What happens if financing is not approved?
Get another bank. B of A can be a bit prudish so look for the financing thread that lists all of the other banks toy can get better rates with.
If no one will finance you, time to pay cash or defer and fix your credit.
Any banks that give financing with excellent score, 40% down and no income verification?
Try credit unions. Banks are stingier with their money. If you own a house, worst case,you could refinance.
Stated income loans went out with the recession. You'll more than likely have to submit income verification and if self-employed, federal tax returns. There's "cheap" money out there but you have to play by the rules to get it these days.
No house. Just possibility to pay and no income to show on the books
I originally financed through Tesla's relationship with Wells Fargo. I was told by Tesla I was approved with a rate of 2.99%. all this happened Dec 31st. 2 weeks later I signed all the Tesla papers, got my car, and then a week later I get a letter for WF that my loan was declined and they were unable to come to terms with Tesla. My credit score was 837, yes near perfect.
We called Tesla and they said they are looking for another lender. Here I sit 2 weeks later, no word or follow up form Tesla. So I am raising my glass of wine in a toast to my $30,000 ($5k deposit and $25k cash at delivery) Model S.
Congratulations!!!!!! But how can it help me?
I am also looking for a loan that does not require income verification. I've never had an issue with any other auto loan since I have a great credit score and plenty of cash but most lenders I have read about on these forums require income verification. Any recommendations would be greatly appreciated.
If you don't have any debt PenFed will deny you regardless of income. Credit unions are great but not PenFed.
@drp. I didn't get it. What do you mean if I don't have any debt. I have over 11 years of credit history, mid 700s score, of course I have debts on my lease cars and credit cards. I just don't have income on the books to impress. I don't understand your answer.
Try PenFed, 1.49% and easy online process, they are familiar with Tesla from many recommendations on this board
I mean if you have no bills like mortgage because you paid it off or car payments because you paid them off yet 850+ credit score , Pen Fed will deny you.
I used Logix CU. No income verification just good credit score, all questions asked and answered by phone, loan approved same phone call while I waited for 5 minutes. 1.99% for 72months.
Thanks for the referral. How long does the approval last for? Do they need a VIN number?
What if I have 2 leases, 5 credit cards with low balances but low income, high credit score, will it work?
Since a car is s luxury and not an investment I don't believe it's a good idea to finance. Even at 2.9% you are taking a double hit of depreciation and interest expense. Not to be a dick but you would be better off buying something other than a Tesla. You don't want to wear the "golden handcuffs" for the rest of your life. I'm paying cash and sleeping well at night.
@Ylyubarsky I was originally denied by BofA because I had no "similar" debt. I had to call to talk to someone in finance and explain what I was trying to do. Mind you, I called the number on the denial letter and those people were unhelpful. I had to call as if I was trying to finance again and once they started asking questions, I explained my situation. My credit score was 800 and had not financed a car in over 10 years. They were weary of the fact that I did not have a car note. So we talked it through to figure out how some with an 800 credit score would ever qualify with the restriction of having car debt. Finally, we settled on a financing amount that they were comfortable with. Ended up with a 2.2% rate and 5k + another 5k down for total financing amount of about 70k. I hope this helps a little. Oh, for proof of income, I showed my tax return, but I think they would probably be ok with seeing cash in the bank, especially it it was at their bank.
@cpetrush, Thanks for the rec. Had recently tried with PenFed and they wanted income verification. Did you have an account with Logix prior to applying for your loan?
email@example.com- do you now the rates for a 60 month? I see they offer 1.49 but don't see the term. Thanks!
Asked too soon- found them. Found them here if anyone else is interested:
Cash is so cheap, I can make that 1.99% on an investment in a day with the right trades, that's why I'm not paying cash. I'd rather invest with that $70k for the three years.
As long as you have balances and they see you make payments, it's up to them to randomly decide if they need income verification, no set rule. Personally, and it is only my experience, I thing Pen Fed is pretty stupid. I already had a local approval but wants to save .5% at Pen Fed. Maybe it's the "fed" part that is ridiculous but I don't know.
@drp I totally agree. I think it's silly to pay $70k to $100k cash when you can easily invest that money at a much higher rate of return than the 2.5% to 3.0% the bank is charging.
No did not already have an account with Logix, just cold called. Posted rate for 72 months was 2.99% but I told them I found 1.99 elsewhere and they price matched. 21K cash and financed 60K.
Thanks cpetrush, I'll give them a call. That sounds like a great option. Plus I am in Los Angeles area and their headquarters are in Burbank which is not that far. Could be a perfect fit.
Doesn’t appear anyone has answered the question the original post has asked. What happens if I place an order for a Tesla, put down he deposit and then get denied credit. The terms say the deposit is non refundable after 3 days, but it doesn’t say anything about financing only mentions not wanting it or changing options etc...
Ok, Read the purchase agreement. It states that the deposit is non refundable after 72 hours. If the person that made the reservation can not pay for the car (financing, cash, whatever) the car will be offered to someone who has made a similar configuration. You do not get your deposit back.
To tag on to what @kjar71 said, there may be some provision for you to transfer your deposit to another car, perhaps a less costly car, a CPO, another Tesla model altogether, etc.
Do you have a line of credit? Not sure if they have that where you are located but in Canada lots of people have them. I use mine mostly for investment purposes and can claim the interest at income tax time. If a great deal comes along I can easily write a cheque for 150 K. They use my house as collateral. I didn't use it for my car. Just cashed in some investments to pay cash for it.