I have decided to try to get a Tesla for my next car because where I live traffic is horrible not only that my car takes up so much gas. So I applied for a couple car loans and was denied. The reason why is because I don’t have any loan history for as much as I’m requesting which is $89k. The last time I had a car loan was back in early 2000 which was $20k and since then I have been driving the same car. My credit is decent with not that much debt. Any suggestions on which bank I can apply to get a loan with my situation? It’s not like I’m not able to pay for the monthly payments...all I need is a chance for a bank to give me a loan. I guess they don’t make getting a Tesla that easy.
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Tiger
Active Member
gabeincal
Active Member
I’ve tried Alliant and they said no credit history with that amount therefore you’re denied. It’s like how often do someone buy a $89k in their lifetime unless your rich lol.
I guess there goes my dream of owning one.
jelloslug
Active Member
I have never had a loan for the amount that my Model S was either and Alliant had no qualms about loaning me the money. Did you ask them what you could change to get them to approve you? Maybe a larger down payment?
Super_Popular
Well-Known Member
Not sure where to send you but I would stop having your credit pulled....that sure will not help.
ACA Man
Member
Banks don't just lend money without taking into consideration these:
1. Your annual income.
2. Your debt/income ratio.
3. Your credit history.
4. Your FICO score.
If your loan amount applied for is $89K then my guess is the bank would want to an annual income of at least $180K, if not more.
1. Your annual income.
2. Your debt/income ratio.
3. Your credit history.
4. Your FICO score.
If your loan amount applied for is $89K then my guess is the bank would want to an annual income of at least $180K, if not more.
allenkoehler
Member
The Raza
Member
Assuming you are in the US. I had a very similar issue as you. Never had a student loan in college, went straight to NYC for work after graduation and didn't need a car nor home loan.
Fast forward 8 years later I'm ready to settle down in the burbs and my first car purchase will be a Tesla. With my limited credit history, the best loan offer via Tesla I received was $35K from TD Bank. Mind you, my Chase Sapphire Reserve card limit is $35K so I had no idea how the underwriting guidelines were applied in this case but obviously lack of loan history hurt me.
I ended up contacting a few different credit unions and Alliant ended up being the best one, up to 80% of the car value (although I opted for a bit more equity to start so mine was probably closer to 65-70%). Keep in mind the sales tax and fees (if applicable in your state) are not included in this calculation and are 100% due at delivery.
Fast forward 8 years later I'm ready to settle down in the burbs and my first car purchase will be a Tesla. With my limited credit history, the best loan offer via Tesla I received was $35K from TD Bank. Mind you, my Chase Sapphire Reserve card limit is $35K so I had no idea how the underwriting guidelines were applied in this case but obviously lack of loan history hurt me.
I ended up contacting a few different credit unions and Alliant ended up being the best one, up to 80% of the car value (although I opted for a bit more equity to start so mine was probably closer to 65-70%). Keep in mind the sales tax and fees (if applicable in your state) are not included in this calculation and are 100% due at delivery.
OP, it's been a while since I took out the loan for the Tesla, but I'll see if I can help you with the reasons you were denied -- I don't believe it's just that your last car loan was small, my previous car loan (before the Tesla) was maybe $30k, and I got approved with no questions asked.
You said your credit history is "decent", does that mean it has negative dings on it? This would be a red flag. To get the best rates, my credit union wanted above 720 credit score.
You said you have "not much debt". It's not just about the debt. It's about the DTI (debt to income) ratios. I forget what my credit union wanted, below 25% maybe?
You should have your credit score from when they pulled it for the previous loans. You should also be able to calculate your DTI, and see where you stand.
You said your credit history is "decent", does that mean it has negative dings on it? This would be a red flag. To get the best rates, my credit union wanted above 720 credit score.
You said you have "not much debt". It's not just about the debt. It's about the DTI (debt to income) ratios. I forget what my credit union wanted, below 25% maybe?
You should have your credit score from when they pulled it for the previous loans. You should also be able to calculate your DTI, and see where you stand.
Sorry, can't help with the loan situation. However, I've read elsewhere, and on this forum, that saving gas $ should not be an important reason why you want a Tesla. It will take forever to recoup the cost difference, at $89,000.
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