Financing

[HC_79]

Everyone lives with, values and makes money differently. Thus, I am in no position to offer any financial advise.
However, I will share my particular logic which has repeatedly worked for my situation. My thinking is I would prefer to place my cash in the market now, buying stock of tried and true companies while their stock is low, so I can reap the benefits when their stock returns to values that are more in line with their true worth. I tend to be a longer term investor and I tend to stay away from high risk stocks. A car loan of just 2 to 3 % over 5 years is very cheap in my way of thinking as I should reap much greater returns on my curent cash in hand over five years. Fingers crossed...and toes too! I am a true believer that it is in recessions where wealth opportunities are created.
With that said, I coould not resist and bought a bunch more Lucid stock yesterday at $16.22. I know some are saying that it could bottom out at around $12. If it does, then I will buy a bunch more as I do believe in the company with its remarkable management team and its even more remarkable product. Plus, I view its financial situation with its Saudi backing as being pretty strong. Or, at least, strong enough. It may take a 3 to 5 years before I see a real return on investment but I believe its future is bright.

I have the same thinking as you. I had the cash to buy the car but it's a depreciating asset that will give no return so for me, I paid some cash and then put more money into markets etc. for long term growth. 2 - 3% interest is negligible if you can get 10%+ returns on your investments YoY.

I believe CitiGroup is saying $36 in the next 12 months on Lucid and most others on the lower end have it bottoming out at the $15/$16 range so It shouldn't tank much more.

 

[DJL]

I have the same thinking as you. I had the cash to buy the car but it's a depreciating asset that will give no return so for me, I paid some cash and then put more money into markets etc. for long term growth. 2 - 3% interest is negligible if you can get 10%+ returns on your investments YoY.

I believe CitiGroup is saying $36 in the next 12 months on Lucid and most others on the lower end have it bottoming out at the $15/$16 range so It shouldn't tank much more.

Boy, I hope Citi is right. That would be great. It was Morgan Stanley's analys,t Adam Jonas, who lowered his prediction on Lucid from $16 to $12. Whether Lucid is at the bottom now or at $12, it is a long term investment bargain.

 

[Luci]

Randolph Brooks Federal Credit Union, 1.95%, 36 months.

 

[zkhan2]

Just an FYI - When I received my VIN assignment, my DA called to inform me prior to me getting the official email. That was super nice of him. However, he asked that I get the financing application into BofA that day as well. He send me the email with it the link to BofA for the Lucid financing. He made it seem like financing was a long drawn out process. So, I went online applied and got approved in less than a minute. I let my DA know that it was easy and I am approved. The closing documents link was sent to me the very next day by BofA. However, the BofA loan officer said to sign it once I have a delivery date. So far my DA has been mostly quiet on delivery date or any update other than to say its in Chicago. I feel he has ghosted me.

The issue is that an approved loan is good for 30-days. My approval expires on Wednesday 5/11. I reached out to my DA Friday and again today - no response, no email, including a request to speak to a supervisor (not to get the DA in trouble) but to see if a manager can reach out and get a status on the car.

I finally cold called sales just now and spoke to a very nice person who listened to what I had to say and spoke to a manager. He returned and said the manager will be reaching out to BofA to request a two week extension.

The real issues with the loan approval expiring in 30-days:
1) You have to reapply and there is a hard hit on your credit - my credit was over 825 prior to the loan now its just under 800;
2) Once you sign, you are on the hook to start making payments for a car that you don't have delivery of yet. Let's say they find an issue and the part is 4-6 weeks out as an example; and
3) My personal concern is that, let's just say I work in security, and I am constantly monitored by the government and dramatic increase in credit hit and utilization has a negative and adverse effect that I want to avoid.

I would recommend that, if you decide to finance, wait until at least two weeks from the date of confirmation that your vehicle is in Chicago before financing. Hope this helps.

Latest update. After not hearing from my DA since May 4, I called the sales number and spoke to one of the sales person who then spoke to a manager on May 9. This sales person was very nice and said that Lucid will contact BofA to get an extension, which apparently has been done in other cases and he would have some one call back once its done. No call. So I called yesterday and spoke to the same sales person and he said that he will contact the people above him and give me a call back. No call. I called my DA today, voice mail. I called the sales number and the person who answered assured me that my DA is in the office and he would transfer me over and let my DA know to pickup my call. Transfer happens, I get voice mail. I called back and spoke to another sales person, who has been with Lucid since day one. The person asked that I explain everything around my circumstance, which I did. Including that I do not want to talk to my DA anymore since he has been non-responsive. I was told a manager would call me back. Instead, my DA called me. All of a sudden he has updates for me. I told him my loan papers expire today. He also told me that he is actually working from home today.

The update is that the car apparently had an issue with the finish, which he said happened during transportation. The car has been refinished and is now going through its normal pre-delivery inspections.

BofA will keep my documents valid until the end of the week. Meanwhile, I applied at Consumers Credit Union - which I really didn't want to do and get a second hit on my credit. However, I needed a backup.

Reiterate some great advice from our members:
1) BofA has nothing special for Lucid customer and the partnership is just a marketing ploy;
2) Use a credit union, in most cases you will get a better interest rate;
3) DO NOT give Lucid any money until you have a delivery date; and
4) DO NOT apply for loan until at least two weeks after your VIN assignment - three weeks may be even better.

My experience has been stellar up until I got my VIN assignment.

 

[DJL]

Latest update. After not hearing from my DA since May 4, I called the sales number and spoke to one of the sales person who then spoke to a manager on May 9. This sales person was very nice and said that Lucid will contact BofA to get an extension, which apparently has been done in other cases and he would have some one call back once its done. No call. So I called yesterday and spoke to the same sales person and he said that he will contact the people above him and give me a call back. No call. I called my DA today, voice mail. I called the sales number and the person who answered assured me that my DA is in the office and he would transfer me over and let my DA know to pickup my call. Transfer happens, I get voice mail. I called back and spoke to another sales person, who has been with Lucid since day one. The person asked that I explain everything around my circumstance, which I did. Including that I do not want to talk to my DA anymore since he has been non-responsive. I was told a manager would call me back. Instead, my DA called me. All of a sudden he has updates for me. I told him my loan papers expire today. He also told me that he is actually working from home today.

The update is that the car apparently had an issue with the finish, which he said happened during transportation. The car has been refinished and is now going through its normal pre-delivery inspections.

BofA will keep my documents valid until the end of the week. Meanwhile, I applied at Consumers Credit Union - which I really didn't want to do and get a second hit on my credit. However, I needed a backup.

Reiterate some great advice from our members:
1) BofA has nothing special for Lucid customer and the partnership is just a marketing ploy;
2) Use a credit union, in most cases you will get a better interest rate;
3) DO NOT give Lucid any money until you have a delivery date; and
4) DO NOT apply for loan until at least two weeks after your VIN assignment - three weeks may be even better.

My experience has been stellar up until I got my VIN assignment.

That is really great advice and I thank you for it. So sorry you had to go through all of this. Hang in there, it sounds like you car is just around the corner and I am envious!

 

[hydbob]

For BofA specifically you don't even need to put in your app until you car is at the place for PDI. Got approved within an hour and they will get you loan docs within 24 hrs and able to fund within 24 hours of signing

 

[Tim-in-CA]

Seems like SFCU is a pretty good option ... current rate for 60 months is 1.49% with EV discount. Way lower than BofA ... I'll definitely consider that route to save $$$$

 

[borski]

1) BofA has nothing special for Lucid customer and the partnership is just a marketing ploy;

That isn't quite true; while the rate doesn't change for Lucid, the partnership means that Lucid talks to them behind the scenes on your behalf, handling most of the paperwork/contact stuff for you. Also the turnaround time is like 24 hours.

The partnership has value, it's just not in the rate itself.

Right now, credit unions offer better rates; when it was launched, BoA was the lowest rate I could find, with the relationship discount. It varies with the market.

 

[borski]

Seems like SFCU is a pretty good option ... current rate for 60 months is 1.49% with EV discount. Way lower than BofA ... I'll definitely consider that route to save $$$$

SFCU, if you meet their eligibility criteria, is a better rate right now, for sure.

 

[Tim-in-CA]

SFCU, if you meet their eligibility criteria, is a better rate right now, for sure.

Seems like if you do not meet the geographical or relatives requirement, you can simply join

Join Today! - San Francisco Federal Credit Union

You are eligible to join San Francisco Federal Credit Union if you meet ANY of the following criteria: … Join Today! Read more

www.sanfranciscofcu.com

On the above link, if you join MyPath organization you can qualify. Not sure if just a simple one-time donation to MyPath is enough to qualify. Has anyone done this?

That isn't quite true; while the rate doesn't change for Lucid, the partnership means that Lucid talks to them behind the scenes on your behalf, handling most of the paperwork/contact stuff for you. Also the turnaround time is like 24 hours.

The partnership has value, it's just not in the rate itself.

Right now, credit unions offer better rates; when it was launched, BoA was the lowest rate I could find, with the relationship discount. It varies with the market.

Yes, BofA with relationship discount used to be very competitive, but with rates on the way up, it seems like Credit Unions are a better option.

 

[zkhan2]

That isn't quite true; while the rate doesn't change for Lucid, the partnership means that Lucid talks to them behind the scenes on your behalf, handling most of the paperwork/contact stuff for you. Also the turnaround time is like 24 hours.

The partnership has value, it's just not in the rate itself.

Right now, credit unions offer better rates; when it was launched, BoA was the lowest rate I could find, with the relationship discount. It varies with the market.

Borski,

From my experience, not true at all. After my DA ghosted me, I spoke to Lucid on Monday and they said they would contact BofA and get a 10-day extension. This never happened. Even after multiple calls on Tuesday and Wednesday.

BofA made it clear to me Tuesday and yesterday that Lucid cannot make extension and BofA policy is noted in my loan officer's email response below:

"Thank you again for reaching out sir, but to be clear I cannot confirm an extension beyond 5 days past our expiration date. We are sometimes able to get paperwork completed/filed beyond that time, but we will need a new application should it become more than 35 days old to be clear."

I finally went ahead with DJL's advice and contacted Consumers Credit Union and received an approval on $100,000 at 1.99%.

 

[borski]

Borski,

From my experience, not true at all. After my DA ghosted me, I spoke to Lucid on Monday and they said they would contact BofA and get a 10-day extension. This never happened. Even after multiple calls on Tuesday and Wednesday.

BofA made it clear to me Tuesday and yesterday that Lucid cannot make extension and BofA policy is noted in my loan officer's email response below:

"Thank you again for reaching out sir, but to be clear I cannot confirm an extension beyond 5 days past our expiration date. We are sometimes able to get paperwork completed/filed beyond that time, but we will need a new application should it become more than 35 days old to be clear."

I finally went ahead with DJL's advice and contacted Consumers Credit Union and received an approval on $100,000 at 1.99%.

Weird! I would try to escalate - they definitely gave me a 15-day extension because my car was slightly delayed, but I pushed on my DA fairly aggressively for it.

Sounds like experiences are definitely mixed though, which is really good to know. Sorry for yours!

 

[Sam6062]

Wow. That is remarkable! I looked at their website and discovered the 0.99% is for 12 months or less. However, they also state that they will reduce their interest rate by 1% for EVs, with a 0.99% minimum. Here is their rate schedule that I took from their website.
1-12 Months 0.99%
13-36 Months 2.24%
37-48 Months 2.49%
49-60 Months 2.49%
61-72 Months 2.99%
73-84 Months 3.49%
85-96 Months 5.99%
Consumers Credit Union's rate that I got was for 60 months so SFCU would still be a little bit cheaper with their 1% discount.

Wow those are super rates. I was happy with PenFed, they are online and their decision is also supoer fast. Only problem, they send a check to you in your and dealer’s name that you then send to them I thought they were the cheapest but SFCU is cheaper. Mine is 3.49% for 72 months. BofA is nowhere close.

There were posts a couple months ago about getting in Lucid stocks at $37 so $16 does sound better

It went to 13, wish I bought a bulk then, my avg is about 30 . Why do you believe they cannot match Tesla in 10 years, especially with Saudi help?

Everyone lives with, values and makes money differently. Thus, I am in no position to offer any financial advise.
However, I will share my particular logic which has repeatedly worked for my situation. My thinking is I would prefer to place my cash in the market now, buying stock of tried and true companies while their stock is low, so I can reap the benefits when their stock returns to values that are more in line with their true worth. I tend to be a longer term investor and I tend to stay away from high risk stocks. A car loan of just 2 to 3 % over 5 years is very cheap in my way of thinking as I should reap much greater returns on my curent cash in hand over five years. Fingers crossed...and toes too! I am a true believer that it is in recessions where wealth opportunities are created.
With that said, I coould not resist and bought a bunch more Lucid stock yesterday at $16.22. I know some are saying that it could bottom out at around $12. If it does, then I will buy a bunch more as I do believe in the company with its remarkable management team and its even more remarkable product. Plus, I view its financial situation with its Saudi backing as being pretty strong. Or, at least, strong enough. It may take a 3 to 5 years before I see a real return on investment but I believe its future is bright.

You have to only look at Buffet to know it is true. Buy low Sell High. Most Retail go for the home run. I am in your camp unless you are going to keep the money in the Bank you can do better than even 4% over a 5 year period.

Has anyone out of state been able to finance their car thru the San Francisco Credit Union, and if so, how?

PenFed will Finance anyone with good credit. I got 125k for 72M at 3.49% wish I knew about these other 2. 2.99 sounds much better.

 

[Maverick]

PenFed will Finance anyone with good credit. I got 125k for 72M at 3.49% wish I knew about these other 2. 2.99 sounds much better.

PenFed was 1.99% for 60 for. Did 100k. I think they have raised their rates since March when I did mine. As for the check, it was a bit confusing at first, but I didn't mail anything. I signed my portion of the check when I was ready to leave and gave it to them. Seemed to work pretty easily.

 

[Sam6062]

PenFed was 1.99% for 60 for. Did 100k. I think they have raised their rates since March when I did mine. As for the check, it was a bit confusing at first, but I didn't mail anything. I signed my portion of the check when I was ready to leave and gave it to them. Seemed to work pretty easily.

Yes, they have gone up now. I am also a Lucid bull and that did not help my financials with the shares falling to 15-18 gave me a 50% haircut. Was hoping for it to be more like 47 but they made sure that’s is not happen by lowering the guidance which was suspect to begin with IMO.

I am in Dallas TX so I have to mail them in. I did not finalize my financing until they told me the Car was ready for delivery. I was told they won’t hold the rate and approval beyond 60 days.

My Sales advisor Eugene Wright who handles the Midwest is very nice so far. He says he is going to assign me his best delivery person so we shall see.
It will definitely be an interesting experience because I have never had any issues period with either new or used cars that I have purchased in the past. They are not exotic or EV’s so maybe that’s why or something.

In that sense I am happy that I am getting one early because if they start ramping up production there may be an increase rather than a decrease in Quality.

Thanks Guys. Glad I found this forum of super helpful Lucid Enthusiasts.

 

[Maverick]

Yes, they have gone up now. I am also a Lucid bull and that did not help my financials with the shares falling to 15-18 gave me a 50% haircut. Was hoping for it to be more like 47 but they made sure that’s is not happen by lowering the guidance which was suspect to begin with IMO.

I am in Dallas TX so I have to mail them in. I did not finalize my financing until they told me the Car was ready for delivery. I was told they won’t hold the rate and approval beyond 60 days.

My Sales advisor Eugene Wright who handles the Midwest is very nice so far. He says he is going to assign me his best delivery person so we shall see.
It will definitely be an interesting experience because I have never had any issues period with either new or used cars that I have purchased in the past. They are not exotic or EV’s so maybe that’s why or something.

In that sense I am happy that I am getting one early because if they start ramping up production there may be an increase rather than a decrease in Quality.

Thanks Guys. Glad I found this forum of super helpful Lucid Enthusiasts.

Makes sense...hope you get the car soon. At least on days when LCID is not performing super well, you can drive the car and remember why you were bullish in the first place .

 

[Sam6062]

Makes sense...hope you get the car soon. At least on days when LCID is not performing super well, you can drive the car and remember why you were bullish in the first place .

LOL so true. I am sure barring any mishaps it should be here by the 28th of this month.

If Peter stops lying LCID the stock could do well. Look at RICN this week.

BTW SOROS is now also invested in LCID and NIO and doubled up on RIVN.

 

[hydbob]

LOL so true. I am sure barring any mishaps it should be here by the 28th of this month.

If Peter stops lying LCID the stock could do well. Look at RICN this week.

BTW SOROS is now also invested in LCID and NIO and doubled up on RIVN.

So you are ready to buy a vehicle from a company ran by a CEO you think is lying and is making the stock tank? hmmm...

 

[joec]

So you are ready to buy a vehicle from a company ran by a CEO you think is lying and is making the stock tank? hmmm...

I can’t judge. I bought a car from Elon…

 

[zkhan2]

One more thought - for anyone that wants to sell their current EV, my experience is Driveway.com provided the best price. My 2020 Tesla Model X LR, I purchased new for $105K + $10K for FSD option. Driveway.com purchased my Model X for $90K. I just completed the transaction. It took about 30-days because they are extremely busy and its based on the order you submit your paperwork and accept their price.