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Tesla suddenly changed loan bank and that caused increased rate 4% to 7%
- Thread starter Christmas
- Start date
smallindiana
Member
What?! I’m confused. You got a VIN, Tesla Financing @ 4.79 and they raised it before your delivery?
MatildaModelY
Active Member
7%? I haven't heard of any auto loans at 7% yet... I don't see 7% anywhere listed on any bank rates guide.
smallindiana
Member
Yeah right now rate is 7.49. Should I press the confirm button? Delivery date is this Sunday.
fiehlsport
Tire Guy
Assuming you have good credit, you can go with literally any local bank and you'll still beat 7%. That is a terrible rate, I wouldn't tell anyone to accept that on such a large purchase.
But if you already locked in the lower 4% rate and it hasn't expired, there's no reason Tesla should be changing it. Has it been greater than 30 days since you were originally approved? Has your credit changed?
But if you already locked in the lower 4% rate and it hasn't expired, there's no reason Tesla should be changing it. Has it been greater than 30 days since you were originally approved? Has your credit changed?
smallindiana
Member
Tesla loan approvals are only valid up to 60 days they says. Last time it was 4 % with wells fargo. But yesterday after set the delivery date Tesla sent me 3 emails regarding loan application those lead me to Tesla account page and I found bank and rate is changed. I don't know maybe because still didn't pay off my model 3 loan? I'm selling it through Vroom and waiting they pay off my loan balance.
To avoid delay I guess I might have to go through with it.. thank you for the useful advice.
This obviously assumes you have good credit. You can easily check to see what your bank auto loan rates are to get an idea what you can refinance to. Most banks post this info on their website.
Why use Tesla finance at all? Other banks should be able to beat the rate and expedite the process.
The only reason that your rate would change like that would be because something changed in your credit profile. Its none of our business, but rates dont "jump 3%" for no reason. They just dont.
If they changed banks, and the rate went up, its because something happened with your credit profile for those rates to change. Either something showed up in your credit that didnt show before, or something new is on there that wasnt there before, etc.
if you didnt buy anything recently via loan (in the past 90 days), and are completely unaware of what might have caused your credit profile to change, then you need to start looking into whether you are a victim of identity theft.
If your rate was 4% before (when interest rates were lower), it does not appear you were getting base financing rates before either.
It takes like 15-20 minutes to apply for a vehicle loan, and the loan doesnt need to be through tesla. If you are like virtually all of america, you have a bank / credit union you bank with (that your paycheck goes into). Have you tried applying with the financial institution you bank with?
There is nothing special about "tesla financing" at all, so you can go anywhere, but based on what you have posted here you were not getting base rates before, either.
Note that I will repeat again, your credit is none of our business and I am not trying to make it our business. Your credit is your business but it is the reason you are getting these rates.
ElectricIAC
Good-Natured Rascal
Is it possible that the original credit inquiry of the loan was right at the borderline of getting the 4%, and because of the hard pull, the credit score actually dropped below the borderline. And now when it is close to the delivery day, the loan company checked again and see the lowered credit (because of the original pull months ago) and did not approve the loan, so Tesla has to switch you to a high rated loan company that accepts lower credit score.
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