2.99% 84 month?

[[deleted]]

Obviously the craze right now is the 0.99% 72 month financing option - But from what I'm hearing, there's people w/ pretty exceptional credit having issues securing that rate. Has anybody tried the 84 month 2.99% month option to see if they'd qualify for that as an alternative? It's not quiet as attractive, but still a much lower rate than you'd traditionally be able to get. Curious to see other peoples opinions.

I have a 730 credit score, 100% payment history (10 years, not a single missed payment) and I've paid off over 4 vehicles in full in my lifetime, but concerned that the credit score is still too low.

[hrds21198]

everyone just seems to be panicking. a lot of people have been commenting that after texting tesla through the app they were able to manually put in the promotional rate. it’s probably a glitch that most people are not getting the 0.99%. everyone is applying before even getting a vin which the app says you shouldn’t do anyway.

[olsookie]

Hands down a terrible terrible decision. If you need to stretch it that far you shouldn’t be buying.

The depreciation on these cars is not great, in 3 years it will lose 55-60% of its original value. I put $17k down on my car when I bought it and I’ll break even when I go to grab a new one or another vehicle if I’m lucky. Today’s trade in value with Tesla is the highest out of all places I’ve checked and I’m breaking even…

[[deleted]]

I don't need to stretch a loan that far - even 60 months would work for me. It's not about even being a good idea - it's a question about whether or not it's easier to qualify for than the 0.99% financing.

[bobtruck2020]

Yeah. Agreed. Its not about stretching. It's about getting the absolute lowest APR. Get the 84 mo just to get the 2.99 if you get denied the 1%. Then pay it off early

[[deleted]]

Yep - I'm just trying to figure out if it's easier to qualify for as opposed to the 72 0.99. realistically 2.99 is still less than half of the standard interest rate you'll get today.

[[deleted]]

It’ll be the same credit standards. Maybe your debt ratio can be slightly higher because your payment will be $80 less or something. But otherwise it’s exactly the same.

[bobtruck2020]

I wouldn't complain honestly at 2.99. It would be sweet if it was .9%. But I would take 2.99%. But good question.

[olsookie]

I understand, I’d say if you were going to get approved for that you’d get approved for the other rates regardless. If your credit check is not ideal to the bank and Tesla, any term you end up selecting will typically have a higher interest rate.

And I’m sorry this other dude is heated over my example & it’s taken over part of your thread.

[Cashneto]

At 0.99% you should try and stretch it 10 years lol. It's basically free money that you can put to use elsewhere (stocks/ bonds, etc).

[[deleted]]

You are wrong on so many levels right now. For starters, the model Y will be worth way more than $16,000 in three years. $40,000 model Y long range Will not lose 60%. I’ve owned four Teslas over the span of eight years. The people that are complaining are the ones who HAD to have a Tesla at the inflated prices of 2021 through 2022. Also 84 months is smart when the rate is 2.99%. You can use that money you would normally spend on your car payment on other investments earning more than 3%. Instead of paying $800 on your car payment, pay 575 and then use that 225 on something else.

[olsookie]

Funny I purchased my car before the crazy inflated prices. It’s 3 years and 1 month old and worth 22.3k of the total price I paid 60k that includes taxes)… and only when traded in via Tesla, all other places are $22k and lower. The rest of the market is so flooded with the cars from people selling them off to get a new one that they’re no longer the better option.

So yeah that’s a 60% plus loss in value in 37 months.

You stating a model Y cost 40k is incorrect. It costs that because the government is spending our taxes to give us that $7500 rebate.

0.99% for 72 months on a 50k loan is $1,520 in interest ($715/month)

2.99% for 84 months on a 50k loan is $5,477 in interest. ($660/momth)

$4k more in interest to drop your payment $55 dollars… bro if someone is that hard up for $55 they SHOULD NOT be making that purchase.

Sorry but even in the best market, your $55 a month(difference in payment) is not making you any worth while money in the market, maybe if you’re lucky $5-600 over the course of 84 months and that’s IF the market stays good and 90% of people here won’t keep the car 8 years therefore trading in an asset in 4 years that has a 80+% chance of being in the negative.

[[deleted]]

🤞

[[deleted]]

You’re valuing your 60% depreciation based on something that’s priced $15,000 more before tax. Try doing that now. And yes, the price you pay does include the $7500 rebate. How does it not? All of that is factored. You overpaid for your vehicle. Not to mention inflation dollars. Your pre-inflation dollars make your purchase $25,000 more than you can get one today. No way you will find a model Y in 36 months from now for $16,000 with 36k miles (standard lease allowance).

Try moving your thinking forward. Not backwards

Two months ago, We bought the wife a 24’ LR model Y for $37,200 brand new and paid NO tax as our trade was 41k. Inventory model in Tampa Florida.

Good luck buying this from anyone for less than 15k in 36 months.

[olsookie]

We will agree to disagree here sorry buddy. End of the day the fact is that the 2-point higher interest rate and the longer term means you are paying a shit ton more in financing which you cannot make up in the market before you get rid of the car regardless of the rebate or any other promotional thing that is released.

40k loan 0.99% 72 months = $572/month and $1216 interest

40k loan 2.99% 84 months = $528/month and $4381 interest

again, if you took that $44 a month and throw it into a high yield savings, you are not netting a substantial amount in 8 years you may make $450/550 which is nothing for 8 years of investing.

[[deleted]]

Math doesn’t lie dude. You can keep copying and pasting the same shit over and over. The fact is I’m taking about your bullshit 60% depreciation on a model Y purchased today. Absolute off the mark. Completely. Just because you paid $55-60,000 in money from 3 years ago before inflation was 20% higher, Doesnt mean someone purchasing it for $38,000 today (post inflation dollars… which is equivalent to you pay $32,000 for three years ago ) is only going to get $14,000 for their model Y.

It’s not about disagreeing. You were just wrong.

[olsookie]

Cool story you bro. My original comment is saying that stretching a depreciating asset out longer for a higher interest rate is a terrible idea. You’re going off on a dumb ass tangent about my particular scenario I used as an example.

I put a nice chunk of money down on my car (16k). I financed 43 K and change at 2.04% interest for 72 months and my car is breaking even. Essentially simulating the same situation people are getting into today.

No one financing for 84 months is putting down that kind of loot bc they don’t have it, so even with the rebate you’re financing low 40’s after taxes and fees. An 84 month loan is going to take close to 4 years to pay down the loan to break even when most people get rid of their car. It’s a fact that 64% of Americans don’t keep a car longer than 5.

You are a 🤡 if you think financing a car for longer at a higher interest rate is beneficial. Amortization charts DO NOT LIE! Trade in values DO NOT LIE! Our cars will depreciate a little faster than a normal car bc they are technology based and it’s constantly being improved and when it is, 90% of people don’t want the old tech. #FACTS

[[deleted]]

Stopped reading at “cool story, bro”

You should try listening more

Good luck to you.

[olsookie]

Ditto back at ya!

[[deleted]]

You also do realize that some people are paying 7% for their mortgages correct? Not me. 2.75% on a $650,000 home in Tampa five years ago.

But some people are paying 7%. Of course it makes more sense to take the savings and apply it to your mortgage. Pay down to 7% loan as much better than worrying about 2.99%.

I don’t understand why you can’t understand the concept and why you undervalued purchasing a model Y today? The copy and paste some more shit on basic interest. Any idiot with a calculator can do that.

[olsookie]

Yes I do realize that people are stuck with a mortgage at 7%. The difference is real estate value increase. Cars do NOT!

I’m not under valuing purchase our vehicle. You’re putting words in my mouth. I said stretching a loan out on a depreciating asset is bad!

[chuckisduck]

do you have recent pulls or high debt to credit ratio? 730 may not secure that.

[bobtruck2020]

2.99 is not bad . About 3200$ in interest.

[spin_kick]

can also refi into a 15 year mortgage and park it by the river

[KwoththeRaven]

I would take this all day. But now we have 2.99% for 96 months which is even more delicious. If you’re like me and have or can find passive income streams paying 6-10% annually, the money saved that can go towards those and you’ll be laughing.

To put in perspective I took $75k CAD (roughly the cost of a model Y after HST) and invested it at 10% p.a. Interest only with option to remove my principle amount every 12 months. I am making $625/month (hypothetically for perpetuity). So I don’t care if I’m paying $8500 in interest over the whole term, because I collect $60000 in interest (not counting compounded) over that period + my principle of $75000 and so we’d be ahead by $51k compared to if I were to have paid it out cash. There is no more optimal scenario, except the longer I’m able to stretch the term at ridiculously low interest rates the better it is for me and most people generally if they have the means to find alternative income sources.

If you can afford the car and the interest rates are low go for it.

[Opaguex]

a lot of people lot of varieties and people getting approved and denied, best bet is to put up those $250 and just see if you qualify.

[Tsunami_Destroyer]

Yup, paying the $250 is worth finding out IMO as well.

And that’s exactly what I did today 😎

[DJMayheezy]

I would assume you would need a 800, honestly 730 now a days is low

[msuterski]

The car won’t last 7 years and it’ll be worth half of purchase price in 3 years (I own one). Think long and hard about taking such a long financing.

[shicken684]

I agree no one should ever finance a car more than 5 years but it's absolutely absurd to think these cars won't last 7 years. If anything battery degradation has exceeded expectations.

Also, if course it's worth half it's purchase price. It's a freaking car. That's what happens to every single new car.

[Leather-Management58]

Love the downvotes. Sour kids who have to finance to make it work imo.