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Model S Financing

Discussion in 'Model S' started by Bpressley93, May 10, 2016.

  1. Bpressley93

    Bpressley93 Member

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    Hello everyone!

    I've been hoping to find someone who can help. I'm going to be looking for a new car in August. MS is my number one choice, however, I'm worried about financing. My husband and I make 115k a year, both of our scores are in the mid-600s according to the Fico auto scores. We are looking at putting a down payment will be 10K and our current build is $82,000. Does anyone have any advise or experience with financing that didn't have the best scores, but a decent salary? Thanks.
     
  2. Armadillos

    Armadillos Member

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    I'll give you my info. My score when I got my Model S was about 665 according to Myfico.com. I make around $88,000 year, and my build was $87,500. Alliant FCU was able to finance 80% of the car for %8.5 percent. Not the best deal, but they were willing to help finance it. You might get a better percent financed with with due to your higher income, but I'd check with them to see what they can do.
     
  3. K_style

    K_style Member

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    Do you own a house? I am sure Bank will try to approve you with their favor of course. If your application is not Tier 1+ or Tier 1 then, maybe with little higher interest rate, etc.

    I think it will come down to this. "Can you afford a vehicle that costs $1100~$1300 a month?"
     
  4. icdevin

    icdevin Member

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    That is quite high. I was just e-mailing them a few days ago and scores in that range net a rate of 6.49%...I've not heard of anyone financing a Tesla at that high of a rate.
     
  5. jellybeans

    jellybeans Member

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    My recent Model S 70 order is around your build price. The recommended down payment is about 10 % of the value of your car. Tesla has a financing option where they will put your contract out to a few banks and Tesla will try to get you the best deal, or you can finance it independently. If you choose the independent option, you lose the resale value guarantee. But the resale value guarantee, in my opinion, guarantees the car at a price much lower than market price.

    My score is low 800s and I make about ~$200k a year but I was given ridiculous numbers from the Tesla banks (TD Bank and Chase). I was offered financing at a low rate ~2-3 % if I put down $40k. In the letter provided to me after the credit check (this is required by law), the primary factors for the ridiculous 50 % down is due to lack of previous payment history. Apparently ~$1100/mo is much higher than my previous revolving payments. I tend to pay off my debts in full unless its at a very good cost of capital.

    Ultimately, different banks have different appetites for risk. You can try to finance through one of the banks that Tesla works with, and at the same time, solicit offers from your own banks and credit unions. I ultimately went with my credit union because they only required 10 % down at 3 % APR. Even threw down Gap insurance as a part of the loan for an extra $199 over the period of the entire loan.

    Your mileage may vary. I hope this helps.
     
  6. K_style

    K_style Member

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    Tesla recently changed their finance program with Alliant Credit Union that offers 1.74% financing for Tier 1+ applicants.
    I have FICO score of 824 with income of $125k + but no outstanding dept other than mortgage. I expect to have their best rate based on 10% "ish" down payment.
     
  7. No2DinosaurFuel

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    Let us know if you are approved for the the amount after your 10%. I am debating if I should go for the 1.74% for 78 months.
     
  8. K_style

    K_style Member

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    I am in middle of closing for my mortgage this week. Since my car just went into production, I am applying for loan with Tesla no later than middle of next week.
     
  9. MorrisonHiker

    MorrisonHiker Beta Tester

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    #9 MorrisonHiker, May 10, 2016
    Last edited: May 10, 2016
    There were reports last week that Alliant is offering rates as low as 1.49% for 60 or 72 months with 100% financing available.

    Alliant Credit Union 1.49% for 72 months
     
  10. jellybeans

    jellybeans Member

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    Good luck on the mortgage and ditto on Dinosaur's comment. If you could let us know the rate/down/fees when you close, I might consider switching. A rate of 1.74 % is definitely better than 3 %. But some banks charge origination fees and all this other nonsense that increase the effective APR.
     
  11. K_style

    K_style Member

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    Update: I just got off the phone with Jason at Alliant Credit Union and decided to go with them instead.

    1.49% is better than 1.74%. Almost $600 in difference at the end.
     
    • Like x 2
  12. Julesp313

    Julesp313 Member

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    I just secured my financing with Alliant - they were very easy to deal with over the phone, got approval in about five minutes. Terms are 1.49% for 72 months, no mention of how much I need to put down. I have a FICO score over 800 as well as 20+ years of excellent credit history - and a very low debt to income ratio, so I can only assume that would put me in the "attractive" section for lenders!
     
    • Like x 1
  13. Vrrooom

    Vrrooom Member

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    If anyone lives in the DC, VA, MD area, my local credit union offers very attractive rates. Let me know and I can send you the contact. I financed my first Tesla- a pre owned 2013 that should hopefully arrive in a week or two at 1.99% for 72m with $0 down.
     
  14. Model S M.D.

    Model S M.D. Ludicrous Radiologist

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    #14 Model S M.D., May 10, 2016
    Last edited: May 10, 2016
    Highly, highly recommend going with Alliant. Not only are they familiar with the intricacies of financing a Tesla but they have very good rates. Additionally, they offer reimbursement up to $500 of your deductible for any accident you get into and their gap insurance seems pretty legit. I don't qualify for your question (800s credit, top 1-5% salary) but for a point of reference I was able to secure 1.99% rate at 100% financing in less than 10-15 minutes. I do hear they are now offering 1.49%, which is outstanding!

    Good luck and congrats on your future Tesla!!
     
  15. Piney999

    Piney999 Member

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    So, just to be clear, you are getting a rate better then published on their website? It says 2.24% for used cars?? If so, that's awesome, and I want in!!
     
  16. K_style

    K_style Member

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    He didn't say which credit union he is using..
     
  17. Piney999

    Piney999 Member

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    Damn, you are right, I thought he was using Alliant, but upon further review, he didn't state which CU it was. Sorry, my bad.
     
  18. Vrrooom

    Vrrooom Member

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    This is not Alliant FCU I'm taking about.

    You have to live in DC/MD/VA for the credit union I belong to. Great rates for new and used and I have financed my last 10+ cars through them.
     
  19. icdevin

    icdevin Member

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    Just for those curious, I received this from Alliant earlier last week regarding 72 month terms:

    I don't know if the same rates apply to CPOs. These do not seem to be promotional rates as they've been around for months now. I believe they jump one percentage point for 84 month terms. Just from reading around, it seems Alliant uses Equifax as their vendor and may pull a scoring model tailored for auto lenders. I've seen conflicting reports of Alliant's LTV (70% to 100%) so I'm guessing it's dependent on your credit score as well.
     
  20. Bpressley93

    Bpressley93 Member

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    Perhaps so, we are still currently working on our credit scores, so hopefully they will improve by August.
     

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