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Let's talk financing rates

CrazyCoconut

Member
Jul 24, 2018
720
440
Austin, TX
Lightstream isn't going to match without a formal document from the lender that is labeled as an approval.

This is right where I am, Everence won't give me an approval letter without a VIN and lightstream won't match Everence formal pre-approval offer because it is labeled "pre approval" and has conditions in it related to VIN/order details.

I don't think calling them up is going to do anything to shake it loose.
I think there might be some wiggle room. My approval letter from my CU said "Our member, CrazyCoconut, is pre-approved for an auto loan for the amount up to [$amount]. This approval is good until [date]. The interest rate is [%rate] for [length] months." LS didn't give me any trouble (other than not receiving my email the first time I sent it).
 

voip-ninja

Give me some sugar baby
Mar 15, 2012
4,124
4,694
Colorado
I think there might be some wiggle room. My approval letter from my CU said "Our member, CrazyCoconut, is pre-approved for an auto loan for the amount up to [$amount]. This approval is good until [date]. The interest rate is [%rate] for [length] months." LS didn't give me any trouble (other than not receiving my email the first time I sent it).

Lightstream specifically told me if it's labeled pre-approval they won't beat it. Having said that, I went ahead and sent them the letter from Everence anyway to see what they come back with.

If they do match it with just the Everence pre-approval I will post here for reference for others.
 

CrazyCoconut

Member
Jul 24, 2018
720
440
Austin, TX
Lightstream specifically told me if it's labeled pre-approval they won't beat it. Having said that, I went ahead and sent them the letter from Everence anyway to see what they come back with.

If they do match it with just the Everence pre-approval I will post here for reference for others.
It's possible that they are tightening the rules because too many people are requesting rate beat (and thus hurting their profit margins).
 
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srharris22

Member
Oct 8, 2017
199
88
Raleigh
When did 72 months become the new 60 months? Seems like everyone is going for the 6 year loan now.
Personally, most (not everyone) are over reaching with their loans TBH.
On a personal note, we went 72 months on our X because the rate was 1.99% and actually higher if we went shorter. Sure they might get some more interest out of my but plan to pay it off at end of year 5 anyway.
Also, with an EV, I can excuse away a longer loan since I won’t be paying for gas for the life of the car. It’s a significant savings for me when planning to own it for 10 years and also have a decent down payment so I won’t ever be upside down on the loan.
My personal thoughts
 

Nelson

Member
Oct 28, 2016
51
26
New Jersey
Lightstream isn't going to match without a formal document from the lender that is labeled as an approval.

This is right where I am, Everence won't give me an approval letter without a VIN and lightstream won't match Everence formal pre-approval offer because it is labeled "pre approval" and has conditions in it related to VIN/order details.

I don't think calling them up is going to do anything to shake it loose.


Well I called and explained that I can't get anything further besides the pre-approval I sent them without moving forward with the other loan which would require getting an MVPA and VIN and at that point I would just go with the credit union. The CSR called the underwriter and explained the situation and said they would be back to me within 20 minutes. 2 mins after hanging up I got an email from LS with the adjusted terms. No I just need a car!
 

SoCalGuy

Active Member
Apr 22, 2012
1,416
1,095
So Cal & New York, NY
Well I called and explained that I can't get anything further besides the pre-approval I sent them without moving forward with the other loan which would require getting an MVPA and VIN and at that point I would just go with the credit union. The CSR called the underwriter and explained the situation and said they would be back to me within 20 minutes. 2 mins after hanging up I got an email from LS with the adjusted terms. No I just need a car!
Congrats! What rate and term did they end up giving you?
 

CrazyCoconut

Member
Jul 24, 2018
720
440
Austin, TX
Personally, most (not everyone) are over reaching with their loans TBH.
On a personal note, we went 72 months on our X because the rate was 1.99% and actually higher if we went shorter. Sure they might get some more interest out of my but plan to pay it off at end of year 5 anyway.
Also, with an EV, I can excuse away a longer loan since I won’t be paying for gas for the life of the car. It’s a significant savings for me when planning to own it for 10 years and also have a decent down payment so I won’t ever be upside down on the loan.
My personal thoughts
At 2%, it makes more sense to borrow then invest your own money for higher yields.
 

voip-ninja

Give me some sugar baby
Mar 15, 2012
4,124
4,694
Colorado
Well I called and explained that I can't get anything further besides the pre-approval I sent them without moving forward with the other loan which would require getting an MVPA and VIN and at that point I would just go with the credit union. The CSR called the underwriter and explained the situation and said they would be back to me within 20 minutes. 2 mins after hanging up I got an email from LS with the adjusted terms. No I just need a car!

Interesting... so the plot thickens.

I called LS and told them I have this letter from a competitor and it's a pre-approval but I'm really interested in using LS.... they said they could send it over to underwriting to be evaluated but the document can't be in MS Word format since anybody could edit the word document....

Okay.

So I took the Everence pre-approval exported it as a PDF and sent it back over to them, we'll see what they say.

You kind of can't make this stuff up.
 
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voip-ninja

Give me some sugar baby
Mar 15, 2012
4,124
4,694
Colorado
A PSA of sorts;

<article from Bloomberg, do a Google search>

U.S. central bankers are ready to raise interest rates again so long as the economy stays healthy, according to a record of the Federal Reserve’s most recent policy meeting.



“Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation,” minutes of the July 31-Aug. 1 Federal Open Market Committee meeting released Wednesday in Washington said.

The fed have hiked rates four times since March of 2017, going from a .75 rate to the current 2.00 rate.

There is a delay in the rates that lenders charge to customers catching up with fed changes, but it really didn't take that long for .99% 60 and 72 month auto loans to be displaced, in most of the country, with 3.29%-4.5% products even for borrowers with bulletproof credit.

This means for those who have been waffling and fence sitting but who need a loan to purchase their Model 3 and expect delivery this year to consider getting the ball rolling.

Sometimes a rate lock is a negotiable component of the loan offer, meaning if you express a desire for a 60 day lock you can sometimes get it.

For those who can purchase a Model 3 outright but who would prefer to take advantage of low rates, those low rates are vanishing and continued rate increases from the Fed will be used to put the brakes on the economy and prevent inflation.... so once you get into 5/6/7% interest rates it becomes iffy if your return on investments can safely beat loan interest....

There's an entire additional discussion around liquidity of funds and whether it makes sense to tie up a lot of capital in a fast depreciating asset like an automobile, probably fodder for a different thread.
 
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hoang51

Member
Aug 22, 2013
879
796
NoVA
When did 72 months become the new 60 months? Seems like everyone is going for the 6 year loan now.

Like others who have posted above, it's to balance budget and also to put the money elsewhere to earn more to cover the interest rate and plus some more. I'm doing both at the same time. TSLA is already paying a chunk of the car, but I'd rather let it keep growing. TSLA definitely earns more than 1.39% APR for 72 months that I financed the car...
 

srharris22

Member
Oct 8, 2017
199
88
Raleigh
At 2%, it makes more sense to borrow then invest your own money for higher yields.
While yes this is true, and I have no evidence to support, I’d bet you dollars to donuts that 80% of people aren’t investing the difference and just end up spending so technically pay more in interest.
Not arguing the logic just saying real world actions of the majority won’t follow through. You and I could be the few, many on here included but most are trying to fit a more expensive car into their budget instead of the financially prudent option.
For the few it does work mathematically
My evidence would be that our society largely living in debt without enough savings.
Realizing we/I have taken this on a tangent the Forum isn’t for.
 

voip-ninja

Give me some sugar baby
Mar 15, 2012
4,124
4,694
Colorado
Like others who have posted above, it's to balance budget and also to put the money elsewhere to earn more to cover the interest rate and plus some more. I'm doing both at the same time. TSLA is already paying a chunk of the car, but I'd rather let it keep growing. TSLA definitely earns more than 1.39% APR for 72 months that I financed the car...

1.39% is essentially free money for 6 years... if I could get that rate hell I'd take it. I'd take as long of a loan at that rate as they'd let me.

At double the rate, triple the rate? Nah.... I'm just going to put a sweaty wad of bills down (25% or so) and finance the rest for 5 years.

It is nice to fall back on a smaller loan payment if some unforeseen financial hardship occurs, so everyone has to make their own decision but I do think that too many people simply find out what the maximum payment they can get approved for is and then fill that with the maximum amount of car they can then buy..... which is not very smart, financially.
 

malciv

Member
Jul 11, 2018
61
23
Central NJ
@rlb4 @stayfocus18 ...so LA Financial approved me, but at a crappy rate, 2.99. I don't understand stand why. My credit scores are all about 770. I was in the middle of something when they called so I didn't ask any questions. Just said thanks, but no thanks.

Apparently, being out of state doesn't automatically disqualify you. It my impact your rate, maybe, maybe not. Best of luck to you guys. Going to try Allegacy next.

Allegacy came through... sort of. I received my pre-approval email. It basically said I was approved for up to 100% of the vehicle amount, but it didn't state a rate. In a separate email the rep says I have qualified for their best rate, 2.29% for 66 months but I won't get anything officially stating that until I have a signed purchase agreement with Tesla. This is all well and good, but it seems to stop me from getting a better offer from Lightstream.

I see a few other people in this forum are having similar issues. I'm really considering saying screw it and just get the loan through Allegacy, but then my competitive nature kicks in and I tell myself that's just giving in to what Allegacy is trying to force me to do. :confused:
 

stayfocus18

Member
Apr 1, 2016
157
66
NYC
Allegacy came through... sort of. I received my pre-approval email. It basically said I was approved for up to 100% of the vehicle amount, but it didn't state a rate. In a separate email the rep says I have qualified for their best rate, 2.29% for 66 months but I won't get anything officially stating that until I have a signed purchase agreement with Tesla. This is all well and good, but it seems to stop me from getting a better offer from Lightstream.

I see a few other people in this forum are having similar issues. I'm really considering saying screw it and just get the loan through Allegacy, but then my competitive nature kicks in and I tell myself that's just giving in to what Allegacy is trying to force me to do. :confused:

I applied to allegacy and mcu so I hope to hear back soon.
 

njsrikar

Member
Dec 16, 2017
163
78
Boston
I gave in at 2.99 with dcu. I already have an account with them and I liked their services the past 5 years. Anyways 2.3 or 3% shouldn't make a big difference if you intend to pay more than the monthly minimum and pay it off earlier than the loan term.
 

Chak

Member
Jul 12, 2018
80
61
Richmond, VA
I gave in at 2.99 with dcu. I already have an account with them and I liked their services the past 5 years. Anyways 2.3 or 3% shouldn't make a big difference if you intend to pay more than the monthly minimum and pay it off earlier than the loan term.
Cool, did you apply this week?
 

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