Bait and Switch?

[ohhare]

Hi guys,

I am in the middle of returning my lease and purchasing the exact same car (newer) because I am not able to buy out my car. I was quoted 5.69% interest and they called just now asking that I quickly sign the paperwork on the app, but the interest rate is now 6.99%. Has this been happening to any of you? I am a homeowner and pay all of my debt off every month. I should have a very high tier credit score. I am putting $10k down on the car. What is going on? Has this happened to any of you?

Stock owner
Returning lease with tons of equity that I can't buy out
my dog is named Tesla, cat is Edison (They do not get along- I guess I didn't set them up for success.)

Thanks,
Heather

 

[ucmndd]

7% is pretty close to market for a car loan these days. How were you “quoted” 5.69%? If verbally then there’s not much for you to go on here and I’m sure rates aren’t guaranteed until you sign the paperwork, choose a term, etc.

Shop around for financing yourself? You can probably do a bit better depending on terms.

 

[BrownOuttaSpec]

1. Tesla doesn't set the rates since they don't lend out the money themselves. They work with lending partners (Well Fargo, etc) to setup your loan.
2. Rates have been going up month over month the past year as the Fed has raises their rates to fight inflation. Yet gain, Tesla has no control over the rate.
3. Search around for a car loan rate (your bank, local credit union, etc). You will get a better feel of the market rate for new auto loans. 6.99% is a little high but still about right to me.

Here is 1 minute of my research of current new auto loans:

 

[ohhare]

7% is pretty close to market for a car loan these days. How were you “quoted” 5.69%? If verbally then there’s not much for you to go on here and I’m sure rates aren’t guaranteed until you sign the paperwork, choose a term, etc.

Shop around for financing yourself? You can probably do a bit better depending on terms.

5.69% was written out by my vehicle loyalty guy.

 

[ucmndd]

5.69% was written out by my vehicle loyalty guy.

I mean, I’d ask and see what they say, but as was pointed out above Tesla isn’t a bank and doesn’t set rates. If you want the best rate you probably need to shop around yourself.

 

[daniel]

If they put in writing that "... at the end of your lease you can buy the car at 5.69%" then they may be contractually obligated to honor that. But if they just quoted you the then-current rate, you're out of luck. And if the salesguy just wrote "5.69%" in the margin or on a scrap of paper, they can say they were just telling you the then-current rate.

But I would not call this bait-and-switch. I'd call it breaking their promise if they actually promised you that rate. Otherwise, I'd call it "misleading," which is dishonest but probably not illegal. Ethically, they should have been clear what they were talking about.

Again, if that was the rate at the time it should have been understood that rates can change. It's all a matter of what they wrote down: A contractual promise or a statement of then-current rates.

 

[johnnycnote]

If you have that much equity, put the $10k towards purchasing the car, get a loan for the rest, then sell it to get your equity out. Use that plus the $10k for a nice down payment on the new car

 

[kpanda17]

Call New York Times credit union
3.99%

 

[Cladbolg]

Call Tesla and have them run you through another bank, you should get the 5.69%, since it is still showing 5.69% on their website if you try to order right now.

 

[SoCal Buzz]

Hi guys,

I am in the middle of returning my lease and purchasing the exact same car (newer) because I am not able to buy out my car. I was quoted 5.69% interest and they called just now asking that I quickly sign the paperwork on the app, but the interest rate is now 6.99%. Has this been happening to any of you? I am a homeowner and pay all of my debt off every month. I should have a very high tier credit score. I am putting $10k down on the car. What is going on? Has this happened to any of you?

Stock owner
Returning lease with tons of equity that I can't buy out
my dog is named Tesla, cat is Edison (They do not get along- I guess I didn't set them up for success.)

Thanks,
Heather

Are you sure you cannot buy out car? While Tesla did stop offering in lease agreements (sometime around early 2022?), they cannot remove it from historical contracts. For example, my Oct. 2021 lease agreement has the buy out option. Curious what your lease term is and how contract reads.