topic Re: Tesla Model Y Financing in Auto Loans

Tesla Model Y Financing

ChemE_Bear — Thu, 01 Oct 2020 22:26:16 GMT

I am looking to finance a Model Y in the next 3-6 months but was wondering if I would even qualify for such a large auto loan based on my previous small auto loan amounts and young file or if I should apply with my husband who has a marginally older credit file and use our household income.

FICO 8 EX/EQ/TU: 748/747/741

FICO Auto Scores EX 2/8/9: 779/749/755, EQ 5/8/9: 733/747/765, TU 4/8/9: 720/766/749

My scores have dropped slightly from new accounts but my inquiries are EX/EQ/TU: 3/0/1

Revolving Accounts in signature, with four cards opened in the past year (February Disco, July AMEX, August Citi and Apple) and one 4 year old AU account.

Installment accounts: 2 student loans original loan amounts $12,500, about 93% owed as I recently graduated, paying twice the minimum so that should continue to decrease over the next few months but won't likely reach the 65% owed level before auto loan application. One auto loan closed July 2020 (opened September 2018) with perfect payment history of 2x the monthly payment but was only for about 6k.

I was wondering if I would be able to be approved for an auto loan of 48-52k with an income of 105k (with <1yr employment at this position) and a DTI of <25% or if I should apply jointly with my husband in order to use our household income and given my short credit history? I am currently at 4% credit utilization and am in the process of implementing AZEO, not sure how much that impacts FICO auto scores or the loan amount. Our household income is 305k and my husband has scores similar to mine, although I don't have the exact numbers after he recently opened an auto loan. He has 8 years employment history with his current job. Any advice is appreciated.

Re: Tesla Model Y Financing

CreditCuriosity — Thu, 01 Oct 2020 23:05:04 GMT

Be intersting as might run into a term I call sticker shock although income is fine and DTI is good and can afford payments on own 105k salary your last auto loan of only 7k and probably pretty low payments would hurt your chances. What I am referring to with regards to sticker shock is you will suddenly say go from having a 200 auto loan payment to around 900 loan payment which is a good percent increase and scare some lenders away. I wouldnt use tesla financial. Actually my good friend just bought a model S from tesla two days ago and used NFCU and got 2.2% rate he has ficos in the 800's and a long credit history though although i was also worried slightly about him as didnt get instant approval came about 4 hours later as asked for 80k on 150k+ salary. I was worried he would also possibly get hit by sticker shock as his last car was 400ish payment and no instant approval which I am use to always getting when I apply due to a thick installment and car loan history.

You might be better offer applying with your husband if he has had a higher car payment in the past than yourself. I wouldnt use tesla financing either as you can find better through various CU at a rate of around 2.x-4.x will probably be your rate depending.

Sure others will weigh in here that are more familiar with tesla I know @Revelate recently bought a model 3 and not sure who he used and some other tesla owners, etc and their experience.

Re: Tesla Model Y Financing

ChemE_Bear — Thu, 01 Oct 2020 23:18:11 GMT

Thanks for the informative response! I'm not sure if applying jointly will help me much as my husband's auto loan was opened very recently so although the payment is higher than my closed auto loan, he has a large amount owed and its a new account so not a long history with that payment. I thought if I applied through Tesla financial they might be able to leverage their relationship with the lenders they use to make it happen with just my income, although I know on the Tesla Motor Club forums they have a spreadsheet of multiple CUs that have lower interest rates. I don't qualify for NFCU, but I do qualify for a local CU listed on the TMC spreadsheet. I know shopping around is part of the auto loan game but I'm trying to minimize the number of inquiries and choose lenders who are open to my profile/large auto loans.

Re: Tesla Model Y Financing

CreditCuriosity — Thu, 01 Oct 2020 23:23:06 GMT

Glad you found that forum has some good data points and spread sheets. When we was pending on his approval I was getting a bit worried for him so was planning to help him on a plan B with other lenders, etc.. Just from what I have read usually tesla financing never seems competitive to various other CU's as I am sure you have seen as well although they say they will match after you find another loan, etc... Is it really worth it at that point? That spread sheet was interesting and gives some insight on various lenders and terms. I am sure others will weigh in tonight/tomorrow, etc..

Re: Tesla Model Y Financing

Revelate — Thu, 01 Oct 2020 23:48:28 GMT

I actually used Tesla financing, wound up with 3.85% but probably could've done maybe 1% better at the time with a CU.

Wasn't really worried about it and this was late 2018, rates have moved downward since then, as is I'm just looking for the right time to just pay the darned thing near off.

In my case I haven't driven enough to have justified a new car in 2018, and today I surely wish I had my old one when a darned truck kicked up a rock on an overpass and cracked my windshield . Oh well, the service center is bugging me anyway to get the new FSD hardware installed and it is far and away the most brilliant and awesome car I've ever driven personally. I just bought it right after going on the road or working from home 99% of the time and that was before COVID, whoopsie.

Re: Tesla Model Y Financing

ChemE_Bear — Fri, 02 Oct 2020 02:03:00 GMT

@Revelate wrote:
I actually used Tesla financing, wound up with 3.85% but probably could've done maybe 1% better at the time with a CU.

Wasn't really worried about it and this was late 2018, rates have moved downward since then, as is I'm just looking for the right time to just pay the darned thing near off.

In my case I haven't driven enough to have justified a new car in 2018, and today I surely wish I had my old one when a darned truck kicked up a rock on an overpass and cracked my windshield . Oh well, the service center is bugging me anyway to get the new FSD hardware installed and it is far and away the most brilliant and awesome car I've ever driven personally. I just bought it right after going on the road or working from home 99% of the time and that was before COVID, whoopsie.

Ha - you don't have to convince me! I am just trying to determine if waiting 6 months vs. 3 months is going to be a big enough impact on my scores as accounts age to make a significant difference in rates/amount I am loaned as I really don't want to put down a downpayment larger than my $5k trade-in + $5k or so. I am tempted to apply for financing through Tesla just because its so convenient - I have read some others getting 2.99% through Chase when applying through Tesla financing. Are there multiple inquiries when applying through Tesla financing and if so how many HPs did you have? I may try to apply with my own income through Tesla and if I'm not offered low enough rates or high enough loan amount do a joint application with my husband through a local CU. We have banked with Chase for 15 years and have a couple of Chase cards, I'm not sure if that would help us getting financing through them.

Re: Tesla Model Y Financing

CreditCuriosity — Fri, 02 Oct 2020 02:17:29 GMT

@ChemE_Bear just a word about Chase I wouldn't use them.. My best friend now drives a 200k+ car, but back when he was working his way up the career later about 5-7 years ago he at the time was driving i beileve a mercedes I believe around a 70k car or so.. Making 200k+ a year at the time he applied for financing for a Porsche Cayenne at the time over 100k thinking around 120kish, forgot the exact amount and also banked with chase. They turned him down due to what i mentioned earlier sticker or payment shock as it was a considerable jump in payment per month and I believe he just went with porsche financing and ended up getting financed and he also had 800+ scores and a good income, etc.. Chase is one of those lenders that will look at last vehicle payments and current vehicle payments and deny for that reason alone.

Tesla financing might be the best best, but i dont know if they do one HP and shot lenders with that HP or if each lender they try to get with you with does their own HP. Someone hopefully can answer that for you.

Re: Tesla Model Y Financing

ChemE_Bear — Fri, 02 Oct 2020 02:30:15 GMT

Oh, that's good to know about Chase. Thanks!

Re: Tesla Model Y Financing

Cjethompson2017 — Fri, 02 Oct 2020 05:02:44 GMT

@ChemE_Bear I am using penfed to finance my Y. I was approved on my own for $45k, and my income is $66k. I am planning to add my husband to see if we can get it a little higher. Here in Texas, Tesla uses Alliant Credit Union. Not a fan. They use transunion vantage score 4 instead of a fico score.

Re: Tesla Model Y Financing

ChemE_Bear — Fri, 02 Oct 2020 05:13:06 GMT

@Cjethompson2017 Thanks for the information, I will definitely check them out. I've seen Tesla uses Chase, Wells Fargo, and US Bank a lot. I'm in CA, not sure what they pull here. Can I ask what your credit history length is and if you have other auto loans that were close in payment previously?

Re: Tesla Model Y Financing

Gladius — Fri, 02 Oct 2020 11:53:16 GMT

@CreditCuriosity wrote:
@ChemE_Bear just a word about Chase I wouldn't use them.. My best friend now drives a 200k+ car, but back when he was working his way up the career later about 5-7 years ago he at the time was driving i beileve a mercedes I believe around a 70k car or so.. Making 200k+ a year at the time he applied for financing for a Porsche Cayenne at the time over 100k thinking around 120kish, forgot the exact amount and also banked with chase. They turned him down due to what i mentioned earlier sticker or payment shock as it was a considerable jump in payment per month and I believe he just went with porsche financing and ended up getting financed and he also had 800+ scores and a good income, etc.. Chase is one of those lenders that will look at last vehicle payments and current vehicle payments and deny for that reason alone.

Tesla financing might be the best best, but i dont know if they do one HP and shot lenders with that HP or if each lender they try to get with you with does their own HP. Someone hopefully can answer that for you.

I understand the whole "sticker shock" scenerio, but I don't think that is fair on Chase's part. What if during that time you had a significant bump in salary and/or your DTI lowered significantly? Or what if you always had a $200k+ salary and chose to drive a $250/month Honda Civic and now want to drive a $1000k/month BMW which you could afford very easily?

Re: Tesla Model Y Financing

Cjethompson2017 — Fri, 02 Oct 2020 14:23:38 GMT

@ChemE_Bear So penfed pulls Equifax. My Equifax fico 8 is 678. Not sure what's version they pull. I have a car I'm trading in where my payment is $658, and my credit history is rocky. The car loan I had before the one I have now has like 34 late payments. So, they quoted my at a 10% rate. Which is better than what I have. For 72 months, they said payment around $830. So, somewhat close, but they seem to be a tad more lenient. I would definitely check them out. They have low rates for people with good credit. The application was super easy, but they do ask for docs to prove your identification and I had some issues because I lost my social security card and we just moved a week ago. So I didn't have a utility bill to show them. But, everybody else gets almost instant approvals from them.

im not a fan of chase. I feel like credit unions take better care of their people. But, that's just my opinion.

Re: Tesla Model Y Financing

Cjethompson2017 — Fri, 02 Oct 2020 17:26:01 GMT

@ChemE_Bear so penfed told me they only use Equifax and today I was finally able to login only to find they used my Experian score. Which is my lowest out of all 3. Lol. It's at a 661 tney show. I may call back and see if there's an option to pull Equifax or transunion since they're higher. But, I don't know that it'll make a difference.

Re: Tesla Model Y Financing

Anonymous — Tue, 06 Oct 2020 02:29:42 GMT

Did Penfed approve you? I wqs approved at 6% but then denied the loan due to it being all electric.

Re: Tesla Model Y Financing

Cjethompson2017 — Tue, 06 Oct 2020 02:41:59 GMT

@Anonymous nooo don't tell me that! Did you get approved, add the vin information and then they say nope? I'm thinking of uploading the docs I have just to check. Why no all electric??

Re: Tesla Model Y Financing

Cjethompson2017 — Tue, 06 Oct 2020 02:44:28 GMT

@Anonymous It didn't say anything in the stipulations that it couldn't be all electric. My one for rbfcu did.

Re: Tesla Model Y Financing

Anonymous — Tue, 06 Oct 2020 02:50:09 GMT

They approved me for a Payment Saver loan and it is part of the stipulations. Read at the bottom.. My car is ready for pick up and now I can't get approved anywhere but Penfed and even with 16k down find out this stipulation that Tesla is not allowed.

https://www.penfed.org/auto/payment-saver

Re: Tesla Model Y Financing

Cjethompson2017 — Tue, 06 Oct 2020 03:03:57 GMT

@Anonymous Have you tried contacting them? I'm sure you have and that's a silly question, but it seems like they have two types of car loans. A regular loan, and the payment saver? I've talked to these people at least a dozen times and have mentioned every single time that it's for an electric vehicle. Would you mind sending me in a private message your approval letter with all personal information blacked out? I just want to compare.

https://www.penfed.org/auto/new-auto-loans

this is what I applied through.

Re: Tesla Model Y Financing

Anonymous — Tue, 06 Oct 2020 03:12:52 GMT

Never got the approval letter was on the phone giving them the VIN and other information when they told I was approved but with stipulations. Seems like if you are at 10% you would also have the payment saver loan as well.

Re: Tesla Model Y Financing

Cjethompson2017 — Tue, 06 Oct 2020 03:21:01 GMT

@Anonymous I guess that doesn't make sense to me. My term is 72 months. Which doesn't look like an option with the saver loan? Or is that what you got too? I sent an email, and am waiting to hear back. I specifically said electric vehicle. Lol. But I also haven't given a vin number.