How long do Tesla take to pay off PCP from trade-in?

[Kansalis]

Has anyone recently traded in a car with outstanding PCP that Tesla have paid off? How long roughly did it take them to pay the remaining balance of your previous PCP agreement?

I traded in my car last week but the payment hasn't cleared for my previous PCP yet & I've now paid another instalment so will be in credit. I didn't want to cancel the DD, as some finance companies don't like that... I'll have to reclaim that payment, but won't be able to until the balance is cleared by Tesla.

 

[Tony Hoyle]

They need the settlement letter to be valid for 2 weeks, so up to that long I'd expect.

 

[plisken]

Took them around 10 days with mine and I also got the left over credit paid into my bank a day or so after that.

It was cutting it a bit fine as my then old finance was due to take their next month's payment so could have been an expensive month into the bargain...

 

[OfficialMark_H]

Tesla have given me a trade in price of my current model 3 against a new model 3, will they pay of the current finance and add the remaining to my deposit?

 

[Kansalis]

Tesla have given me a trade in price of my current model 3 against a new model 3, will they pay of the current finance and add the remaining to my deposit?

Yes, that's how it works with a trade in. There should be a full breakdown on your account page if they have given you a price. Perhaps the breakdown only appears after you accept the quote, I forget exactly when it changed for me. You can always remove the trade in from your RN if you change your mind before full payment.

 

[plisken]

will they pay of the current finance and add the remaining to my deposit?

Or if the remaining amount is more than the max deposit, you'll get the difference paid straight into your bank, a day or so after the finance is cleared. at least that's what happened in my case.

 

[InventEd]

Anyone know who they consider the register keeper for a company car? 'My' M3. I say 'my' M3 because the PCP Black Horse lease is with my employer, has my current car in the name of the company (no persons name on V5). Can anyone drop off a car for trade in if its in a company name?

 

[Kansalis]

Update on this - My previous PCP still hasn't settled according to VW, so I called Tesla finance this morning. According to their records it was paid on 28/2, so it's a good job I've been keeping an eye on it. Seems like a reference may have been wrong or something, so they are looking into it.

Not resolved as yet, but so far the finance department seem very responsive. No queue on the phone at all, the person knew exactly what to look for & took ownership of it. Now waiting for an email with an update.

Lesson learned: If you are trading in a non-Tesla vehicle with outstanding finance, double check your finance is correctly paid off!

 

[PrGrPa]

Interesting thread. I dropped off my Model S and picked up my Model Y on 2022-03-16.
I got the difference between the existing finance settlement figure and the trade-in price paid into my account 2022-03-21.
Today I got a letter from Black Horse asking me to pay up the settlement fee for the Model S.
Seems there's some hiccough in the system.
Emailed Tesla, but expecting to resolve this with Black Horse when I get through to them.

 

[Kansalis]

Emailed Tesla, but expecting to resolve this with Black Horse when I get through to them.

Forgot to update this thread when I sorted mine out.

If Black Horse are anything like VWFS, it may be just a delay in their system updating. It turned out that VWFS had actually received the balance from Tesla the next working day after I collected my car, but their system is so archaic that it took over 2 weeks for any kind of update to reach their website or for the credit to be applied to my account. I'd even called them in the middle of that 2 week period to try to sort it out & was told they hadn't been paid. It then took a further week after that was eventually sorted for my extra payment to be returned.

Tesla had actually sent the payment to settle my trade-in PCP the same day I collected my M3...

 

[MJSPIN_]

Does anyone have any experience of trading in a Tesla Finance PCP very early if replacing with another Tesla? I’m six months in with my M3 and would be interested in upgrading to MY but think I need to have paid half the value before I can hand back my existing car?

 

[SpareHeadOne]

Lesson learned: If you are trading in a non-Tesla vehicle with outstanding finance, double check your finance is correctly paid off!

A good lesson for any vehicle/dealer.

Mrs bought a car off a Volvo dealer a lot of years ago and the finance guy managed to make the settlement cheque out wrong then went on holiday. Cheque bounced and couldn't be resolved until he came back about three weeks later - she had cancelled the DD, so ended up with a black mark on her credit rating for months because they had to chase her to get the money and we had to chase them dozens of times to get that removed.

Still irks me today how finance companies will put a black mark against your rating in seconds when something like this happens, but are more than happy to let it sit there when the mistake is rectified.

Does anyone have any experience of trading in a Tesla Finance PCP very early if replacing with another Tesla? I’m six months in with my M3 and would be interested in upgrading to MY but think I need to have paid half the value before I can hand back my existing car?

No, you can trade in any time so long as the outstanding finance is paid off - so you'd have to cover any negative equity. I started the process after I'd had my existing M3 for about a year because the stupidly high trade-in values meant I'd actually be putting down a larger deposit on the new one.

That said, I'm waiting for a new valuation now thanks to the delivery delays.

 

[Tony Hoyle]

Tesla seemed to pay off black horse fairly quickly, although it took a while to get the letter confirming it.

What they haven't done is made any indication they're going to pay me the 700 odd quid they owe me from the tradein excess.. given it's now over a month I should chase that.

 

[PrGrPa]

Interesting thread. I dropped off my Model S and picked up my Model Y on 2022-03-16.
I got the difference between the existing finance settlement figure and the trade-in price paid into my account 2022-03-21.
Today I got a letter from Black Horse asking me to pay up the settlement fee for the Model S.
Seems there's some hiccough in the system.
Emailed Tesla, but expecting to resolve this with Black Horse when I get through to them.

Just closing this story out.
Tesla had paid off a different Black Horse account.
Once we realised this they amended the payment details and it was sorted next day.
Black horse were less helpful. They provided their automated letters of ‘late payment’, ‘late payment!’, and ‘missed payment’. At no time did they call. Nor did they reply to the two snail mail letters I sent detailing the then ongoing situation.

About a week after Tesla made the correct payment I got a letter from black horse confirming final payment had been made. That it had been made on the date of the original, Tesla-misdirected, payment, and that the agreement was now finished.

Great!

Except I look at my credit score today and see it has dropped and the reason seems to be ‘missed payment’.

Reminds me of the Black Horse of the early 1990s. Fast to act, slow to respond.

 

[PrGrPa]

Does anyone have any experience of trading in a Tesla Finance PCP very early if replacing with another Tesla? I’m six months in with my M3 and would be interested in upgrading to MY but think I need to have paid half the value before I can hand back my existing car?

Just as @SpareHeadOne said, you can trade in any time, or do anything with the car really, just as long as the outstanding finance is paid off.

The 50% paid off you mention might be related to being able to ‘give up’ on the finance agreement when you have paid half of it. Just hand the vehicle back, and ask to end the agreement. Though this does come with penalties for your credit score.

Having said that, it seems that paying off the balance in time can also affect your credit score if black horse are involved.

 

[SpareHeadOne]

I've not read through the agreement, but usually the percent figure they give is when they can no longer repossess the vehicle without a court order you default on the loan.

The only point in a PCP contract that you can simply hand back the vehicle is when the balloon payment is due - if you're under the agreed maximum mileage and the car is in reasonable condition for the age. That's your safety net, if the vehicle is worth less than the outstanding finance then the finance company have to take the hit and you can walk away.

I think Tesla say that you have to ask them if you want to sell the car while covered by the agreement, but I'm not sure if that's enforceable in UK law as long as you repay the finance.