TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Loan before Delivery

Discussion in 'Model 3: Ordering, Production, Delivery' started by cc11, Oct 4, 2018.

  1. cc11

    cc11 Member

    Joined:
    Sep 8, 2018
    Messages:
    9
    Location:
    New Jersey
    I have a few dumb questions regarding the sequence of Loan and Delivery and hope some of you can kindly advise:

    1. I saw a few folks here started the loan (paying for interest/principle) before you actually get the car, because Tesla couldn't deliver on the day scheduled. What happens next - do you keep paying for the loan or can you still back out from the Bank/Credit Union?

    2. If you still pay for the loan, is there any downside other than just paying early? I would think you will pay off the loan early as well, so is it the same amount in total that you paid?

    3. What happens if they assign you a different VIN later, does that mean Bank/CU has to go through the whole new loan application again since this a different car?

    4. I'm about to sign on the loan for a car that suppose to deliver tomorrow but was told car wont be here until Oct 30. I'm wondering if I should just sign anyway to lock in the low interest rate before it expires, or should I hold off until next delivery. But theoretically, they could push out next delivery after I sign the loan docs, so back to the first 3 questions again.

    Thank you for reading the long post.
     
  2. SkillZ2882

    SkillZ2882 Member

    Joined:
    Aug 22, 2018
    Messages:
    11
    Location:
    Union, KY
    1. If you finance, your bank or credit union will wire the money to Tesla. Once the money is wired, it is Tesla's. You can not get the money back. Even if you don't get your car, your loan has started and you are liable for the loan payments.

    2. The loan starts once they wire the funds and ends at loan maturiy per your loan agreement (48 months, 60, months, etc.). The total amount and all other items of the loan agreement remains the same.

    I'm not certain about question 3 or 4. I would assume that if you get a different VIN, the bank could just amend the original loan agreement to reflect the new VIN. Obviously, the problem about signing papers and transferring money before you see the car is that you may need to make your loan payments without getting yor car - if they decide to cancel your delievery after the funds are transferred or if you refuse delivery due to issues with the car.

    Ideally, you don't want to give any money to Tesla (either the bank check for the financed porition or your down payment) until you see and accept the car.
     
    • Like x 1
  3. cfttester

    cfttester Member

    Joined:
    Nov 5, 2014
    Messages:
    191
    Location:
    Bay Area
    Your upside from a cheaper loan is about $1000 per 1% of interest delta over 5 years. Your downside, in case you get really pissed and decide not to buy M3, will be around $300 - $400 on the interest on your loan for the car you didn’t buy. Basically, you will rent money and give them to Tesla for free.

    I guess you should do it to support the cause. :) ;)
     
  4. cc11

    cc11 Member

    Joined:
    Sep 8, 2018
    Messages:
    9
    Location:
    New Jersey
    Thank you. Credit Union could send the check to me, and I can bring it to Tesla when I finally pick up the car. I think this way Tesla would not cash it.
     
  5. cc11

    cc11 Member

    Joined:
    Sep 8, 2018
    Messages:
    9
    Location:
    New Jersey
    Thank you, what do you mean by I should do it to support the cause? Maybe I'm over thinking about VIN being different than what is in the purchase agreement. The ISA didn't hint anything. I just got the FIA from other member's postings.
     
  6. Byeehaaw

    Byeehaaw Member

    Joined:
    Aug 13, 2018
    Messages:
    56
    Location:
    Flushing
    When doing finance and trade in, how do you know the exact amount needed after taxes? Before pulling the trigger, i wanted to get a better sense of how that process works (first new car purchase). How do i use the same plates from the traded on vehicle in terms of registration?
     
  7. Sg911

    Sg911 Member

    Joined:
    Jul 6, 2018
    Messages:
    582
    Location:
    Fort mill SC
    As the delivery date gets near , you should received an updated MVPA reflecting the taxes and your trade in evaluation , if you accept it, on there.

    Make sure You tell your IDA You are transferring a tag!
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC