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So uh, who did not get approved for their Model 3?

Discussion in 'Model 3' started by Keith909man, May 7, 2018.

  1. Keith909man

    Keith909man Member

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    I know that a lot of M3 reservations were coming from 1st time car owners, younger folks who may have never bought a car in that price range, bad credit with big dreams, ect. Did anyone here actually had trouble getting their banks to approve them for the amount they needed and gave up and bought something else from there? If so, what was the reason if you don't mind sharing. too high interest? a bad life event? credit wasn't high enough yet? Ive always wondered what happens in the case when someone who put down a deposit and even put down their $2500 to config and later find out they can't secure financing. Does Tesla hold the car for X amount days till you figure it out? or they wont even let you finish and hand the car off to the next person who matches your configuration? I know everyone who placed a deposit wasn't able to fund it once delivery came near. an honest person please share!
     
  2. pkalhan

    pkalhan Member

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    I did not have trouble getting financing, but I wanted to make sure that part of the process was in place before putting the additional $2,500 after configuring. I think it is just the smart way to go...at least for me...make sure my end was good to go before I moved forward with the process. I know other people think differently.
     
  3. SageBrush

    SageBrush 2018: Drain the Sewer

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    I don't know the answer but the $2500 charge reversal is an interesting question.
    Look at it from Tesla's POV: would (should) they return the $2500 to any person who claims financing fell through ?

    Since all these cars are custom orders, I think a fair case can be made to not return the money.

    OP: if you are worried about financing not being approved, it REALLY behooves you to get pre-approval from a lender and then don't do ANYTHING to change their mind later (like more debt, or a reduction in your credit rating.) I don't think this is fool-proof but it is pretty good assurance and probably the best you can do.
     
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  4. pkalhan

    pkalhan Member

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    @sagebush, I can agree with you on that. It is the buyers responsibility to make sure their finances are in order before spending any money on a car or anything else for that matter.
     
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  5. MP3Mike

    MP3Mike Well-Known Member

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    I don't think you can really call a Model 3 "custom" ordered as this point. Your only real selection is exterior color and wheels.
     
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  6. SM18

    SM18 Member

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    Looks like the official agreement states it's non-refundable after three days. I'm pretty sure I've read a few posts about people getting their deposits refunded when they had to back out due to factors beyond their control though.
     

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  7. SageBrush

    SageBrush 2018: Drain the Sewer

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    #7 SageBrush, May 7, 2018
    Last edited: May 7, 2018
    Not custom in that sense, but in return for your order deposit Tesla gives you a VIN and a promise to manufacture that car for you.

    Why have an order deposit at all ? There has to be something(s) gained by the customer in return for the $2500 to Tesla. OP is asking if a customer can benefit from those things an order deposit gives for free. The answer is probably not, although Tesla can of course make exceptions if they care to.
     
  8. Keith909man

    Keith909man Member

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    I’m personally not looking for funding at this time. I currently own a model S and holding out to see what they do with the model Y before I buy another Tesla. This was just a question based on Curiosity. I personally know a couple people who placed a deposit down on a model 3 when this was in fact their first car or even their first car that came close to that price point. I know it took Meany years to build up my credit history and auto loan history to even be considered for a $60k loan. Let alone a 2017 model S I currently own. I know there were a lot of reservation holders in the early days who would have never thought the price would get to $60 for the first production and probably had a hard time convincing the bank when it came down to it.. so what happened when this occurs?
     
  9. EerieP

    EerieP Member

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    Wouldn't a lot of people run this risk if they go with a third party for financing? Correct me if I'm wrong but you're locked in to the $2500 when you configure and it takes 3-6 weeks for delivery which is where you make the final transaction. When getting approved for an auto loan though your rate is only locked in for 30 days, so if your delivery takes 4+ weeks you might run in to some problems. My plan was to get financing a couple weeks before delivery in order to avoid this situation.
     
  10. cmaster

    cmaster Member

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    It took me 3 days to get approval for the Model S. Shouldn't take long to get approval. Not like buying a house.
     
  11. SageBrush

    SageBrush 2018: Drain the Sewer

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    That might lead to a rate change but not disapproval
     
  12. Tezlanian

    Tezlanian Member

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    This varies. My credit union's preapproval was 6 months.
     
  13. gtmotor

    gtmotor Member

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    Dang! I was approved within 30 seconds after submitting an online form and no proof whatsoever. Credit is so easy to get again that it makes me nervous. I fit right into the demographic of an entry level luxury car buyer so maybe that has something to do with it (married, mid-30s, professional, $175-250k annual income).
     
  14. Tezlanian

    Tezlanian Member

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    The approval was instant. How long the offer lasts is six months.
     
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  15. SageBrush

    SageBrush 2018: Drain the Sewer

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    The bolded part means somewhere between little and nothing.

    I have been exploiting credit cards for the better part of 10 years yet I have an excellent credit rating and other than Chase (who I think finally caught on) am offered high credit lines when I ask (which is often.)
    A couple years ago, it was possible to arbitrage zero apr, time limited credit card offers by putting the money into 3-4% apr interest bearing accounts. I collected and used close to million dollars of credit card lines ... and never dropped out of the excellent credit category.

    The secret ? A history of paying all debts, on time, is typically enough.
     
  16. alseTrick

    alseTrick Active Member

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    I feel like you don't fit the demo the op was asking about.
     
  17. Warrentt

    Warrentt Member

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    I didn’t know this is the requirement for Entry level luxury car buyer.

    What would be the target or income level for actual luxury car market, 250k plus to buy a Model S/X.
     
  18. Keith909man

    Keith909man Member

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    Still not a single person here really answered my question. I know there’s at least a couple on this forum who had trouble with getting funded but maybe too embarrassed/shy to come forward to share their experience :p
     
  19. TT97

    TT97 Active Member

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    Apparently, everyone here makes $175-250k :). My guess is that anyone who was rejected and couldn't buy the M3 stopped reading these forums.
     
  20. SageBrush

    SageBrush 2018: Drain the Sewer

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    What do you expect to learn ?

    Credit rejected. Car not delivered. Order deposit probably not returned.

    If it was me I most certainly would not put myself up for your amusement.
     

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