Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Model 3 Financing

tkirven

New Member
Jun 25, 2021
1
0
Houston
I applied for loan financing through Tesla with preffered down payment of 4500 for the Model 3 long range. The starting interest rate mentioned before submitting was around 2.49% APR, but after I my application went through it came back with a down payment of ~15,000$ and apr of 6.28% which seemed a little unreasonable to me.

So I called them to cancel the financing and look for a 3rd party loan but was denied from 3 separate lenders (lending tree, alliant, capital one) but I have no idea why. My credit score isn't even bad (740) and just finished paying off 60k+ in student loans. I'm afraid to go back through Tesla, since theyll do another hard credit check and probably give me an even higher interest rate than before.

Has anyone else experienced anything like this? Should I look for another lender or just go back through tesla? since they're the only ones who have offered me anything so far.

Much appreciated.
 

tech_nerd

Member
May 16, 2021
73
44
Philadelphia
Usually doing multiple credit pulls within a month doesn't hurt your credit too much, but I wouldn't go nuts. You might want to run your credit report and make sure you don't have anything bad going on, like some fraud. Do you have other items on your credit report like credit cards, mortgage, etc? If your only credit was your student loans and they're off your report, your "credit history length" may have gone down a significant amount and impacted things? I'm just grasping at straws here, definitly look at your report and/or credit karma, they give you ideas about your score.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Nov 28, 2018
10,433
11,785
Riverside Co. CA
I applied for loan financing through Tesla with preffered down payment of 4500 for the Model 3 long range. The starting interest rate mentioned before submitting was around 2.49% APR, but after I my application went through it came back with a down payment of ~15,000$ and apr of 6.28% which seemed a little unreasonable to me.

So I called them to cancel the financing and look for a 3rd party loan but was denied from 3 separate lenders (lending tree, alliant, capital one) but I have no idea why. My credit score isn't even bad (740) and just finished paying off 60k+ in student loans. I'm afraid to go back through Tesla, since theyll do another hard credit check and probably give me an even higher interest rate than before.

Has anyone else experienced anything like this? Should I look for another lender or just go back through tesla? since they're the only ones who have offered me anything so far.

Much appreciated.

Well...

YOU may think "my credit is not even that bad, I just ...........XXXXXXX", but getting turned down by three different lending issues should tell you that lenders definitely see you differently than that description above.

Before you even go through with buying the car, you need to find out what, exactly is causing this credit denial / high down payment requirements. Either you already know (thus, your statement of "my credit is not that bad" is not accurate here), or you dont, in which case you may be dealing with identity theft or something else on your credit that you are not aware of.

Since you posted asking what you should do, that should be to get your free copy of your credit report ( Annual Credit Report.com - Home Page ) and go through it to see whats on there, and see if you see something that you dont know about.

Getting denied by 3 different companies regarding this loan is not a good sign for you in regards to being in a good situation with a new expensive car.

Back to your question, however, multiple hard pulls for a car loan only drop your score once, if done within a 2-3 week timeframe, because it is one of the types of loans that people are allowed to "shop" for. As long as you didnt start a loan with one of those places, its only one ding on your credit, not 4, even though its separate hard pulls. If more than 3-4 weeks have elapsed, however, it will be another hard pull, but your already in a situation where its fairly negative from the credit company standpoint so....
 
  • Like
Reactions: holeydonut

nite

Member
Jun 25, 2021
17
20
Texas
Have you ever had an auto loan with a larger payment? If not that may be what your issue is. I would definitely do what @jjrandorin recommended and check your credit through annual credit report to see if anything is being reported that shouldn't be. Not sure what your income is either, but that could be a reason why.
 

oreobbq

Member
Jan 8, 2021
238
309
Houston
I assume it may have to do with your track record and debt to income ratio. Maybe a local credit union can offer something more reasonable.
 

Products we're discussing on TMC...

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
Top