Just a DP for SEFCU Balloon Loan(Auto Advantage) .
2.49% rate with 800+ credit score, no hard pull. Went into my local branch to apply for the loan and CU membership. They required opening a Savings account for $1. Picked up the check the next day, the turnaround was really impressive.
Picking up the Model Y Performance next week.
Does DCU hard pull to join for savings or checking like PenFed ?
PenFed is no longer a HP unless you apply for one of their credit products and a single HP can be used for multiple products
They are a great option if you are in region.
I tried getting membership, via various affiliated clubs and had no success.
Whatâs the play on a balloon at 3.84% vs a DCU at 1.24%? Donât you still have to pay the full sales tax?
TIA
In NJ, there is no sales tax on EVs, but you are paying full sales tax on a conventional loan as well. There is a tax benefit of leasing, in most states, so the balloon loan makes sense where the captive lease MF is higher then 3.84%, or where the captive has restrictive policies for lease disposition. Both of these are true when considering Tesla financing.
ah! makes sense. thx
Probably going to get another EV in a few months, depending on what out there and if their leases donât pass through the Fed credit⌠may consider these CU balloon payment programs.
Although when we ran the numbers on the Ford Options plan, it was about as high if not higher than the lease payment.
Planning to buy a Tesla for a short period of time roughly around 8 months, should I go for conventional loan or balloon payment? Iâm in NJ so no sales tax on ev, leaning more towards balloon because of low monthly payment. Any advise?
The cheapest financing is gonna be the DCU program at 1.29% for 65 months, but it certainly wonât result in the most friendly monthly payment. But if you are laser focused on the cheapest out, this is the clear best option in the market right. You will pay very little interest over your short term.
If instead you want to minimize your monthly payment, either a balloon loan or a long term conventional loan will achieve similar objectives for short term ownership. I used a balloon loan on both my Model S and my Model 3. My general approach is to go with a 24 month term and then try to put enough down to bring the loan balance right around the RV. This will result in a very small monthly payment, as you are only basically paying the debt service, for as many months as you plan on keeping it.
You can find alot of good discussion on balloon loans, and other options, in our Tesla discord. See;
You risk losing that large down payment in case of an accident tho, correct ?
Huh? You are still financing the vehicle, not leasing.
True, I get that. Iâm trying to understand that if the upfront cap cost (or down payment) will be made whole by the insurance in normal depreciating times. You risk losing more of that large down payment if you chase a lower payment on the ballon loan. Correct ?
There is some risk, because the car can depreciate while you are not paying off any remaining balance. If you wrecked the car, the market value may not result in an insurance payoff large enough to get your entire down payment back. I do always carry GAP insurance to mitigate this risk.
However in todayâs secondary markets, where some cars are worth more used then new, or where the vehicle holds itâs value very well, this risk level is pretty low. Tesla falls into both these categories right now.
bump just to highlight that you can join cap ed CU
https://capedcu.com/loans/index.html
$20 to join and you have access to the payment saver loan products.
cheers!
Can you post the rate for how many months? I cant find anything
id like to see the rates too!
should be similar to these guys, they all use the same AFG calculator
https://secure.autofinancialgroup.com/AFG/index.jsp?CUID=271186423&m
Itâs usually 1% higher then the standard conventional loan rate.
CapEd was my #1 recommendation earlier in this thread. See; PenFed Has Stopped Accepting Payment Saver Auto Loan Applications - #40 by z0lt3c
My only issue is that they use transunion for credit scores.
Any recs for CUs with walk-away options?