Financing Problem from Tesla

[peagsus154]

Hello I have a used tesla vehicle delivery this saturday.
I got a used tesla loan from wells fargo through their preferred financing menu of 3.99%. That is too high, but I already sold my vehicle and I need the car asap.
I just sent in an application to dcu to lower the apr down to 1.24% if possible, but the agent told me that would take at least a week to get it approved and to obtain a check from them.

So I decided to take the loan from wells fargo, and refinance through DCU right away and I have one problem.

They told me there is no pre-payoff penalities but one of the statement in the loan contract from wells fargo says, { you must pay the earned and unpaid part of the finance charge and all other amounts due up to the date of your payment. As of the date of your payment, if the minimum finance charge is greater than the earned Finance Charge, you may be charged the difference].

Does this statement mean I have to pay something when I refinance loan through DCU?
If it is a lot of amount that I have to pay for refinance, I probably will just rent a car and wait for the dcu loan to be get approved.

Can anyone help? Thank you so much.

 

[DayTrippin]

I would wait if you have the option. Less hassle in the long run. I don't even want to get started about Wells where they fraudulently opened up accounts in my name without my consent to make their sales goals.

If you proceed, you will likely be paying the interest on the full amount of the loan. So when you get the payoff quote, they will have it all factored in for you. . Depending on the loan amount, a car rental might be cheaper.

 

[SantaFeSpence]

I've never financed a car, but from what you are saying, is there a monthly finance charge on top of the principal and interest costs?
If it's like most loans, all Wells Fargo is saying is that if your regular payment is, say, on March 1st and you prepay the loan on March 17th, then you would owe any principal and interest (and finance fee if applicable) costs accrued between your most recent monthly payment and the pay-off date.
That is very typical and shouldn't cost you anything above what you agreed to with your WF loan. To simplify things, you could ask the used car seller if they'll hold on to the car for a week until your new loan is approved.

 

[BruceR61]

I don't think you can get the 1.24% loan for a used car. Hope I am wrong.

 

[DayTrippin]

I think it is based on model year usually, not if the car has miles on it. I know one of the CU's I use, they give you the same rate whether the car is new or used as long as it is less than 10 years old.