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What happens if you don't qualify for a lease after downpayment?

Discussion in 'Model S' started by ozweepay, Aug 17, 2015.

  1. ozweepay

    ozweepay Member

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    I put my $2,500 down and the order is confirmed. But I got a (courteous) note from Tesla Financing that their partner bank (US Bank) pushed back with a few concerns. I'm no too worried: the concerns are understandable, but I think eventually things will work out.

    But my question to you guys: what happens if the lease falls through after the car is confirmed?
     
  2. rxlawdude

    rxlawdude Member

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    I think you're out $2,500. Perhaps Tesla would allow you to carry that as a credit towards a future purchase, but that would solely be at their option. I see no exception for financing not going through in the T&C.
     
  3. brucet999

    brucet999 Active Member

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    Your own bank or credit union (CUs are best source - find one and join) is a better source of funding. There are links in other threads about a couple of online credit unions that know and understand Tesla and are willing to work with you.
     
  4. ozweepay

    ozweepay Member

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    Seems pretty extreme. They wouldn't even give me a chance to use outside financing or just purchase the car cash instead?

    As I said, I'm not too concerned about this since the complaints from US Bank are minor (in my view), but on the chance it falls through I'd like to know my options.
     
  5. mgboyes

    mgboyes Member

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    In the UK at least it's written very clearly into the order paperwork that if you fail to get finance agreed the deposit is refundable.
     
  6. Jeffgtx

    Jeffgtx Member

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    When I made a similar what if to tesla I was told the failing to get financing was a refundable deposit condition.
     
  7. Jool

    Jool Member

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    Slightly different circumstances, but I put down a deposit on an inventory car a while back and the financing fell through. Couldn't secure other financing until after the inventory car was already sold to someone else. I ended up putting in a new custom order, but Tesla wouldn't allow the previous deposit to be placed towards a new inventory or custom order.

    To be honest, that kind of put me off - I was hoping that they'd at least give me some credit towards service/maintenance or something similar, but nothing. I still loved the idea of owning a Model S enough to put down a new deposit, but just be aware that there is no guarantee you will get your deposit back.
     
  8. eyespii

    eyespii Member

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    When I reserved my inventory car, I had the same concerns. The salesperson informed me that as long as I could show that a legitimate attempt was made to secure financing, they would refund me the deposit. Ymmv.
     
  9. Jool

    Jool Member

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    Really? Interesting. My owner advisor was great through the whole process, but ultimately I never got my old deposit or anything else to make up for it. Disappointing, to say the least.
     
  10. eyespii

    eyespii Member

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    Despite the deposit being non-refundable per policy, it definitely feels a bit unfair for them to keep the $2500, particularly the part about not letting you transfer your deposit to a new model s purchase. I'd be inclined to escalate the issue up the chain of command if you haven't already done so.
     
  11. yobigd20

    yobigd20 Well-Known Member

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    I'm sorry, but I would sue their ass for keeping that $2500.
     
  12. Jool

    Jool Member

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    The employee that assisted me through my order process (who was fantastic to work with) said he discussed the deposit issue with his manager, who apparently stuck to their guns about the inventory car deposit being non-transferrable/non-refundable. Not really sure where to go from there.

    I loved the Model S enough to put down another deposit for a new order, but I'm not exactly enamored with their service at this point really. Seems a bit inconsistent from everything I have read around here.
     
  13. Lloyd

    Lloyd Active Member

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    I think that totally fair to keep the deposit. JMO You did not fulfill the backside of the contract by paying after they built the car for you. You should have addressed the credit concerns before ordering if they were a potential issue.
     
  14. Jhall118

    Jhall118 Member

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    You are, without a doubt, owed the $2500 if you want it. This exact thing happened to me, and I got it in Seattle. Seriously, escalate that.

    The logic doesn't even make sense, considering this was an inventory car! That $2500 protects them from building a car and then having to sell it to someone else (reality is, it just means they build one less loaner but whatever).
     
  15. P85_DA

    P85_DA Member

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    @Jool who did u work with in SD ? They let me move my deposit to another vehicle when I turned down the first car ..
     
  16. Jool

    Jool Member

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    Nick was the one who assisted me. It was apparently the manager who shot down the deposit refund though. Not gonna lie, I'm feeling a little bummed out hearing that other people did get their deposit back.
     
  17. P85_DA

    P85_DA Member

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    Ok they let me go inventory to inventory I tried to go new but fortunately didn't lose deposit sorry to hear that ..I worked with a girl there
     
  18. rxlawdude

    rxlawdude Member

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    Unless this was an inventory car, the $2500 protects Tesla from building a car and then having to sell it to someone else as you configured it.

    In the case of a deposit for an inventory car that (presumably) was local, Tesla incurs no costs. They cannot keep that deposit, as this would be "unjust enrichment," a term of legal art that means Tesla, under the circumstances, hasn't done anything (performed).

    So the rule is, deposit on an inventory car (that doesn't require transportation) should be refundable under contract law and basic ethics. However, a deposit on a new, custom-built car is not refundable because Tesla, in reliance of your deposit and presumed purchase, actually built a car to your specs.

    Totally different scenarios with totally different results.
     
  19. eyespii

    eyespii Member

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    You would have more of a point had the deposit been for a build to order car, but this was an inventory car that had already been built, and yet they still kept the $2500.
     
  20. Jool

    Jool Member

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    I originally tried to have the deposit transferred to another inventory car - no dice. Might be time to fire off a few e-mails...
     

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