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Texas buyers. Bank wants title transfer guarantee doc
- Thread starter outdoordawg
- Start date
ElectricIAC
Good-Natured Rascal
The issue here is, before Tesla would register the car and title it on our behalf, today they don't. They send you a packet and you have 30 days to register and title the car. The bank wants a letter of guarantee that they will have the title because they wire the full financed amount to Tesla. My credit union said they have done a number of loans last year, and since the change is from this year (I think), they dont know how this title thing is going to work.
ElectricIAC
Good-Natured Rascal
Mmh. I know they ran ours through “The Title Girl” but was before 1/1/2020 so maybe something changed? I noticed tax isn’t in the calculation anymore either.
I just went through this issue with my credit union here in TX a couple of weeks ago. It made for a few tense hours of back and forth between me, the CU and Tesla. This is, in fact, a very new change in TX. Apparently, Tesla can no longer register vehicles for their customers in TX and they are no longer permitted to use a third-party company to do so on their behalf. That leaves us TX customers fully responsible to register the cars on our own. Because of this change, Tesla will no longer provide a letter of guarantee because they are not able to register the cars for buyers.
We were able to overcome this with a different letter. This new letter was drafted by my lender and signed by me and I agreed to register the car within 30 days of receipt. Shortly after I signed the letter, my lender wired payment to Tesla. This letter is a new solution, created on the fly by my lender, but I was super happy it all worked out and I received my schedule delivery SMS two days later.
Hopefully this can help other TX folks!
We were able to overcome this with a different letter. This new letter was drafted by my lender and signed by me and I agreed to register the car within 30 days of receipt. Shortly after I signed the letter, my lender wired payment to Tesla. This letter is a new solution, created on the fly by my lender, but I was super happy it all worked out and I received my schedule delivery SMS two days later.
Hopefully this can help other TX folks!
ElectricIAC
Good-Natured Rascal
Who’s your lender? Running into a small issue with NFCU regarding this and the Y incoming.
I can recommend RBFCU. I've got a great rate from them and the whole purchase process was very streamlined. I only stopped by a branch once and they took care of everything. No further communication with me was needed.
Edit: this was in December 2019, not sure if anything changed since.
Edit: this was in December 2019, not sure if anything changed since.
The lender wants to have the registration package before they can wire the money. Tesla wont even provide a copy of a registration documents or sign any papers from the bank. So no 3 way agreement is possible at this time. The CU is talking to their lending department today is day #5 already and no loan documents were generated. I have been to this CU 3 times already to "wet" sign various document. If I don't have a resolution by tomorrow I will try GEFCU since they should already be good with the process since they had lend money to you.
JohnNick72
Member
I had a similar issue with the local CU’s here in Houston. They would do a Tesla loan. I did some Googling, and went with Alliant (online). Their rates seemed competitive to the advertised rates around here for a 72 mo. loan with top tier credit, and it’s a super easy process.
Ordered the car on 2/28, got VIN today, so it’s moving quickly.
Good luck with yours!
Ordered the car on 2/28, got VIN today, so it’s moving quickly.
Good luck with yours!
Had no trouble at all with this with PenFed. Apparently they trust their customers to perfect the lien. There was a clause that allowed them to convert it to a personal loan at the prevailing interest rate for same if the car wasn't titled with them as lienholder in some reasonable amount of time (60 days IIRC).
After 6 days of back and forth, signing "wet" and electronic documents, I finally got the loan documents to sign. What I saw was yet another issue. The CUs traditionally don't do the title, but since we are on the hook for the Title for the M3, the bank needs to collect the title package and do it for you. So they tack on the tax+fees to your loan amount. The issue is, if you have a trade in in TX they are required to minus the trade-in amount from the sale price of the car, and calculate the tax based on that amount. In my case the CU did not. I was taxed on the sale price. The CU is now contacting the tax office to get an email from them for advice (had they looked in texas.gov they would have found the answer but no). I signed the loan docs as is.. and the bank has promised to correct the loan amount once they hear back from the tax office and go ahead and fund the car. So, at least the funding is going through. Now I have to deal with the fact that they collected over 2k in additional taxes which I will have to work with them to get back.
So if you have a tradein, and your bank is doing your title. Please check your loan amount and make sure they calculated your taxes owed to register your car correctly.
So if you have a tradein, and your bank is doing your title. Please check your loan amount and make sure they calculated your taxes owed to register your car correctly.
FWIW, I have Navy Federal CU as well (but am not in Texas). In general, it is a good, customer service oriented financial institution, so I would trust them to make you whole. May take a bit since they are flying a bit blind on your situation but eventually they should get it straightened out for you.
Is this Texas’ way of making things hard for Tesla and any resident trying to buy a Tesla? I would say if so, maybe it’s the association of dealerships but then given it’s a BEV maybe more oil industry pressure.
It sure looks like that. You can thank the glorious politicians the texans have elected. Unless you drive at least one huge truck with a 15 inch exhaust pipe, you're not a true texan... maan I don't like this place
It sure looks like that. You can thank the glorious politicians the texans have elected. Unless you drive at least one huge truck with a 15 inch exhaust pipe, you're not a true texan... maan I don't like this place
The CU I was dealing with has the best rates in town, 2.6% @72/mo. I happen to be the 2nd customer financing a Tesla through them this year, and their lending department had not caught up to the new rules. It is a little frustrating experience for me, but as long as they fix the extra taxes they collected from me all is good. The Tesla Advisor told me the car is in transit on a train and should be here in a week. Tesla chose not to play by the state rules, and consumers have to deal with the fallout. I am sure when a large percentage of Texans start buying Teslas the state will introduce favorable laws. It's the same with any govt.. any change is hard and any change is slow.
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