Financing options

[DaveT]

I applied for the 1.49% auto loan financing through Alliant Credit Union but it was not as fast as others seemed to have indicated. Probably because I live in Oregon, am self-employed and hit some technical and timing glitches. Give yourselves at about 2 weeks to be safe. Here was my timeline.

Fri 6/14 - call loan consultant, instructed to open an account. Followed directions to open account online. Since I didn't qualify in any of the "pre-approved" categories to become a member, I made a donation to the Foster Kids. Got a message that my account could not be opened and that a customer service rep would contact me in a few days.

Mon 6/17 - I called Alliant asking about my account, it was under review and the rep I talked to looked up my application and sent me email asking for additional identification before my account could be opened. Made copies and faxed the information back to them. No idea how long it would have taken if I hadn't called them.

Wed 6/19 - Received email that I am now a member of Alliant Credit Union. Look for a packet in the mail with my account info, etc (This didn't arrive until Mon 6/24 - but it didn't block me). Called loan consultant to get started on the application.

Thr 6/20 - Loan application starts. Get a phone call and give information about my income and debts. I wasn't at home when I got the call so I gave information from memory. Later that day I get an email asking for documentation of my business and investment income and copies of 2012 tax return. I thought I would be clever and send everything as scanned PDFs. Alliant doesn't have a secure portal for me to upload the documents. Then I figure I'll put them in a password protected ZIP file and email it. But my mail server would allow an attachment over 10 MB so I had to spend more time breaking into smaller pieces that I could email individually.

Mon 6/24 - Confirmation that the documents were received (the loan consultant had left early on Friday). They can't open zip files from their desktop so it had to be sent to their systems department to open and print, then it was sent to the underwriter. Got an email later in the day to call the loan officer but I was unable to until today.

Tues 6/25 - Approved for 1.49% for 72 months for 90% of the car value. Contacted my Tesla delivery specialist instructing him to call Alliant confirming the loan amount, then Alliant will overnight a check to me. Should be enough time for me to get it by Friday.

(Future) Sat 6/29 - Pick up my multi-coat red Tesla Model S!!!!! and immediately drop it off at a body shop to have "full burial(?)" Xpel paint protection applied.

Thanks for the info.

How much was your Xpel full paint protection?

 

[TeslaSinHR]

XPel Full Burial $1995. He also is doing Rockers for $300 and adding Pillars and Roof cap for free. Takes 2-3 days to do it all. Can't really remember the details but when he explained it on the phone it sounded great and 503 Motoring in Portland, OR has already done several Teslas.

 

[phat78boy]

I still have a few weeks before my care comes in, so I figured I would line up financing as for some it seems to take a couple weeks. I called US Alliance and spoke with Jon K., 800.431.2754 ext. 2319 for those that are interested. He immediately took my information down and sent it off to UW. The whole conversation lasted about 30 minutes. The next morning, my loan was approved and it was simply a matter of sending in the normal paperwork to complete the loan. The service was unbelievably quick and easy. I was offered the 1.39% for 60mo, 72mo, and 84mo.

I plan on keeping the car for a while, so the buyback guarantee wasn't as appealing to me. I'm still amazed at how organized and speedy they are at US Alliance. By far one of my easiest loans to date.

 

[DaveT]

I still have a few weeks before my care comes in, so I figured I would line up financing as for some it seems to take a couple weeks. I called US Alliance and spoke with Jon K., 800.431.2754 ext. 2319 for those that are interested. He immediately took my information down and sent it off to UW. The whole conversation lasted about 30 minutes. The next morning, my loan was approved and it was simply a matter of sending in the normal paperwork to complete the loan. The service was unbelievably quick and easy. I was offered the 1.39% for 60mo, 72mo, and 84mo.

I plan on keeping the car for a while, so the buyback guarantee wasn't as appealing to me. I'm still amazed at how organized and speedy they are at US Alliance. By far one of my easiest loans to date.

I thought USAlliance was offering 1.89% on 72 and 84 month loans. Can you confirm?

 

[phat78boy]

Obviously rates are dependent on credit, but I can confirm that 1.39 is possible for longer terms.

 

[Skintrade]

What do you guys think about the financing product through Lightstream (I believe its a product from SunTrust)? Unsecured loans up to $100,000. 1.99% - 36 month terms. Seems like alot of Fed credit unions have a lower limit. And its pretty quick and easy application for those who have good credit. Funds can transfer to your account almost immediately when approved.

 

[phat78boy]

I would honestly give US Alliance a call first and see if they can beat it. Their rates for over 60 months are half a point better, so under 60 should improve on that. Can't hurt to make one more call.

 

[Colasec]

I applied for Alliant financing on June 17th and was approved for 1.49% for up to 72 months (initial offer) within 24 hours.

I applied for Tesla Financing on June 28th.

On July 9th I received an initial offer from Tesla Financing for $66K for 72 months at 2.80% through U.S. Bank.


I replied immediately and asked for the Wells Fargo quote, saying:

Can you please check with Wells Fargo? It looks like I'll be able to get a much more competitive rate from an external firm.

This morning I received the WF offer: $70K for 60 months at 2.95%. I am disappointed - I thought this was going to be better.


I just replied again, stated that I'm already approved through Alliant for 1.49% for 72 months, and asked nicely if it would be possible to get a lower rate:

I've been offered 1.49% for up to a 72-month term through Alliant Credit Union. Would it be possible to get a lower rate from WF? I can send you the official approval from Alliant if need be.

We'll see


I was kinda counting on getting the 1.99% reported by others in this thread since I had been able to get the 1.49% from Alliant. At $66K/2.8%/72 months, the buyback "insurance" costs $2056.

If you were able to negotiate with Tesla Financing to get a lower rate, how did you do it? What did you say? It's hard not to feel like there aren't some magic words that I'm supposed to say... thank goodness none of us had to go through this negotiation b.s. with the car.

 

[AlMc]

I applied for Alliant financing on June 17th and was approved for 1.49% for up to 72 months (initial offer) within 24 hours.

I applied for Tesla Financing on June 28th.

On July 9th I received an initial offer from Tesla Financing for $66K for 72 months at 2.80% through U.S. Bank.


I replied immediately and asked for the Wells Fargo quote, saying:




This morning I received the WF offer: $70K for 60 months at 2.95%. I am disappointed - I thought this was going to be better.


I just replied again, stated that I'm already approved through Alliant for 1.49% for 72 months, and asked nicely if it would be possible to get a lower rate:



We'll see


I was kinda counting on getting the 1.99% reported by others in this thread since I had been able to get the 1.49% from Alliant. At $66K/2.8%/72 months, the buyback "insurance" costs $2056.

If you were able to negotiate with Tesla Financing to get a lower rate, how did you do it? What did you say? It's hard not to feel like there aren't some magic words that I'm supposed to say... thank goodness none of us had to go through this negotiation b.s. with the car.

I replied to your other post on a neighboring thread. To answer your question here. There were no magic words. The rate you get thru Tesla will be higher than outside their program because they need to cover the cost of 'insuring' the buy back guarantee (my opinion). I was able to get a reduction of 1% from the initial quote but not down to the level of the two other financial institutions I had been 'accepted' by........

 

[Colasec]

I was able to get 1.99% from Tesla Financing through Wells Fargo, but it's limited to $45.5K with a 60-month term.

Mark from the Finance team explained that the 1.99% rate is the lowest available and that it's available only for larger down payments. This thread has reports of others getting 1.99% for 20% or 30% down, but mine works out to be 45% down.

Assuming that I want to put that much down (whether that's a good decision is a topic for another thread), we're looking at:

$45.5K/60/1.99%
Monthly payment: $797
Interest paid at 36 months: $1,978
Interest paid at 60 months $2,339

$45.5K/60/1.49%
Monthly payment: $787
Interest paid at 36 months: $1,477
Interest paid at 60 months: $1,744

$45.5K/72/1.49%
Monthly payment: $661
Interest paid at 36 months: $1,583
Interest paid at 60 months: $2,039
Interest paid at 72 months: $2,092

So the price of the buyback insurance if I sell it back is $501. If I don't sell it back, the price is $595.

-------

I'm going to go with Tesla Financing even though it's not the best objective financial decision (I actually think that one should borrow as much as possible at these super-low interest rates, since the theoretical return of relatively conservative investments is so much higher) since the way I ordered the car, and have made decisions since then, was with the three-year sellback in mind.

I only got the 60, I didn't get Supercharging or Twin Charging, I'm not going to get Xpel, I didn't get the nice 21"s, I didn't get the absolutely gorgeous multi-coat red... I could technically afford those things (that it wouldn't be the best financing decision either...) but I decided when I ordered that there will be some growing pains for Tesla and if I got a rather stock 60 now, I could save up and buy the fully-loaded red P85+ in three years when I sell back the 60. And maybe avoid some of those pains like the creaking pano and balloon squeal on the car that I'm planning to keep for a decade.

Until then, it'll just cost me $35/day* a so to do it.

* Includes loan interest, sales tax, three years of registration, insurance, reduction in gasoline purchases, increase in electricity bill, elimination of oil changes and other ICE maintenance, two Tesla $600 annual servicings, window tinting, OptiCoat, and tax credits. Does not include opportunity cost of down payment.

 

[AlMc]

I was able to get 1.99% from Tesla Financing through Wells Fargo, but it's limited to $45.5K with a 60-month term.

Mark from the Finance team explained that the 1.99% rate is the lowest available and that it's available only for larger down payments. This thread has reports of others getting 1.99% for 20% or 30% down, but mine works out to be 45% down.

Assuming that I want to put that much down (whether that's a good decision is a topic for another thread), we're looking at:

$45.5K/60/1.99%
Monthly payment: $797
Interest paid at 36 months: $1,978
Interest paid at 60 months $2,339

$45.5K/60/1.49%
Monthly payment: $787
Interest paid at 36 months: $1,477
Interest paid at 60 months: $1,744

$45.5K/72/1.49%
Monthly payment: $661
Interest paid at 36 months: $1,583
Interest paid at 60 months: $2,039
Interest paid at 72 months: $2,092

So the price of the buyback insurance if I sell it back is $501. If I don't sell it back, the price is $595.

-------

I'm going to go with Tesla Financing even though it's not the best objective financial decision (I actually think that one should borrow as much as possible at these super-low interest rates, since the theoretical return of relatively conservative investments is so much higher) since the way I ordered the car, and have made decisions since then, was with the three-year sellback in mind.

I only got the 60, I didn't get Supercharging or Twin Charging, I'm not going to get Xpel, I didn't get the nice 21"s, I didn't get the absolutely gorgeous multi-coat red... I could technically afford those things (that it wouldn't be the best financing decision either...) but I decided when I ordered that there will be some growing pains for Tesla and if I got a rather stock 60 now, I could save up and buy the fully-loaded red P85+ in three years when I sell back the 60. And maybe avoid some of those pains like the creaking pano and balloon squeal on the car that I'm planning to keep for a decade.

Until then, it'll just cost me $35/day* a so to do it.

* Includes loan interest, sales tax, three years of registration, insurance, reduction in gasoline purchases, increase in electricity bill, elimination of oil changes and other ICE maintenance, two Tesla $600 annual servicings, window tinting, OptiCoat, and tax credits. Does not include opportunity cost of down payment.

Good job. I believe that is the best rate you can get thru Tesla finance. Now the hard part...not paying for the car...waiting for the car!

 

[Cheerose]

When you apply - do they set the amount to lend or you?

And can you still apply even if you live in a state that is not on the "approved" list?

 

[HHHH]

When you apply - do they set the amount to lend or you?

And can you still apply even if you live in a state that is not on the "approved" list?

Yes, you can still apply if you live in a state not on the approved list, they typically ask you how much you want to put down.

 

[PokerBroker]

US Alliance Federal Credit Union is offering 1.39%/60mo or 1.89%/72 or 84 mo on electric vehicles. 700 credit score required for best rates but can work with others. Must open a checking account and have your payment auto-payed from that account (I am just setting up a monthly transfer to that account from my current bank to cover the payment). They will finance up to 120% of the vehicle to cover sales tax, accessories, charging gear, etc. I am looking forward to having my CPO Roadster soon! Tesla and US Alliance have both been great to work with so far. US Alliance has one person (Jon Krumdick) handling EV financing so he has worked with Tesla already on many vehicles and has the system down! I believe this promo is currently set to expire 08/31/13.

Separately, I found my Allstate rep to have a decent 6mo premium of roughly $850 for my Roadster... and I have a few tickets ... max liability/collision coverage with $500 deductible... $40 comprehensive coverage while in storage (yes, we have winters in Ohio).

Best of luck with your new cars everyone!!

 

[gmtom1]

I was told by my DS that they just announced an expanded Tesla financing program to cover my state, which was excluded from the Wells Fargo/US Bank program. I haven't applied yet, but I probably will to get the resale guarantee, which is what I want. It's through Technology Credit Union. The rates posted on their site start at 1.99% for 60 months. Not sure if the Tesla program is different.

 

[TurboZo]

I was hoping to use the Tesla 72 month option with US Bank. In the past I've either bought vehicles in cash or leased them. Due to me not having a comparable loan in the past, US Bank is not offering me financing. Even though I am putting 30%-40% down and have excellent credit. Wells Fargo is offering 60 months at 2.24%.

I wanted to have a longer term loan so now am looking at other options. Credit union or otherwise. I am concerned about the lack of getting the buyback guarantee though. Has anyone had any luck getting a longer term with Wells Fargo or using an alternative financing option but getting the buyback guarntee?

any suggestions?

 

[AlMc]

I was hoping to use the Tesla 72 month option with US Bank. In the past I've either bought vehicles in cash or leased them. Due to me not having a comparable loan in the past, US Bank is not offering me financing. Even though I am putting 30%-40% down and have excellent credit. Wells Fargo is offering 60 months at 2.24%.

I wanted to have a longer term loan so now am looking at other options. Credit union or otherwise. I am concerned about the lack of getting the buyback guarantee though. Has anyone had any luck getting a longer term with Wells Fargo or using an alternative financing option but getting the buyback guarantee?

any suggestions?

You will not be able o get the buy back guarantee unless you go through the Tesla financing program. many people have gotten better rates quoted to them by other financing institutions than the ones within the Tesla program. There are many other alternatives/better rates if you are willing to give up the buy back guarantee...All comes down to which is most important to you/what you can afford.

 

[HHHH]

Is there a way to finance with Wells originally to get the buyback guarantee, then have your preferred credit union buy out the contract to take advantage of the lower rate, relationship, etc your credit union offers you? Perhaps there is a minimum time period you have to finance the car to get the residual guarantee with Wells.

 

[gmtom1]

The first bullet point in the buyback document says you must finance through the approved financing partners and be a customer in good standing for at least six months. I don't know what "in good standing" means but my guess is you cannot early payoff the loan within the first six months and have the guarantee still apply. Also, the 2nd bank/credit union would not consider it a "new auto" anymore and you would fall into the "used auto" loan rates/program, so keep that in mind when evaluating.

 

[HHHH]

The first bullet point in the buyback document says you must finance through the approved financing partners and be a customer in good standing for at least six months. I don't know what "in good standing" means but my guess is you cannot early payoff the loan within the first six months and have the guarantee still apply. Also, the 2nd bank/credit union would not consider it a "new auto" anymore and you would fall into the "used auto" loan rates/program, so keep that in mind when evaluating.

Good points to consider thanks. I'm getting a slightly lower rate through the CU, but I like the buyback guarantee with Wells, so being that Tesla is relatively new, I'll stick with Wells and not worry about it.