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Has anyone started looking at financing yet?

Discussion in 'Reserving, Ordering, Production, Delivery' started by SoFlaModel3, Aug 10, 2017.

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  1. SoFlaModel3

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    #1 SoFlaModel3, Aug 10, 2017
    Last edited: Aug 10, 2017
    From a quick online search, I'm seeing rates of ~2.79% assuming a good credit score.

    Tesla is currently offering 0.99% on Model S.

    My car's total out the door price will be $55,650 and I will put down $6,000 total and will be financing $49,650.

    @0.99% that is $848/month * 60 months = $50,880
    @1.99% that is $870/month * 60 months = $52,200
    @2.79% that is $888/month * 60 months = $53,280

    I have never taken more than a 5 year auto loan, but here's what the numbers look like at 6 years just to fulfill my own curiosity.

    @0.99% that is $711/month * 72 months = $51,192
    @1.99% that is $732/month * 72 months = $52,704
    @2.79% that is $750/month * 72 months =$54,000

    I think the 0.99% on Model S is a teaser to help drive demand. It's not a crazy swing one way or another, but just curious if anyone has started looking into this at all.

    I'm very curious what Tesla's rate will be on Model 3 and if it's competitive, because if it is that will just make the delivery process that much easier.

    In any event with a range of 0.99% - 2.79%, I may take my first ever 6 year car loan. This figures to be a car that I keep longer than any other car previously (longest was 5 years and a few months) and typical is about 3 years. I could always pay it off early anyway if I wanted to, but with the rate so low it's not really worth paying down early.
     
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    • skygraff

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      Was shocked to see the high % on the employee screenshot and have been trying to gather more info ever since because my plan, before that, had shifted from paying cash to financing the bulk and investing for an offsetting return.

      As an Alliant customer, I tried their auto loan calculator. They don't show the Model 3 in their Tesla loans section yet but the general estimator shows 2.49% for 60 month with excellent credit. About 1% higher than I'd been expecting. The only other place I've checked, lightstream.com as suggested by a friend, shows 2.69%+ depending on credit; this is all for financing $29k (trying to get $500/mo).

      Hoping the numbers will be better by Nov-Jan but not too optimistic.
       
    • LookUp

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      My calculator does a decent "what if" of monthly payments & total interest paid over life of loan, across multiple percentages.

      If you want to use it with your own #s, open it in google docs, go to the google docs file menu, and select "make a copy".

      Code:
      https://docs.google.com/spreadsheets/d/1-Yvl42yfPuBpqjlK73cbOlmw2waoGozFIKwYfY4DBws/edit?usp=sharing
       
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      • SoFlaModel3

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        I don't think it's a big deal in the end. The rates are still so low that investing the money not tied up in the car should be a better play.
         
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        • InElonWeTrust

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          Not yet but that teaser rate for the S is a great rate. Hope they do that for the 3. If not my credit union (always best place to look) is doing 1.99 for 66 months.
           
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          • JMON

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            :screamcat:IF Tesla offers less than 1% on Model 3 financing we'll probably go with that vs. Canada Trust (secured) line of credit. However, LATE 2018 (read *sometime* 2019 before Canada gets any Model 3's) is still quite a long ways off and I'm sure the financial markets, interest rates, and exchange rates are all going to fluctuate significantly before then.
             
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            • Mark C

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              I made a spreadsheet to keep up with my savings versus cost of car configured two different ways:
              Base version is base + blue + destination - reservation deposit = ~ $36k
              Premium version is the above + premium package + wheels = ~42500
              Neither include Alabama sales tax, which I will compensate for when the time comes.

              So far, I'm still in the "Holy Moly :eek:" neighborhood, but really expect to be in the "I can live with that :)" neighborhood before I need to write the check.
               
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              • SoFlaModel3

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                Yeah, I made a spreadsheet with all of the details as well as showing my wife how the Federal Tax Credit spread over 60 payments would have the car compare to my current car. Yes, I realize the tax credit isn't coming out of monthly payments, but it helped her see it that way. That helped stretch the original budget or low to mid 40s into the 50s.
                 
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                • Thebigbobowski

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                  Also looking at base + premium but also autopilot. I know I can add autopilot later (and my monthly payment would be quite a bit less), but it'll be more difficult to justify to my better half why I just dropped $6k on the car I bought last year than just adding it into the initial cost.

                  I like this strategy and will try to incorporate it. :)
                   
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                  • Walt_

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                    My CU is offering 1.49% on new, up to 72 mo. (>720 fico). I may end up ordering premium to guarantee tax credit. Amount financed depends on how $TSLA is performing.
                     
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                    • SoFlaModel3

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                      This might be a painfully ignorant question, but here it goes...

                      I have never used a credit union before.

                      I have over 800 credit.

                      Walking in off the street, can I get a rate like that 1.49% or is that some kind of loyalty related rate?

                      I ask because I have banked with Bank of American for about 17 or 18 years and the rate posted online is "as low as 2.84%". I don't suppose walking in I'd get something lower than that from them.
                       
                    • Walt_

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                      I assume you are in Miami/Dade. Checkout "https://www.powerfi.org/personal-accounts/rates/loan-rates/" looks like you can get 1.99% with autopay. It's open to anyone, with certain caveats, I.e like if you live in certain county, work for certain company, etc.
                      Like you, BOA for ~20yrs, FICO >800. For me, 1.5% is almost better than cash (inflation).
                       
                    • SoFlaModel3

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                      Thanks! I'm one county north, but I'll check it out!!
                       
                    • SoFlaModel3

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                      There is a catch.

                      1.99% is for up to a 3 year loan. For a 5 year loan it's 2.24%. There are savings of .5% baked in as well. .25% for autopay (ok that's easy and what I would do anyway) and .25% for being a previous borrower (I am not). So it looks like a new customer off the street with good credit is looking at 2.49% which is still better than my own bank of 17 years.
                       
                    • Mark C

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                      Sure you don't need to borrow some money right now to buy that "thing" for your significant other. :D
                       
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                      • SoFlaModel3

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                        There you go, .25% off the rate on her Model Y! :)
                         
                      • MelindaV

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                        #17 MelindaV, Aug 11, 2017
                        Last edited: Aug 11, 2017
                        Think of local credit unions as not-for-profit and banks as for-profit. Most times a CU will offer an overall better customer experience. Less fees, better rates, locally owned, community focused.
                        IMO, they are a winner over a bank just for the last two, the rates and fees are just a perk.
                        Some may offer an extra amount off an interest rate if the member has another account or if payments are auto debited but generally there is no time as a member qualification. So you could walk in and get a loan as a new member.

                        ETA: I should add the disclaimer that the only “big bank” I’ve used was Chase, and that was unwillingly and only because they took over my prior local Seattle based bank (rip WaMu) in the 2008 financial disaster. Shourtly after I switched everything over to my local CU. At work, we also have a couple other CU clients that I’ve designed branches for, so certainly have an affection for them over banks.
                         
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                        • Tim M

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                          Loans, including mortgages, are big (relative to personal finances) and ubiquitous enough that it's worth simply shopping around.. nationally. Look at banks, credit unions, rate comparison sites, etc. That said, I'm planning to go to my national credit union who typically has the best auto rates (PenFed.org - military only) unless Tesla has a better rate.
                           
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                          • tivoboy

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                            I'm going to guess TSLA won't offer .99% for the Model 3, and something between 2 and 2.5% will be the financing option. there IS WAY more demand than supply at this point and they will certainly need the cash flow. Unless they factor out all the financing, they would rather pay for cash today, than finance cash tomorrow.

                            that said, anything less than 1.5% and i'll finance the car for sure as I can make 10 times that investing and as long as all the federal tax credits and state refunds apply with a purchased, but financed new car i'll take the financing any day of the week.
                             
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                            • SoFlaModel3

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                              Yes, you still qualify for the federal tax credit if you finance the vehicle.
                               
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