I'm a private financier & ordered a model Y due for delivery on June 7th for a Disabled Veteran friend of mine and have been told yesterday that 3rd party financing has to be from a bank or credit union. This doesn't make any sense to me as I am the lien holder on several other vehicles from other transactions. I asked for this policy in writing and not only was my rep unable to provide this but didn't wish to investigate why. This is frustrating as the payment is ready to go. I know there are some other options but this is the simplest. Can anyone confirm if this is true and is it written somewhere?
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Self-Arranged Financing can't be from an Individual?!
- Thread starter ZoFitness
- Start date
Unless you plan on picking up the vehicle with a sack of cash, this shouldn’t be a problem.
Presumably you are paying with a bank check or wire? Either way, why would Tesla care who that comes from?
I’m guessing this is simply another case of “SA is an idiot”.
My thoughts exactly! I told him I was planning on wiring or doing the ACH payment and he still said it can't be done because certain paperwork needed to be filled out in Tesla's system. This is why I asked to get it in writing! Even his operations manager backed him up which is sad. Show me why in the policy and maybe I'll understand but it doesn't make sense either way as long as Tesla gets their money before delivery...
Some factors may come into play depending on the state you are located in, because Tesla is direct to consumer sales. Still, none of this should matter. From what I understand you are simply acting as “the bank” for another person.
Double check here:
Financing Your Vehicle | Tesla Support
After placing your vehicle order, Tesla offers the ability to purchase your vehicle by financing with a Tesla financier.
Can I finance with my own bank or credit union?
Yes. In order to apply third-party financing to your purchase, Tesla requires:
- the name of the funding institution
- the exact dollar amount of your loan
- the lien-holder address and phone number
That’s exactly it, I’m acting as the bank. There is nothing on Tesla’s site that says I can’t and I was even giving the payment instructions or where to send the payment. It wasn’t until yesterday the SA said it can’t be done. He said I would need to pay for the car outright (which would give the registered owner a free and clear title)Some factors may come into play depending on the state you are located in, because Tesla is direct to consumer sales. Still, none of this should matter. From what I understand you are simply acting as “the bank” for another person.
Double check here:
Financing Your Vehicle | Tesla Support
After placing your vehicle order, Tesla offers the ability to purchase your vehicle by financing with a Tesla financier.www.tesla.com
Can I finance with my own bank or credit union?
Yes. In order to apply third-party financing to your purchase, Tesla requires:
Final paperwork will be available and VIN will be available in your Tesla Account once assigned. Learn more about financing with a third-party lender.
- the name of the funding institution
- the exact dollar amount of your loan
- the lien-holder address and phone number
if this person is really a friend of yours, then you could simply draw up some loan documents, give your friend the money, and have them pay cash with tesla and pay you back however you have agreed to.
You were likely given payment instructions because they thought YOU were buying the car, not financing the car for someone else in the roll of a commercial lender.
Your description sounds more like.... lets just say it sounds a bit sketchy, because if this was a friend, you could do what I said above.
HankLloydRight
No Roads
Agreed..sounds a little strange. Also, couldn't the "friend" just hand you the title for safekeeping until the loan is paid back?
stopcrazypp
Well-Known Member
Without a lien, that's worthless. The person who "owns" the car can always get a replacement title (reporting original as lost) if their name is free and clear on it. I think the OP wants to have a lien on the title as a private financer.
There should be DMV paperwork that can be done for this. It shouldn't matter to Tesla given they would be paid in full.
I think some of the confusion may be from Tesla's UI perhaps showing the monthly payments as a loan and to set that up, Tesla needs the lender to be a bank or credit union. I'm not sure if that is the source of confusion. If it doesn't involve a UI, it should all just be a difference in DMV paperwork.
I've lost friends over money in the past and I wouldn't be willing to loan a friend $65,000 even with a promissory note. I guess I'm the only one that's had that happen before so not concerned how "sketchy" it sounds. The post was to find out if this was a true policy of Tesla. I have other solutions such as being to the title with him but fortunately after speaking with a different SA I had done everything correctly and my SA made a mistake in what he told me...
stopcrazypp
Well-Known Member
That's what I suspected, probably confusion because with an official loan that shows up on Tesla's UI, they most likely require an official bank or credit union.
You are instead doing something privately, which probably isn't commonly done, but depending only your state law, should only be a matter of different DMV paperwork. Glad you got someone that was able to figure it out.
That’s exactly what I was saying, thank you. I’ve financed multiple cars for friends before and always put a lien on the title to protect the investment. The SA wasn’t aware of the rule before commenting which was the issue.
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