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 or making a Paypal contribution here: paypal.me/SupportTMC

Pre approval of financing

Discussion in 'Model S: Ordering, Production, Delivery' started by broncophil, Jan 15, 2015.

  1. broncophil

    broncophil Member

    Joined:
    Jun 21, 2014
    Messages:
    42
    Location:
    Cali
    Does anyone know if any banks in Cali that does pre approval for financing or leasing of a model s?

    I've read a couple threads about people who were not approved after their car was built.
     
  2. Gizmotoy

    Gizmotoy Active Member

    Joined:
    Sep 16, 2013
    Messages:
    3,132
    Location:
    Bay Area, CA
    Any bank will pull your credit at any time for purposes of securing an auto loan. There's no dependency there. You tell them how much you want, they run your credit, and let you know your approval/rate.

    The reason people wait is that your approval is only good for, typically, 30 days. Once that expires, you have to reapply. The first application may have result in a slightly lower credit score the second time around, so if you're on the border you may end up with a higher rate because of it.

    Honestly, if you're pretty sure you'll quality, if it were me, I'd just wait until two weeks or so before delivery. The purchase agreement has an escape clause where your deposit is refunded if you can't secure suitable financing. There's no financial risk to you for waiting, but there is risk to applying early.
     
  3. Thud

    Thud Member

    Joined:
    Jun 25, 2014
    Messages:
    236
    Location:
    Atlanta
    Be careful if you apply for Tesla financing.... they will apply to multiple banks and each one will pull your credit, and all those credit queries will drop your credit score.
     
  4. Fezzik

    Fezzik P67429

    Joined:
    Nov 6, 2014
    Messages:
    478
    Location:
    Lincolnshire, IL
    I thought pulling credit check for loans did not make you take a hit on your credit score. Normal checks will but from banks i thought not.
     
  5. broncophil

    broncophil Member

    Joined:
    Jun 21, 2014
    Messages:
    42
    Location:
    Cali
    i did not know that there was an escape clause. but doesnt that depend on what is considered suitable? say i was looking for sub 3%, but i get 5%, wouldnt tesla say thats "suitable"?
     
  6. Txy

    Txy Member

    Joined:
    Dec 10, 2014
    Messages:
    42
    Location:
    Earth
    Here is the order agreement: https://my.teslamotors.com/order/download-order-agreement?country=US

     
  7. PlanB

    PlanB Banned

    Joined:
    Oct 4, 2014
    Messages:
    579
    Location:
    Oregon
    It's a big hit, it knocked my scare down 10 to 15 points.
     
  8. mynameisjim

    mynameisjim Member

    Joined:
    May 19, 2013
    Messages:
    49
    Location:
    Minneapolis
    Groups of credit checks count as a single event, so shopping banks within one month is no change
     
  9. PlanB

    PlanB Banned

    Joined:
    Oct 4, 2014
    Messages:
    579
    Location:
    Oregon
    I have heard that as well but I wouldn't rely on that. banks will use any excuse they can to charge a higher rate.
     

Share This Page