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(Beware)Financing APR changed by Tesla within two weeks of approval. [in 2019]

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ATLCLS

ATLCLS

Member
Mar 6, 2019
46
29
Atlanta GA
#1
I logged into my account today to check status of model 3 order (still waiting for a VIN) . I applied and was approved for financing through Tesla Finance. Got 3.75 apr with Wells Fargo listed under approved terms. I signed the agreement at that point but today when I logged in ,the rate was changed to 3.99% . I suggest everyone double check your rate if you’re waiting for a VIN. I reached out to Tesla and they don’t understand why it was changed and promised a return call after more research. This has been a comedy of errors with my order process and I’m hoping the car makes up for the nonsense prior to obtaining it.
 
#2
ATLCLS said:
I logged into my account today to check status of model 3 order (still waiting for a VIN) . I applied and was approved for financing through Tesla Finance. Got 3.75 apr with Wells Fargo listed under approved terms. I signed the agreement at that point but today when I logged in ,the rate was changed to 3.99% . I suggest everyone double check your rate if you’re waiting for a VIN. I reached out to Tesla and they don’t understand why it was changed and promised a return call after more research. This has been a comedy of errors with my order process and I’m hoping the car makes up for the nonsense prior to obtaining it.
Click to expand...

What's interesting is that i was told Tesla would match the price of your approved loan at your bank or credit union. I was approved for 3.75% through Tesla. 3% through my local credit union. After 4-5 emails back and forth, Tesla doesn't seem to want to do anything about matching this. One person told me, "they'll send you a check for the difference". What?
 
#3
Weedo said:
What's interesting is that i was told Tesla would match the price of your approved loan at your bank or credit union. I was approved for 3.75% through Tesla. 3% through my local credit union. After 4-5 emails back and forth, Tesla doesn't seem to want to do anything about matching this. One person told me, "they'll send you a check for the difference". What?
Click to expand...
Simply not true. Tesla is not a bank and does not own any financing subsidiary like GM and other OEMs. All Tesla published loans are through 3rd party banks such Wells Fargo, or US Bank etc. These banks provide initial acceptance from Tesla at the published rate but investigate each applicant further and will adjust interest rate if contract rate qualifications are questioned. No one at Tesla has any authority over the 3rd party banks final offered rate. If claim of “I was told” is to be believed, who told you and get it in writing. Our purchase was originally approved through Tesla at Tesla’s published rate with US Bank. My bank offered me the same loan a full 1% lower. I advised US Bank, they could not match my bank, Tesla had nothing to do with this process.
 
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#5
LJ32 said:
Simply not true. Tesla is not a bank and does not own any financing subsidiary like GM and other OEMs. All Tesla published loans are through 3rd party banks such Wells Fargo, or US Bank etc. These banks provide initial acceptance from Tesla at the published rate but investigate each applicant further and will adjust interest rate if contract rate qualifications are questioned. No one at Tesla has any authority over the 3rd party banks final offered rate. If claim of “I was told” is to be believed, who told you and get it in writing. Our purchase was originally approved through Tesla at Tesla’s published rate with US Bank. My bank offered me the same loan a full 1% lower. I advised US Bank, they could not match my bank, Tesla had nothing to do with this process.
Click to expand...
What about a guarantee in writing?
www.tesla.com

Ordering a Tesla

Before ordering your new Tesla, learn more about the different financing, trade-in and delivery options available.
www.tesla.com www.tesla.com
 
#13
CapitalTM3 said:
This thread really needs to have its name changed to “well fargo changed my rate”. Tesla is not and has not been a financial provider.
Click to expand...
Its true that tesla is not a financial provider, but tesla is the one facilitating the loan. Tesla obviously has influence over the rate, by being able to buy it down, etc, so while they are not the lender, they are the one in control of the process for the people who apply through tesla.
 
#14
jjrandorin said:
Its true that tesla is not a financial provider, but tesla is the one facilitating the loan. Tesla obviously has influence over the rate, by being able to buy it down, etc, so while they are not the lender, they are the one in control of the process for the people who apply through tesla.
Click to expand...

Are they, though? I don’t think they buy down anyone’s rate. When they do a “rate match” - they calculate the difference in payments over the life of the loan, and then issue a check for that amount. That tells me they actually may not have any influence over the bank rates and just “eat it” on their ledger.

Note: Not a banker and don’t play one on TV. :)
 
#15
dmurphy said:
Are they, though? I don’t think they buy down anyone’s rate. When they do a “rate match” - they calculate the difference in payments over the life of the loan, and then issue a check for that amount. That tells me they actually may not have any influence over the bank rates and just “eat it” on their ledger.

Note: Not a banker and don’t play one on TV. :)
Click to expand...

I didnt finance through tesla so was unaware of how they do their rate match. If thats how they do it, thats interesting (now that you mention it, I DO remember some people making posts saying that).

Still, I dont think its unreasonable for folks to think tesla has input into this, as, at least previously, it looked like it does when someone goes to a dealer and buys a car through a regular dealer, where "the finance person" places you with a finance company (and the dealership perhaps marks up the rate, perhaps doesnt mark up the rate).
 
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#16
jjrandorin said:
I didnt finance through tesla so was unaware of how they do their rate match. If thats how they do it, thats interesting (now that you mention it, I DO remember some people making posts saying that).

Still, I dont think its unreasonable for folks to think tesla has input into this, as, at least previously, it looked like it does when someone goes to a dealer and buys a car through a regular dealer, where "the finance person" places you with a finance company (and the dealership perhaps marks up the rate, perhaps doesnt mark up the rate).
Click to expand...

Absolutely -- and that's one of the very best things about buying a Tesla... if I never have to meet "The F&I guy" ever again, it's too soon!! haha.

But I really do think Tesla is pretty much hands off - they plug buyer into financier, and that's the end of it. Just like service, they're not treating retail finance as a profit center.
 
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