Tesla Model X autoloan approved but 55k down

[wynnsand2020]

Hello guys I just got an auto loan approved (wellsfargo) for tesla model x priced at 130k including taxes (5.34% apr) applied via business but they are asking for 55k down.

I think it is a ridiculous amount of down so I decided to meet with my business banker at BOA to see what other option I have.

I got 803 trans, 802 equifax and 780 experian. 650k income.

I think its because I do not have any experience with financing vehicles. Ive done only leasing before.

What are my options? Do I really need to just pay 55k out of my pocket? Looks like not a lot of banks do business auto loans. I might have better chance with personal auto loan but I just dont want it to show up in my personal credit report.

Any suggestions???

[Mjhall85]

Any reason in particular you don't want it on your personal credit ? If your business credit is weak and not established the 55k makes sense. Was it just ran on business credit ?

[wynnsand2020]

No it ran on my experian. I am looking to purchase a vacation home so I would like to keep DTI as low as possible.

[Mjhall85]

Understandable for that reason, May try some credit unions and see if they offer better terms. Do you have any prior auto loan history with vehicles priced  where the model x is ? I know you mentioned you leased before but was that on your personal or business credit ? I know many banks don't finance Teslas, did you try Chase may be your other best option.

[wynnsand2020]

No never had a loan this high. The highest ive ever had was $400 a month lease and this was on my personal recently paid off.

Hmm chase does not do business auto loan. 55k is way too high for me. Will be knocking some of local credit unions this week. Ive never thought I would have problem 😔. I was thinking about maybe 10k down

[Mjhall85]

well going from a 400 a month note to a potential 2k plus is quite the jump even with your scores and income. My best guess is you will need to put more than 10k down, that's not even 10% of the vehicle cost. I wish you luck finding a local credit union that will finance it,hopefully some others will chime in and have a better idea.

[wynnsand2020]

I will never get lazy and never stop working for myself. I will be visiting door to door every possible banks and credit unions out there. I got nevada state bank and citibank tomorrow and BOA on wednesday.

Will keep you guys updated!

[iced]

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@wynnsand2020 wrote:

No it ran on my experian. I am looking to purchase a vacation home so I would like to keep DTI as low as possible.

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By this logic, a larger down payment is a good thing as it will mean a smaller payment and thus lower DTI. If it were me, I'd make the larger down payment (or just pay cash outright for the car). The interest rate is also a concern, especially for a depreciating asset.

It sounds like you're trying to hide this expense under the business rug so you can get a home loan without it counting toward DTI. I won't say anything more on that other than that may be a risky play.

[wynnsand2020]

This auto loan was already under a business so regardless of payment amount it wont show up on the personal side.

If this loan were a personal auto loan, larger down payment to reduce DTI makes sense.

[tparks5961]

I was able to the receive two business vehicle loans from regions bank and their sister company ascentium.

They were able to finance 100% of the first loan of $93,000.00 for a 2022 dodge ram. They told me I was approved up to $235,000.

I then bought a trailer worth $158,000.00.  I put $30,000.00 down on that.

They were easy to work with.