Trade-in and Financing

[Coltonw011]

I have a loan signed with RCU during their rate sale so my 72 month loan including rate sale and EV 25 basis point reduction is 2.09%. A 60 month loan currently since rate sale is over, I was told by my buddy who is an underwriter is 1.94%.

 

[Navy06]

I just placed my order today for a AGT so I will just have to wait 4+ months to see what the rates are then. I'm sure more but hope not a lot more.

 

[Electrified]

Before you go the BoA route, I just was approved through PennFed at 1.99%. In the grand scheme of things, it's not a ton less, but even with preferred rates through BoA, it will be less.

https://www.penfed.org/auto/new-auto-loans

Haven't received the car yet, and they're sending me a check to give to Lucid rather than a wire transfer, so don't know if the actual payment process will be problematic, but it's a pretty good rate.

Penfed rocks, love their 2% cashback credit card.

I've been shopping rates right now as I prep for delivery. Here's what I've found:

• BofA was a one-day turnaround, at 2.79% (up from 2.69% last Friday).
• San Mateo CU is quoting 2.49% but they're not as keen on higher-value cars for some odd reason
• RedwoodCU is pretty good with 2.19% at 60mo and a pretty quick turnaround
• San Francisco Federal CU is the best so far at 1.49% for an EV or 2.49% for non-EV at 60mo. This is who I plan to to with. (Edited)

Loan funding is backed up in a lot of places right now, so you're better off calling a loan officer at a credit union and talking with them before you apply. This'll save you weeks of waiting since they'll know to prioritize your application.

San Fran Fed with the 1.49% for an EV!

 

[Bbq9]

Of note: if you bank with BoA they have up to 0.5% discount in relationship pricing (depending on assets with them) which helps.

That SFFCU rate is nuts tho!

[edit] I think you may be wrong about the SFFCU rate - you get a 1% discount for an EV, but for 60 months their published rate is 2.49% which would make the rate 1.49%, not 0.99%. Still a great rate, but not absurdly low haha.

For context, when I got my rate from
BofA in December, I hit 1.54% - published rate was 2.09% and no idea why I got *more* than the 0.5% discount but I wasn’t going to ask questions

Their rates: https://www.sanfranciscofcu.com/wp-content/uploads/2021/04/2022.04.01-MemberRateSheet-1.pdf

Also, note their eligibility criteria: “You live, work, worship or attend school in San Francisco or San Mateo counties.”

If you’re in Santa Clara County, like me, you aren’t eligible. Then again, there’s always joining a church or synagogue or mosque or other place of worship

Does going to a pub regularly in SF count?

(am British )

 

[FFT]

The BOA rate is now up to 3.29%. This delay with the "grey" AGTs is literally costing us more $$ with each passing week. Frustrating.

 

[Sandvinsd]

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The BOA rate is now up to 3.29%. This delay with the "grey" AGTs is literally costing us more $$ with each passing week. Frustrating.

Yes. I have been afraid of that. Even with the preferred rewards discount it is about a point higher than it was when my delivery was ‘supposed’ to have occurred. Will have to rethink how I will pay for it. The only thing that that would add insult to injury is if the BBB proposal to change the EV rebates was revived and I lose the $7500 rebate on this because of the delay.

 

[copper]

The BOA rate is now up to 3.29%. This delay with the "grey" AGTs is literally costing us more $$ with each passing week. Frustrating.

Yes. I have been afraid of that. Even with the preferred rewards discount it is about a point higher than it was when my delivery was ‘supposed’ to have occurred. Will have to rethink how I will pay for it. The only thing that that would add insult to injury is if the BBB proposal to change the EV rebates was revived and I lose the $7500 rebate on this because of the delay.

There are other options as well - Credit unions have been really pushing good rate discounts. BofA may be preferred by Lucid, but their rates are rising so look to local institutions if you can. You can also go with banks like First Republic that do some interesting things with a personal line of credit and it refinances your auto loan.

Here's how First Republic pitched me:

1. Get an auto loan for the Lucid first at whatever interest rate you can get at the time
2. Apply for the personal line of credit + auto refi from First Republic
3. You get up to $100k LoC + the value of the auto loan extended to you and it also opens a cash-management account (like a checking account)
4. LoC term is 7 years, first two are interest-only payments required and last five are interest+principal payments. There is no early-payment penalty so you can accelerate pay down anytime.
5. You do have to deposit at least $3k/mo in the account (even if you immediately transfer it out) and maintain 20% of the loan balance in your account for the duration

It is very appealing right now as the rates are well below what BofA is currently offering (low 2% range last I checked). The only drawback is you have to have the auto loan first unless you just want to use the $100k LoC, it takes about ~4wks to get approved, and you have to provide some additional documentation beyond what an auto loan normally warrants.

This is a good option for people with really complex finances that give normal underwriters major headaches

 

[scott]

If I had been smarter, I would have looked at this thread before going through the BofA process. That said, I ended up with 2.54% for 48 months (I'm a longtime BofA customer with platinum whatever, though on my way out, but they don't know that), and probably the hassle of navigating here and there for what might have been $1K in savings (and maybe not) over 4 years was likely not worth it. Possible I could have financed less and gotten a lower rate - again, I didn't try.

One important note here for people who are smarter than I am and read this thread first: my plan had been to have one of my businesses own the car. The BofA link from Lucid asks for personal information, not business information, and there is no way to turn it into a business loan when you do that. I wasn't worried about that, since for a vehicle and a small business they're going to check personal credit anyway, so I figured I could make that transition later (as I've done with mortgages etc.). No such luck: it would have required an entirely new process, done over the phone, with additional credit checks, business paperwork, etc. I decided it wasn't worth it (I'll just pay for the car out of the business, the titling really doesn't matter, it's not a vehicle I would sell with a business anyway) and am just keeping it in my name. Fair warning for folks considering the same - don't follow their link if you want to put it in your business.

Also - <10 years ago I did a PenFed loan at a great rate on a vehicle. Servicing the loan went fine; getting them to close the loan after the car was paid off, and to stop reporting it to the credit agencies, was a massive PITA that took many phone calls and letters. I'm not saying don't do it - just know that you may have a similar situation, unless systems have improved.

 

[hydbob]

Could always refi it with SFCU and the rate for 48 months would be 1.49%

 

[Electrified]

If I had been smarter, I would have looked at this thread before going through the BofA process. That said, I ended up with 2.54% for 48 months (I'm a longtime BofA customer with platinum whatever, though on my way out, but they don't know that), and probably the hassle of navigating here and there for what might have been $1K in savings (and maybe not) over 4 years was likely not worth it. Possible I could have financed less and gotten a lower rate - again, I didn't try.

One important note here for people who are smarter than I am and read this thread first: my plan had been to have one of my businesses own the car. The BofA link from Lucid asks for personal information, not business information, and there is no way to turn it into a business loan when you do that. I wasn't worried about that, since for a vehicle and a small business they're going to check personal credit anyway, so I figured I could make that transition later (as I've done with mortgages etc.). No such luck: it would have required an entirely new process, done over the phone, with additional credit checks, business paperwork, etc. I decided it wasn't worth it (I'll just pay for the car out of the business, the titling really doesn't matter, it's not a vehicle I would sell with a business anyway) and am just keeping it in my name. Fair warning for folks considering the same - don't follow their link if you want to put it in your business.

Also - <10 years ago I did a PenFed loan at a great rate on a vehicle. Servicing the loan went fine; getting them to close the loan after the car was paid off, and to stop reporting it to the credit agencies, was a massive PITA that took many phone calls and letters. I'm not saying don't do it - just know that you may have a similar situation, unless systems have improved.

In November 2018 I bought an 18 Silverado High Country, to get all the discounts which amounted to almost 25% off the MSRP I had to finanace with GM @4.5%, I told the sales manager I was going to just write a check and finance elsewhere for 2% and that's when he said if I did that I would lose 6K in Generous Motors incentives........Then he said take the GM loan make 3 payments, then re-fi with Penfed (never heard of Penfed until right then) I listened and did a re-fi for 1.79% for 3 years...color me free money! After the loan payoff I recieved the title in less than two weeks.

 

[Coltonw011]

If I had been smarter, I would have looked at this thread before going through the BofA process. That said, I ended up with 2.54% for 48 months (I'm a longtime BofA customer with platinum whatever, though on my way out, but they don't know that), and probably the hassle of navigating here and there for what might have been $1K in savings (and maybe not) over 4 years was likely not worth it. Possible I could have financed less and gotten a lower rate - again, I didn't try.

One important note here for people who are smarter than I am and read this thread first: my plan had been to have one of my businesses own the car. The BofA link from Lucid asks for personal information, not business information, and there is no way to turn it into a business loan when you do that. I wasn't worried about that, since for a vehicle and a small business they're going to check personal credit anyway, so I figured I could make that transition later (as I've done with mortgages etc.). No such luck: it would have required an entirely new process, done over the phone, with additional credit checks, business paperwork, etc. I decided it wasn't worth it (I'll just pay for the car out of the business, the titling really doesn't matter, it's not a vehicle I would sell with a business anyway) and am just keeping it in my name. Fair warning for folks considering the same - don't follow their link if you want to put it in your business.

Also - <10 years ago I did a PenFed loan at a great rate on a vehicle. Servicing the loan went fine; getting them to close the loan after the car was paid off, and to stop reporting it to the credit agencies, was a massive PITA that took many phone calls and letters. I'm not saying don't do it - just know that you may have a similar situation, unless systems have improved.

I chose to take the loan in my name, but register the vehicle in both my companies name and my name. The registration info was taken by Lucid in both names, and my company will just pay the loan. Went with RedwoodCU during their rate sale. And FWIW, my Tesla loan was taken out by my company - didn’t show up on my personal credit history according to my underwriter for the Lucid loan.

 

[copper]

Could always refi it with SFCU and the rate for 48 months would be 1.49%

That too.

I'd strongly advise people to check options on financing right now even if you can pay cash, and consider getting the loan approved immediately after VIN assignment. Cost of money is only going up, so lock in the rate early - it can even be worth it to get the loan now and even start paying if the APR goes up a full 100bips! Case in point: When I first started the application at BofA the rate was 2.49%, then approved at 2.79% and now it is 3.29% - that's a 32% increase in interest in less than a week! I would expect this trend to continue for some time.

Credit unions are going hard for new business, even for refi. If you got hit with a higher starting rate, check local options and get a better rate asap. Then turn around and dump the extra scratch into the market.

Food for thought on rates if you finance the full $139,000 of the Air GT (with San Mateo county sales tax):

• BofA for 3.29% you'll pay $13,086 in interest
• SFFedCU at 1.49% you'll pay $5,841 saving $7,245

 

[mnewber1]

How much are people financing for? 80%?

 

[Coltonw011]

I’m taking 60%

 

[borski]

I’m taking 60%

I did the entire amount including taxes and fees. But my rate was 1.54% for 6mos from BofA.

 

[mnewber1]

I did the entire amount including taxes and fees. But my rate was 1.54% for 6mos from BofA.

Months, or years?

 

[borski]

Months, or years?

60mos. Typo, sorry, haha.

 

[mnewber1]

60mos. Typo, sorry, haha.

Had me sweating for a moment, haha.

 

[Coltonw011]

I did the entire amount including taxes and fees. But my rate was 1.54% for 6mos from BofA.

Ah yea. I put down enough to make it the same payment as my Tesla for simplicities sake.

 

[Maverick]

How much are people financing for? 80%?

I financed $100k for 60 mos at 1.99%.