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HELP! - I Need Financing for my S

Discussion in 'Model S' started by Alexander, Dec 19, 2013.

  1. Alexander

    Alexander P# 8,878

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    #1 Alexander, Dec 19, 2013
    Last edited: Jan 4, 2014
    My car is being delivered tomorrow at 11AM. Tesla Financing fell short of what I needed to finance and now I'm running around filling out applications like a mad man.

    In the past, the dealers have done all the running around for me, but in this case I'm on my own to get financed. Now I'm lost and have no clue who to turn to for a loan.

    I think what I need is someone who brokers auto loans. Does anyone know of anyone?

    --------UPDATE--------

    Jon Krumdick from US Alliance took care of me. Im now the proud owner of a Model S! In the end, I got approvals from three banks. But Jon was the only one who stopped and looked closely at my finances. The other banks just ran me through a computer and called it a day. So thank you Jon!!

    Here is a picture of my baby :D

    20140104_201837.jpg
     
  2. rolosrevenge

    rolosrevenge Dr. EVS

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    Right behind you...
    Shut-up-and-take-my-money.jpg
     
  3. Neech

    Neech Member

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    Have you tried PenFed or Alliant Credit Unions? You can join either by paying a small donation on their website. PenFed approved my loan within 10 minutes of calling them. Alliant ended up getting my business because they had a better rate.
     
  4. Alexander

    Alexander P# 8,878

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    No, but I'm going to call them right now! Thank you!
     
  5. Hank42

    Hank42 Member

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    Pen Fed should do you right if your numbers are correct.
     
  6. purplewalt

    purplewalt Active Member

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    Alliant Credit Union's process was very easy for me once I got my donation in and was eligible to be a "Member".
    And they had the lowest rate.

    Best of luck.
     
  7. Alexander

    Alexander P# 8,878

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    I'm starting to get responses back from the applications I submitted.

    Apparently I'm a financially responsible person, and that's why they won't finance me for the remaining amount.

    My credit is great, my income is great, but having no credit cards and only one debt (which is ironically a car loan) is a bad thing?! My "lack of revolving debt" is bad? I'm putting down 20% of the cars purchase price as the down payment, but they want me to come up with another 15% or 20%.

    Anyone know a loan shark? lol
     
  8. islandbayy

    islandbayy Active Member

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    Did you get a response from PenFED yet? On paper (I like cash), I cannot afford a Model S. I put down $30k, and they financed me the remaining 50k no questions asked. Didn't even want my tax returns @_@ Though, I'm 28, have a 803 credit score, have never been late or missed a single payment since I was 15 and got my first credit card @_@ If Tesla would have let me, I would have put the entire purchase price of the Model S on my Amex card (heck, Amex would have let me put the purchase cost of 5 model S's on my card, though, interest would have killed me @_@ )
     
  9. MATTEmarc

    MATTEmarc Member

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  10. KalOrtPor

    KalOrtPor Member

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    I must recommend Jon Krumdick at USAlliance......Super friendly, easy to work with, and everyone I've spoken to there seems genuinely interested in helping you out through the process. They are also more "with it", like forward-thinking and open-minded, and they understand about cars like these, unlike some places that are like "Tesla? What's that??", or who put unnecessarily difficult hurdles due to lack of understanding. I think they are your best shot as far as a financing company that recognizes the value of someone that's financially responsible while not necessarily fitting certain criteria on paper. They are based in NY, but that shouldn't matter. Alliant is definitely a good company with great rates as is PenFed, but they both seem geared towards the more traditional borrower profile and have a narrower set of lending standards (not necessarily stricter). Your income level and credit score should be enough to overcome the lack of revolving credit by a more progressive company. Having an existing car loan should only help you.

    You might also inquire as to whether you can secure the remaining amount as a personal loan, which would be a higher interest rate, but if it means the difference between getting the car or not, it's an option. You might also elect to finance completely through USAlliance and bypass Tesla financing altogether. You would lose the resale guarantee, but most of us feel that even without it, the floor will be set enough for everyone to be just fine. I'm without my car in the shop til probably February, and I remember the night before delivery the wait being unbearable so I hope it works out for you!
     
  11. KalOrtPor

    KalOrtPor Member

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    Assuming someone met the particular underwriting standards for that amount, then I wouldn't make an adverse decision based on presumed lack of cash on hand....That's what debt-to-income ratios are for. We'd have no way of knowing intentions for sure, it could be someone budgeted a certain amount based on expected cash outlays such as improvements to their house, desiring more cash reserves for a future perceived need or peace of mind buffer, or for investment reasons. There were people this summer that got in on the sub-2% rates from Alliant (and a couple others, not sure if still available) who could afford a new Model S several times over that financed 100% solely because they could make better returns keeping the cash....It was like free money in those cases. Others had high values in illiquid assets.

    I'm not sure what happened here to OP....Either there was a last-minute difference in understanding with the finance team, or he waited too long to secure financing before knowing the outcome. Unless OP is spending like $10,000 a month on a mortgage and other cars, I couldn't infer inability to pay based on what we know here, and judging by income and credit score he should be good for it barring any outrageous outflows on the credit report, which he says not to be the case. Unfortunately, sometimes additional standards need to be met regardless.....For instance, places can be rigid enough that they will not extend the requested amount if you haven't been at your job the minimum length of time even if you could be making millions a year and the amounts are a small percentage.
     
  12. Kraken

    Kraken Member

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    Alexander, I remember you posting about being concerned about this a year ago.... Would have thought you would have saved up more if that concerned. I was similarily concerned about my situation at the time because i had never tried a loan this big. That being said, even after doing the math enough to know I could easily handle the payment, I was concerned what would go through the mind of the bank. I'm only 27, so I'm still younger too. Alliant credit union left me high and dry when I wanted to finance as much as possible... I think they stopped me at 80% because they were counting my mortgage against my debt, but they refused to count my BAH (housing allowance which more than covers my mortgage payment). Clearly, if they would have counted both, it would have added up, and would have looked good that I was making steady mortgage payments. Instead, they made my mortgage a bad thing.

    i went to usaa, who you should have access to, and they did nearly 100% for me.
     
  13. loganss

    loganss Spaceman

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    Try local credit unions. I was pleasantly surprised by my county credit union. I put $30k down and went with a local credit Union for 7yr 2% APR loan. Of course turn around time for actually getting the loan varies from place to place. Good luck.
     
  14. Alexander

    Alexander P# 8,878

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    #14 Alexander, Dec 20, 2013
    Last edited: Jan 5, 2014
    I'm meeting with Chase today so see if they will do the 80%. I hope it goes through.

    islandbayy - PenFED turned me down for 80%. They said I don't have enough credit accounts. I'm 29, my score is [REDACTED], I've made over [REDACTED] this year, and never been late either (on the one debt I do have). I had a credit card some years ago, but got rid of it. I've never been a credit person.

    KalOrtPor - I've been in contact with Jon Krumdick for a few months now. The plan all along was to finance through him, but when I called to pull the trigger he said US Alliance locked him out of doing loans outside of New England until January 1st. That's why I got caught so off gaud. After he couldn't do it I turned to Tesla, and Tesla could only offer me 55%. Ill look into a personal loan. I have almost no debt, so I could care less if the my payment is outrageous. I just want the car already.

    Karken - I had saved [REDACTED], and had US Alliance lined up to do the loan. But a week after I placed the order I had to fork out [REDACTED] for a business project. I was hoping to have gotten that money back by now, plus profits, but it hasn't happened yet. All I need is 80% of the purchase price. The rest I can do in cash. Ill call USAA. I forgot about them.
     
  15. gglockner

    gglockner Member

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    I'm planning to finance nearly 100% with my credit union. I have over 50% in cash available, though I was planning to use that to pay down my mortgage instead, since the interest rates are even lower on car loans. Of course, it helps that Mrs. G and I have been using this credit union for over 15 years, and that we currently have checking, savings and mortgage through them. YMMV.
     
  16. qwk

    qwk Model S P2681

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    This must be pretty common, as it happened to me also about a year ago. Tried to get a house loan from a credit union, that I had a bunch of money in a low yield savings account. Like you, my income was high, and credit score was 820. After being pre-approved for a loan, they denied it when it was time to loan. The sad thing was that the loan amount was for less money than I had in that savings account with them. Needless to say, I right then said cash me out and FU. Banks are incompetent these days.
     
  17. dratifk

    dratifk Sorry Sold my *****

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    What does responsibility have to do with useing credit cards. Its just more convenient for most people. Plus I get cash back. Why would you use cash rather than credit card and pay the balance monthly. I actually pay my card throughout the month. And I usually end up getting atleast 2-3K in Cash Back/year. I think people who don't use cards are afraid they don't have self control and will charge too much and not be able to make the monthly payoff.

    I only keep 2 cards and make sure each is paid off at the end of the month. BEsides cash back I also have 90 day return protection, double warranty extension, full auto rental coverage for flat $24.99 per rental. There are so many benefits to using credit cards. Plus its easier to keep tracks of your purchases.
     
  18. hvb

    hvb Member

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    #18 hvb, Dec 20, 2013
    Last edited: Dec 20, 2013
    I remember that a year ago, you were self-employed and making $40K. Do you think this may have something to do with your inability to get financing?
     
  19. neroden

    neroden Happy Model S Owner

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    Oh, God. I've dealt with that repeatedly when applying for credit cards. "You're too likely to pay this off on time, we don't want you." This is really common. Most banks want to lend only to BAD credit risks, not to people who will pay off their loans quickly. The business model is loan-sharking, not responsible lending.

    Do you have any investments? If so get a margin loan -- brokerages aren't nearly as insane about this stuff as banks are.

    OK, so you probably don't have any investments. Best bet in that case is to go to an old-fashioned LOCAL, SMALL bank or credit union where you can talk to a HUMAN and get them to do the underwriting PERSONALLY rather than this idiotic computer-based "underwriting" which most of the banks do. If you don't have a local bank or credit union, I have no idea.

    A personal loan is the next best bet, but you will probably get the same nonsense from banks for a personal loan as you get for a car loan -- "Oh, we only lend to bad credit risks".

    Again, you want to find a local bank or credit union which has *old-fashioned* underwriting rather than this nonsense. Find the most 19th-century-style bank you can find.

    (By the way, I don't think much of the business model of most banks these days -- I think lending only to bad credit risks, the loan-sharking model, is a business model which is riding for a fall.)
     
  20. Doug_G

    Doug_G Lead Moderator

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    Yeah banks are really strange when it comes to credit. They seem to assume that if you don't have a credit card, it's for a bad reason rather than a good one. A friend of mine once got into trouble in a bizarre way because he got a big bonus at work and paid down his large card balance. The credit card company assumed he got a consolidation loan and dropped his credit limit so much he effectively couldn't use the card anymore. Banks are weird!!!

    The unfortunate lesson here is that it's probably best to have a credit card, but use it like cash. You build up a credit history that the banks like to see, but don't accumulate the debt and loan-shark interest rates. Some banks allow you to set the card up for auto payment every month on the due date.
     

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