What happens after $100 deposit?

[Spacep0d]

Hello there Tesla owners and fans!

I want to reserve a Tesla Model 3 Long Range (white). I know there's a $100 non-refundable deposit and a 7-10 week lead time as Tesla focuses on international orders. Here are some questions you may be able to answer;

1. What happens after I make my deposit? While the 7-10 week lead time is long, I do need about a month to get my 10k-12k down payment. When would I be asked about a down payment? How accurate is the lead time or could it be way sooner than 7 weeks?

2. I've been rebuilding my credit, and I want to finance through Tesla but am not sure if I will qualify for Tesla financing. My credit score is in the mid to high 600s (among three bureaus), I have no debt other than a mortgage on a home, and my income is pretty good. I'm a veteran 3D Artist, 30+ years experience and am being paid a competitive rate.

3. Insurance. I've checked around on this and other forums, and the companies with the best cost/benefit seem to be; Tesla Insurance, Geico, CostCo, and Mercury. Which do you recommend? I had a LEAF for a while and State Farm charged $150 a month for that. Someone else I know pays $180 a month for a Model 3 Long Range with Tesla Insurance. Does it get much better than that? I'm 51 and have a clean driving record.

All advice is appreciated. Thanks much!

Dan

 

[DopeGhoti]

1. What happens after I make my deposit? While the 7-10 week lead time is long, I do need about a month to get my 10k-12k down payment. When would I be asked about a down payment? How accurate is the lead time or could it be way sooner than 7 weeks?

It's hard to say. Up until very recently, the web site said - in a bald-faced lie - an estimated two week delivery time. Back in mid-to-late 2019, a 7-8 week time was somewhat normal, though there were long tails on either side of that timeframe.

2. I've been rebuilding my credit, and I want to finance through Tesla but am not sure if I will qualify for Tesla financing. My credit score is in the mid to high 600s (among three bureaus), I have no debt other than a mortgage on a home, and my income is pretty good. I'm a veteran 3D Artist, 30+ years experience and am being paid a competitive rate.

Definitely shop around. Yes, you'll get more "hits" on your credit record, but it's worth it to get some firm offers from some credit unions you know and trust. Some folks have seen Tesla offer to match an offer in-hand from another financier.

3. Insurance. I've checked around on this and other forums, and the companies with the best cost/benefit seem to be; Tesla Insurance, Geico, CostCo, and Mercury. Which do you recommend? I had a LEAF for a while and State Farm charged $150 a month for that. Someone else I know pays $180 a month for a Model 3 Long Range with Tesla Insurance. Does it get much better than that? I'm 51 and have a clean driving record.

This varies wildly. The most common complaint I've seen is Geico running people off with comically high rate quotes. As with financing, the only way for you to know your options will be to shop around. Getting insurance quotes is free and doesn't impact your credit rating. I was expecting my insurance to go up quite a bit, and I was surprised to find my insurance premium go down when I switched from my previous car (a Prius c) to the Model 3. For what it's worth, I am insured by Progressive and carry complete comprehensive and collision coverage, and am paying about $550 for six months' coverage.

Welcome (albeit in advance) to the Tesla Owners family!

 

[Spacep0d]

Hi DopeGhoti!

Thanks for the quick reply!

Can I expect Tesla to make a financing decision early or late in the process? Your advice to shop around is good though, because if I don't get approved through Tesla I can likely get financed somewhere else. I'll put as much down as I can....maybe 15k even. That should help offset my 'fair' credit rating as I rebuild.

With insurance, I noticed some companies are like this with motorcycles too. Progressive have in the past given me what I call repellent rates, and this also happened with Geico. Good to know you got such a great rate with Progressive! Being in Los Angeles county doesn't help at all, but at least my age and clean driving record help. I'm not married, and sadly insurance companies (excepting Massachusetts) are still allowed to discriminate on the basis of marital status. This is no longer legal to do in the European Union and I expect some day it won't be legal in the states either. But, it is what it is!

Thanks so much for all of the great info, and I'm looking forward to more responses. 2020 will be the year I get a Model 3 Long Range!

 

[DopeGhoti]

Best of luck in continuing to rebuild your credit. Don't be disheartened when you take a momentary dip when you take on the loan; this is normal and will pass as on-time payments accrue.

Definitely put down as much as you feasibly can. The less you finance, the less interest you pay, no matter what the rate on the loan is!

I find it odd (in logical terms, not in capitalism terms) that the insurance rates for unmarried persons such as ourselves is higher- it's more likely we're the only ones driving the car, after all!

 

[SMAlset]

Keep in mind any financing approval you get will only be good for so many days. So before applying I'd ask the lending institution what that period is. You don't want to get financing too early and then have them pull another credit check on you after it's expired.

 

[DopeGhoti]

Keep in mind any financing approval you get will only be good for so many days. So before applying I'd ask the lending institution what that period is. You don't want to get financing too early and then have them pull another credit check on you after it's expired.

This is good advice. I did not follow it and got lucky- my credit union gave me a 45 day acceptance period on their loan offer, and I got my MVPA on Day 43.

 

[SMAlset]

Not sure what it's like buying now, I actually ordered my AWD car at end of June 2018, and at that time the deposit to reserve was $1K (reserved end of August 2017) and when I actually placed my order in June our down payment required on the site was $2500, so I had a deposit of $3500.

As far as I know at time of placing your order you don't need to put down more than Tesla initially asks for and I wouldn't. Any additional monies you want to pay out of pocket to reduce your loan amount you would deal with at time of closing/delivery (like in the form of a separate check or ACH to Tesla along with the monies from the loan). You'd tell your lending institution how much you will be coming with and what you want the loan amount to be. Keep in mind there will be other fees that need to be covered. For example destination charges, licensing and registration, if applicable, and taxes -- all will be shown on your MVPA from Tesla (Vehicle Config sheet and the Final Price Sheet) and will vary depending on area you live in and/or take delivery* which will need to be either covered by you or paid through your loan. Your loan amount will include document processing and recording of lien fees unless you pay for those separately. Don't forget to include to your Purchase Price Tesla's Destination charges, Document Fees and any Transportation Fee or Order Modification Fee (if applicable). Your credits on the MVPA form would include your Deposit/s, Financed amount, EV incentive (if applicable like in NY), Trade in value applied to purchase (if applicable like in some states), Customer downpayment (amount bringing at delivery) and any Other credits.

*For example at my time of purchase (in California) based on my car, the Destination and Document Fee which totaled $1K back then, was included in the total price of my car. That amount was reflected on the Final Price Sheet along with my total deposit credit and to that was added my Registration/Transfer/Titling Fees; License Fee (applicable), and a Tire Fee (7.00) and Calif. sales tax.

 

[Spacep0d]

Best of luck in continuing to rebuild your credit. Don't be disheartened when you take a momentary dip when you take on the loan; this is normal and will pass as on-time payments accrue.

Definitely put down as much as you feasibly can. The less you finance, the less interest you pay, no matter what the rate on the loan is!

I find it odd (in logical terms, not in capitalism terms) that the insurance rates for unmarried persons such as ourselves is higher- it's more likely we're the only ones driving the car, after all!

Howdy DopeGhoti, yeah I'm not worried about the credit and I expect that, but I'm worried most about getting the loan in general. How do you think my chances are? Thanks for the info!

 

[Spacep0d]

Keep in mind any financing approval you get will only be good for so many days. So before applying I'd ask the lending institution what that period is. You don't want to get financing too early and then have them pull another credit check on you after it's expired.

Good advice, thanks!

 

[Spacep0d]

Not sure what it's like buying now, I actually ordered my AWD car at end of June 2018, and at that time the deposit to reserve was $1K (reserved end of August 2017) and when I actually placed my order in June our down payment required on the site was $2500, so I had a deposit of $3500.

As far as I know at time of placing your order you don't need to put down more than Tesla initially asks for and I wouldn't. Any additional monies you want to pay out of pocket to reduce your loan amount you would deal with at time of closing/delivery (like in the form of a separate check or ACH to Tesla along with the monies from the loan). You'd tell your lending institution how much you will be coming with and what you want the loan amount to be. Keep in mind there will be other fees that need to be covered. For example destination charges, licensing and registration, if applicable, and taxes -- all will be shown on your MVPA from Tesla (Vehicle Config sheet and the Final Price Sheet) and will vary depending on area you live in and/or take delivery* which will need to be either covered by you or paid through your loan. Your loan amount will include document processing and recording of lien fees unless you pay for those separately. Don't forget to include to your Purchase Price Tesla's Destination charges, Document Fees and any Transportation Fee or Order Modification Fee (if applicable). Your credits on the MVPA form would include your Deposit/s, Financed amount, EV incentive (if applicable like in NY), Trade in value applied to purchase (if applicable like in some states), Customer downpayment (amount bringing at delivery) and any Other credits.

*For example at my time of purchase (in California) based on my car, the Destination and Document Fee which totaled $1K back then, was included in the total price of my car. That amount was reflected on the Final Price Sheet along with my total deposit credit and to that was added my Registration/Transfer/Titling Fees; License Fee (applicable), and a Tire Fee (7.00) and Calif. sales tax.

Howdy, I'm in SoCal too and this is good info. I won't be trading anything in which is another reason I wanted to have a healthy down payment. If I put $100 down today, how long do you think it would take before I was asked for additional funds?

 

[DopeGhoti]

How do you think my chances are?

Notwithstanding that most banks seem to make decisions I would not exactly quantify as 'rational' (for instance: I literally just opened a new auto loan with my credit union a few months ago. Now every time I log in, I am seeing a pre-approved offer for another auto loan of fifty kilodollars), I would imagine that you won't have too much trouble getting offers. They won't be great offers, but you'll get offers. It sounds like you're putting down a third to a fifth of the car's sticker price forward as a down payment, which is good. If you have a good trade-in, that'll make it even better. Just be sure, when kicking numbers around to be aware of the balance between interest rate and loan terms. Extending the loan out another 6 to 12 months to lower the payment month-to-month will significantly increase the total dollars over the life of the arrangement that you are paying.

 

[jjrandorin]

On the " how likely am I to get approved" question, that depends on your debt to income ratio, but you will drastically improve your chances with that proposed 20k down payment. Just about anyone can get financed for anything, with enough down payment.

High 600s is not a bad credit score. Usually, lenders offer their "best / lowest" rates for people over 720, but high 600s is usually fine for getting approved for a loan in general... keeping in mind things like debt to income ratio, etc.

As far as "hits to your credit" for applications, certain types of credit applications are lumped together as 1 "hit" to your credit score, because its acknowledged and expected that you will apply multiple times for that loan, but only take one. All applications over a specific time period show up on your credit report, but the reduction that happens for applying for credit only happens once. Home loans and car loans are the two that come to mind that work this way, and I believe the period is 2 weeks.

Meaning, you can apply at 6 places for a car loan and as long as you do so over a compressed 2 week period, the hit to your credit score will only be once for those 6 applications. Credit cards dont work this way, they hit your credit for each one applied.

Since, as was mentioned, many credit approvals only last for X amount of time, its best to apply "closer" to the pickup of your car. I would recommend that you identify the financial institutions you want to apply for a loan with (your bank, maybe a credit union, maybe tesla), and just keep your "ducks in a row". Dont apply for any credit anywhere while you are prepping to get your car. Dont apply for any new credit cards, any furniture store credit, nothing. Keep your balances on your credit card(s) stable, and dont pay the minimum payment on them (this is good general advice but more important if you are trying to make yourself look "better" from a credit perspective).

If you dont have your down payment now, and put down your deposit now, you run the risk of them possibly matching you to a car and you having to say you are not ready. You could go to a tesla location and order with a person, they may be able to note your account that you are looking for pickup around XXX date, I dont know.

You will have time to execute (apply for loans) when they tell you the car is ready. You wont have to come up with any additional money until you go to pick up the car.

Just keep your credit in line, get your down payment together, pick your preferred financial institutions to apply at, and apply close to when you are ready to get the car at all of the places you identified you would accept a loan from. Applying for a car loan takes almost no time, almost all places do it online now, and you get decisions either instantly online or within 24 hours. You will have time, and approval will likely be no problem, with a down payment that large.

***I am not in the credit industry at all, I just learned a lot about it previously when going through rebuilding my own credit 10-15 years ago.

 

[laketica]

I didn’t need to come up with the rest of the money til I picked up the car... I gave them a personal check the day I picked up the car...

Geico basically didn’t wanna insure me anymore since I got a Tesla cuz they raised it to over $1000 for 6 months lolllllll, so I called and canceled, they said “enjoy your Tesla, we will refund you the balance” and that was it. I went with Tesla insurance cuz it was easier and affordable.

Not sure about Tesla loan...........

good luck! Hope your order and delivery process goes well... unlike most of us. XD

 

[Stevewiz9]

Hello there Tesla owners and fans!

I want to reserve a Tesla Model 3 Long Range (white). I know there's a $100 non-refundable deposit and a 7-10 week lead time as Tesla focuses on international orders. Here are some questions you may be able to answer;

1. What happens after I make my deposit? While the 7-10 week lead time is long, I do need about a month to get my 10k-12k down payment. When would I be asked about a down payment? How accurate is the lead time or could it be way sooner than 7 weeks?

2. I've been rebuilding my credit, and I want to finance through Tesla but am not sure if I will qualify for Tesla financing. My credit score is in the mid to high 600s (among three bureaus), I have no debt other than a mortgage on a home, and my income is pretty good. I'm a veteran 3D Artist, 30+ years experience and am being paid a competitive rate.

3. Insurance. I've checked around on this and other forums, and the companies with the best cost/benefit seem to be; Tesla Insurance, Geico, CostCo, and Mercury. Which do you recommend? I had a LEAF for a while and State Farm charged $150 a month for that. Someone else I know pays $180 a month for a Model 3 Long Range with Tesla Insurance. Does it get much better than that? I'm 51 and have a clean driving record.

All advice is appreciated. Thanks much!

Dan

I can only answer to your first question so far.
I placed a Model 3 LR white, FSD on 1/7/20. I received VIN 1/14/20. Delivery (Maryland) date of 2/1/20 appeared in my Tesla Account on 1//16/20. My advisor said he was able to trace the car to Richmond, CA currently. So far the experience has been great.
/Steven40955

 

[outdoordawg]

I can only answer to your first question so far.
I placed a Model 3 LR white, FSD on 1/7/20. I received VIN 1/14/20. Delivery (Maryland) date of 2/1/20 appeared in my Tesla Account on 1//16/20. My advisor said he was able to trace the car to Richmond, CA currently. So far the experience has been great.
/Steven40955

What did it say when you ordered it on 1/7/20? 4-7 week lag time ? Looks like its making faster progress.

 

[SMAlset]

Howdy, I'm in SoCal too and this is good info. I won't be trading anything in which is another reason I wanted to have a healthy down payment. If I put $100 down today, how long do you think it would take before I was asked for additional funds?

It was a bit different for me since there was a huge waiting list back in 2017 and I had to wait for the hundreds of thousands before me to get the chance to order theirs first. I'm sure someone who ordered recently in Southern California would be in a better position to answer that question for you. They can also tell you what the current amount you need to put down is. I don't think it's still $2500 like when I ordered. Good luck on your purchase and financing. I will say it's the best and most enjoyable car I've driven or owned.

 

[Stevewiz9]

What did it say when you ordered it on 1/7/20? 4-7 week lag time ? Looks like its making faster progress.

Yes, I was quoted 4-7 weeks when I placed the order on 1/7/20.

 

[Gize]

Hello there Tesla owners and fans!

I want to reserve a Tesla Model 3 Long Range (white). I know there's a $100 non-refundable deposit and a 7-10 week lead time as Tesla focuses on international orders. Here are some questions you may be able to answer;

1. What happens after I make my deposit? While the 7-10 week lead time is long, I do need about a month to get my 10k-12k down payment. When would I be asked about a down payment? How accurate is the lead time or could it be way sooner than 7 weeks?

2. I've been rebuilding my credit, and I want to finance through Tesla but am not sure if I will qualify for Tesla financing. My credit score is in the mid to high 600s (among three bureaus), I have no debt other than a mortgage on a home, and my income is pretty good. I'm a veteran 3D Artist, 30+ years experience and am being paid a competitive rate.

3. Insurance. I've checked around on this and other forums, and the companies with the best cost/benefit seem to be; Tesla Insurance, Geico, CostCo, and Mercury. Which do you recommend? I had a LEAF for a while and State Farm charged $150 a month for that. Someone else I know pays $180 a month for a Model 3 Long Range with Tesla Insurance. Does it get much better than that? I'm 51 and have a clean driving record.

All advice is appreciated. Thanks much!

Dan

Space, Question 2: I was a finance manager (car dealership) in another life in another time so I'll tell you what I used to see with the banks and cu's. They wanna see good time on the job which you have : Check! They want to see good debt to income, so 60% of your income free after that mortgage and revolving credit balance is paid. Your score is strong enough at 650 (much better if almost 700) depending on your credit history. Since your applying for an auto loan, they wanna see how you have paid for autos in the past. Any late payments? Any repos? Bankruptcy more recent than 7 years? I'll let you answer those to yourself but if you have on time auto payments and good history you are golden. Putting money down so that they can repo your car (if they had to) and not lose any money on resale goes a long way too, so you are also sitting well there.

Long story short, without seeing your credit history and assuming you have some good auto history, I could have gotten you really competitive rates and I'd encourage you to shop for the best.

Question 1: Delivery times are all over the place. Some people get surprised a bad way, some in a good way but the general consensus currently is expect at least a two month wait. I am in that boat too and my SA told me to wait till we get a VIN to apply for financing. My CU told me that my approval will last for 30 days but they won't have to re-pull credit as long as it's within 60 days of the initial pull. BTW, don't go crazy having every bank in the world pulling your credit, it can completely tank your score. You do get a break if you do it within the same month but I've seen peoples score drop 100 points cause they had it pulled at 8 different dealerships over a 2 month period. I say research and pick a CU or two or just apply and let Tesla shoot it out to all their financing as that will only be one credit pull.

Hope that helps!

 

[Mora25]

There are lendors that will do pre-approvals that don't impact your score unless you actually follow through with it. I used Capital One for one of my cars' and was able to see my interest rate according to down payment and how much I gave down. Something to look at to give you an idea.

I'm in the same boat as you. I ordered my LR AWD on 1/10/20 and I'm hoping mine comes mid to late March since my credit will improve greatly and I need the auto loan I just paid off to get off my credit report.

Another credit took I'll suggest that doesn't hurt your credit but isn't free is Experian. It has a free version/trial to see your score to know where you could stand with other lenders (not just capital one like I suggested earlier). Also has a score planner (this isn't free) so you can find out exactly what it would take to get to a certain score.

I'll end with an insurance comment. Insurance companies also base their rates on how much the car costs. If it gets stolen, and you have comprehensive, they have to shell out more money the more the car costs. The same goes for collision, if the car cost $$$ they'll need $$$ should you get into an accident. Just shop around, but don't cheap out either; should you need coverage you want the company to do right by you

 

[DopeGhoti]

If it gets stolen, and you have comprehensive, they have to shell out more money the more the car costs.

This is supposedly offset by the monies they take in from everyone with comprehensive insurance who does not have their car stolen or damaged outside the scope of collision coverage.