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Let's talk financing rates
- Thread starter flashflooder
- Start date
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- Model 3
CaptainAwesome
Member
lirandy
Member
Do you have to open a checking/ saving account with them in order to apply for auto loan? Sorry for newbie question, financing outside of dealership is new to me. Thanks!
Yes, to get the "promo rate" of 2.24% you need a checking account to do autopayment, at least that is what I was told. You also need an account to be a member, so really no extra work.
Note that rates are not locked until your deal is finalized, and that means (according to FCPU) that you have a SIGNED contract with Tesla, which you won't get until the week before delivery. Rates are rising elsewhere in the banking sector, so I would expect to see these rates move up over the next few weeks.
RyanDe
Member
CaptainAwesome
Member
No, you don't need to open an account to apply. You will need to open one to complete the loan though.
Mod Y Guy
Supporting Member
@RDaneel nice work bringing up that FPCU doesn't actually "lock" the rate when you get loan pre-approval. You don't lock in a rate until you actually fund the loan. Therefore, if you're someone like me that won't get the car for 3 to 4 weeks, the rate may in fact go up in the meantime. FPCU currently sits at a promotional rate of 2.24% (with auto payments from an FPCU checking account). The CA Credit Union sits at a 2.39% rate (no promos and no discount with opening an account) and they do give a 30-day lock on the current rate from the time loan pre-approval is given. Now, it's time to go find the best auto insurance quote. I know it's for another thread but any suggestions?
@DK21 Insurance varies so much, I had quotes all over the map. Ended up going with Liberty Mutual, but also had a decent preliminary quote from Ameriprise (via Costco membership). Geico is usually competitive, but wasn't for my quote. I'd definitely shop around, as I had quotes ranging from about $1000 to $2000/yr for the Model 3.
Based on my discussion with a supervisor at FPCU (I was frustrated that the paperwork dragged enough that I missed the 1.99), they reevaluate rates on a weekly basis. Given that multiple news stories suggest that the Fed is going to continue raising rates for a while, I expect that auto loan rates will go into the 3s soon. If I were 1-2 months out from delivery, I'd probably apply at both CA Credit Union and lock in a 2.39, but also apply at FPCU or somewhere else with a better rate. Then you have some insurance. I should have locked when TechCU was at 1.99, but I didn't know if I could trust the "3-6 weeks" estimate or not. Turned out to be pretty accurate, my delivery is 31 days from my config date.
RyanDe
Member
RyanDe
Member
Tried two places, no locks and if it's passed 30 days they have to pull your credit again. They said they need a signed P&S which I'm assuming you get a few weeks before delivery?
CaptainAwesome
Member
Anyone use the rate beat with Lightstream yet? They're asking for me to submit an approval letter from the other financing company, but all that company has provided is an email pre-approval that doesn't confirm either term or interest rate. It just says they're running a certain rate currently and that can do up to 60 months.
insaneoctane
Well-Known Member
I've been confused about exactly what to ask my CU for in order to support Lightstream ... What justification do you give them for what you are asking for?
Super_Popular
Well-Known Member
cornbread
Member
I used it last week. My approval letter from the CU was just like yours, it only had the loan amount on it. So, I emailed the CU back asking for term and rate I was approved for. They replied with both. So, I PDF'ed the original approval email / letter and also PDF'ed my email thread with approved rate and term and I included a link to the CU's website with their posted rates. I then sent both to LightStream asking for them to match / beat it. About an hour later I got a generic email back from LightStream stating my documentation didn't qualify for them to match / beat. So, I emailed them back telling them this is all I got from the CU and asking them what else I needed to qualify. Less than an hour later, I got a generic email back that my new rate terms had been approved. I went to the LightStream site and the terms had been updated to match the rate from the CU and reduced by 0.1%, just like their program states. I'm not sure exactly why they ended up accepting what I sent them the second time and not the first time, but they did.
CaptainAwesome
Member
Fantastic idea on the PDF. I'll try that now and see what happens.
Did they say how long the rate is good for?
Thanks very much!
cornbread
Member
I did not check how long the rate was good for because I needed to execute the loan ASAP because Tesla was ready to take my money. But, the original loan approved by LightStream was good for 30 days.
Also, I execute the loan on Friday and they let me pick what day I wanted the money deposited in my bank account. I chose the first available option which was Today. I checked my bank account first thing this morning and the money was already there. So, I just went to Tesla website and submitted full payment.
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