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What are current loan rates?

What are current loan rates?

Can anyone tell me who has purchased recently what current rates are if you assume say perfect credit and around 30-50% down? I haven’t purchased a car in a very long time and don’t really know auto loan rates and if Tesla runs it through a competitive bid process when you buy. Thanks in advance for any info.

novocane | January 8, 2018

If you go through a dealer, the rate is usually subsidized to more or less of a degree. I doubt Tesla will be subsidizing loans given the demand. I've seen Credit Union auto loans around 1.99% for best LTV and credit buckets.

rxlawdude | January 8, 2018

Tesla's financing through Chase Bank was 2.47% for 48 months.

AMDPower | January 8, 2018

Thanks for the information. rxlawdude, Was that recently?

rxlawdude | January 8, 2018

Yep. 2 weeks ago. Easy transaction after my credit union wanted paperwork that Tesla didn't have and I decided to skip the hassle.

Glad I did.

AMDPower | January 9, 2018

Awesome. Great information. Thanks again!

PhillyGal | January 9, 2018

I'm glad you asked and even more glad @rxlawdude answered.

I had intended to try a credit union that was advertising 2.49% but if Tesla is easy and can even get close, I'll go that route.

Mozart | January 9, 2018

Mine is 2.94% from Chase Bank, 10% down, 72 months

George with SacEV | January 9, 2018

Many of us with earlier Model S cars found using PenFed Credit Union the best financing rate for those bigger cost loans in years past. I just checked with the PenFed Credit Union website for their current NEW CAR LOANS and here might be numbers of interest:

Rate Period amount possible payment for $25K

1.49% APR 36 months $500 to $100,000 $710.51
2.24% APR 48 months $7,500 to $100,000 $545.0

NO, I do not work for PenFed, but am a "member" which took something like a $20 or so initial deposit. So, IF you have time to plan ahead and get your "ducks in a row" you might save some $$$ going this route.....I know I did. Back when I financed my 2015 P85D, I got $70K at 1.39% for 5 years and put the cash I was going to pay for the car into a CD with a Utah bank at 2.49%....I am making $ on the cash I would have paid for the car!!!!!

PhillyGal | January 9, 2018

@George - we went with PenFed (was called Energy Federal at the time) as well for our MS. I think our loan amount was in the $50k range and at 1.11% interest, we took the 8 year loan. (Why not?!)

Technically my husband did the financing solo, so he's a member. This go-round, I'm doing the financing solo so would have to become a member. We like to flip flop on who does what to maintain a favorable average age of credit (the only part of a credit score we can't much control due to being young.)

PhillyGal | January 9, 2018

@George - we went with PenFed (was called Energy Federal at the time) as well for our MS. I think our loan amount was in the $50k range and at 1.11% interest, we took the 8 year loan. (Why not?!)

Technically my husband did the financing solo, so he's a member. This go-round, I'm doing the financing solo so would have to become a member. We like to flip flop on who does what to maintain a favorable average age of credit (the only part of a credit score we can't much control due to being young.)

Coastal Cruiser. | January 9, 2018

Monthly payment on a $46,500 loan for 48 months (50K price minus $3500 down payment)

1.46%: $999
2.24%: $1014
2.94%: $1,028

Carl Thompson | January 9, 2018

@PhillyGal:
"I think our loan amount was in the $50k range and at 1.11% interest, we took the 8 year loan."

That is a fantastic deal! If something like that exists now I'd take it in a heartbeat!

PhillyGal | January 9, 2018

@Carl Thompson - Precisely!
You'll always have folks that say you shouldn't finance a car; shouldn't own one you can't afford to pay cash for. Hogwash! I was 30, hubs was 29 when we decided to support Tesla and neither of us have a single regret about long term financing for a car worth more than either of our parents' homes.

Coastal Cruiser. | January 9, 2018

That's right. Lock in your interest rate folks! This is the year of rising interests rates.

They have variable rate auto loans. Don't do it.

Carl Thompson | January 9, 2018

@PhillyGal:
"You'll always have folks that say you shouldn't finance a car; shouldn't own one you can't afford to pay cash for."

I generally don't believe in financing something if you don't have to and I believe in paying things off as fast as possible when you do.

But a 1.11% interest rate is as close to "free money" as you can get. If you can get that kind of rate for a long term loan it completely makes sense to take it as the cash you don't spend now avoiding the loan can be better used paying off your house, investing, paying for something you require that would otherwise go on credit cards, etc.

andy.connor.e | January 9, 2018

Most people dont even own their phone.

staze | January 9, 2018

You tell them PhillyGal. Something something Ps & Qs.

For me, a 3% loan allows me to use my cash for other investment where I can likely make higher than a 3% return. Whether it's small business, real estate investment, ETFs or even TSLA - you are likely to make more than 3%. So the money play is to take the loan.

However, some folks prefer to pay it off and that is just as good. Let's not judge.

andy.connor.e | January 9, 2018

whatever you prefer. its your money

Bri | January 9, 2018

When we bought our Leaf we were offered a $2500 rebate if we financed the car through NMAC. At zero percent! We could have paid cash but it would have been silly to pass on that deal.

PhillyGal | January 9, 2018

@staze/andy - Agree, people should do with their money what they please. Except my brother. He needs to be stopped, lol...

Calbruins | January 9, 2018

We put 10% down. 60 months. 2.49%.

Calbruins | January 9, 2018

Can you edit your posts on these forums? Didn't find an option. To further clarify. We financed through Tesla, but they used Chase.

rxlawdude | January 9, 2018

@Calbruins, you can edit if you are the OP. You can edit, change the title, move the thread, and delete the thread.

But other posts are not editable.

charles.a.braun | January 9, 2018

To those who financed with Chase, through Tesla, has anyone received any paperwork, or payment coupons from chase yet? It has been 6 weeks since they approved my financing and 2 weeks since I have taken possession of my car, but I have gotten nothing yet from Chase. Well, other than the initial decline letter that several of us got when Tesla initially tried to finance only a $1,000 loan.

Calbruins | January 9, 2018

@Charles.a.braun: I have gotten nothing. Although we only signed early last week. But I find it off and a little disconcerting that there was no followup or information on payment coupons, where to send payments, etc.

Other Tesla owners who have financed, does that info usually populate in your Tesla Account once you get towards the first payment due date? Or did you end up waiting for snail mail?

Odd that this is almost like an afterthought in the whole buying process.

rxlawdude | January 9, 2018

Just got our payment book from Chase yesterday.

Calbruins | January 9, 2018

@rxlawdude: How long ago did you get the car/sign the loan docs?

3dwin | January 9, 2018

Question for you guys. We all have 1k down and the. We put additional 2500 down. If you finance thru Tesla does that cover all the taxes and registration misc fees? Or is there extra cost outside of the 2500 one has already put down?

Calbruins | January 9, 2018

@3dwin: The approximately $5k extra for taxes and licenses, etc was separate.

So although I only put 10% down, with the taxes and order fee, etc, I ended up having to fork over about $11k for an out-the-door price of $58,500 (car+taxes+destination fee). Of that amount, $3.5k was already paid for (with the $1k reservation deposit and the $2.5k order deposit). But the remainder of the 10% down and all the taxes, fees, destination charge, amounted to a $7.5k wire I had to send to Tesla before I could pick up.

3dwin | January 9, 2018

@Calbruins Thanks for the insight that was very helpful. Some other lenders seem to let you finance up to 110 or 120% of vehicles price to cover all the extra fees & taxes.

nicktrash | January 9, 2018

Is PENFED available to people other than ext/current military, etc.

3dwin | January 9, 2018

Seems like penfed and schools first let u write a check for final amout financing.

rxlawdude | January 9, 2018

@Calbruins, car was delivered on 12/28/17. We signed the loan docs during the delivery process.

AMDPower | January 9, 2018

Wow... I sincerely appreciate all of the comments. My primary line of thinking is that I don't want to create extra headache in financing outside of Tesla if not needed. If it can save 0.5% or more, it might be worth it though. However, it seems like Tesla is definitely competitive from what I've been hearing on this post. That is reassuring. Now I just need one more thing... Ahh yes, a Model 3 configuration invite!

JJJ784 | January 10, 2018

Just got my financing done today and picking up the car tomorrow. Financial Partners Credit Union (easy to become member) gave me 60 mos at 1.99 and 72 mos at 2.24 for $40,000 loan.

LostInTx | January 10, 2018

The future constantly scares me. I know what money I have now but am never sure what I'll have 4 years from now. I'm an owner of a software development company catering to geophysical applications. The industry is just too volatile.

For that reason, I always put as much as I can down on a car so as to minimize payments. For my Model 3, I'll probably put $25K down, plus a trade in and have a monthly payment somewhere in the $400 range.

I'm a financial planning neophyte.

George with SacEV | January 10, 2018

Talk about "free money," one of my local Tesla friends, took early delivery on his P85D compared to me (in December of 2014 vs. me in Feb. of 2015) and he got .99% for 5 years on the WHOLE cost, something like $135,000 !!!!! By the time I was taking delivery Energy Federal Credit Union (NOW PenFed) had tapped out it's generosity with so many Tesla loans that they capped the amount to $70K and upped the rate to 1.39%.

Basic message...shopping around with a strong credit score on your part can bring rather significant savings on loans. Some credit unions give discounts on EV car loans for example.

staze | January 10, 2018

@jjj784, thank you for your post!!! I was approved for 2.64% with Tesla/Chase. $53k over 60m. After seeing your post I applied on FPCU's website and received approval for $61k @ 1.99% over 60m. It's 2.24% over 72mo. Only $25 deposit to become a member.

arinaga.luis | January 10, 2018

I'm a total noob when it comes to car loans, but is the option for 72 months available for Model 3's?

staze | January 10, 2018

Hey arinaga.luis, I probably a noob as well. It depends on the lender. For most banks it is an option. Generally they carry a higher interest rate. Take my loan as an example provided above your post; it would cost me an additional $1000 over the life of the loan just for the privilege of the additional 12 months of financing. The monthly payment is $161 lower on the 72mo but costs me more in the long run to get there. It really depends on your current financial position and overall strategy for money management.

FloridaDave | January 10, 2018

@charles.a.braun I am a Chase employee at a branch. Your loan docs from Chase should have a loan number on it. You can use it to set up a online profile and log onto Chase.com. If you have trouble signing in call 1-877-242-7372 and they will help you.

charles.a.braun | January 10, 2018

@Florida Dave - Thanks for the tips though I have not yet received any loan docs from Chase. That was kinda my point to my post.

I got word from Tesla that Chase had approved my loan request on 11-30-17.

On 12-08-17 I (and many others) got a letter from Chase saying the loan was denied because the requested amount was not enough money for a car loan. I contacted Tesla and was told that they had initially made a mistake and applied for several people loans in the amount of our deposit only ($1,000) instead of the actual loan amount we were seeking which in my case was $40,500. Tesla went on to say that my loan amount of $40,500 was approved.

Aside from that letter from Chase on 12-08-17, I have not heard a peep from them or received any loan documents. So therefore I do not know my loan number etc. I do already have a Chase credit card and therefore an online profile with Chase. My hope is that I can tie this car loan into that same online profile.

But I need documents from Chase that I have not gotten in the 6 weeks now since my loan was approved.

seattlemag | January 10, 2018

Reminds me of when I bought a house last April... my mortgage broker told me I would get all the pertinent details in the mail for my first payment. Waiting that month was one of the most nerve-wracking of my entire life... I didn't want to be late on my first month! And on top of that, there was a strong chance the mortgage would be sold in the first 30 days, and I would send the payment to the wrong place if the timing was wrong...

Fast forward a month and I did receive the mortgage details, but the mortgage had already been sold, and although I sent the payment to the originator of the loan it somehow got transferred to the new owner and it all worked out. Whew! It's something I don't look forward to again though...

rxlawdude | January 10, 2018

Ah, @charles.a.braun, have you not already picked up your car? You certainly won't get any paperwork until you do (at which time you sign the actual loan docs, not the application that you were approved on).

charles.a.braun | January 10, 2018

@rxlawdude - I picked up my car the day after Christmas.

bayareakid2008 | January 10, 2018

Put the absolute least amount possible down and finance for the longest term possible. Then put the monthly savings on the stock market and come out way ahead. Pot stocks are hot right now!

rxlawdude | January 10, 2018

@charles, on your paperwork for the loan, the loan number will be present. I would follow up.

Note that on my 12/28 delivery, the first payment isn't due till 2/11. So you probably still have a bit of time before the first payment is actually due.

kmeslinger | January 10, 2018

These two credit unions have some of the best rates (and I believe they're available to anyone nationwide through becoming a member of various associations):

Financial Partners Credit Union
2.24% for 72 mo
https://www.fpcu.org/new-and-used-auto-loan-rates
Associations appear to include the American Consumer Council (ACC)

DCU (Digital Federal Credit Union)
1.99% for 65 mo *if* you auto-pay from a DCU account (otherwise 2.24%)
https://www.dcu.org/loans/auto-loans.html#rates
Associations: https://www.dcu.org/infodesk/membership/participating-organizations.html

Carl Thompson | January 10, 2018

@seattlemag:
"And on top of that, there was a strong chance the mortgage would be sold in the first 30 days, and I would send the payment to the wrong place if the timing was wrong...

Fast forward a month and I did receive the mortgage details, but the mortgage had already been sold, and although I sent the payment to the originator of the loan it somehow got transferred to the new owner and it all worked out. Whew! It's something I don't look forward to again though..."

Heh! This happened to me to except that I missed the communication about it and sent my mortgage payments to the wrong place for the better part of a year. But the original lender sent all the payments through to the new lender and none were even late.

mvu | January 12, 2018

@JJJ784 and @staze, did the 1.99% rate for 60 months contingent upon having autopay from a checking or saving account with FPCU? Thanks.

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