Last minute loan changes?

[Minigakkun]

Hi everyone ! I’m in need of advice and was wondering if anyone has had this problem with a last minute change on their Tesla loan? Who has the last say in the loan approval?


Here’s the backstory. I ordered a brand new Tesla model 3 on 10/22/19 the sale was conditioned on a $100 non refundable down payment and a $1500 upfront tax paid out of pocket with the rest of the car loan when financed. My sales rep told me I will receive the vin within 3 weeks of the car’s delivery date/done being built and I will receive the car mid December or before the end of December. I was told to wait to apply for financing for a couple weeks or the end of November (it’s void after 30 days, then must apply again).


I was sent an email 11/14/19 that I could apply for the loan -if I planed to apply through Tesla. I applied and was approved on the same conditions. I was approved right away (have excellent credit) for the full finance of the car and it said In my account that I only owed $1500. I have screen shots.


I continually asked my sales rep for the the vin and he assured me that I will get it soon.


On 11/26 my sales rep asks for my insurance and I give that to him “to finalize paper work”.


Still no vin.


On 12/7 I confirm the delivery date for 12/11. Still no Vin. I check my Tesla account almost every day and I only have an rn number and no vin with the loan approved and saying I owe $1500.


12/8 is My last screen shot of the loan saying I owe $1500 which is 3 days ago from 12/11.



On 12/11 I go to get the car. I moved to A different state and go to the pickup destination. I asked my sales rep before I go there what the vin is, I need to insure the car. He gives me the vin (finally?!) and I go to finalize the paperwork and the rep there is telling me to pay $4900 upfront and I am approved a very specific amount of money ... down to the cents. Which he comments is odd. I am shocked and upset.


Now I am getting the run around from the bank and the two reps. Saying to talk to the bank or the dealership to figure out why this happened.


This is very frustrating and has tainted my experience with Tesla. What was suppose to be a happy experience has become a headache.


I am seriously thinking to return the car on principal. I feel taken advantage of. I was so excited about my Tesla and a big fan of Everything that is Elon musk.



Does anyone know who is in charge of the loan approval process? What’s going on here ? Any similar experiences with last minute loan changes ? No email no notification! Until signage?!

 

[ZappCatt]

You moved to a different state after the initial approval for your loan, the terms changed, and you are unhappy with Tesla. Is that correct?

 

[MountainRatMat]

Consider this a sign...go through a credit union, not Tesla, and get a better rate. It will save you money.

While I say that, Tesla also doesn't have the delivery totally figured out, I hear stories like this all the time. Tesla as a company is far from perfect but they make a darn good product so I would still get the car, just use it to your advantage and save a little money on the loan.

 

[Big Dog]

why not dump Tesla loan services and hit up a local credit union?

 

[p4594spa]

Just so you know, Tesla only gathers the loan info from you. They pass that info to 3 different banks. On my order, which is being delivered next week, it actually shows the bank doing the loan. You might want to contact that bank directly and see what you can do

 

[jjrandorin]

Hi everyone ! I’m in need of advice and was wondering if anyone has had this problem with a last minute change on their Tesla loan? Who has the last say in the loan approval?


Here’s the backstory. I ordered a brand new Tesla model 3 on 10/22/19 the sale was conditioned on a $100 non refundable down payment and a $1500 upfront tax paid out of pocket with the rest of the car loan when financed. My sales rep told me I will receive the vin within 3 weeks of the car’s delivery date/done being built and I will receive the car mid December or before the end of December. I was told to wait to apply for financing for a couple weeks or the end of November (it’s void after 30 days, then must apply again).


I was sent an email 11/14/19 that I could apply for the loan -if I planed to apply through Tesla. I applied and was approved on the same conditions. I was approved right away (have excellent credit) for the full finance of the car and it said In my account that I only owed $1500. I have screen shots.


I continually asked my sales rep for the the vin and he assured me that I will get it soon.


On 11/26 my sales rep asks for my insurance and I give that to him “to finalize paper work”.


Still no vin.


On 12/7 I confirm the delivery date for 12/11. Still no Vin. I check my Tesla account almost every day and I only have an rn number and no vin with the loan approved and saying I owe $1500.


12/8 is My last screen shot of the loan saying I owe $1500 which is 3 days ago from 12/11.



On 12/11 I go to get the car. I moved to A different state and go to the pickup destination. I asked my sales rep before I go there what the vin is, I need to insure the car. He gives me the vin (finally?!) and I go to finalize the paperwork and the rep there is telling me to pay $4900 upfront and I am approved a very specific amount of money ... down to the cents. Which he comments is odd. I am shocked and upset.


Now I am getting the run around from the bank and the two reps. Saying to talk to the bank or the dealership to figure out why this happened.


This is very frustrating and has tainted my experience with Tesla. What was suppose to be a happy experience has become a headache.


I am seriously thinking to return the car on principal. I feel taken advantage of. I was so excited about my Tesla and a big fan of Everything that is Elon musk.



Does anyone know who is in charge of the loan approval process? What’s going on here ? Any similar experiences with last minute loan changes ? No email no notification! Until signage?!

Chibigakkun,

Tesla does not have a captive finance company, and they are in the business of selling cars. Loan approvals are ALWAYS by the financial institution. Now, numbers change sometimes when your credit is pulled again, which happens sometimes. Many times a financial institution will pull your credit again right before you take out a loan, if there is a lag time between when you apply and when they fund.

Now, I am not in the financial industry, but have educated myself on how both car and home loans work. Couple that with your story, and I have a question for you that might help me help you figure out what happened. Its my belief that you "buried the leade" in your story. Its my belief that this "discrepancy" can be explained by the answer to the following question:

When you say "I go to pickup the car. I moved to a different state and go to the pickup destination". What actually happened there? Did you buy a house, or purchase a bunch of stuff on credit cards in preparation for your move to a different state?"

What I suspect happened is this:

You did an approval for a car loan. You then either closed on a home loan or charged a bunch of stuff on a credit card (or credit cards) in preparation and execution of your "move to another state", changing your debt to income ratio. The bank pulled your credit again (their right) right before pickup, and found additional things on your credit report that were not there before. You no longer qualified for the financing they approved, and they approved you a different amount.

All of that is fairly common, and why people are always told when buying a house "dont do anything, dont buy anything dont change anything".

I am guessing of course, so am asking you... what was in your "move to another state" and can that be traced back to ANYTHING that would have put additional items on your credit report?

 

[Minigakkun]

No. I moved out of state with my boyfriend and live rent free. I actually reduced my debt to income ratio as well because I paid off my car loan by selling my previous car. I came up on that sell.

I spoke with US bank and they said it was ALL Tesla who does the approval and us bank just finalized what Tesla approves.

I spoke with the Tesla rep and he said this was a “glitch” that has happened to a small amount of customers. They were able to fix some cases and others not so much.

In my case, I was a deer in head lights and I’m quite socially anxious so I didn’t know what to do in the situation. Im not very good with sticking up for myself. Also, quite exited to get my car.. I transferred the money and paid it. Once I got home, people who were mad on my behalf got me thinking straight for myself. I feel taken advantage of and it sucks.

A Tesla manager is now telling me because I paid and signed the contract, he can’t do anything for me, but offer for me to return the car and buy in a NEW trim. Which is absurd, I need the all wheel drive in Colorado which is what I currently have. So I’d have to wait another 8-10 weeks to get the Tesla 3 in a trim I don’t want.

Perfect. Ruined my experience completely.

 

[Minigakkun]

No. I moved out of state with my boyfriend and live rent free. I have a rental condo. I also minimized my debt to income ratio by selling my previous car. I came up on that sale.



I called US bank and they said they had no handle with the approval process. That Tesla handles the approval and they just finalize what Tesla approves. The agent told me she just sees what Tesla sends in and nothing else.




I then spoke with a Tesla manager and he said this was a “glitch” that has happened to a small amount of customers. In some cases they were able to fix the problem and in other cases not so much. In my case I was not helped by the rep in Colorado at the Littleton pickup location. (the state I moved in). I told him I was only due the tax $1500 but he said the bank approved me of this specific amount. I’m quite socially anxious and have a hard time speaking up for myself. He said I was due $4900 and He just basically said it might have been my debt to income ratio or student loan etc. That’s all bullshit looking back on it. If anything those things decreased for me. On top of being excited for my car and being extremely shy I just paid the $4900.


Once I got home, people who cared for me we dissected the situation. I have screen shots for what I approved for. I saw how much I approved for three days before in my account before I went to the pickup location in my Tesla account. I applied for the loan around 11/24 and approvals are good for 30 days.


If I was approved for a lower amount it wouldn’t change until 11/24. I picked up my car on 12/11. No, I made no huge purchases or hard credit checks.


So if loans are handled by Tesla I am suspect by the rep in Littleton Colorado.


Does anyone have any advice?


On principal I want to return the car. I love it so much but I feel annoyed every time I think about how it was purchased. Thank god my boyfriend is very supportive since I made the move for him. He’s willing to help me financially and emotionally so it’s a less sour experience.


Any ideas? Should I file complaint somewhere?

 

[Minigakkun]

why not dump Tesla loan services and hit up a local credit union?

Thats why some parts of this seem shady. I continually asked for my vin through the whole process. I did not receive the vin until 2 hours before I went into Littleton Colorado. Never received notification of loan changes.


If I was given a vin, you bet I’d be shopping for rates! If I knew I was not fully financed through Tesla I would obviously shop for rates. Seems shady???

All information was withheld from me till last minute and on top of that the loan changed. My debt to income ratio decreased. The loan approval is good for 30 days. I was approved 11/26.... loan changed 12/11.

I called US bank and Tesla and they are all pointing figures at each other. I’m getting the run around.


And my final response from a Tesla manager is that “there’s a Glitch”

Hopefully people will be more aware that even companies who are highly advanced, technologically, still get “glitches” like these.

I still love my Tesla and a fan of anything musk but I dislike what’s going on here

 

[Sherlo]

Curious, does the $4900 includes taxes and fees?

 

[jmcmill]

Curious, does the $4900 includes taxes and fees?

That is precisely my guess as the numbers are in the right ballpark. An SR+ depending on configuration and tax rates is about $5000

 

[Skymogul]

the sale was conditioned on a $100 non refundable down payment and a $1500 upfront tax paid out of pocket with the rest of the car loan when financed.

You would owe sales tax, destination and title as a down payment. Destination alone is another $1,200 above sales tax, and title varies based on your state. I'm thinking sales tax is what happened to you here because...

I moved to A different state

So your sales tax rate would have very likely changed. Your original loan offer would have been computed on your state of residence's tax rate. When you picked up the car in the new state, you had to pay the new state's sales tax rate as part of your down payment. Your title fees also most likely changed as a result of you moving.

 

[jjrandorin]

Thanks for coming back and replying.

Very confusing, for sure. My initial thought (after the hard credit pull etc, which you stated did not happen) is what others mentioned regarding "down payment" vs "drive offs"/

Many people confuse the two but they are different. A down payment is always part of drive offs, but drive offs dont have to include any down payment.

Downpayment = amount paid to reduce the amount borrowed on the car.

Drives offs = amount you have to give to the "dealer" to leave with the car.

If you pay taxes and fees up front, for example, Drive offs on a loan with no down payment can still reach 3500-4000. Drive offs include things like:

Taxes
Destination charges
First month payment
Documentation charges
Registration charges.
negative equity from trades

All those things need to be paid, and none of them are "down payment", even though people think of them the same way because its an amount they have to give to leave with the car. Some of those amounts can be wrapped into the loan (increasing the payment).

Couple that with your move, where your taxes and registration charges changed because you changed states, and I could see where you had more due at signing than you expected.

Without looking at your specific numbers I am not sure exactly what happened, but one thing I would tell you is, where in normal car dealerships there can sometimes be manipulation of the numbers to make more profit, a tesla delivery center has no such motivation. When tesla makes a mistake, its normally because they are making a mistake (semi incompetence), vs a car dealership which may be cooking the numbers to make more profit.

The other thing that confuses me a bit, is none of this would change your amount approved. it would change the amount your amount financed and amount of down payment needed, but wouldnt change the amount you had been approved for. That part I am not understanding from the tesla end.

I totally get doing things on principle, but sit down and take a look at the numbers and situation and see if that is worth it to you. In any case, good luck with whatever you decide to do.

 

[Salamander01]

Didn't read all replies, but use Alliant Credit Union in Chicago. 24 hours to apply and for them to "FUND" the loan. Quick and fast turnaround. Anyone can join for $5.

 

[Minigakkun]

You can see in my account that I am approved for exactly $3500 less than the full total of the car.

Sales tax on the car was $1500. (which is what my Tesla account consistently said I owed).

Hence I paid $4900 to be put the door with my Tesla.

Up until three days I only owed $1500 to take home the car and was approved for full financing on 11/26.

 

[Minigakkun]

Looks like it’s a second “down payment” to me. Looks like all fees included and destination change as well. I was approved and fully financed until 3 days before 12/11. Originally approved 11/26.

 

[Minigakkun]

I hope Tesla is listening because if they had a real competitor this is the type of thing they would lose customers over. I guess other car companies should be listening too, ha.

 

[jagsNYC]

Hi everyone ! I’m in need of advice and was wondering if anyone has had this problem with a last minute change on their Tesla loan? Who has the last say in the loan approval?


Here’s the backstory. I ordered a brand new Tesla model 3 on 10/22/19 the sale was conditioned on a $100 non refundable down payment and a $1500 upfront tax paid out of pocket with the rest of the car loan when financed. My sales rep told me I will receive the vin within 3 weeks of the car’s delivery date/done being built and I will receive the car mid December or before the end of December. I was told to wait to apply for financing for a couple weeks or the end of November (it’s void after 30 days, then must apply again).


I was sent an email 11/14/19 that I could apply for the loan -if I planed to apply through Tesla. I applied and was approved on the same conditions. I was approved right away (have excellent credit) for the full finance of the car and it said In my account that I only owed $1500. I have screen shots.


I continually asked my sales rep for the the vin and he assured me that I will get it soon.


On 11/26 my sales rep asks for my insurance and I give that to him “to finalize paper work”.


Still no vin.


On 12/7 I confirm the delivery date for 12/11. Still no Vin. I check my Tesla account almost every day and I only have an rn number and no vin with the loan approved and saying I owe $1500.


12/8 is My last screen shot of the loan saying I owe $1500 which is 3 days ago from 12/11.



On 12/11 I go to get the car. I moved to A different state and go to the pickup destination. I asked my sales rep before I go there what the vin is, I need to insure the car. He gives me the vin (finally?!) and I go to finalize the paperwork and the rep there is telling me to pay $4900 upfront and I am approved a very specific amount of money ... down to the cents. Which he comments is odd. I am shocked and upset.


Now I am getting the run around from the bank and the two reps. Saying to talk to the bank or the dealership to figure out why this happened.


This is very frustrating and has tainted my experience with Tesla. What was suppose to be a happy experience has become a headache.


I am seriously thinking to return the car on principal. I feel taken advantage of. I was so excited about my Tesla and a big fan of Everything that is Elon musk.



Does anyone know who is in charge of the loan approval process? What’s going on here ? Any similar experiences with last minute loan changes ? No email no notification! Until signage?!

 

[jagsNYC]

Oh wow! I waited for two months and the first MS had some quality issues and I rejected it. Loan was locked in at 2.49. I was paying about 50k cash and financing 46k. Another month and a half and two days before delivery they changed the bank and rate to 2.99!! I contacted my advisor and he gave me an email address to write to which I did. They said they offerd a new rate but with income verification. I uploaded tax returns(Im self employed) and they said they want pay stubs. I said I get K1 as a s corp and very little on w2. Looks like the banks/ Tesla are trying to get extra interest at the very last minute and ruining the experience of ordering. One defective car has already killed the excitement and now this. Just like you, I am feeling very bad! Even if I take the delivery, Ill be living with this thought and feeling they try to extort. I try not to let negative things sink in but it hard not to.