What is best financing rate now?

[Pandamoanium]

For those with an unsecured loan, what have you done about GAP insurance or the lack of?

My understanding is that GAP insurance wouldn't apply. Seeing as how the average cost to repair Tesla has been quite high, it may be a risk to not have GAP.

You're correct, you do not need GAP. Essentially the car is paid off and owned entirely by those on the title. Just make sure your insurance is good.

 

[THX723]

You're correct, you do not need GAP. Essentially the car is paid off and owned entirely by those on the title. Just make sure your insurance is good.

So what happens when the car is totaled and most likely undervalued in the write off by collision insurance? One is still liable for the full value of the unsecured loan and have to cover the difference. Am I not thinking straight here?

 

[Knightshade]

So what happens when the car is totaled and most likely undervalued in the write off by collision insurance? One is still liable for the full value of the unsecured loan and have to cover the difference. Am I not thinking straight here?

No, you're correct.

But you're liable for the full value regardless of the cars condition or even existing, since it's an unsecured loan.

And since it's unsecured nobody will "insure" the gap between the car settlement and the loan value- since there's no actual connection between those numbers.

 

[THX723]

No, you're correct.

But you're liable for the full value regardless of the cars condition or even existing, since it's an unsecured loan.

And since it's unsecured nobody will "insure" the gap between the car settlement and the loan value- since there's no actual connection between those numbers.

Okay. So would you agree too that an unsecured loan is really not desirable. A conventional secured loan with GAP is the way to go ... at least for a Tesla (given it's high cost of repair).

 

[Pandamoanium]

Okay. So would you agree too that an unsecured loan is really not desirable. A conventional secured loan with GAP is the way to go ... at least for a Tesla (given it's high cost of repair).

Honestly it depends on your personal situation. It’s one thing to buy a car, maintaining and repairing when needed is another cost association to consider prior to a purchase. If you often find yourself in accidents or needing repairs then GAP could be for you. Some insurance companies do a full replacement of like or equal value if you pay enough.

I think it’ll be important to have the proper Model 3 listed in your insurance. Prices should come down once more are on the road and they’re able to provide parts. I think it’ll get past the S and X supply issue a lot faster due to sheer volume.

 

[Knightshade]

Okay. So would you agree too that an unsecured loan is really not desirable. A conventional secured loan with GAP is the way to go ... at least for a Tesla (given it's high cost of repair).

If you're risk adverse to the point you NEED to insure your depreciation on the loan, then sure.

Otherwise the unsecured loan is more flexible in that you don't have an encumbered title with the vehicle.

 

[notamerican]

I got this from SF FCU:

Amount requested: $ 50,000

Term: 47 Months

Interest Rate: 2.240%

Plan to use this approval with LightStream to get to 2.140%.

Is anybody getting a lower interest rate with a 47 or 48 months term? from where? Excellent credit score.

 

[Randy7fx]

I secured a 1.99 percent on an (up to) 84 month loan for $65k in Charlotte with Carolina Cooperative Credit Union .

 

[huangbong]

Got $50k @ 2.74 for 71 months at SFFCU. Pretty happy with the rate, very responsive and professional. Would recommend for all the bay area people. Ask for Michael Der who does all the Tesla loans.

 

[Slumpey326]

I secured a 1.99 percent on an (up to) 84 month loan for $65k in Charlotte with Carolina Cooperative Credit Union .

That is a great rate, I live in Florida but my sister lives in Matthews area (ie right outside Charlotte). Would I qualify for membership. How strict is the credit union.

I am trying to get A low rate (below 2.5 if possible) for 84 term or low 72 term but I am in Florida.

 

[CrazyCoconut]

I secured a 1.99 percent on an (up to) 84 month loan for $65k in Charlotte with Carolina Cooperative Credit Union .

Wow... 84 months is nuts!

 

[voip-ninja]

Wow... 84 months is nuts!

You’re a crazy coconut so you should totally do it!

 

[Mrtee733]

Cash option for Tesla, and you’ll also not claim the vehicle as being financed with your insurance agency. I am paying with a cashiers check, though I’m slightly disappointed I don’t get to walk in with a briefcase full of bills. Oh well.

If you pay with a cashier's check and do t claim the vehicle to be financed with insurance agency, does that get you a better insurance rate? What are they other pros and cons?

 

[voip-ninja]

If you pay with a cashier's check and do t claim the vehicle to be financed with insurance agency, does that get you a better insurance rate? What are they other pros and cons?

Cashier's check as a method of payment is meaningless unless you are asking about the benefit of paying for the car with cash (or via unsecured loan) vs having the lien holder (bank) finance the car and be the owner of it until you pay it off.

 

[Knightshade]

Cashier's check as a method of payment is meaningless unless you are asking about the benefit of paying for the car with cash (or via unsecured loan) vs having the lien holder (bank) finance the car and be the owner of it until you pay it off.

Having a lien doesn't change ownership. A lien is an encumbrance on one person's property to secure a debt the property owner owes to another entity.

You still own the car- you just can't transfer ownership of it further without discharging/satisfying the lien first.

Likewise despite having a mortgage one still owns their house, not the bank- the bank simply have a lien against it which you'd need to discharge as part of selling the house to someone else.

 

[dave999z]

No idea when I'll get my car (better be this year), but my rate beat quote (1.39% for 60 mos., which beat 1.49% from FedChoice) for an unsecured loan from Lightstream expires tomorrow, so I went ahead and took the loan. My account will be funded Monday. Kind of sucks to take out a loan earlier than necessary, but it's only a month or two, and I don't want to lose that rate, and also don't want to deal with a financing scramble if Tesla calls and says your car will be delivered tomorrow only.

 

[Goosby]

If you pay with a cashier's check and do t claim the vehicle to be financed with insurance agency, does that get you a better insurance rate? What are they other pros and cons?

I guess in theory you could skimp/remove comprehensive and/or collision coverage, depending on your state laws, because the vehicle isn’t claimed as financed. Why anyone would, especially in a new Tesla, is beyond me.

I can’t speak for everyone, but the reason I was interested in using LightStream wasn’t for the unsecured loan aspect. While I guess it’s cool to have the title in my safety deposit box, I will still be making monthly payments and if I stop it’s certainly guaranteed someone will come after me; having the title in hand vs the bank having it doesn’t change a whole lot. Maybe it saves a trip/call to my financing institution if I sell the car? The benefit of LightStream is I had the money in hand when I picked up my vehicle. There wasn’t the, albeit small, chance of the bank’s check being lost in the mail, written for the wrong amount/recipient, etc.

I suppose maybe one negative of an unsecured loan, and this is a very remote possibility, is your insurance company could be troublesome to work with since there isn’t a bank, and it’s accompanying lawyers, expecting to be paid out on a totaled loan. I can’t think of a reputable company that would do such a thing, but I suppose anything is possible.

 

[UtahIsRad]

Here’s a question for all you smart financial peeps. I’m looking at doing a loan for ~$20k of the purchase. Being in Utah I often hear we don’t get a lot of warning prior to delivery. Sometimes days.

Is there a difference if I just pay cash for the car and then get a loan against it for $20k after the fact vs. first getting a loan setup with a large down payment? Does one method get me a better rate then the other? I’m pretty sure Tesla doesn’t do lending in Utah so that isn’t even an option.

 

[CrazyCoconut]

Here’s a question for all you smart financial peeps. I’m looking at doing a loan for ~$20k of the purchase. Being in Utah I often hear we don’t get a lot of warning prior to delivery. Sometimes days.

Is there a difference if I just pay cash for the car and then get a loan against it for $20k after the fact vs. first getting a loan setup with a large down payment? Does one method get me a better rate then the other? I’m pretty sure Tesla doesn’t do lending in Utah so that isn’t even an option.

You can't get a secured loan (pretty much every lender except Lightstream) after the fact. It has to be before, since the car is used as collateral for the loan. You can do it via a unsecured loan though, which Lightstream is the only option I'm aware of, though technically you are supposed to still get the loan ahead of time. I don't see how they can enforce it though.

 

[dave999z]

Technically there's no reason you couldn't get a secured loan after paying cash for the car. You own the car outright, then just sign over a security interest (lien on the title) to the lender and take out the loan. But in practice, I don't think banks/credit unions want to or are set up to deal with this (since most people looking for car loans are not positioned to pay cash first), so they don't.

Your local "auto loan" extortion storefront (that also does payday lending) does exactly this, for an unconscionable rate.