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How to finance 100%

Discussion in 'Model S: Ordering, Production, Delivery' started by EarlyAdopter, Jan 3, 2013.

  1. EarlyAdopter

    EarlyAdopter Active Member

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    #1 EarlyAdopter, Jan 3, 2013
    Last edited: Feb 21, 2013
    With interest rates so low plus the benefit of gap insurance, I'm inclined to finance 100%. One thing - what about the $5000 nonrefundable deposit?

    Has anyone financed the whole amount? Did you give Tesla a bank check for the whole amount and later receive a refund from Tesla of your $5000 deposit?


    UPDATED: I ended up doing exactly this and it worked out fine. I gave Tesla a bank check for the whole amount and about 4 weeks later received a check back from Tesla for the $5000 deposit.
     
  2. sp4rk

    sp4rk Banned

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    Who would loan 100%? On an S? Where's the collateral? I wouldn't (loan anyone 100%)!
     
  3. ModelS8794

    ModelS8794 Member

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    I have not completed my purchase yet, but spoke to USAA a few weeks ago about financing post-sale. At the time I was a possible end-of-2012 delivery candidate and so was investigating whether I could pay cash for the car and then finance at a later date to avoid the financing holding up my 2012 delivery.

    Anyway, USAA told me that they will finance any new car at 100% of sale price, whether at the time of sale or anytime afterwards, so long as it was a current model year car (that means any 2012 or 2013 car today). BUT, the caveat is that the financing amount was 100% of the purchase price before taxes, not after.
     
  4. EarlyAdopter

    EarlyAdopter Active Member

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    Pentagon Federal Credit Union will finance 100% up to $70k at 1.49%.
    First Tech Credit Union will finance 100% up to $75k at 1.9%.
    Navy Federal Credit Union will finance 100% no limit at 1.79%.
    These are all for 5 years.
     
  5. mknox

    mknox Well-Known Member

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    Seems risky on the part of the lenders. I wonder if they require you to maintain some sort of full replacement cost insurance? Otherwise, you crack it up, walk away and the Bank loses out.
     
  6. jomo25

    jomo25 P4398

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    My credit union finances up to 110% of MSRP. With no down payment. And offers GAP. Allegacy FCU.
     
  7. EarlyAdopter

    EarlyAdopter Active Member

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    They offer low cost gap insurance, which I will be taking them up on, but it's not required.

    Membership and lending requirements (credit score, debt-to-income ratio) are pretty tight. I don't think they're just giving out free money to anyone who walks up and asks for it.

    - - - Updated - - -

    Getting back OT, has anyone given Tesla a bank check for the full amount, including the deposit amount? Any issues getting the bank to issue the full amount given your MVPA shows an final amount due less the $5000 deposit?
     
  8. UMD86

    UMD86 Member

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    Do you have be part of the military?
     
  9. Puyallup Bill

    Puyallup Bill Member

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    Go to penfed.org

    Lots of affiliates can join.
     
  10. sp4rk

    sp4rk Banned

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    Not sure I'd want to pay $2,000 per month in car payments for 5 years! Sooner get it sorted from day 1 or 2.
     
  11. EarlyAdopter

    EarlyAdopter Active Member

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    Borrowing $100,000 at 1.79% would be $1750 a month, and a total of $4600 in interest over 5 years. I'm likely to see a considerably higher rate of return keeping the money invested.

    Also, keeping funds liquid and at hand, as well as the benefit of gap insurance, are two extra pluses in my book.

    When interest rates on loans are higher than my risk tolerant rate of investment return, I pay cash and aggressively pay down debt. When they are lower, like now, I borrow. Finances are definitely a personal matter. This is a strategy that has worked well for me. To each his own.
     
  12. GDH

    GDH Banned

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    First Tech is close to 3.0%
     
  13. EarlyAdopter

    EarlyAdopter Active Member

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    Mention the Pen Fed rates and you can talk them down.
     
  14. GDH

    GDH Banned

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    lmao

    OnPoint is the same way.
     
  15. dbanner

    dbanner Member

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    Well said! I've learned to hold the cash where it makes sense. Most reputable insurance companies include gap insurance with full coverage.
     
  16. EarlyAdopter

    EarlyAdopter Active Member

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    Ok, I can finally answer my question definitively now that I've gone through this whole process.

    Short answer: Yes, you can finance 100%, give Tesla a check for the full amount, and they'll send you a check back for the $5000 deposit.

    It took about 4 weeks to get the check back. Might be because no one else has done this yet, or not very often, or maybe their finance department is just slow about it. Hopefully that part will get faster with time.
     
  17. hershey101

    hershey101 Member

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    100% Financing for 72 months

    Hi,
    I'm trying to finance $100K for the car (or slightly less than 100%) for 72-months and am looking to get a loan for <1.99%. Have you done anything similar, or do you have recommendations about which banks to contact?

    - - - Updated - - -

    Hi,
    I'm trying to finance $100K for the car (or slightly less than 100%) for 72-months and am looking to get a loan for <1.99%. Have you done anything similar, or do you have recommendations about which banks to contact?
     
  18. Alpha

    Alpha Member

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    #18 Alpha, Mar 7, 2013
    Last edited: Mar 7, 2013
    Alliant Credit Union has 1.99%, 100% financing up to 72 months (2.99% up to 84 months), and GAP coverage is a one time fee of $400. Terrific!
     
  19. hershey101

    hershey101 Member

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    Got rejected from Alliant!! Grr! Need another bank urgently my car is about to be built on Monday and I need to know if i need to cancel my order before that.
     
  20. Alpha

    Alpha Member

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    What was their reason? Credit score?

     

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