Advice needed.. Urgent. Tesla screwed up my loan

[RajendraD]

Looks like you didn't qualify for the original loan and they arranged for a different loan on less favorable terms. Looks like you can take the less favorable loan or default and return the car. You could try to find your own loan but you probably won't do better than what they have arranged.

I got approval and all. I got approval email from Alliant. Then they said that theyt didn't like the way paystubs looked. That is the weirdest thing I have heard in my 15 years of buying cars and house. Had I known that before tesla delivered the car, I would have definitely done some thing about it. But Tesla kept me in dark. They kept on saying everything is fine. Thats what is interesting. And coming to default, not sure what I am defaulting on. There are no minimum payments to make.

 

[mspohr]

I got approval and all. I got approval email from Alliant. Then they said that theyt didn't like the way paystubs looked. That is the weirdest thing I have heard in my 15 years of buying cars and house. Had I known that before tesla delivered the car, I would have definitely done some thing about it. But Tesla kept me in dark. They kept on saying everything is fine. Thats what is interesting. And coming to default, not sure what I am defaulting on. There are no minimum payments to make.

Default probably isn't the right word. . More like just turn it back to them.
Odd to get approval then have that rescinded. Usually once it's approved they stop looking at it and move on.

 

[stopcrazypp]

I got approval and all. I got approval email from Alliant. Then they said that theyt didn't like the way paystubs looked. That is the weirdest thing I have heard in my 15 years of buying cars and house. Had I known that before tesla delivered the car, I would have definitely done some thing about it. But Tesla kept me in dark. They kept on saying everything is fine. Thats what is interesting. And coming to default, not sure what I am defaulting on. There are no minimum payments to make.

Kind of confused in your situation. Is it Alliant that backed out of the loan or is it Tesla? Is it that Tesla was under the same impression you were (that the loan was approved) and then Alliant backed out, so Tesla found another loan for you (although not at Alliant's rates, which are probably the best available)?

Yes, this is very unusual, but I'm not sure Tesla would be to blame, if it's Alliant that backed out of an approval. Like others mentioned, probably a lawyer would know better. Not sure if they can back out of an approval like that.

 

[wesley888]

I got approval and all. I got approval email from Alliant. Then they said that theyt didn't like the way paystubs looked.

That's weird. Alliant never asked me for paystub. Did they ask you when you were applying or later on?

 

[bushburner]

Kind of confused in your situation. Is it Alliant that backed out of the loan or is it Tesla? Is it that Tesla was under the same impression you were (that the loan was approved) and then Alliant backed out, so Tesla found another loan for you (although not at Alliant's rates, which are probably the best available)?

Yes, this is very unusual, but I'm not sure Tesla would be to blame, if it's Alliant that backed out of an approval. Like others mentioned, probably a lawyer would know better. Not sure if they can back out of an approval like that.

Seems like tesla should have made sure the loan cleared and got their check before delivering the car.

 

[balefire]

That's weird. Alliant never asked me for paystub. Did they ask you when you were applying or later on?

Alliant never asked me for a paystub either.
Sounds like the OP tentatively qualified for a loan with stipulations.
Sounds like OP did not clear the stipulation with Alliant.
Instead of verifying via bank that financials were in line ( what most of us would do), OP went to Tesla to verify loan was ok. WHY? Tesla is not the bank...
And if the OP did not like stipulation of Alliant, why not just find another bank? There are several banks avail that can get you good rates and terms if the credit score is good enough. What was the credit score?
I feel like the whole story is not clear...

 

[stopcrazypp]

Seems like tesla should have made sure the loan cleared and got their check before delivering the car.

I did some research. This is called a spot delivery, where the car is delivered before the dealer (or in this case the manufacturer) gets all the money and financing is finalized. There's two types: yo-yo financing (which are scams where the dealer knew beforehand you would not get approved) and then legitimate spot delivery.

This case appears to be the latter, since the financing appeared to be approved by a third party Alliant (so Tesla wasn't going in expecting it not to be approved beforehand), and it appears Tesla was willing to take the car back without penalizing the OP.

It seems lenders can rewind approval depending on the terms of the loan approval document (there may be a grace period that allows them to do so), so the OP should look through those.

 

[TSLA Pilot]

Hi,

I am probably the only one with this issue. If there are more please advice.

Tesla delivered the car without processing loan :0. I called them multiple times before taking delivery to make sure everything place. This was on September 30th. I guess they badly needed that quarter closing numbers.

After 15 days I got an email saying my loan is processed yet and I was like what's going on. I spoke to delivery/owner specialist and he told me they screwed it up. He said he would apply for loan again. I told as long as the interest rates and loan terms won't change I am fine.
He said he will take care of that and made us apply for loan again. After some time he comes back and says loan interest increased and term reduced as they could not procure the original loan. He tried selling me 2 years of free service. I was not okay with that.

Now they are talking of repossession for which they won't disclose the terms.

Any advice.

We got 0.99% APR and 1.24% APR on our Teslas in 2015.

One loan came from here: PenFed Banking & Investing | Mortgages, Car Loans, Credit Cards & Much More

Keep checking around, but it seems like someone dropped the ball pretty badly here . . . .

 

[HankLloydRight]

his case appears to be the latter, since the financing appeared to be approved by a third party Alliant (so Tesla wasn't going in expecting it not to be approved beforehand), and it appears Tesla was willing to take the car back without penalizing the OP.

In this case, assuming the car wasn't yet titled/registered, does Tesla take it back and resell it as a new or Inventory car, or is it now branded to be a CPO? And in either case, it sounds like Tesla eats any depreciated value.

 

[MP3Mike]

And in either case, it sounds like Tesla eats any depreciated value.

But would he forfeit his order deposit? (Since he didn't follow through with completing the purchase of the car.)

 

[Electric700]

I got approval and all. I got approval email from Alliant. Then they said that theyt didn't like the way paystubs looked. That is the weirdest thing I have heard in my 15 years of buying cars and house. Had I known that before tesla delivered the car, I would have definitely done some thing about it. But Tesla kept me in dark. They kept on saying everything is fine. Thats what is interesting. And coming to default, not sure what I am defaulting on. There are no minimum payments to make.

I'm glad to see Alliant worked out for you. Enjoy your Model X!

 

[bushburner]

I'm glad to see Alliant worked out for you. Enjoy your Model X!

you are reading it wrong, his situation is still not resolved yet.

 

[RajendraD]

I am able to resolve this with Tesla. They are giving me same interest rate and throwed in some freebies (not sure if it is appropriate to disclose it ). I had to approach Consumer Affairs though. They spoke to Tesla. Thanks all folks for info especially Washington sate law prompted to search for similar law in NJ and in that process contacted NJ Consumer Affairs . Appreciate all your advice and concern.

 

[Drucifer]

I'm glad you got it resolved. In the last 2-3 weeks, with the election, rates on some loans have popped up as much as .25%, so you might have different terms than even 2-3 weeks ago.