Lowest interest rates in September?

[Timo]

@sevengroove - seems like Parsons is going pretty slow. I haven't been approved for my checking/savings account yet. Going on 3 business days for that.

Got a text from my local service center that my truck will be here in just "days" and to go ahead and complete the steps. My plan is to do everything but pay in full until inspection is done. Still Thinking Parsons is going to take too long to approve the auto loan.

I applied online with a local credit union and got the best rates they offered, the full amount I requested and instant approval. The rate is a bit higher (4.4% for 67+ months) but it is also local so easier to go in and deal with anything if needed.

Will still watch how the process goes for you and will pursue Parsons until I run out of time since they have already pulled my credit.

I haven't heard back from Parson's yet. Not a peep since they hit me with a hard inquiry.

Yesterday I applied with AdelFi based on feedback here. Got my approval this morning. 2.9%/72 on 80k. Verified some info over the phone, uploaded a few docs and good to go.

Regarding verification, you have to quote your favorite 3 Bible verses and there's a quick quiz on some of the most common passages of the Bible. Any Christian should be able to pass it easily.

Totally kidding, there's just a box you check.

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[itselectric]

I haven't heard back from Parson's yet. Not a peep since they hit me with a hard inquiry.

Yesterday I applied with AdelFi based on feedback here. Got my approval this morning. 2.9%/72 on 80k. Verified some info over the phone, uploaded a few docs and good to go.

Regarding verification, you have to quote your favorite 3 Bible verses and there's a quick quiz on some of the most common passages of the Bible. Any Christian should be able to pass it easily.

Totally kidding, there's just a box you check.

Thank you for this. I just applied - Let us know how the communication process between AdelFi and Rivian goes. They don't have Rivian listed as an auto manufacturer, which is a good start lol.

 

[Forager]

Small CU, there are eligibility requirements. If you're local to YORK, PA. PM me.

My wife’s family lives in York, PA. I hope the eligibility requirements don’t include Thanksgiving Dinner

 

[Timo]

Thank you for this. I just applied - Let us know how the communication process between AdelFi and Rivian goes. They don't have Rivian listed as an auto manufacturer, which is a good start lol.

It asks you if you know the make/model. I just put No.

 

[smiesguy]

Not sure I'm thinking about this properly, but since the pre 3/1 price is so favorable I opted to pay cash. Thought being its an inflationary hedge given the higher MSRP for new orders?

 

[sevengroove]

@sevengroove - seems like Parsons is going pretty slow. I haven't been approved for my checking/savings account yet. Going on 3 business days for that.

Got a text from my local service center that my truck will be here in just "days" and to go ahead and complete the steps. My plan is to do everything but pay in full until inspection is done. Still Thinking Parsons is going to take too long to approve the auto loan.

I applied online with a local credit union and got the best rates they offered, the full amount I requested and instant approval. The rate is a bit higher (4.4% for 67+ months) but it is also local so easier to go in and deal with anything if needed.

Will still watch how the process goes for you and will pursue Parsons until I run out of time since they have already pulled my credit.

I've been on a bit of a rollercoaster with Parsons.

Long story short, I have my preapproval finally but they seem REALLY averse to funding anything that is above and beyond the MSRP of a Launch Edition R1S, which in their system is $75,500 (the base price without any options or underbody shield). They wanted me to make up as much of the difference between that number and my total out-the-door number of ~$90k. After some back and forth I landed on $12.5k as a mutually agreeable down payment number. Anything less and I will need to buy gap insurance for an extra $400.

I've been a little disappointed with their process because all of this back and forth has had to happen on the phone vs. via email or account status updates. They seem to be making arbitrary decisions on how much to fund on a case-by-case basis. Multiple times I've had agents skeptically wonder why the loan amount (90k) is sooo much more than the MSRP, and why the "fees" are so high. I'm like, it's f*in taxes!! The destination fee is reasonable!! This is the most consumer-friendly purchase price you're ever going to see, there's literally not a penny of market adjustment that I'm paying! Not to mention, this same vehicle now costs $98k new!!! ARGHHHH ...

I get where they're coming from in that they don't want to finance the parts of the costs that are not directly associated with the price of the vehicle, but again that wasn't made clear anywhere. I went in expecting whatever I was dropping in as a down payment to be on my terms. Thankfully what I wanted to put in wasn't too much lower than what they now want. And their gap insurance seems reasonable if I don't want to budge on my down payment.

TLDR: Loan was approved, but down payment required was higher than expected (14%). Process is arbitrary, ad-hoc and somewhat opaque, but people seem genuinely eager to help (sounds familiar?).

 

[Aroohoo]

Not sure I'm thinking about this properly, but since the pre 3/1 price is so favorable I opted to pay cash. Thought being its an inflationary hedge given the higher MSRP for new orders?

I thought that too, but there is an arbitrage opportunity. If you can get a 2.5% interest rate and given that a 2 year treasury that goes on auction next week will likely be at 4%, the 5 year at just under 4%, you can get a risk free return with your cash assuming you have the cash flow to make a loan payment.

 

[smiesguy]

I thought that too, but there is an arbitrage opportunity. If you can get a 2.5% interest rate and given that a 2 year treasury that goes on auction next week will likely be at 4%, the 5 year at just under 4%, you can get a risk free return with your cash assuming you have the cash flow to make a loan payment.

Got it. That makes total sense.

 

[itselectric]

I've been on a bit of a rollercoaster with Parsons.

Long story short, I have my preapproval finally but they seem REALLY averse to funding anything that is above and beyond the MSRP of a Launch Edition R1S, which in their system is $75,500 (the base price without any options or underbody shield). They wanted me to make up as much of the difference between that number and my total out-the-door number of ~$90k. After some back and forth I landed on $12.5k as a mutually agreeable down payment number. Anything less and I will need to buy gap insurance for an extra $400.

I've been a little disappointed with their process because all of this back and forth has had to happen on the phone vs. via email or account status updates. They seem to be making arbitrary decisions on how much to fund on a case-by-case basis. Multiple times I've had agents skeptically wonder why the loan amount (90k) is sooo much more than the MSRP, and why the "fees" are so high. I'm like, it's f*in taxes!! The destination fee is reasonable!! This is the most consumer-friendly purchase price you're ever going to see, there's literally not a penny of market adjustment that I'm paying! Not to mention, this same vehicle now costs $98k new!!! ARGHHHH ...

I get where they're coming from in that they don't want to finance the parts of the costs that are not directly associated with the price of the vehicle, but again that wasn't made clear anywhere. I went in expecting whatever I was dropping in as a down payment to be on my terms. Thankfully what I wanted to put in wasn't too much lower than what they now want. And their gap insurance seems reasonable if I don't want to budge on my down payment.

TLDR: Loan was approved, but down payment required was higher than expected (14%). Process is arbitrary, ad-hoc and somewhat opaque, but people seem genuinely eager to help (sounds familiar?).

Congrats on getting the approval. That does sound like quite the process. I applied with AdelFi and my local credit union, but they have pretty high rates, however, they did say they've been working with Rivian to get the process dialed in and recently completed a transaction with another Rivian customer.

I'm going to give AdelFi a chance but I'm not sure I want to deal with Parsons at this point.

 

[sevengroove]

Congrats on getting the approval. That does sound like quite the process. I applied with AdelFi and my local credit union, but they have pretty high rates, however, they did say they've been working with Rivian to get the process dialed in and recently completed a transaction with another Rivian customer.

I'm going to give AdelFi a chance but I'm not sure I want to deal with Parsons at this point.

Yea, it has definitely been more time than I've been wanting to spend. My patience with them would have worn thin a lot quicker if the rate wasn't as low as it is. That being said, I also chose to be an active participant and kept calling and what not. Maybe it won't be as bad if you just let things run its course.

 

[AdamsFan1983]

My wife’s family lives in York, PA. I hope the eligibility requirements don’t include Thanksgiving Dinner

If you're wife's family qualify for membership than so would she; as a direct family member.

 

[Aroohoo]

Yea, it has definitely been more time than I've been wanting to spend. My patience with them would have worn thin a lot quicker if the rate wasn't as low as it is. That being said, I also chose to be an active participant and kept calling and what not. Maybe it won't be as bad if you just let things run its course.

My pre approval said they would reach out within 1 business day. They didn't call yesterday, so I called them today. They essentially told me "don't call us, we'll call you". If they already didn't do a hard pull for setting up a savings account, I would probably just jump over to Sound CU. Also, if I miss out on the September rates, I don't know what I'll do.

 

[sevengroove]

My pre approval said they would reach out within 1 business day. They didn't call yesterday, so I called them today. They essentially told me "don't call us, we'll call you". If they already didn't do a hard pull for setting up a savings account, I would probably just jump over to Sound CU. Also, if I miss out on the September rates, I don't know what I'll do.

I think you should be fine if you have a couple of hard pulls in close proximity to each other, especially if a loan is forthcoming. You also should be locked in to September rates ewith Parsons if you applied already.

 

[the long way downunder]

For those of you taking delivery this month (or potentially next), what are the lowest interest rates you are finding? I'm expecting my R1S anytime in the next 2 - 4 weeks, and would like to lock down a rate this month because next month will most definitely be worse.

The best I could find was Parsons Federal Credit Union. Free to join, and their EV-specific rate is as low as 2.49%:
https://www.parsonsfcu.org/loan-rates

Most others I'm seeing are in the mid 3's and upward. Any others that are worth looking into?

Fair enough question. Rates are at their highest since 2008 levels and will be much higher by year end.
If you can get 2.49% through a credit union, that's basically free money today.
CUs are consistently the least egregious source of funds.
The averages for auto new/used are 4-6%
These are still historically low effective cost of money, but now is not the time to get into debt or "optimistic" cash flow expectations.
People make contorted analogies to explain personal finance, but I've come to find it perfectly clear to talk in plain terms … being in control of debt or debt free and having a budget (fixed recurring costs (rent, insurance, utilities) well within your means of income will return to you and those you love, a far greater value than any electric vehicle or dream home or other discretionary expenditure.
Every dollar you spend today must be earned in the past and paid for in the future. Every dollar you do not spend today will continue to pay you into the future. Wealth is the accumulation and growth of assets, not the exertion and burden of debt to generate income for others.
Herein endeth the sermon. : )

 

[pablo]

Cross-posting this.

In shopping around for rates I wound up applying to some credit unions at the beginning of this week Parsons, First Service, and AdelFi.

Within a day of those 3 membership applications and loan application at Parsons someone started trying to impersonate me with quite a bit of my personal info and tried to take over several of our banking accounts.

Just sharing in case this is happening to anyone else, to be clear I am not stating that these two things are connected but the timing is making me wonder if one of those CUs could be compromised.

Hope this isn't happening to anyone else and this is just random, but just wanted to put this out there as an FYI and public service announcement.

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