How likely would a recent college graduate with a high credit score would be able to get a decent car loan on a model 3? I'm considering purchasing a model 3 once my current car dies on me.
like any other loan, it will depend how much you plan to be loaned and how much income & debt you have.
@melinda.v no debt and $40,000 annually.
Odds are you might get one, although depending on your credit history the rate might be high. I'd think it'd be tough to afford in some parts of the country. Try asking your credit union / bank if they'd approve you. Sometimes they'll just tell you if you know them or have done business there for a while.
At this point, if you haven't reserved one yet, you're probably looking at a two year wait. That should be plenty of time to maintain your good credit sore, and to save up a down payment as well. The larger you down payment the greater your chances and, usually, the lower your interest rate as well.
Your bank would be the best place to ask.
If you don't currently have an account at a credit union it would be a good idea to start one now, and use it to accumulate your down payment. If you make a monthly deposit roughly equal to what you anticipate your payment to be that history should help convince them that you should be approved! I used Alliant Credit union for my S and was very happy with my loan officer Jason Freese.
I have an account with wellsfargo at the moment, so I will be talking to them about it.
I would advise using credit union. They typically have better customer service and rate.
I would also look into investment during now until you have to finance your car so you can make the money work for you. Even dividend stock (WFC, Disney, Coke) would earn better than saving acct. Ford is also pretty cheap right now and i put a small portion on them.
You can always submit the financial specs to www.eloan.com to get some results of what rates you would be able to get.
considering how far off getting your Model 3 is, have you started at least a savings account for it?
As for car loans, the best thing would be to shop around at that time. It's too far out now to think about IMO.
I plan to finance some of the loan through Digital Federal Credit Union, its easy to join and I can get a 65 month term for about 1.54% using todays rates,(with banking relationship and electric car discount)
You should be fine. Car loans are not as strict because there is collateral (the car) that is easy to repossess. Excellent advice to join a credit union now. Also, check credit karma or some other free credit score simulator and the official free credit reports from each agency to makes sure there is nothing negative on there. If so, you have time to remedy.
I was on your shoes in 2007 when I was a recent grad with a salary of $40,003.00 AND $60k in student loan debt. Those fools in the lending industry approved me for a quarter of a million dollar mortgage. "How the heck would I be able to eat? Write my approval paperwork for $150,000 please" was apparently a phrase that not many other uttered at the time...
That was as a single buyer with no co-signer. Idiots.
I do have a savings account with my bank for something else. Why would a credit union give me a better rate than my bank?
because Credit Unions are there to serve their members.
Because they are "not for profit" and are owned by their members.
There is less flexibility for locations and some products though, since they tend to be small local community institutions.
One more plus for you is that your income will continue to increase over the next two years before you have to draw the loan - whereas, hopefully the $35K base price (and option pricing) stays static.
The only extra I was considering was auto-pilot. Idk about upgrading the sound system till I hear it. Thanks for the responses.
I'm in the same boat. Just started a saving with Capital one and bank with Chase.
Add another vote to the tally for the non-profit Credit Unions!
Quote: "I'm in the same boat. Just started a saving with [___] and bank with [___]."
They who shall not be named.
@lafgoddess : Try DCU (Digital Credit Union). Its based out of Massachusetts. But I interact with them online/phone only. They have given me better interest rates on my Auto Loan Refinance and Mortgage Refinance than '____' Bank and '____' Bank that I have been doing business with for 6 years. I also compared their rates with a local AZ Credit Union.
I also have a loan with DCU. You can get a discount for the EV rate, a discount for direct deposit of your paycheck, and possibly others. By the time I was through, it was close to 1%.
@ Haggy - Thanks for the info, I was not aware about the EV discount. Seems its going to be DCU again.