NFCU Tesla Auto Loan Post BK 7 Questions

[Anonymous]

Hello everyone,

I had a few questions about NFCU and a Tesla purchase. So, first off, I want to get a loan for a Tesla and the total order price is $71,500. My BK 7 was discharged 12/2020. Current TU score is hovering around 700 or so with a graduated NFCU credit card. Income is at about $110k, and I have a strong co-signer. My co-signer income is low (about $30k) but he has a 810 TU score and low debt. My amount requested to borrow is $60k for 36 months.

Here's where it gets fun. They initially said we would be expecting a rate of 2.19% for the loan, but then declined the loan entirely 2 hours later. How do I go from 2.19% to declined? So, I called and spoke with a supervisor for about an hour. She recommended my co-signer be the primary, and I be the co-signer. However, my co-signer does not want to be primary, at all, this is just his personal belief and it will not change.

However, the NFCU supervisor mentioned to me to try and apply again the day after my 1 year mark for the BK, which would be in 12/2021. She said that everything else looked great, she said both of our credit scores are strong and everything else was good. My question is, does anyone have similar experience with this? Can anyone comment as to the validity of this claim? I feel good about it since I was initially offered 2.19%, but then suddenly declined, like there was a technicality. Could this be a loan that is approved in under a month because of a 1 year technicality? Or, should I bite the bullet and apply for Tesla financing?

Thanks everyone! You all rock.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

Hello everyone,

I had a few questions about NFCU and a Tesla purchase. So, first off, I want to get a loan for a Tesla and the total order price is $71,500. My BK 7 was discharged 12/2020. Current TU score is hovering around 700 or so with a graduated NFCU credit card. Income is at about $110k, and I have a strong co-signer. My co-signer income is low (about $30k) but he has a 810 TU score and low debt. My amount requested to borrow is $60k for 36 months.

Here's where it gets fun. They initially said we would be expecting a rate of 2.19% for the loan, but then declined the loan entirely 2 hours later. How do I go from 2.19% to declined? So, I called and spoke with a supervisor for about an hour. She recommended my co-signer be the primary, and I be the co-signer. However, my co-signer does not want to be primary, at all, this is just his personal belief and it will not change.

However, the NFCU supervisor mentioned to me to try and apply again the day after my 1 year mark for the BK, which would be in 12/2021. She said that everything else looked great, she said both of our credit scores are strong and everything else was good. My question is, does anyone have similar experience with this? Can anyone comment as to the validity of this claim? I feel good about it since I was initially offered 2.19%, but then suddenly declined, like there was a technicality. Could this be a loan that is approved in under a month because of a 1 year technicality? Or, should I bite the bullet and apply for Tesla financing?

Thanks everyone! You all rock.

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I just don't get this.   You are 11 months post Chapter 7 and you make 110K and you are going to buy a car that costs 70K and you have three really crappy credit cards in your own name (the Navy card will be good).     What are you doing?

[Anonymous]

Wife makes more than I do, but travels for work constantly. Her employer is providing an incentive on all electric vehicle that will pay approximately 50% of the payment monthly. Plus, we have kids and need an SUV anyways. In the long run, this vehicle makes more sense at a higher price than a gas alternative, just a matter of getting approved.

[CH-7-Mission-Accomplished]

I do wish you good luck.   I don't mean to be a downer.   Most people fresh out of a BK will buy a reliable used car and then wait until 2 years post D/C so they can qualify for market rates.    I hope this works out for you!

[despritfreya]

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@Anonymous wrote:

Wife makes more than I do, but travels for work constantly. Her employer is providing an incentive on all electric vehicle that will pay approximately 50% of the payment monthly.

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The incentive is great but, what happens when your wife loses her job?  You need to plan ahead based upon Murphy's Law (anything that can go wrong, will go wrong).  You have a family to protect.  Won't the payment on this luxury vehicle be $1,600 or more per month?  That's way too much to risk. Even only paying half of it is too high.  Be smart - find a nice used SUV that meets your family's needs and won't break the bank when things fall apart. (I do note that in today's economy, used vehicles are being sold at a ridiculous premium, but look anyway.)

Des.

[Jnbmom]

I have to agree with others, fresh BK and you want to purchase a 71K car😳

There are plenty of nice used SUVs. 

[Brian_Earl_Spilner]

Not sure what a recent bk has to do with ability to pay. If anything, there should be more money available now. So I'm a little confused by everyone's tone. Especially since we don't have any background regarding reason for bk.

OP: yes, nfcu does have a 1 year marker for lending when bk is showing. We've found they're a little more flexible with credit cards, but it seems they may be more stringent with loans. If you can wait for that marker, I'd try again then. You can always apply elsewhere if that falls through.

[Anonymous]

@Brian_Earl_Spilner Thank you for speaking to the question, I appreciate the help! From what I can gather it's worth another inquiry the day after my 1 year discharge date.

Everyone, yes it is a large purchase, and it is not without its proper planning. If we get the loan and both lose our job tomorrow, then we sell the vehicle and take a few thousand dollar loss out of our down payment. Or we rent the vehicle out and make payments that way, or we utilize equity to satisfy the loan immediately. Our plan is to pay this off in under 12 months aggressively. The way we see it, she has been employed in this position for almost a decade and even throughout the economic downturn her income is unchanged. But, we do have backup plans if this does not go well, so we are planning for anything and everything.

My core question is not repayment, it is qualification with a lender. If there is a better bank that folks have had experience with, etc. Thank you everyone for the concern, I appreciate everyone's input!

[Mjhall85]

best bet wait till the day after that 1 year mark and you should be solid. If you can afford it and have plans in case something does happen do it.