Initial loan had incorrect VIN, Tesla wants to run credit again and sign new loan.

[hiltxan]

Apparently Tesla sent the wrong loan which I signed when I took delivery in March, so they voided that one (wrong VIN since I had several orders at the time). They want me to sign a new one, but they also want to run my credit again, which will drop my credit score at a time when I'm trying to purchase a home and could potentially cost me potentially thousands in terms of a 30 year loan.

My question is, do I technically even own / purchased the car? I told them I would be willing to return the car since there were some defects that Tesla service still hasn't gotten back to me, but it would fall under voluntary repossession and stay on my credit score for 7 years. I'm asking for some incentives back, such as either FSD or purchasing the car as "used" for a further discount but still waiting to hear back from them. What are my options here?

 

[MP3Mike]

I told them I would be willing to return the car since there were some defects that Tesla service still hasn't gotten back to me, but it would fall under voluntary repossession and stay on my credit score for 7 years.

If they voided the loan how could it fall under voluntary repossession? Did your purchase agreement, and title, have the correct VIN on it? If so I would think you have purchased the vehicle and owe them the money. (Technically the loan is a separate contract from the purchase of the car.)

As far as options you might want to contact a lawyer for a quick consultation to see what your options really are.

 

[75Shappyt]

may I ask, why more than one order, and how many orders?

 

[Silicon Desert]

They want me to sign a new one, but they also want to run my credit again, which will drop my credit score at a time when I'm trying to purchase a home and could potentially cost me potentially thousands in terms of a 30 year loan.

Having been involved at one point as a loan officer, the wife says she greatly doubts that. a credit check like that typically cost you just one or two points. So unless you are right on the threshold of whatever "magic number" the home loan company uses to determine your rate (like 730 or 750), you're not going to see any difference in the rate they offer you.

 

[davewill]

Mistakes happen. I'd just sign and let them run the extra credit check.

Credit Checks: How Credit Report Inquiries Affect Your Credit Score| myFICO

Will my FICO® Scores drop if I apply for new credit?
If your [FICO Scores] change, they probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on your credit scores.

 

[hiltxan]

It’s been more than a few months, so the credit score will drop. Scores don’t drop if the credit pulls were all within a month. After the first inquiry my score went from 800s to 750s. If after the second inquiry I’m worried it could drop to low 700s or even below.

I ordered one online but also looked everyday for an inventory model and ultimately got the inventory one, so that’s why there were multiple orders.

 

[75Shappyt]

I'm not sure it can hurt your credit score, if that is true it would be real hard to kept a high credit score, your credit score can be check for other reasons then just for applying for credit.

 

[islandchick]

Talk to a lawyer and keep copies of ALL correspondence. Where have your payments been going?

 

[jjrandorin]

I'm not sure it can hurt your credit score, if that is true it would be real hard to kept a high credit score, your credit score can be check for other reasons then just for applying for credit.

Applying for any type of credit is a no no when buying a house ( one should not buy a new anything on credit when shopping for a home). I am not in the loan business at all, but familiar with credit from researching it. @Silicon Desert gave the same answer I would (and its coming from a loan officer according to @Silicon Desert so should carry more weight with the OP).

Unless you are right at the threshhold of a magic number (either credit score, or debt to income ratio), the extra credit pull might or might not hurt you. The other thing thats strange is tesla "voiding the loan".

if they voided the loan, you should be within your rights to either sign another loan, OR return the car. Im not a lawyer though so you would want to check with one... but regular ICE car dealers sometimes try this "we made a mistake" thing to change terms on a deal. Most of the times its honest.... sometimes its not. If the terms of the deal change and you dont agree to the new terms, you should be able to return the car.

With that being said, if you were buying from a regular "dealership" you could just go do business with another dealer if you didnt like how this one was treating you and returned the car. They couldnt "blackball" you per se. Since you are dealing with the manufacturer, not sure how that would work, if you return the car in this case as they dont want it back at this point.

Did your loan ever fund?

 

[hiltxan]

The loan funded and I made 2 payments, both of which were returned to me by check after Tesla “Unwind” the loan by paying it off in full.

I’m still waiting for Tesla’s response, been about 3 days so far since I last heard from them.

 

[jjrandorin]

The loan funded and I made 2 payments, both of which were returned to me by check after Tesla “Unwind” the loan by paying it off in full.

I’m still waiting for Tesla’s response, been about 3 days so far since I last heard from them.

If they unwound the deal, I am unsure how that would be "voluntary reposession". Again, I stress I am NOT a lawyer (and I didnt even stay in a holiday inn express last night ), but if they unwound the deal, and you dont like the terms of the new deal for any reason, it seems to me that you would have the right to return the car.

Definitely worth checking with a lawyer for some advice. Sometimes in car deals, dealers say things that are not 100% correct, in an attempt to get what they want. Sometimes its innocent (they dont know) sometimes its not (they want what they want and want to strong arm someone into doing what they want... scare tactics basically).

I dont know what the rules are here, but it might be worth it to check with a lawyer for sure, just so you know what they actually can and cant do, and not what they are telling you they can and cant do.

 

[MP3Mike]

If they unwound the deal, I am unsure how that would be "voluntary reposession". Again, I stress I am NOT a lawyer (and I didnt even stay in a holiday inn express last night ), but if they unwound the deal, and you dont like the terms of the new deal for any reason, it seems to me that you would have the right to return the car.

It sound like they only unwound the loan not the whole deal. If the MVPA had the correct VIN on it then the sala is still valid he just has to pay Tesla somehow.

 

[jjrandorin]

It sound like they only unwound the loan not the whole deal. If the MVPA had the correct VIN on it then the sala is still valid he just has to pay Tesla somehow.

But isnt the loan and the deal = to the same thing? I dont know, I am asking... the "deal" is the loan for the car....

 

[MP3Mike]

But isnt the loan and the deal = to the same thing? I dont know, I am asking... the "deal" is the loan for the car....

The loan is normally separate from the purchase of the car. (unless the MVPA had something in it that says it is contingent on the loan funding.)