Model X Financing questions

[Vizir]

How are people financing their X's? I decided to get an approval for $93k (with $20 down + approx $10k in taxes from my own pocket). We can def afford the payments, just don't have that much saved up to buy the car outright. Also, neither my wife nor I have ever had any previous loans but we both have decent credit scores according to Credit Karma (785 for wife, 800 - transunion, 750 - equifax for me). We were told by a credit union that they can only offer us $50k loan, since we don't have any previous loans etc.

What are our options? We will be trying our bank - where we do our main banking from, the credit union had better APR, so thought we'd try them first. How are others who are financing the X doing their loans?

 

[adiggs]

One suggestion Vizir, is to visit the Model S forum and look for thread(s) there with similar questions. I expect you'll find a reasonably active conversation there about where people are finding the best financing deals.

3 years ago when I got my Roadster, I got a pointer to PenFed Credit Union. I ended up with $70k borrowed for 5 years at 1.49% interest (hey they were practically giving money away - I said sure!).


The best deals tend to move around. I'll be looking for financing soonish for Model X also. My personal baseline and one option as a first pass is my local credit union, First Tech. (https://www.firsttechfed.com/Rates/RateLoans)

It looks like their "green car" loan (0.25% lower rate than the new car loan rate for "green" vehicles) provides these options:
- 1.99% for 5 years
- 2.49% for 6 years
- 2.74% for 7 years

On loan amounts up to $150k.

 

[Vizir]

thanks for the info. i'll check out these options.

 

[Aljohn]

You can also apply on-line for Tesla Financing done by its partner banks. I applied just to compare the rates, and found them competitive. Plus the Tesla financing comes with Tesla "buy-back" guarantee. No hassle, just apply and decide later if you which to accept.

 

[Vizir]

I think I'll wait until the DS contacts me to start the financing process. Don't want to take too many hits to my credit for each application, only to find that the 30 day approval period has passed and I need to re-apply.

So far, it appears Tesla Financing, my bank and Alliant seem to be my options - in that order. Tesla resale is definitely useful, and my bank is offering between 0.25 to 0.50% off the 2.5% best rate if I continue keeping over 50k in my accounts.

 

[DJ Frustration]

I've been on top of Model X financing like a boss lately. Wish there was a wiki loan rate thread to create/update but here's what I'm seeing as I've shopped around:

Recent Rates for New Auto Loans
PenFed has 1.99% for 5 years
Digital Federal CU has 1.99% for 5 years but you have to do direct deposit into one of their accounts. Otherwise rate is 2.49%.
Tesla gave me 2.35% for 5 years with Resale Value Guarantee for the X still being worked on. (side topic, I started a debate on the RVG here: Debating the Resale Value Guarantee)
Energy Federal CU has 1.83% but it includes a 0.10% discount for direct deposit into one of their accounts. Otherwise, rate is 1.93%.
Delta Community CU has 1.75% for 5 years.

 

[MonsterCarter]

I've been on top of Model X financing like a boss lately. Wish there was a wiki loan rate thread to create/update but here's what I'm seeing as I've shopped around:

Recent Rates for New Auto Loans
PenFed has 1.99% for 5 years
Digital Federal CU has 1.99% for 5 years but you have to do direct deposit into one of their accounts. Otherwise rate is 2.49%.
Tesla gave me 2.35% for 5 years with Resale Value Guarantee for the X still being worked on. (side topic, I started a debate on the RVG here: Debating the Resale Value Guarantee)
Energy Federal CU has 1.83% but it includes a 0.10% discount for direct deposit into one of their accounts. Otherwise, rate is 1.93%.
Delta Community CU has 1.75% for 5 years.

Hey DJ,

What loan amount were you shopping? Did the banks you mention offer 90%+ financing? Alliance offers 100% financing if you're interested. Current promotion(ends March 31) gives you the 60 month rate for 72 month loans.

Alliant credit union:
Credit Score
780 or above 1.99% for 60 months
740-779- 2.24% for 60 months
700-739 2.49% for 60 months

For 72 months add .25%

 

[DJ Frustration]

I'm financing the difference between a $40k Sig deposit and the remaining balance. About $90k. I found a local credit union in Jan that had 1.48% for 60 months but it evaporated in Feb and now they're at 1.99%.

Anyone see a 60 month rate below 1.99%?

 

[CmdrThor]

I am planning on applying to LightStream to finance about a 1/3 or so of the purchase price. It seems I should be able to get 1.99% for 36 months, but what is nice is that if your credit is good enough it is an unsecured loan. So they just deposit the cash in your account, and you get to be the only one on the title. Even if I could get 0.25% or so cheaper somewhere else, avoiding the hassle of a secured loan seems worth it to me.

 

[Gwgan]

Western.org has 0.74 for 36mo, 1.75 for 48mo (includes direct deposit discount), and up from there for longer terms.

 

[SCModelX]

Ahhhh... anyone with a finance background able to advise? I have options and am taking delivery in a week-3.

If I have 25K to put down my options are:
Lease (with less down). Concern is that I will have a higher residual ($7500 added to residual) due to tax credits IF I want to keep longer (I ordered a P90D, so, lots of car, and might be cheaper to keep it/ but it out than to get a 90D for less car, but with newer tech...variables, lol!!)

Buy with 25K down and take 6k pound car commercial write off with accelerated depreciation. I feel good about being able to sell it in 3 years for an appropriate amount, as long as some crazy thing doesn't happen with the X or Tesla.

I want to keep my payments loooow (relatively!!). Thinking 84 months at 2.99% at credit union. Seems better write off, lower payments. Yet lease is low-ish payments, yet gotta shed it in 36 months due to tax/ residual (but don't want 25K down in that case though).

I can't see a clear benefit.

 

[elguapo]

I went with Alliant. Financing about 40-50%, cash for the rest. They have amazing service and have been working with TM since the S came out, so once you get approved, TM takes over and works directly with Alliant and you're done. Very easy and a good team. That said, lots of CUs have similar rates.

Unfortunately, TM financing is not available where I live.

The one place you probably don't want to go is a bank like Wells Fargo or B of A (unless it is through Tesla), as their rates are 100bps higher, on average, unless you've got a special line with them.

 

[Vizir]

I went with Alliant. Financing about 40-50%, cash for the rest. They have amazing service and have been working with TM since the S came out, so once you get approved, TM takes over and works directly with Alliant and you're done. Very easy and a good team. That said, lots of CUs have similar rates.

Unfortunately, TM financing is not available where I live.

The one place you probably don't want to go is a bank like Wells Fargo or B of A (unless it is through Tesla), as their rates are 100bps higher, on average, unless you've got a special line with them.

100bps? I don't understand. I was going to finance mine thru BofA. Can you please explain why I shouldn't?

 

[Redshift]

100bps? I don't understand. I was going to finance mine thru BofA. Can you please explain why I shouldn't?

Basis points, that is, 100 basis points is one point higher interest. So if you could get a loan at 1.99% through TM (I don't know what their current rates are) elguapo is suggesting BofA would be 2.99%. FWIW, as of yesterday, Wells Fargo was at 2.74%.

 

[Vizir]

OK that makes sense. So just a higher rate than a CU. Hmm

 

[DJ Frustration]

Would love to get updates on any great rates below 1.99% for 60 months. Anyone see a great rate out there?

 

[ModelS8794]

Also interested in finding rates below 1.99% Best I've seen so far is

1) 1.99% out to 72 months at SB1 Credit Union (Philadelphia based co-op)
2) 0.79% out to 36 months at Western.org

 

[umeshunni]

Alliant CU provided 1.99 up to 72 mos too.

 

[elguapo]

Basis points, that is, 100 basis points is one point higher interest. So if you could get a loan at 1.99% through TM (I don't know what their current rates are) elguapo is suggesting BofA would be 2.99%. FWIW, as of yesterday, Wells Fargo was at 2.74%.

@Redshift is right about what I meant, sorry if that wasn't clear. It seems the spread has tightened a bit but is still .75%+/- more at your run of the mill big bank versus a CU, UNLESS the big bank is affiliated with Tesla's lending program. Even then, you pay about a 0.50% premium for the buyback guarantee.

Bottom line - if you want the absolute lowest rate, a CU is your best bet, from my experience.

 

[ModelS8794]

Kinda surprised this thread isn't seeing much life. Maybe I'm just in one of the few states where tesla does not offer its own lending program? Anyway, I would add one more interesting option, for those with excellent credit, Lghtstream.com offers loans that are actually unsecured. Rates are not at the rock bottom versus the 1.99% above but appear to offer two advantages: 1) having an unsecured loan which means a little easier on the back end if you sell, as title will be free and clear, plus 2) they offer a best-rate guarantee, so taking a 1.99% offer from Alliant or one of the other rock bottom credit union rates to them, they will drop it by another 0.1% if you are approved. I think I will give this a try, as my previous experience selling my Model S included some headaches getting the lender to process the loan release paperwork in a timely fashion so I'm attracted to the idea of having the loan unsecured while still getting low auto-loan like interest rates.