Model X Financing

[FloridaSun]

My EDD for my Model X Plaid is October but I applied for the credit now just in case that I get the car earlier than expected to lock in the interest rate as interest rates are expected to climb. I got a bad surprise when I applied. I have never been rejected for credit as my credit score is 883 on the 900 scale and 846 to 850 on the 850 scale and my income is more than sufficient to make the payment. I could afford the payment on 2 Plaids if needed. Now, I got approved by Wells Fargo for 2.99% with $60k down.. I can come up with $30k down but my money is tied up in real estate.. Not going to take out a loan on my free and clear rentals.. So, Tesla ran my credit again and I got approved for a higher interest rate with $8000 or so down. Yesterday, I get a paper in the mail from TD Auto Finance and it states that my credit score was 883 of 900 and that my appliation was denied because I never had a car loan that high before.. I usually bought $50k to $60k cars (Corvettes as also Model Y LR AWD) and never had a car loan for a more expensive car.. I did have a Ferrari Testarossa before but used my Home Equity to buy it and not a car loan. I really don't get it.. I never missed a payment in my life, make well above what I need to make to afford the payment and a almost perfect credit score and TD denied me because I never financed a 6 figure car? I don't have any credit card balances either. That's crazy.. Sure, I'm approved with another lender at a higher rate but I believe that I should qualify for the lower rate with a lower down payment.. As I said, I can go $30k down but not $60k without selling shares and paying capital gains tax or taking a loan on one of my properties.
The exact wording on their denial was: INSUFFICIENT COMPARABLE AUTO CREDIT. Never heard of such reason before..

Good thing is that I am approved but at a higher rate. I haven't accepted the offer yet as I would be locked in with that lender. I'll shop around for other finance options when I get the VIN. I can always fall back on the higher interest rate offer and then refinance later.

 

[TheXFactor]

Did you try local credit unions?

 

[cwang089]

Try Logix Credit Union or DCU

Logix is like 1.89% and DCU is 1.99%

I just got Logix at 1.69%...my car after taxes and registration was like $133k? Logix sent Tesla a check for like $136k so the loan amount is more than 100% of purchase price. I actually have to wait 3-4 weeks for Tesla to cut me a check for the difference. They said they can do it once DMV gives me a license plate.

 

[matthewserta]

Side note. You really don’t want to apply this early. You should wait until the very least a VIN comes in. Most loan applications expire within 69 days and then you have to endure another hard pull on your credit just to reapply.

 

[FloridaSun]

Did you try local credit unions?

Haven't done that yet.. Don't want too many hits on my credit at this point. Already took a 4 point hit for the 2 inquiries from Tesla. When the time gets closer, I will do that. I know that many credit unions don't do car loans over $100k. I will also have Tesla run my credit again once I get the VIN. One mistake I made was also that I did the credit before I added the trade in. Again.. shouldn't be a problem as I have sufficient income to make the payment on both but since, I have added my Model Y LR as trade in and if I apply again, this may make a difference.

 

[FloridaSun]

Try Logix Credit Union or DCU

Logix is like 1.89% and DCU is 1.99%

I just got Logix at 1.69%...my car after taxes and registration was like $133k? Logix sent Tesla a check for like $136k so the loan amount is more than 100% of purchase price. I actually have to wait 3-4 weeks for Tesla to cut me a check for the difference. They said they can do it once DMV gives me a license plate.

I will give them a try. Thanks!

 

[FloridaSun]

Side note. You really don’t want to apply this early. You should wait until the very least a VIN comes in. Most loan applications expire within 69 days and then you have to endure another hard pull on your credit just to reapply.

I applied because I wanted to lock in the current interest rate. Several people have gotten their Model X within 3 months. The Fed WILL raise interest rates again this year. So, applying early may lock in a lower rate.
I placed my order 2 months ago and the approval is for 90 days.. Maybe I get lucky and get the car by end of quarter in June?

 

[amg55driver]

local credit union always has the best deal.

i got 1.99% for 86 month. (not that I am keeping it for that long.. haha)

 

[Abeloks23]

local credit union always has the best deal.

i got 1.99% for 86 month. (not that I am keeping it for that long.. haha)

Which bank?

 

[JER85]

The most expensive car I had ever leased or finance is about 60K and I had no issue getting the lowest rate via wells Fargo (it was 2.74 at the time) and my credit score is not even as good as yours.... I am not familiar with the 900 scale.. but with FICO on the 850 scale I was at 827 with zero debt.... I didn't have any hassles or any issues, just applied online and got an approval in minutes. that excuse about not having financed a car in that price range seems like a lot of malarky on their part tbh.... Why should that matter if your income and credit worthiness are sufficient ?

 

[nilesborg]

I applied because I wanted to lock in the current interest rate. Several people have gotten their Model X within 3 months. The Fed WILL raise interest rates again this year. So, applying early may lock in a lower rate.
I placed my order 2 months ago and the approval is for 90 days.. Maybe I get lucky and get the car by end of quarter in June?

Prob not, expect to re-apply.

 

[BonB]

Try Logix Credit Union or DCU

Logix is like 1.89% and DCU is 1.99%

I just got Logix at 1.69%...my car after taxes and registration was like $133k? Logix sent Tesla a check for like $136k so the loan amount is more than 100% of purchase price. I actually have to wait 3-4 weeks for Tesla to cut me a check for the difference. They said they can do it once DMV gives me a license plate.

Thanks for your kind sharing. Did you get the rate from Logix before the rate hike? I just checked online, it seems the lowest is around 1.74% for 24-36 months terms.

 

[FloridaSun]

Prob not, expect to re-apply.

I'll keep my fingers crossed.. i have seen several people getting their Plaid X within 4 to 5 months. It's gonna be 3 months since I ordered soon..

 

[henderrj]

Back to that original surprise rejection. My brother works in funding banks, and he said that it is very common for Banks to make up rejections because they simply don't have enough money to loan at the time. I actually had that happened for a smaller loan with a bmw. We were rejected by one bank and accepted by another for a lower yet rate. I asked him and he said "oh yeah, they don't have any money to loan right now".

 

[FloridaSun]

Back to that original surprise rejection. My brother works in funding banks, and he said that it is very common for Banks to make up rejections because they simply don't have enough money to loan at the time. I actually had that happened for a smaller loan with a bmw. We were rejected by one bank and accepted by another for a lower yet rate. I asked him and he said "oh yeah, they don't have any money to loan right now".

Interesting. I actually work for a bank in IT (CHASE) but I can't apply with them for a Tesla loan because it says that I have to apply at the Tesla Website as they are a preferred vendor.. However, due to ongoing litigation between Chase and Tesla, Tesla has dropped Chase as preferred lender.. So, I wonder why the Chase website still doesn't allow me to directly apply with them for the loan..
At this point, I decided to just go with the credit offer at the higher rate that I got at the moment and will re-finance the car with my local credit union once I have the car. My credit union is at 2.49% right now but is expected to go up until I'll get the car.

 

[cwang089]

Thanks for your kind sharing. Did you get the rate from Logix before the rate hike? I just checked online, it seems the lowest is around 1.74% for 24-36 months terms.

yes i got the rate before the hike. I did as well with DCU but they wouldn't honor after their hike so i went back to DCU. 1.79% is still really good. I referred my friend over and the loan officer helping him apparently added me as a referral and we both got $50 which was sweet.

 

[cwang089]

also, i just logged into my Logix account, it is offering me 1.59% on any new car loan. LOL, it says it is for platinum members even though I only have $750 there (now $800 after referral).

By new car it says a car with < 10k miles

 

[BonB]

also, i just logged into my Logix account, it is offering me 1.59% on any new car loan. LOL, it says it is for platinum members even though I only have $750 there (now $800 after referral).

By new car it says a car with < 10k miles

Thanks for your kind sharing. Once/if I decide to finance, I will keep Logix and perhaps your referral option in mind.

 

[BonB]

My EDD for my Model X Plaid is October but I applied for the credit now just in case that I get the car earlier than expected to lock in the interest rate as interest rates are expected to climb. I got a bad surprise when I applied. I have never been rejected for credit as my credit score is 883 on the 900 scale and 846 to 850 on the 850 scale and my income is more than sufficient to make the payment. I could afford the payment on 2 Plaids if needed. Now, I got approved by Wells Fargo for 2.99% with $60k down.. I can come up with $30k down but my money is tied up in real estate.. Not going to take out a loan on my free and clear rentals.. So, Tesla ran my credit again and I got approved for a higher interest rate with $8000 or so down. Yesterday, I get a paper in the mail from TD Auto Finance and it states that my credit score was 883 of 900 and that my appliation was denied because I never had a car loan that high before.. I usually bought $50k to $60k cars (Corvettes as also Model Y LR AWD) and never had a car loan for a more expensive car.. I did have a Ferrari Testarossa before but used my Home Equity to buy it and not a car loan. I really don't get it.. I never missed a payment in my life, make well above what I need to make to afford the payment and a almost perfect credit score and TD denied me because I never financed a 6 figure car? I don't have any credit card balances either. That's crazy.. Sure, I'm approved with another lender at a higher rate but I believe that I should qualify for the lower rate with a lower down payment.. As I said, I can go $30k down but not $60k without selling shares and paying capital gains tax or taking a loan on one of my properties.
The exact wording on their denial was: INSUFFICIENT COMPARABLE AUTO CREDIT. Never heard of such reason before..

Good thing is that I am approved but at a higher rate. I haven't accepted the offer yet as I would be locked in with that lender. I'll shop around for other finance options when I get the VIN. I can always fall back on the higher interest rate offer and then refinance later.

Hi, thanks for your kind and detailed sharing. I was wondering if Tesla gave you multiple "lender/bank options" when you applied for your auto loan and you got to decide or how does it actually work? I noted that you shared about 2 banks from Tesla Financing but I am not clear on the whole process. Thank you.

 

[FloridaSun]

Hi, thanks for your kind and detailed sharing. I was wondering if Tesla gave you multiple "lender/bank options" when you applied for your auto loan and you got to decide or how does it actually work? I noted that you shared about 2 banks from Tesla Financing but I am not clear on the whole process. Thank you.

Tesla will run your credit with different banks and will offer you whatever the best loan offer is. I did accept their loan offer I got even though it was a higher interest rate. I will refinance with my local Credit Union as they offer 2.49%.. I'm not going with them for the original loan as virtually no dealers accept their way of handling the process.. They need to see the title transfer to their name before handing over the check..