with quicker. All of this was done through Tesla’s finance department.

I also check USAA but they are a total scam. I have them for my insurance and like the rates for the coverage but their lending department is full of it. They take into account your status or relationship with USAA so that means the only way to get the half decent rate they claim to offer is to have my investments with them, banking, insurance, mortgage, basically my whole life just to get a satisfactory interest rate on an auto loan.

Thats frustrating that USAA did that! Did you have large previous auto loans before this one?

 

[Xtek]

Tesla's lenders look for customers who have a history of paying for "expensive" cars in the past. Lacking that will either require more up front or higher rates. Some banks offer 110% financing to cover sales tax but will have a higher interest rate. Unfortunately that's the nature of the beast. At this point in time your only option is to shop around. You will not be able to change any of the inputs that will control your financing offers.

I took a 100 point hit from 810~ range when buying my house less than a year ago. Even with a non-ideal score Tesla gave me their best financing offer (via Chase) @ 0.99%/72 months with 5% down. All because I had a history of luxury car loans.

Perhaps consider getting the higher interest rate loan and then refinance.

As far as sales tax, did you assume that would be financed?

 

[ACA Man]

Try Credit Union.

We bought a CPO about 2 weeks ago and we got 100% financing at 1.49%.

 

[Need]

I feel that Tesla lenders were extremely conservative. Before Tesla, I had been always able to get 0 down with the lowest interest rate. For BMW it was 0% financing. I still remember the Sales Manager at BMW trying to get me to put something down. I asked him if it is 0%, why should I put ANY money down? I think he tried to tell me that if I don't put some money down then I will have to pay for Gap insurance. I just told him, that's alright, I will figure it out with my insurance agent.

 

[MikeQ]

They would not offer me 1.49% for 72 months despite having perfect credit without providing 3 years of tax returns (Chase bank). 1.49% for 60 months (TD Auto finance) required no paperwork (this is the option I went with) so I paid sales tax and DMV fees and financed the entire car. Not that my taxes would have been an issue but who wants to go through all that extra paperwork. So payment is high but I at least get it over with quicker. All of this was done through Tesla’s finance department.

I also check USAA but they are a total scam. I have them for my insurance and like the rates for the coverage but their lending department is full of it. They take into account your status or relationship with USAA so that means the only way to get the half decent rate they claim to offer is to have my investments with them, banking, insurance, mortgage, basically my whole life just to get a satisfactory interest rate on an auto loan.

Have you ever shopped around for insurance? I had USAA until I bought our X. I'd been with USAA for almost 30 years with no auto claims. The insurance USAA quoted for my X was what I though to be ridiculous based on our history with them and no accidents. I started shopping around and found out USAA was no longer a good deal for my cars AND my house. Every carrier was cheaper. Progressive was a lot cheaper for both auto and house. Called to drop USAA and got a big pitch about how their service is excellent. I said if I've never made an auto claim, I'm not really getting anything out of their "great service".

 

[ChicagolandMX]

4.69 with 50k down over 60 months through TD. 720 score from being personal guarantor on business stuff. No biggie, double payments up front knock down total interest. $37,500 first year deduction also helps.

 

[cartwright]

I got 1.49% from Chase via Tesla. Most expensive car purchase previously was a $43k lexus. I don't remember what % I put down, but it was by my own choice. I do have quite a lot of history with Chase with multiple credit cards and a mortgage, so maybe that was a factor.

 

[OCTechMan]

Try Credit Union.

We bought a CPO about 2 weeks ago and we got 100% financing at 1.49%.

Which Credit Union? I am looking at the CPOs and got 3.99% with Tesla.
I am in Southern CA.

 

[ACA Man]

Which Credit Union? I am looking at the CPOs and got 3.99% with Tesla.
I am in Southern CA.

Try google for any of those in SoCal.
In our case, it’s through my employer’s.

 

[chilman408]

Credit terms are based on individual credit history.

There is only so much shopping around.