topic Re: Looking to get a Tesla in December in Auto Loans

Looking to get a Tesla in December

Anonymous — Fri, 21 Aug 2020 04:27:05 GMT

I'm looking into purchasing a Tesla in December. I have a 637 FICO. I leased a Scion in 2013 for 4 years and all payments on time. Then financed the car and currently still in the loan. I have 2 lates only on the loan which are Janurary and March of 2019. I have two charge offs from 2016 DofD which are paid off now. I plan on paying off the Scion tC in a couple months and I want to finance the Tesla Model 3 Performance so I'm looking at $55,990 before taxes, which I know are due out of pocket. I lost my job of 2 years back in March due to covid, but ended up getting a much better paying sales job in June. I will make roughly $120,000k a year so 4x what I did last year lol Does anyone have a rough idea of how much I'd be required to put down and the interest rate I would be looking at?

Re: Looking to get a Tesla in December

ridgebackpilot — Fri, 21 Aug 2020 06:31:46 GMT

I just financed my 2020 Tesla Model 3 LR AWD last month. Financing a Tesla is no different than any other car. Tesla doesn't have a captive lending bank (yet) but in some states they do offer to arrange financing through other banks.

In my case, the financing offered by the banks Tesla worked with wasn't very attractive. So I ended up arranging my own financing through Navy Federal Credit Union. With your credit history and scores, I doubt financing through Tesla will work well for you, either. You might consider approaching your bank or credit union for financing. They will be more likely to offer you better loan terms. Currently, credit unions are offering record low rates with low downpayments for credit-worthy customers. Good luck!

Re: Looking to get a Tesla in December

Anonymous — Fri, 21 Aug 2020 13:49:03 GMT

Do you mind sharing your FICO and the terms you were offered from Tesla and the credit union.

I've been a customer of BofA for about 4 years now and have been with Chase for 1. Would it be beneficial for me to open up an account with a credit union now and build a couple months history before applying for a loan for the Tesla?

Re: Looking to get a Tesla in December

ridgebackpilot — Fri, 21 Aug 2020 15:22:41 GMT

@Anonymous wrote:
Do you mind sharing your FICO and the terms you were offered from Tesla and the credit union.

I've been a customer of BofA for about 4 years now and have been with Chase for 1. Would it be beneficial for me to open up an account with a credit union now and build a couple months history before applying for a loan for the Tesla?

@Anonymous : Try searching this board on "Tesla" and you'll find the details you're looking for, including mine in this thread:

https://ficoforums.myfico.com/t5/Auto-Loans/New-Tesla-Model-3-NFCU-v-Tesla-Finance/m-p/6085782#M91670

If I were you, I'd prequalify with BoA and Chase to see what terms you can get on a car loan. Banks tend to put more value on relationships than credit unions, but it wouldn't hurt to join one anyway. In my experience, big national credit unions like Navy Federal, PenFed, DCU, and others usually offer better auto loan rates than a small, local credit union. Of course, YMMV.

Good luck with your Tesla financing. You'll enjoy the car; it's less like driving and more like flying a fighter jet low, smooth, and quiet!

Re: Looking to get a Tesla in December

Anonymous — Sat, 22 Aug 2020 17:09:05 GMT

The Tesla Model 3 says it takes 6-8 weeks for delivery. When should I start shopping around at credit unions for financing?

Re: Looking to get a Tesla in December

adelphi_sky — Sun, 23 Aug 2020 15:05:55 GMT

@Anonymous wrote:
The Tesla Model 3 says it takes 6-8 weeks for delivery. When should I start shopping around at credit unions for financing?

That is a very good question.

Re: Looking to get a Tesla in December

ridgebackpilot — Sun, 23 Aug 2020 18:37:50 GMT

@Anonymous wrote:
The Tesla Model 3 says it takes 6-8 weeks for delivery. When should I start shopping around at credit unions for financing?

Auto loan approvals from most banks and credit unions expire in 30-60 days. But don't wait too long: Tesla may predict a 6-8 week wait for delivery once you place an order. But they often accelerate that and surprise you with a note saying you can pick your car up in three days...!

Re: Looking to get a Tesla in December

Anonymous — Sun, 23 Aug 2020 21:09:54 GMT

I went into a Tesla showroom this morning to test drive the performance. I ended up ordering one there on the spot. I set up delivery to be around December and the guy said they'll call me around that time to confirm that's when I'll want delivery and I can push back if wanted. He said once I set up a delivery date is when I should go around to shop for a loan and get the best rate and just have the offer ready on delivery day. I'm so excited and I know these next few months are going to drag lol

Re: Looking to get a Tesla in December

Schwartzinator — Tue, 25 Aug 2020 15:48:38 GMT

Congratulations! Hope the delivery process goes smoothly when it arrives. Make sure to do the walkthrough with the delivery team.

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 17:35:13 GMT

@Anonymous

Congrats on getting your order in for the Tesla! My bro just took delivery in Wyoming on a 3 so I asked him about financing. He said the CU that Tesla offered (Alliant) was ridiculous and not even a contender. They would do the deal but wanted 10% down at 6.99%. He also said that not every lender will lend on a Tesla as he checked with a couple of his smaller credit unions and they said they don't do them. He got his best rate at DCU and Navy Federal with zero down at both. Navy was about $6 higher overall but he went in that direction because he is about 18 months into his relationship there. His credit is okay but carries some debt which he said keeps his scores in the 690-705 range. Navy gave him 84 months at 4.99%. Also, DCU wanted POI and none required at Navy FWIW.

He also said to mention to you that he can't stress enough that you should take your time with the walk-around at delivery and if there is anything at all you don't like make them fix it before you take it and ask for compensation. He had an issue and hammered them for not having the car perfect and ready to go. They offered him a credit toward product and he got his roof racks for free. Finally, he said that Progressive was far and away the clear winner for insurance. The rate was so low he couldn't believe it compared to the other major carriers he was already with!!

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 19:17:36 GMT

@Anonymous

Do you think it would be beneficial to sign up to be a member of Navy Federal Union now and apply for financing in December? I have a deceased grandpa who was in the Air Force so I should be able to join.

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 21:26:26 GMT

@Anonymous

IMHO join as soon as you can and start building a relationship with them. If your portfolio supports a new credit card, maybe app for one of their cards and put some spend on it monthly and PIF before the statement cuts. At this point, you would have at least a three month relationship with them prior to apping for the auto loan, and that can never hurt. They truly are (again IMHO) the best CU in the country and your late grandpa's military affiliation will open the door for membership. Don't worry about getting any of his military ID before you join, just call and they will ask you for his basic info. If you are applying for a credit card when you open your membership, the underwriting is the same for all except the Flagship. The FS has a $5K minimum CL but you may find that would be a good 2nd Navy card to pick up in the spring when they usually offer a $500 SUB for a minimum spend. This time of year you can't go wrong with any of the other cards (Cash Rewards, More Rewards Amex and Platinum). If you already have a great rewards card, Platinum is nice because it is their lowest interest card which is great for BT's. Never any BT fees at Navy on their cards is a nice bonus as well. Let us know what you decide to do!!

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 21:35:02 GMT

One more thing @Anonymous . My bro said the same thing that @ridgebackpilot mentioned. His delivery date got moved ahead by 5 weeks so he thinks a great time to have your loan in place is when Tesla calls you with your car's VIN. You can also speak with an auto loan specialist at Navy and explain the expected delivery date and see what they suggest as far as when to apply. I got preapproved for my auto loan there and I had 2 months to choose a vehicle from the time they sent me the check.

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 21:58:46 GMT

@Anonymous
Thank you for all the tips, I appreciate it. Do you think it would hurt to apply for a credit card now if I'm going to be applying for a new car loan in December?

Re: Looking to get a Tesla in December

ridgebackpilot — Tue, 25 Aug 2020 22:33:44 GMT

@Anonymous wrote:
I went into a Tesla showroom this morning to test drive the performance. I ended up ordering one there on the spot. I set up delivery to be around December and the guy said they'll call me around that time to confirm that's when I'll want delivery and I can push back if wanted. He said once I set up a delivery date is when I should go around to shop for a loan and get the best rate and just have the offer ready on delivery day. I'm so excited and I know these next few months are going to drag lol

Haha! That's the problem with Teslas, especially the Model 3 Performance. Once you test drive one, you can't resist ordering the car! In the first half-mile, the Performance blows away anything on the road including supercars like Lamborghinis and Ferraris! (For a lot less money..)

@Anonymous gave you some good advice regarding your loan. NFCU may well be your best bet. I wouldn't hesitate to open an account with them now and apply for a credit card if your credit portfolio supports that. I got my Tesla loan through Navy and they were terrific to deal with.

Regarding insurance, each of us has such different insurance requirements and profile that you cannot say one company is better than others for everyone. In my case, I saved about $400 per year by insuring my Tesla with the company's captive insurance company rather than State Farm, which insures my home and other cars. What I like about Tesla Insurance is that they take advantage of the cars' high-tech and telematics to cut insurance premiums for Tesla buyers. For another buyer, however, a company like Progressive might work better. YMMV (literally) because there are so many factors involved (e.g., age, driving history, credit history, number of cars, etc).

Re: Looking to get a Tesla in December

Anonymous — Tue, 25 Aug 2020 22:20:36 GMT

@Anonymous I'm with @ridgebackpilot and say apply for the card if your current profile supports it. Navy will pull TU for the new card app and EQ for the car loan (I'll say YMMV because they can always change it up but that has been the norm).

@ridgebackpilot I can't wait to drive my bro's car when I'm on the mainland. He has the Pro package as well and said it's like a rocket. Nice insurance savings by going with Tesla's insurance! That $400 a year you save buys a lot of gas..oh wait..you don't need it lol!! Now I'm really jealous!!

Re: Looking to get a Tesla in December

ridgebackpilot — Tue, 25 Aug 2020 22:35:51 GMT

@Anonymous wrote:
@ridgebackpilot I can't wait to drive my bro's car when I'm on the mainland. He has the Pro package as well and said it's like a rocket. Nice insurance savings by going with Tesla's insurance! That $400 a year you save buys a lot of gas..oh wait..you don't need it lol!! Now I'm really jealous!!

@Anonymous Be careful driving a Tesla! It could be a very expensive test-drive! Even my Model 3 Long Range AWD performs like a rocket. I can't imagine what the Performance model is like. Having that much power wasn't quite worth the extra $5K-$8K to me. But because it's a Tesla, I can always buy a performance upgrade for $2K that allows me to launch even faster!

They are expensive cars but very cool technology and very safe if you read the manual... Many states have such great rebates that the car helps pay for itself. I installed a 240 volt charger in my garage so that I can charge at 40 amps, nearly as much as the car will take. I can fully charge the car from empty in about six hours. My electric company (PGE) offered me a special electric vehicle rate so I can charge from midnight to 3 pm at about half the nomal rate. Superchargers are much faster, of course, and even they are far less expensive than buying gasoline!

Driving a Tesla feels like you're driving into the future. My other cars now feel like they're mired in the past with their outdated internal combustion engines!

Re: Looking to get a Tesla in December

Anonymous — Wed, 26 Aug 2020 02:08:03 GMT

@ridgebackpilot @Anonymous

I just recently handled all of the negatives on my credit report that were there from the past few years. I currently only have one card open that I opened to help rebuild my credit. The limit is only $500 and I only have $20 max on there each month. My FICO 8 from experian is a 637. Do you think it would be worth it to open up a card with Navy Federal or just wait until I apply for my auto loan in December?

Re: Looking to get a Tesla in December

ridgebackpilot — Wed, 26 Aug 2020 02:27:37 GMT

@Anonymous wrote:
@ridgebackpilot @Anonymous
I just recently handled all of the negatives on my credit report that were there from the past few years. I currently only have one card open that I opened to help rebuild my credit. The limit is only $500 and I only have $20 max on there each month. My FICO 8 from experian is a 637. Do you think it would be worth it to open up a card with Navy Federal or just wait until I apply for my auto loan in December?

Good job beginning to rebuild your credit. However, the answer to your question--and whether you can qualify for a loan to buy an expensive car--depends on a lot of factors, not just your credit score. For starters, what's your annual income and debt-to-income ratio? Is your credit file thin or thick? Do you have a mortgage, other car loans, other revolving loans?

If you need another credit card, applying for one with Navy Federal is a good idea as they tend to give high limits to people who are rebuilding or have relatively thin files. It certainly wouldn't hurt to establish a good lending relationship with Navy Federal before you apply for an auto loan. But that alone won't guarantee your loan approval. They will look at all the factors I mentioned above.

There's a reason you generally see older people with nice cars. They're usually the ones who can afford them and can get approved for loans to buy them! Of course, each person's credit file is different and YMMV. Good luck!

Re: Looking to get a Tesla in December

Anonymous — Wed, 26 Aug 2020 02:51:46 GMT

@ridgebackpilot

I was with the same company for two years and my income was fairly low and business was spotty. That was the reason for some of my credit issues. I recently got a new job in June that is much better paying. I make about 10k a month. My only credit liabilities are my credit card ($25 balance max), Toyota loan ($281, will be paid off before December), and my student loans which are about $300 a month. That brings my DTI to around 6%. If I add rent and car insurance its around 12%.

Right now, I only have 3 open accounts (average credit history of 4 yrs) & 3 closed. 1 is my toyota lease which had perfect payment history for 3 years. 2 are charged off credit cards from 2015 that have been paid now.

I also have 2 30 day lates on my current toyota loan dating back to 1/19 & 3/19. Also a 120 day late (10/19) on my credit card because I forgot to update my auto pay.

I understand that I have recent credit issues, but I think going to a local CU and being able to explain my situation will help. I am willing to put down up to 20k on the car if needed as well.