Financing a Rivian - I have questions

[cohall]

Now that I have a guide, I'm starting to think about how I want to actually pay for the vehicle, and I was hoping some of you can share your insights and process.

I have no trade-in. And, I was planning on just paying "cash" without financing, but given the low rates I'm thinking it makes more sense to finance. Specifically, I'm considering DCU.org, which appears to offer a 1.99 APR for electric vehicles - for up to 65 months.

I've never financed a vehicle (excluding one lease), so I'm trying to understand the process. For those who've financed outside of Rivian, would you mind letting me know:

1. Should I apply for the loan right now? I don't have a VIN yet.
2. Should I just pay "cash" and then finance later?
3. If I apply and get approved now - Does the CU send the money directly to me - or does it go to Rivian?
4. Assuming the title is held by the CU until I pay it off - does that complicate the 8-step process?

Thanks in advance for your help.

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[aw113sgte]

1. I applied for one this morning at my credit union. It was approved and I got the check within a few hours.
2. Up to you, but I would just do it the way you want from the beginning.
3. With mine, they wanted the info VIN etc for the paperwork, then wrote a check to rivian, which I had to take a picture of and upload. It is my job to send it to rivian.
4. They didn't ask to hold mine, but it is standard practice. It's not really more complicated if they do.

The 1.99% I got is just a smarter financial decision. I considered just writing a check like yourself. In the end, it wouldn't have save me any time.

 

[kanundrum]

Depends on the speediness, I think becoming a member of DCU takes a few days or weeks something like that so if you want to get things done ASAP (like waiting on your payment to take delivery) I would just finance thru rivian and then refinance somewhere else at a cheaper rate.

If you have the time yes go thru DCU, Penfed, etc and go that route as its better imho then paying cash where your ROI would be a lot more.

 

[shamoo]

Everyone's financial situation is a bit different, so you'll have to do a little bit of math to see if it is worth it for you (e.g.: interest rates are less than your current investments, etc).

But some answers from my perspective:

1. Should I apply for the loan right now? I don't have a VIN yet.

Not yet. In many cases, the terms of the loan will expire after a certain period (30 days maybe) so you'll have to do it again. I would wait. A significant number of people will be financing Rivians so this will not be a new thing for them to do.

2. Should I just pay "cash" and then finance later?

You can, but it doesn't really affect anything. Personally I have always financed my vehicles FIRST to help my credit score. After a few months I'll pay it off. Don't pay it off too quickly since the loan needs time to be reported to the bureau.

3. If I apply and get approved now - Does the CU send the money directly to me - or does it go to Rivian?

Usually it goes to Rivian, but different lenders do different things. I say "usually" because they will be the holders of the title. They want it in their hands.

4. Assuming the title is held by the CU until I pay it off - does that complicate the 8-step process?

Yes, that is usually the case (see above). It should not complicate anything significantly since financing a car is a very normal thing. Will paying in cash be easier? Sure. But I wouldn't worry about financing.

 

[mgc0216]

Will paying in cash be easier? Sure. But I wouldn't worry about financing.

And to be clear @cohall paying cash is easier, but not that much easier.

With the loan you do the app, and typically the CU / bank takes it from there. Getting the money over to Rivian and collecting the title.

With "cash" you have to initiate the payment - certified check, wire or ACH.

You're talking about how many fields do you fill out on a form, the loan app might have a few more than a wire transfer, but not that many more.

 

[MD Waits]

@cohall: Thank you for posing these questions as I'm in the identical situation...minus the guide contact

 

[Craigins]

That's a nice rate considering inflation.

 

[Tommy]

Your guide can provide you with a 'generic VIN' that you can present to your lender.

 

[Akay07]

i was going to use dcu until i saw this. It's 1.99 apr for 66 months. I did a chat with them aND they said you don't have to be a member for a car loan. I don't have to mess around with donations and stuff with dcu. I work for a caterpillar subsidiary and would qualify for being a member. https://www.cefcu.com/rates/loan-rates.html

 

[Spiffster]

i was going to use dcu until i saw this. It's 1.99 apr for 66 months. I did a chat with them aND they said you don't have to be a member for a car loan. I don't have to mess around with donations and stuff with dcu. I work for a caterpillar subsidiary and would qualify for being a member. https://www.cefcu.com/rates/loan-rates.html

I am attempting to go through DCU.org and its turning into a bit of a nightmare... I had to finance through Rivian for now as these DCU people cant seem to get their shit together. Anytime you call them expect to wait over an hour. Luckily they have a callback option but yeah, over an hour anytime you need to talk to anyone. Its INSANE! Also expect vastly varying competence levels on the other end when you finally do get to talk to someone.

 

[sevengroove]

What sort of criteria do these credit unions use to qualify borrowers for their best rates? Is it just a simple cutoff like credit score >720, or are there any other "gotchas" that would prevent someone from getting the best rate?

 

[jphillips97]

Now that I have a guide, I'm starting to think about how I want to actually pay for the vehicle, and I was hoping some of you can share your insights and process.

I have no trade-in. And, I was planning on just paying "cash" without financing, but given the low rates I'm thinking it makes more sense to finance. Specifically, I'm considering DCU.org, which appears to offer a 1.99 APR for electric vehicles - for up to 65 months.

I've never financed a vehicle (excluding one lease), so I'm trying to understand the process. For those who've financed outside of Rivian, would you mind letting me know:

1. Should I apply for the loan right now? I don't have a VIN yet.
2. Should I just pay "cash" and then finance later?
3. If I apply and get approved now - Does the CU send the money directly to me - or does it go to Rivian?
4. Assuming the title is held by the CU until I pay it off - does that complicate the 8-step process?

Thanks in advance for your help.

My advice is to stick with paying cash.... I hate car payments and I am not a fan of financing a depreciating asset.... If you pay cash, you know you can afford it...

Would you take out a loan at 1.99% to invest in a mutual fund? If you finance a car to keep money in an investment you are effectively doing the same thing....

JMHO

 

[cohall]

My advice is to stick with paying cash.... I hate car payments and I am not a fan of financing a depreciating asset.... If you pay cash, you know you can afford it...

Would you take out a loan at 1.99% to invest in a mutual fund? If you finance a car to keep money in an investment you are effectively doing the same thing....

JMHO

Whoa - blast from the past! I ended up doing exactly what your device was when I took delivery back in May, and just paid cash.

 

[jackr1182]

I am attempting to go through DCU.org and its turning into a bit of a nightmare... I had to finance through Rivian for now as these DCU people cant seem to get their shit together. Anytime you call them expect to wait over an hour. Luckily they have a callback option but yeah, over an hour anytime you need to talk to anyone. Its INSANE! Also expect vastly varying competence levels on the other end when you finally do get to talk to someone.

Who is rivian using as their preferred finance company? Or is it rivian itself?

 

[electruck]

Who is rivian using as their preferred finance company? Or is it rivian itself?

Chase

https://rivian.com/support/article/what-bank-does-rivian-work-with-to-offer-financing

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