Delivery appointment email and the unreasonable requirements on third-party financing

[ponzu]

Did you guys see this in the delivery appointment letter, or has it changed recently, or did my ISA make this up?

This is not how my CU rep explained it will work, not what others have described happened, and not what I would consider reasonable, or, in fact, doable.

The CU will not cut me a check for a car I have not picked up, or am not in the process of picking up. They will not wire the funds to Tesla three days prior. They will write up a loan agreement, have me sign it, and, I presume, will send me a DFR - Dealer Funding Request. This I will take to Tesla, and Tesla finance people will get on the phone (fax maybe) with the CU and get the payment finalized. The funds will be overnighted to them, or perhaps my CU rep said it will take two days, I will check.

Is that how it worked our for your guys, and if so why would Tesla put that crap in the email? Just to try?

Or are they serious?

If the actual mechanics/timings of the third-party financing are different, please educate me and let me know what I need to do to actually leave with a car on the delivery date.

 

[IslandGirl]

I got the same email.

I haven't taken delivery yet but I did get a loan from my CU. They gave me a check a while ago that I have 30 days to use. I just have to put the "to" and the amount I plan on financing up to the amount I requested/got approved for.

My ISA said this is fine so hopefully everything goes smoothly.

It also depends on the bank. I personally plan to ask my ISA if she can contact my loan person from my CU and make sure everyone is on the same page.

I've read that they've done this in past deliveries if need be. I'm not completely sure if they will still do this because they are swamped, but it doesn't hurt to ask.

 

[ebmcs03]

Ya Tesla makes financing difficult. I gave up and just paid cash. I could not see it going smoothly with the CU I chose to finance with.

 

[gambit48]

I haven't taken delivery yet but I did get a loan from my CU. They gave me a check a while ago that I have 30 days to use. I just have to put the "to" and the amount I plan on financing up to the amount I requested/got approved for.

My ISA said this is fine so hopefully everything goes smoothly.

That's how it's normally done at regular dealerships re: 3rd party financing. It'd be bizarre for Tesla to not allow it this way.

 

[brkaus]

That's how it's normally done at regular dealerships re: 3rd party financing. It'd be bizarre for Tesla to not allow it this way.

#2 says you may bring a physical check.

What am I missing? All of above matches my experience with nearly all dealers.

When I financed with TechCU, Tesla accepted the check number and FedEx tracking as proof of payment. The DS has worked with them frequently and hooked me up with a loan officer there to expedite things. Self employed - didn’t realize how much of a pain financing would be.

 

[boaterva]

Had no issues using Alliant with my X but Tesla deals with them all the time so perhaps this is ‘3rd parties we don’t have special advertising agreements with’?

You’d think a registered bank of any type would be fine and you’d told them in advance who they are.

 

[Sneakerbuddy]

Ya Tesla makes financing difficult. I gave up and just paid cash. I could not see it going smoothly with the CU I chose to finance with.

Maybe not a ready for mass market company....

 

[ebmcs03]

Maybe not a ready for mass market company....

That’s right. They are not ready. Unfortunate. It was rough trying to tell them my bank won’t release funds without a car for collateral. And Tesla won’t release the car to me without paying. I’m sure it would have worked out but would have been a lot of effort trying to sort things out. Especially when my ISA refuses to pick up the phone and only emails back and forth with like a day in between responses. It would be August before I sorted everything out.

 

[FoghornLeghorn]

Agree with the above posts - my Credit Union issues a blank check. This shoudl be fine based on #2.

 

[andremc]

My experience with 3rd party financing.

1. Get approved for a loan of $x (I needed the VIN first for my Tesla)
2. CU locks in the loan amount and rate for a predetermined number of days
3. Tell the CU my delivery date and pick up a blank check a few days before. When signing for the check, they state that it’s good for any amount up to the amount I was approved for, but must be used on a vehicle purchase.
4. Take the check to Tesla when I pick up the car. They tell me the final amount, and I fill in the blanks.
5. I sign some more forms.
6. We shake hands, and I drive away in my new car.

The entire process was painless.

 

[Big Dog]

The CU will not cut me a check for a car I have not picked up, or am not in the process of picking up.

I used Financial Partners CU in SoCal and they gave me a check made out to Tesla to take to delivery (in late April). No issues and I drove away a happy camper.

 

[ponzu]

I used Financial Partners CU in SoCal and they gave me a check made out to Tesla to take to delivery (in late April). No issues and I drove away a happy camper.

Thanks, I'll bring this precedent up.

 

[kengchang]

On my previous car, the CU made a check with everything already filled out and I just take that to the dealership.

 

[Dana1]

How many people don’t know the difference between a pre approval letter and a DFR? I’m sure Tesla has been presented with pre-approvals from people not realizing the bank hadn’t actually approved the loan.

 

[gambit48]

Maybe not a ready for mass market company....

Thinking back on how my last 3rd party financing went and all the other replies, I'm starting to think the OP's credit union is the company that isn't ready for the general public.

 

[Butane]

All FPCU needed from me was the MVPA (not even signed by Tesla) to finalize the loan. Took them 1 business day. They then overnighted a check to Tesla. They made this process clear to me before I applied for pre-approval.

Several other CUs I spoke with when shopping rates were not so easy. One wanted to physically see the car first, another said they only work with dealerships. So it seems some of the unreasonable requirements are coming from CUs themselves. Might be worth shopping the process along with rates.

 

[IslandGirl]

My experience with my

All FPCU needed from me was the MVPA (not even signed by Tesla) to finalize the loan. Took them 1 business day. They then overnighted a check to Tesla. They made this process clear to me before I applied for pre-approval.

Several other CUs I spoke with when shopping rates were not so easy. One wanted to physically see the car first, another said they only work with dealerships. So it seems some of the unreasonable requirements are coming from CUs themselves. Might be worth shopping the process along with rates.

I agree.

The process of buying a car from Tesla has made me realize how most banks have it set up with car dealers to make the process difficult if you don't purchase or sell/trade the traditional way.

Going forward, if our next vehicle isn't a Tesla, I still plan on getting my financing done first on my terms, and then walk in with a check.

 

[Phillyasian]

All FPCU needed from me was the MVPA (not even signed by Tesla) to finalize the loan. Took them 1 business day. They then overnighted a check to Tesla. They made this process clear to me before I applied for pre-approval.

Several other CUs I spoke with when shopping rates were not so easy. One wanted to physically see the car first, another said they only work with dealerships. So it seems some of the unreasonable requirements are coming from CUs themselves. Might be worth shopping the process along with rates.

This is how our CU worked Telsa emailed the Pro Forma Motor Vehicle Sales Agreement to us which we forwarded to the CU. Then the CU completed the Loan Agreement Papers which was emailed to us and signed via E-Signature (the CU has a special E-Signature Link in their email). We forwarded the paperwork back and then requested the check, which was made payable to me AND Tesla, be FedEx Next Day delivery TO ME (I paid for the FedEx fee). For the Down payment the ACH Portal opened up 2 DAYS before my Delivery date. I proceeded to ACH the down payment from 2 separate Checking Accounts. The day of delivery I brought the CU Loan Check that I received, along with the rest of the required documentation. The paperwork portion of the delivery was literally 5 minutes!

 

[ponzu]

I'll resync my expectations with the CU on Monday. Thanks!

 

[ponzu]

CU is aware of Tesla's requirements and is prepared to accommodate them by paying forward, i.e., ahead of the delivery date.

This brings up an interesting consideration to the idea of rejecting delivery of a car that is in some way not up to snuff. As in, it's not going to happen. Not going to reject a car that has been borrowed against and paid for.

Right? Does not seem right.

I am going to ask CU and Tesla about this scenario. I would much rather prefer to have a blank check or a DFR in hand and only proceed with the loan and payment from CU to Tesla after I have had a chance to examine and accept the car.