Let's talk financing rates

[wbhokie]

Has that been the experience communicated in the forums, or is it at actual factor proven to speed up or delay delivery?

It doesn't speed up delivery per say (except that you don't have to worry about getting any boxes checked or approved in advnace), but several people have had financing issues (Several people not being the majority) where Tesla and the Bank did not agree on terms of payment, or the timing wasn't conducive to Tesla's delivery schedule, so people were forced to reschedule. It does happen at every dealership, but Tesla is less accommodating than most when it comes to things like Bank checks, etc.

 

[Nb1277]

I selected Tesla arraigned financing and just got the results...

I have (had) a credit score of ~750ish, an excellent income to debt ratio (no mortgage or other loans, reasonable rent relative to income and put everything on a couple credit cards but pay them off in full every month so not carrying a balance). The only potential negative (if this has an impact?) is that I recently moved from MA to NH so I haven’t been at my current address Long. I’ve been at the same job for two years.

I opted for a 72 month loan with 0% down (other than the $3,500 already paid for reservation and order deposits but I selected 0% on the website) and two concerning occurrences ensued:

1. A rate of 5.29% — seems VERY high (per Tesla this was the best rate and from TD bank)

2. Three hard inquiries on my credit that resulted in a 20 point drop in my credit score

I’m tempted to talk with other lenders but don’t want to continue incurring hard hits.

What gives? Has anyone had similar experiences?

 

[tentimesodds]

I selected Tesla arraigned financing and just got the results...

I have (had) a credit score of ~750ish, an excellent income to debt ratio (no mortgage or other loans, reasonable rent relative to income and put everything on a couple credit cards but pay them off in full every month so not carrying a balance). The only potential negative (if this has an impact?) is that I recently moved from MA to NH so I haven’t been at my current address Long. I’ve been at the same job for two years.

I opted for a 72 month loan with 0% down (other than the $3,500 already paid for reservation and order deposits but I selected 0% on the website) and two concerning occurrences ensued:

1. A rate of 5.29% — seems VERY high (per Tesla this was the best rate and from TD bank)

2. Three hard inquiries on my credit that resulted in a 20 point drop in my credit score

I’m tempted to talk with other lenders but don’t want to continue incurring hard hits.

What gives? Has anyone had similar experiences?

YMMV, but I believe multiple hard pulls from auto finance companies within a 30 day window all count as one hard pull for credit score purposes. Otherwise it would penalize people who shop around for credit.

 

[JTesmod3]

I selected Tesla arraigned financing and just got the results...

I have (had) a credit score of ~750ish, an excellent income to debt ratio (no mortgage or other loans, reasonable rent relative to income and put everything on a couple credit cards but pay them off in full every month so not carrying a balance). The only potential negative (if this has an impact?) is that I recently moved from MA to NH so I haven’t been at my current address Long. I’ve been at the same job for two years.

I opted for a 72 month loan with 0% down (other than the $3,500 already paid for reservation and order deposits but I selected 0% on the website) and two concerning occurrences ensued:

1. A rate of 5.29% — seems VERY high (per Tesla this was the best rate and from TD bank)

2. Three hard inquiries on my credit that resulted in a 20 point drop in my credit score

I’m tempted to talk with other lenders but don’t want to continue incurring hard hits.

What gives? Has anyone had similar experiences?

If you do multiple hard inquiries within a close time frame you take the credit score drop of 1 hard inquiry; they know you are shopping around and are looking for the best rate...long story short check with all the lenders you can in a short amount of time and pick the best rate.


5.29% is high and probably has something to do with you putting 0 down. I read somewhere in this forum of a guy putting 10% down, having a credit score in the mid 6's, and his rate being 4% ish...

 

[CrazyCoconut]

If you do multiple hard inquiries within a close time frame you take the credit score drop of 1 hard inquiry; they know you are shopping around and are looking for the best rate...long story short check with all the lenders you can in a short amount of time and pick the best rate.


5.29% is high and probably has something to do with you putting 0 down. I read somewhere in this forum of a guy putting 10% down, having a credit score in the mid 6's, and his rate being 4% ish...

This. A lot of banks will charge you higher interest for 0% down. Try to go for at least 10% down.

 

[Pandamoanium]

I selected Tesla arraigned financing and just got the results...

I have (had) a credit score of ~750ish, an excellent income to debt ratio (no mortgage or other loans, reasonable rent relative to income and put everything on a couple credit cards but pay them off in full every month so not carrying a balance). The only potential negative (if this has an impact?) is that I recently moved from MA to NH so I haven’t been at my current address Long. I’ve been at the same job for two years.

I opted for a 72 month loan with 0% down (other than the $3,500 already paid for reservation and order deposits but I selected 0% on the website) and two concerning occurrences ensued:

1. A rate of 5.29% — seems VERY high (per Tesla this was the best rate and from TD bank)

2. Three hard inquiries on my credit that resulted in a 20 point drop in my credit score

I’m tempted to talk with other lenders but don’t want to continue incurring hard hits.

What gives? Has anyone had similar experiences?

Small rant incoming:

Credit and increasing scores is such a shitty method in the US. Because you have no outstanding debts you have no way to truly build credit. Paying off cards in full also doesn’t help. It’s such BS.

By having open debt but paying them on time it shows you’re a good and credible person. But utilizing more than 30% of your CC will hurt you. Even if it’s 31% but paid in full on time. One trick is to increase your limit so you’re not going over 30%, but I prefer cards with no spending limit as it won’t show utilization %.

This is why people will also take loans when they can pay cash. To build credit in the event they need big loans for business or personal. But yeah, it sucks because you’re responsible and pay on time without debts so the system dings you for it.

 

[ConcordeSST]

Small rant incoming:

Credit and increasing scores is such a shitty method in the US. Because you have no outstanding debts you have no way to truly build credit. Paying off cards in full also doesn’t help. It’s such BS.

By having open debt but paying them on time it shows you’re a good and credible person. But utilizing more than 30% of your CC will hurt you. Even if it’s 31% but paid in full on time. One trick is to increase your limit so you’re not going over 30%, but I prefer cards with no spending limit as it won’t show utilization %.

This is why people will also take loans when they can pay cash. To build credit in the event they need big loans for business or personal. But yeah, it sucks because you’re responsible and pay on time without debts so the system dings you for it.

Another trick if you want to put a large purchase on a card (for example to earn points), can pay it off at the end of the month, and don't want to get dinged for over-utilization, is to simply pay off the card before the statement closes. It will get reported to the credit agencies as a $0 balance that month. Another thing is your total utilization across all revolving credit lines combined. I have more than 15 credit cards (airline miles junkie), yet my score is well over 800 as my total average utilization is below 2%. Having more cards helps you not hurts you.

 

[Pandamoanium]

Another trick if you want to put a large purchase on a card (for example to earn points), can pay it off at the end of the month, and don't want to get dinged for over-utilization, is to simply pay off the card before the statement closes. It will get reported to the credit agencies as a $0 balance that month. Another thing is your total utilization across all revolving credit lines combined. I have more than 15 credit cards (airline miles junkie), yet my score is well over 800 as my total average utilization is below 2%. Having more cards helps you not hurts you.

Good point. I always pay off large sums when I need to to keep scores good. Hello r/churning

 

[hurjio]

So is Lightstream not doing unsecured loans anymore? Any more data points in the last few days?

 

[stayfocus18]

Ofcourse my loan officer is out of office today... smh
Allegacy seems to take longer than expected

 

[Sunshine Speed]

I applied with LightStream online last night, I got approved this morning for $58K UNsecured loan at 4.34% for 72 months, email says this loan is good until Sept 26th. I gave info on my checking account and investments including financial institution, but I didn't provide any account numbers. I also applied at LA Financial to try and get the low rate for LightStream to beat. One interesting comment from the LightStream email is " Important Reminder: Do NOT have LightStream listed as a lienholder on your vehicle title or loss payee on your insurance policy. If the vehicle seller or your insurance company inquires, just tell them that you did NOT use secured financing. This will save each of us paperwork hassles in the future."

 

[tentimesodds]

I applied with LightStream online last night, I got approved this morning for $58K UNsecured loan at 4.34% for 72 months, email says this loan is good until Sept 26th. I gave info on my checking account and investments including financial institution, but I didn't provide any account numbers. I also applied at LA Financial to try and get the low rate for LightStream to beat. One interesting comment from the LightStream email is " Important Reminder: Do NOT have LightStream listed as a lienholder on your vehicle title or loss payee on your insurance policy. If the vehicle seller or your insurance company inquires, just tell them that you did NOT use secured financing. This will save each of us paperwork hassles in the future."

Yep, this just means tell Tesla you paid cash.

 

[BobTheLoveGoat]

Ofcourse my loan officer is out of office today... smh
Allegacy seems to take longer than expected

I think I am in the same boat. It has been radio silent since Thursday afternoon.

 

[voip-ninja]

I applied with LightStream online last night, I got approved this morning for $58K UNsecured loan at 4.34% for 72 months, email says this loan is good until Sept 26th. I gave info on my checking account and investments including financial institution, but I didn't provide any account numbers. I also applied at LA Financial to try and get the low rate for LightStream to beat. One interesting comment from the LightStream email is " Important Reminder: Do NOT have LightStream listed as a lienholder on your vehicle title or loss payee on your insurance policy. If the vehicle seller or your insurance company inquires, just tell them that you did NOT use secured financing. This will save each of us paperwork hassles in the future."

Similar here although I applied for a 60 month loan and got offered 3.69% which I then fortunately got them to match a lower rate with a credit union I also applied to.

I gave them $$ values of my investments, retirement accounts, etc., but they required no verification of any of it to approve me for a secured loan.

I have no idea what their secret formula is for approving those loans and I doubt anyone outside of Suntrust knows either.

 

[hurjio]

approve me for a secured loan

Secured or unsecured loan?

 

[voip-ninja]

Secured or unsecured loan?

Typo. Unsecured

 

[Cintoman]

As a Data Point: I ended going with Everence FCU. They were able to get me 2.99% for 72 months. This includes a 0.50% deduction for buying an EV. The pre-approval rate is locked and good for 90 days, which is nice because I placed my Model 3 order on 8/14/18, and I'm showing an Oct-Dec 2018 delivery ETA. My credit is nearly 800.

--Cintoman

 

[stayfocus18]

allegacy approved me for the 72 month 2.75%. Took a bit longer than expected but just need the MVPA and some insurance stuff and im set.

 

[Goosby]

As a Data Point: I ended going with Everence FCU. They were able to get me 2.99% for 72 months. This includes a 0.50% deduction for buying an EV. The pre-approval rate is locked and good for 90 days, which is nice because I placed my Model 3 order on 8/14/18, and I'm showing an Oct-Dec 2018 delivery ETA. My credit is nearly 800.

--Cintoman

The 2.99% doesn’t include the .5% EV reduction, correct? I was planning on going this route as well since I haven’t found any better options in the northwest that I qualify for, but want to make sure I’m not misunderstanding their offer after reading your post.

 

[Cintoman]

The 2.99% doesn’t include the .5% EV reduction, correct? I was planning on going this route as well since I haven’t found any better options in the northwest that I qualify for, but want to make sure I’m not misunderstanding their offer after reading your post.

Sorry @Goosby but the 2.99% includes the 0.50% rate reduction.... it would have been 3.49% if I wasn't buying an EV.

--Cintoman