[Oct 2020] Are you required to submit finance application within 72 hours of placing an order?

[ChuckieCheese]

I submitted the order and received a text from Tesla AND the Sales Advisor to complete the finance application in 72 hours or my car will be "delayed".

Based on what I see in this forum and other places, since delivery can take more than 30 days, it is advisable to only submit credit application about 30 days before delivery since some banks only allow the approval to be valid for 30 days.

Did Tesla changed their policy such that you are now required to submit finance application within 72 hours of ordering?

 

[TeeeeeeDub]

Nope, not at all. In fact, I selected 'Cash' as the form of payment and prior to delivery, will ask to change it to financing. I ordered at the end of Sept.

 

[ChuckieCheese]

In fact, I selected 'Cash' as the form of payment and prior to delivery, will ask to change it to financing. I ordered at the end of Sept.

In my Tesla account --> Manage, once I selected "Cash", I have to submit to confirm the information.

So based on what you said, it seems that once you "submitted" the information, you have to email Tesla to change the "Payment method"? Wouldn't that affect delivery date?

 

[ithinkmac]

Tesla credit check is good for 60 days. So if you do yours now. It's good till end of the year. I think you can stick to Tesla finance, since they'll match whatever lowest rate you can find with your own bank.

-ThinkMac-

 

[dinonugget]

I was told by my SA that filling out all the order forms, including for financing, will place you in the "priority" delivery list. Perhaps this is just a different way of saying that your delivery will be delayed if you do not complete the form for payment.

 

[ChuckieCheese]

Tesla credit check is good for 60 days.

It's the loan approval that have a 30 day limit. For example, Chase stated that on their website.

Since Tesla work with banks instead of having their own financing arm (such as Mercedes Finance, Audi Finance, etc.), how would they guarantee that the banks (Chase, US Bank, etc.) will honor the approval for 60 days?

Also, I was planning to shop around for other banks and CU closer to the 30 days mark. If I apply for 2-3 banks within the same month, FICO will count that as 1 hard pull instead of 3 separate hard pull.

 

[ithinkmac]

I think Tesla must have some kind of relationship with these lenders. I've done in the past, whereas it went way past the 30 day mark, and the loan process went through fine.

Credit pulls within the same month are not counted against you. I don't see much of a drop in FICO score after credit pull, it dips a few points and goes back up after a couple of months (at least for me).

I shop around for the low rates, then I just email Tesla to match it, quite simple. Then I don't have to do separate paperwork, or wire transfers and let Tesla takes care of all the paperwork. Their rate is pretty good, and especially when they can match your best offer. No brainer to stick with them.

-ThinkMac-

 

[ChuckieCheese]

I think Tesla must have some kind of relationship with these lenders. I've done in the past, whereas it went way past the 30 day mark, and the loan process went through fine.

Ah, I did not know that.

However, the timing is what confused me. Let me elaborate:

1). My delivery will be in 1st week of December (this is more than 30 days from October)

2). I plan to apply with Tesla and other banks in November. If say I get approval for lower rate with non-Tesla bank, I have 30 days to accept, which will coincide with the December delivery. This is what I want.

However, Tesla asked me to complete the application by October 21st. That means I have to start applying for other banks by then and the approval form non-Tesla banks will only last till November 21st (before I get the car).

Unless.... what you are saying is this:

1). Apply for Tesla and other banks by October 21st - got approval from Tesla and other banks
2). Other bank have lower rate
3). I tell Tesla of the lower rate and they matched it
4). Now my financing is with Tesla and the approval valid for 60 days

 

[laceyboy]

Tesla arranged finance will last 60 days.
So if you are on East Coast, you can order and apply for loan now.
If you're on West, November is the best time to order and apply for finance.

 

[ChuckieCheese]

If you're on West, November is the best time to order and apply for finance.

I am in West Coast and placed the order a few days ago.

 

[ithinkmac]

I'm also west coast. I placed my order on Oct 1st. Applied for Financing around the 10th I think. So I'm good for 60 days. My order status shows delivery between Nov 5th and Dec 2nd. I got approved for the default 2.49% financing. Already email them to match. Lowest I've seen is around 2%, or 2.xx%. Not that much different than the 2.49% - we're probably talking about a delta of $500-$600 over the life the loan. This will be my 3rd Tesla and all 3 is financed through Tesla provided lenders. ACU, USBank, Chase. Chuckie, you should be good. I think the earlier you get your ducks aligned, the better. loan approved buyers will probably get priority, so if you want one earlier, then complete paperwork early. Otherwise, you might be hitting the EOQ rush by Dec. I need my delivery by EOY for tax reasons. But I also don't want a EOQ rush. So I purposely waited till Oct 1st to place my order, and I have already declined 2 MY2020 builds with battery pack G. Now I'm eagerly waiting for MY21 and H pack.

-ThinkMac-

 

[laceyboy]

IMO, if you go with Tesla arranged finance and got approved, you will get higher priority than others who picked cash or self arranged finance because they know your order is secured.
I ordered my X on 8/3 after test drive same day. Got loan approved on 8/4.
However, I canceled the order on 8/13 by mistake. Then I reordered on 8/15, got loan approved as reference to previous application.
VIN was available on 9/20. We picked up in Renton WA on 9/22. Traded my 2019 CX-9.
I also got H battery pack. Range is now increased to 375 after 2020.40.4.5 installed.

 

[ChuckieCheese]

I placed my order on Oct 1st. Applied for Financing around the 10th

Ah, that's what I need. So you don't have to apply for financing and submit everything in your Tesla.com account within 72 hours.

 

[ChuckieCheese]

I'm also west coast. I placed my order on Oct 1st. Applied for Financing around the 10th I think. So I'm good for 60 days.

I just applied and got approved, but my car won’t be ready till 1st week of December (more than 30 days). I thought I am good for 60 days, but in the approval email, there’s a link to Tesla Financing page that said this:

What happens if I submit an application in advance of 30 days before my delivery date?
Your application would need to be resubmitted within the 30 day window. This would initiate a new credit inquiry, which could increase interest rates. Keep your estimated delivery range in mind with submitting your application by checking in your Tesla Account.

Crap, so this means I may have to re-apply since my car won’t be ready for more than 30 days? I don’t even have a VIN....

 

[ithinkmac]

Talk to your SA. It should be fine.

-ThinkMac-

 

[laceyboy]

I just applied and got approved, but my car won’t be ready till 1st week of December (more than 30 days). I thought I am good for 60 days, but in the approval email, there’s a link to Tesla Financing page that said this:

What happens if I submit an application in advance of 30 days before my delivery date?
Your application would need to be resubmitted within the 30 day window. This would initiate a new credit inquiry, which could increase interest rates. Keep your estimated delivery range in mind with submitting your application by checking in your Tesla Account.

Crap, so this means I may have to re-apply since my car won’t be ready for more than 30 days? I don’t even have a VIN....

What bank you got approved from?

 

[ChuckieCheese]

Talk to your SA. It should be fine.

-ThinkMac-

Just did.

The reason I applied early (30+ days) was because Tesla website said this:

Loan approvals are valid for up to 60 days. Lease approvals are valid for up to 90 days.

I thought Tesla have some sort of relationship with the banks to allow 60 days approval. With ICE cars from past financing, I only get 30 days with the manufacturer banks (Mercedes Finance, Audi Finance, etc.) and regular banks (Chase, WFB, etc.)

I think Tesla need to be consistent in their message. If the loan is valid for 30 days, I would have waited.

 

[ChuckieCheese]

What bank you got approved from?

US Bank. 2.49% APR.

What's interesting though: I got alert from my credit monitoring tools that a bunch of banks ran my credit in addition to US Bank --> WFB, Chase, Harris bank, etc. So I asked Tesla Finance if other banks can give below 2.49% given my credit (High FICO Auto 8 score).

 

[laceyboy]

US Bank. 2.49% APR.

What's interesting though: I got alert from my credit monitoring tools that a bunch of banks ran my credit in addition to US Bank --> WFB, Chase, Harris bank, etc. So I asked Tesla Finance if other banks can give below 2.49% given my credit (High FICO Auto 8 score).

Don't worry, I also have US Bank and it is 60 days

 

[ChuckieCheese]

Don't worry, I also have US Bank and it is 60 days

FYI, Tesla came back with lower rate but with different bank (BMO Harris). I am now curious if this bank have 60 days approval time limit.