TomServo
Active Member
As others have said, take delivery then shop around for a better rate and re-fi.
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Tesla suddenly changed loan bank and that caused increased rate 4% to 7%
- Thread starter Christmas
- Start date
That would be good advice if someone had a high credit score and could reasonably expect to go anywhere and get the best rates. Its my opinion that if that isnt the case (top tier credit with an expectation to get any financial institutions best rates), that it would not be good advice to simply take the loan and refi.
Better to shop around and try to get the best rate one can now, before they take the loan. To me, its actually worth it settling this now and skipping this vin if needed to do so, IF one does not have top tier credit and the expectation that they will be approved at the "best rate offered" by basically every financial institution.
Given that this OP is stating that their rate was pushed to 7% for some reason, it doesnt appear they fit the description of " expect to get any financial institutions best rates", so i feel its better to sort this out now. There isnt any guarantee they would be able to refi into something better.
If you stopped paying on your loan and the buyer hasn’t paid off your lender then it may have tanked your credit rating.
I’d take a look at that. If that’s the case, you might not be able to refinance at a better rate.
ElectricIAC
Good-Natured Rascal
Vroom told me I have to make payment until all things are done. And if I overpay loaner will pay me b ack. So I did. Here is answer from Tesla
'Tesla does not exert any control over our partner lenders. Rates have changed over time, and if anything changed with your situation, you may see changes in any approval after your old approval expired.'
I don't want to delay delivery date any more. So I will accept ridiculously high rate for now and check if I can find loaner who can give me reasonable rate. Thank you for your advices everyone!
You may not be able to get a better rate. As others pointed out, 4% was still high. It sounds like your credit isn't great. Are you able to maintain 7%? If not, I'd shop it now.
I agree with this. Sure, you can refi right after taking delivery too, I don’t see a problem with that. But with five business days available, that’s plenty of time to get approved by your bank or credit union, even an out-of-state institution, and have them overnight a check. I am in California and used an out-of-State credit union for our Model S and everything was done in three days. Well, technically I didn’t receive the check until the fourth day. But yea, if your credit is excellent then there’s still time to get your own financing done and have everything ready before Sunday’s delivery. Refi later is a good backup plan.
EDIT: My memory is wrong. The Model S was a few years ago and the credit union was in California but didn’t have any branches local to me. They were a regional CU three hours away with the best rates at the time. The process was still quick and easy though.
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fiehlsport
Tire Guy
Right, I can go down to my credit union right now and be out of there in a half hour with a check in hand. Seems like there's more to this. You can pick any bank in a 20mi radius and do better than 7%!
If nothing changed in his financial situation I would recommend you refuse this rate. Tesla will go back and check other Financial Partners for a lower interest. Tesla has an entire financial dept located in Palo Alto. I have refused Tesla rates in the past and called Palo Alto / emailed and requested they do better. Remember Financial institutions frequently compete with each other for your business and Tesla as a Manufacturer also benefits by selling at higher interest rates. PS your vehicle will be a used car loan if you attempt to refinance a day after you take possession and your used car rates are always higher than new car rates........
kaimanson
Member
I recently went through AdelFi Credit Union. When I went through them they had a 60 mo purchase financing as low as 2.20%. I refinanced my Model 3 @2.65%.
kaimanson
Member
not sure why one would add GAP insurance to a car that appreciates in the first two years off the lot. GAP insurance on these cars is a waste of money right now.
ElectricIAC
Good-Natured Rascal
Because that’s not typically what happens.
Just like everything else in clown world we’ve been in for the last 30 months.
I think GAP insurance is basically a bad idea anyways. They wouldn't be selling it to you if it wasn't profitable for them. I'd only buy it if I absolutely had no ability to cover that gap myself.
That's outrageous..I got mine @ 1.2 but now they are offering 1.9.
ElectricIAC
Good-Natured Rascal
I think there’s interest rates rise you will see a use for gap insurance again.
And you can tell people to not buy more car than they can afford to pay off in 36 months but you and I both know most people clearly don’t heed that advice.
If you put about 10% down, and pay off over 5 years, you should be fine and will save significant money over buying GAP insurance. It's just a bad product to buy when buying a car.
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