Experience with CU financing after rejecting delivery?

[Eslatay]

So the big day's here and I arrive to the Tesla SC armed with the check from my credit union to pick up my brand new 86xxx VIN Model 3 AWD. The Delivery Experience Specialist brings me to the car assigned to me and everything looks good except, what's this, a 1 foot long crack in the middle of the rear window? I seriously considered taking delivery anyways and having Tesla replace it later, but the delivery specialist said this was a safety issue and I couldn't drive off the lot with it.. repairing it would take up to two weeks (parts shortage), it would be faster to just get assigned a new VIN. So that's what I opted for. And they actually are able to assign my a brand new VIN later that day, ready for delivery basically immediately.

Except now the credit union says I have to close out the existing loan for the M3 I rejected, and have to go through a completely new application process again .. and oh and I'm sorry interest rates has gone up by 0.5% since. I can only assume the $350 I paid to purchase gap insurance for the original loan also goes down the drain.

Is this normal behavior from credit unions? I'd expect they should be able to just update the VIN number on the loan since it's the exact same make / model / color / cost.

 

[LoveEV]

1 foot long crack in the middle of the rear window

arghh how annoying! don't worry you will get your dream car soon!

 

[C141medic]

So the big day's here and I arrive to the Tesla SC armed with the check from my credit union to pick up my brand new 86xxx VIN Model 3 AWD. The Delivery Experience Specialist brings me to the car assigned to me and everything looks good except, what's this, a 1 foot long crack in the middle of the rear window? I seriously considered taking delivery anyways and having Tesla replace it later, but the delivery specialist said this was a safety issue and I couldn't drive off the lot with it.. repairing it would take up to two weeks (parts shortage), it would be faster to just get assigned a new VIN. So that's what I opted for. And they actually are able to assign my a brand new VIN later that day, ready for delivery basically immediately.

Except now the credit union says I have to close out the existing loan for the M3 I rejected, and have to go through a completely new application process again .. and oh and I'm sorry interest rates has gone up by 0.5% since. I can only assume the $350 I paid to purchase gap insurance for the original loan also goes down the drain.

Is this normal behavior from credit unions? I'd expect they should be able to just update the VIN number on the loan since it's the exact same make / model / color / cost.

That’s outrageous. You wouldn’t lose the $350 you paid for GAP insurance. They would have to refund that to you since the loan wasn’t finalized. If you have a great rate with them I’d talk with the branch/loan manager to have them help you. Don’t understand why they’re trying to make you redo the application (unless they’re trying to squeeze more money from you for interest)? If they won’t/can’t help you, I’d look for another CU to do business with.

 

[LyftupX]

USAA is telling me same deal on closing loan and reapplying. Now underwriter will see the $50k outstanding but needs to disregard it and push it through.

I need to do this Monday as they finally said the vehicle I was to get that was postponed needs more work then the “software update”. My hunch was right all along.

The loan part is annoying since the check was never cashed.

 

[AppleExec1981]

You should not lose the GAP money. You will however lose the original interest rate if the loan was already closed. If the loan was not closed, meaning the CU has not given you a check, then they can simply change the VIN. Once the loan has been closed with one VIN, they cannot be re-done with another VIN. Worst case scenario you will lose the interest rate on the original loan.

So the big day's here and I arrive to the Tesla SC armed with the check from my credit union to pick up my brand new 86xxx VIN Model 3 AWD. The Delivery Experience Specialist brings me to the car assigned to me and everything looks good except, what's this, a 1 foot long crack in the middle of the rear window? I seriously considered taking delivery anyways and having Tesla replace it later, but the delivery specialist said this was a safety issue and I couldn't drive off the lot with it.. repairing it would take up to two weeks (parts shortage), it would be faster to just get assigned a new VIN. So that's what I opted for. And they actually are able to assign my a brand new VIN later that day, ready for delivery basically immediately.

Except now the credit union says I have to close out the existing loan for the M3 I rejected, and have to go through a completely new application process again .. and oh and I'm sorry interest rates has gone up by 0.5% since. I can only assume the $350 I paid to purchase gap insurance for the original loan also goes down the drain.

Is this normal behavior from credit unions? I'd expect they should be able to just update the VIN number on the loan since it's the exact same make / model / color / cost.

 

[Eslatay]

You should not lose the GAP money. You will however lose the original interest rate if the loan was already closed. If the loan was not closed, meaning the CU has not given you a check, then they can simply change the VIN. Once the loan has been closed with one VIN, they cannot be re-done with another VIN. Worst case scenario you will lose the interest rate on the original loan.

Yes, in the end the CU refunded the GAP money, but I lost the original interest rate. Turns out rejected deliveries for Tesla happens often enough here that the CU recommends not closing the loan (ie not cutting a check for Tesla) until AFTER people accept delivery.

 

[madrox17]

Yes, in the end the CU refunded the GAP money, but I lost the original interest rate. Turns out rejected deliveries for Tesla happens often enough here that the CU recommends not closing the loan (ie not cutting a check for Tesla) until AFTER people accept delivery.

Will Tesla let you drive it off the lot without being paid though?

 

[Eslatay]

Will Tesla let you drive it off the lot without being paid though?

It's on a per-credit union basis, Tesla will accept a pre-approval letter from this particular CU, hence the CU's recommendation. The delivery center here hadn't heard of it before though, I had to talk to "Fremont Docs" and have them pass this approval down to the DC people.