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Zorak03

Pay off loan now or wait?

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Exactly 14 months ago I purchased a new Tesla. Despite a 790 credit score they would not approve me for financing even with 40% down. The reason was no comparable loan history as I only had one credit card on my report, which was barely used. I was forced to obtain a cosigner, which was demoralizing. I’ve already paid over 80% of the loan off and was planning to go ahead and just pay the whole thing off next month. However, would it be smarter for me to pay it off more slowly? The reason I ask is because I plan to purchase another Tesla later this year and I really do not want to be forced to use a cosigner again.
 

I have no negative information on my report and I’ve never had a late payment.

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52 minutes ago, MarvBear said:

Who is they?

Alliant Credit Union. Sorry, I should have mentioned that on the post.

Edited by Zorak03

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I'm surprised you went with ACU instead of Tesla's captive (Wells Fargo IIRC). Did Wells turn you down too?

 

Instead of worrying about paying it off or not, think about what you have (or need to do) to thicken your credit reports. Do you still only have one credit card?

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27 minutes ago, hegemony said:

I'm surprised you went with ACU instead of Tesla's captive (Wells Fargo IIRC). Did Wells turn you down too?

 

Instead of worrying about paying it off or not, think about what you have (or need to do) to thicken your credit reports. Do you still only have one credit card?

Tesla financing isn’t available in my state so they referred me to Alliant. I honestly didn’t try anywhere else. I still have the secured credit card on my file (because it’s several years old) and I now have an Alliant unsecured card as well. The thing that concerns me is Alliant only granted me a $1000 limit despite a year of the car payments, an income well in the six figures and almost 100k in my Alliant savings account.

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1 hour ago, hegemony said:

I'm surprised you went with ACU instead of Tesla's captive (Wells Fargo IIRC). Did Wells turn you down too?

 

Instead of worrying about paying it off or not, think about what you have (or need to do) to thicken your credit reports. Do you still only have one credit card?

I thought Alliant WAS Tesla's captive, unless that changed in recent months?

 

Go ahead and pay off the car. A loan is the a same whether you're paying on it or its paid in full. Need to thicken up your portfolio a little bit. You can read on here some more about good credit lines to get, presuming you haven't burned anyone in your past.

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33 minutes ago, IndyPoolPlayer said:

I thought Alliant WAS Tesla's captive, unless that changed in recent months?

 

Go ahead and pay off the car. A loan is the a same whether you're paying on it or its paid in full. Need to thicken up your portfolio a little bit. You can read on here some more about good credit lines to get, presuming you haven't burned anyone in your past.

Seems it was US Skank & Wells Fargo but then launched its own financing but it doesn't seem to be available in all states. Perhaps in those cases Tesla refers folks to Alliant? But I don't think alliant is a true "captive" financer for Tesla.. more of a partner.

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3 hours ago, Zorak03 said:

would not approve me for financing even with 40% down.

How much money did you need to finance after your downpayment?

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1 hour ago, MarvBear said:

How much money did you need to finance after your downpayment?

It was around 40k

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So, would it be safe to assume you would fit the profile of a first time buyer that needed a loan in the amount of 40k?

Sent from my SM-P580 using Tapatalk

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40 minutes ago, MarvBear said:

So, would it be safe to assume you would fit the profile of a first time buyer that needed a loan in the amount of 40k?

Sent from my SM-P580 using Tapatalk
 

Yes. The thing is, I had previously lived out of the country for 10 years and because of that my credit report was rather empty. I guess my report looked about like what a 18-20 year olds would look. I won’t make that mistake again, if I ever leave the country long-term I will make sure to leave a few accounts open. 
 

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Prior to your purchase of your next electronic device, could you pay down the existing loan till you only have 3 payments in total left?

Sent from my SM-P580 using Tapatalk

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49 minutes ago, MarvBear said:

Prior to your purchase of your next electronic device, could you pay down the existing loan till you only have 3 payments in total left?

Sent from my SM-P580 using Tapatalk
 

That would be the best idea? That’s certainly not a problem.

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In my personal opinion, I know were that the case and you made a decent down payment then I know I could secure you a loan.

Sent from my SM-P580 using Tapatalk
 

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22 hours ago, MarvBear said:

In my personal opinion, I know were that the case and you made a decent down payment then I know I could secure you a loan.

Sent from my SM-P580 using Tapatalk
 

Hi Marv, quick question out of curiosity. What’s the usual maximum loan amount to income a lender will approve for a vehicle loan? I’ve always heard they will approve 50% of your annual income, so if you earn $100k/yr they will finance up to $50k. Is this accurate?

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I personally am a conservative analyst,  I would say your observation is not accurate.  There are too many factors to take into consideration to make the decisions based solely on provable annual income.

 

However, if you had an established automotive tradeline that demonstrated a long standing ability to repay your obligations, then generally a very broad guideline is the next automotive tradeline can go  up to 1.5 times the amount of your previous well paid auto loan.

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