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Thread: Financing the P85D

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    Financing the P85D

    This thread is for those of you who are purchasing the P85D with financing:
    1. What are your financing terms for purchasing the P85D? (i.e. banking with Alliant Credit Union, the car is $130k with $13k down and financing $117k at 1.79% APR)
    2. How much is your bank requiring as a down payment? I'm concerned that since the P85D is around $130k, that banks/credit unions will not treat it like they would an $80k vehicle. I'd like to put 10% down (or as little as possible) since financing at 1.79% is much lower than what my cash earns elsewhere.
    3. Will I be able to qualify for a $130k P85D? How much will I need to put down? I make $150k/year, am single with 4 houses (all investment properties) and 2 mortgages--no other debt. Credit score is > 760. My cashflow is > $6,000/month after all expenses, so the monthly ~$1800 for the car is not an issue.

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    Quote Originally Posted by Daniel R. Lucas View Post
    This thread is for those of you who are purchasing the P85D with financing:
    1. What are your financing terms for purchasing the P85D? (i.e. banking with Alliant Credit Union, the car is $130k with $13k down and financing $117k at 1.79% APR)
    2. How much is your bank requiring as a down payment? I'm concerned that since the P85D is around $130k, that banks/credit unions will not treat it like they would an $80k vehicle. I'd like to put 10% down (or as little as possible) since financing at 1.79% is much lower than what my cash earns elsewhere.
    3. Will I be able to qualify for a $130k P85D? How much will I need to put down? I make $150k/year, am single with 4 houses (all investment properties) and 2 mortgages--no other debt. Credit score is > 760. My cashflow is > $6,000/month after all expenses, so the monthly ~$1800 for the car is not an issue.

    You might have difficulty getting financed for one reason: income. I found out when trying to get financing for my Model S that while DTI (Debt to Income) rati is important, even with a good credit score, many credit unions or banks don't like to finance cars that cost more than 75% of gross annual income for somebody. For me, the solution was a much larger downpayment than I wanted, but it worked out. Of course, YMMV.

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    Quote Originally Posted by mathman View Post
    You might have difficulty getting financed for one reason: income. I found out when trying to get financing for my Model S that while DTI (Debt to Income) rati is important, even with a good credit score, many credit unions or banks don't like to finance cars that cost more than 75% of gross annual income for somebody. For me, the solution was a much larger downpayment than I wanted, but it worked out. Of course, YMMV.
    What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

    Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?

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    Quote Originally Posted by Daniel R. Lucas View Post
    What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

    Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?
    I didn't get $120K+, but did get $80K+ through Alliant with a lower gross income. They only required that I put down 5% (I put down more).

    I can say that of the multiple credit unions I tried (TechCU, USAlliance, Logix, DigitalCU, and my local CU), Alliant was by far the easiest and most reasonable. The others wouldn't give the full amount I requested - although TechCU and USAlliance were close. AlliantCU also had the best rate by nearly 1%.

    FYI AlliantCU just changed their rates this month. Cutoff for lowest rates (1.99-2.24%) is a credit score of 780 (previously it was 740). Anything under that you are looking at 2.24-2.99%+.

    I don't think you'll have a problem with approval, but I don't know your whole situation. I'd advise putting at least 10% down and paying the taxes/fees (another ~10%).

    I talked to Scott Meyer over at Alliant. Great guy, knows his stuff. Email smeyer@alliantcreditunion.com. Direct: 773-462-2228

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    Just wanted to put a plug in for PenFed, at the time I bought (Feb 2013) many CU's and most banks had no idea what a Tesla Model S was, so PenFed were one of the few that had their act together, and had great rates, and seemed less fussy about DTI ratios. Obviously that was a while ago, and I was financing around 70% of the value of the car, but thy're worth checking out.
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    Senior Member Gizmotoy's Avatar
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    When I financed through Alliant, they wanted to verify my monthly gross compared to my montly rent/mortgage + car payment. If I recall the sum of those had to be less than 50% of my monthly gross, but I don't recall exactly. I suspect you'd be very close or exceeding the DTI cutoffs with most lenders.

    If your score is good they'll still approve you, but might place requirement for a higher down payment to bring your monthly expenses down. I think their default minimum is 5%, so count on spending at least that.
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    Quote Originally Posted by Gizmotoy View Post
    When I financed through Alliant, they wanted to verify my monthly gross compared to my montly rent/mortgage + car payment. If I recall the sum of those had to be less than 50% of my monthly gross, but I don't recall exactly. I suspect you'd be very close or exceeding the DTI cutoffs with most lenders.

    If your score is good they'll still approve you, but might place requirement for a higher down payment to bring your monthly expenses down. I think their default minimum is 5%, so count on spending at least that.
    hmm well my monthly mortgage payment is $935/month; the other 'mortgages' are not listed on my credit report, so judging from experience with lenders, they won't care. Technically if I can afford a DTI of mortgage+car of 50% my gross income (gross is nearly $11,000/month), then I can afford $5500-935 = $4565/month Tesla payment. That's more than enough for two P85D cars. Am I doing the math wrong?

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    Senior Member Gizmotoy's Avatar
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    Quote Originally Posted by Daniel R. Lucas View Post
    hmm well my monthly mortgage payment is $935/month; the other 'mortgages' are not listed on my credit report, so judging from experience with lenders, they won't care. Technically if I can afford a DTI of mortgage+car of 50% my gross income (gross is nearly $11,000/month), then I can afford $5500-935 = $4565/month Tesla payment. That's more than enough for two P85D cars. Am I doing the math wrong?
    Oops, yeah, I read your monthly as half of $6k for some reason and have no idea why. You'll probably be OK. Won't know until you apply, I suppose.
    P85 - Multicoat Red, October Tech, Pano, UHFS, Parking, Carbon Fiber, Textile, Coil, 19"

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    Just curious, do you really think the P85D is worth the asking price and a payment close to $1700?

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    Quote Originally Posted by Daniel R. Lucas View Post
    What was your experience with Alliant Credit Union? I've already established a history with them: I have a bank account, savings account, credit card, and health savings account through them.

    Does anyone else have any input? Was anyone able to get approved for $120k+ with at or around $150k/year gross income?
    Not telling you what to do of course, but if I was in your shoes with a gross income of $150k, I personally would be more comfortable with a car payment more comparable to an $80k car (max), than a car in the $120k range. But if you can swing it, and a lender will sign off, then more power to you brother. Good luck.

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