Forums

Alliant financing, beware of bait and switch.

Alliant financing, beware of bait and switch.

Prospective buyers beware. Those financing rates you see on the Web site and in the showrooms are very deceptive. If your credit score is less than perfect, the offered rate is 3 times the rate that your see there.
Tesla's financing partner, Alliant, is using a bait and switch tactic by showing rates like 1.5% and 1.8%. My credit report was perfect in every way except for a single $200 item and they used that as an excuse to switch the offer to about 4.5%.
Make sure you know what your money costs will be BEFORE you make a deposit commitment.

Silver2K | 15/08/2016

try a credit union, much more reliable and honest from my experience.

vperl | 15/08/2016

What was your score?

Silver2K | 15/08/2016

If not 720 (minimum) when purchasing a pricey vehicle, you're in deep doo doo

J.T. | 15/08/2016

I had no problem with Alliant on two different loans. Also, this isn't bait and switch. Loan companies always advertise their best rate for qualified borrowers. This is nothing new that your credit score would affect your rate.

JTMedEd | 15/08/2016

Sorry to hear you had an issue. I received the advertised rate, and my score is a bit below 800, or at least it was at the time.

vperl | 15/08/2016

Never ever had problems with any financial organization.

Always get preferred rate.

Sorry bout your low scores.

Thanks

davidgeller | 15/08/2016

Got 1.49% from Alliant.

andpho | 16/08/2016

We got 1.49% from Alliant Credit Union. MarkA was good for us when I called him. MarkA and Alliant are alright in my book.

Also check out Costco's Ameriprise for auto insurance. They are good by me too.

Anyone sign up for Tesla prepaid annual service inspections? At $4k/8 years = $500/year. Sorry if this is old question. I'll look for previous thread.

Rocky_H | 16/08/2016

"In a shocking development, a bank acts like a bank--update at 11."

gaborkarakas | 16/08/2016

Got below 2% here also. They did have a funny tactic on not mentioning that all calls are recorded and also not mentioning that the gap insurance is optional. I did not like that, but ultimately, everything went pretty OK.

onautopilot | 16/08/2016

This isn't true in my experience. Alliant was great. They gave me 60 months at 1.49%. That makes me happy enough to call out this post.

trisailor33 | 16/08/2016

Very good for those of you who were treated well. But there is no excuse for a preferred lender to offer triple interest rates to someone whose credit report is stellar but has one $200 blemish. Part of the problem lies with scoring algorithms which heavily weight very small problems.
So I would insist that triple the promoted interest rates for someone with even good credit easily fits the definition of bait and switch.

Silver2K | 16/08/2016

that $200 most likely dropped you in the 600's. If you're not over 720 you gots no paddle in the boat

mntlvr23 | 16/08/2016

There are many other options, maybe it's time to move on. Alliant isn't the only game in town.

Rocky_H | 17/08/2016

@trisailor33, I notice you keep saying things like:
"Tesla's financing partner,"
and
"preferred lender"

Where does Tesla advocate Alliant as "preferred" or a "partner"? I have not seen that anywhere. The only lending recommendation I ever recall from Tesla was when they had the minimum value buyback guarantee, and that was only offered through two banks: Wells Fargo was one, and I forget the other. (maybe Chase?)

Mathew98 | 17/08/2016

The other one was US Bank.

ACU provided lots of loans for Tesla owners. They are quite fast and easy to work with but they are not an official partner or a prefer lender for Tesla. It has only grown as the word of mouth advertisement in the community spread.

@trisailor33 - What is your credit score and what % are you planning to finance? Have you tried other credit unions such as PenFed?

Silver2K | 17/08/2016

After you get financing, contact lloyds of Lubbock for insurance. His company is featured on the odd couple a while back
https://m.youtube.com/watch?v=yMy8e5ioYCo

Rocky_H | 17/08/2016

@Mathew98, Quote: "ACU provided lots of loans for Tesla owners. They are quite fast and easy to work with but they are not an official partner or a prefer lender for Tesla. It has only grown as the word of mouth advertisement in the community spread."

Uh huh. It was a rhetorical question, because I knew they were not officially preferred or a partner. The OP was dissing on Tesla, implying that it was their fault that he had a bad experience with the company he chose. Since the recommendations come from word of mouth, that usually indicates that it has been generally good experiences.

Mathew98 | 17/08/2016

@Rocky - We were both addressing the OP.

trisailor33 | 17/08/2016

So it is naive to think that an excellent credit history and excellent credit report will translate into an excellent credit score. I had a loan officer review my credit report. As he read through all of the substantive items, he stated, "Wow. This is excellent. You should have a score well into the 800's." Then he came to the one $200 item and said; "They'll probably ding you for that." It appears that FICO has a scoring algorithm which intentionally understates true credit risk. In my case, by reducing the numerical score by 200 points for an old, small (and wrong) item. Now who would profit from that?
I still assert that there is deceptive bait and switch going on. But this is now off the topic of Tesla's wonderful cars. So I'll stop.

dsvick | 17/08/2016

@trisailor33 - "So it is naive to think that an excellent credit history and excellent credit report will translate into an excellent credit score."

If you have an excellent credit history and report then yes, you should also have an excellent credit score. If you do not then either a mistake was made in calculating the score, or your credit report is more negative than you think. A drop of 200 points may seem like a lot but it doesn't take much to really change your score for the worse. And a $200 item may well do it depending on how recent it was and what the circumstnaces were. Quite often the amount doesn't matter, especially in late/missed payments, it is the fact that they were late/missed that is the factor.

If you think there was a mistake made I suggest you get a free copy of your credit report and review it. If there are things on there that are incorrect each credit reporting agency has a method to contest that data.

The bank is only going by the information they receive on your report and score, there is no bait and switch, you just didn't read the fine print.

Rocky_H | 17/08/2016

@Mathew98, Yeah, I get that. I was agreeing with you, how you filled in what I was implying. Sorry if it sounded different.

@trisailor33 Quote: "So it is naive to think that an excellent credit history and excellent credit report will translate into an excellent credit score. [...] It appears that FICO has a scoring algorithm which intentionally understates true credit risk."

Exactly. You are just now learning this, but the FICO score is not directly related to one's actual financial health, overall wealth, financial stability, or things like that. It is an "I love debt" score. Really, the way to crank that FICO score up is to borrow lots of money, hold that debt for a really long time, and pay on it steadily, but make sure you also keep taking on a bit more as you pay it down, so you never become debt-free. So it is a terrible measure of winning at finances. Here are some details on the factors it uses:
http://www.doughroller.net/credit/a-rare-glimpse-inside-the-fico-credit-...

A person could have billions of dollars in assets and have an annual income of $800,000 a year, and be able to buy that entire bank branch outright, but those factors will not show up in a FICO score, so he or she might have a bad or nonexistent credit score and would still get rejected on a loan application if the loan officer is just looking at the FICO score. Most banks are going toward that, where they can hire monkeys to look at the score and give a thumbs up or thumbs down. What you would need to get is usually called "manual underwriting", where someone actually looks through the financial details, (as you mentioned your friend did), to assess the real creditworthiness.

Flyhigh123 | 17/08/2016

600 is far far from 800... regardless of if it was your fault or not, you are deemed a much higher risk in credit to Alliant. Thus the higher score.

It is perfectly reasonable. You are in no ways forced to finance with them. Get a few other quotes and move your business elsewhere.

trisailor33 | 21/08/2016

Rocky H. That link was interesting. As were the comments which followed the article. FICO scores, apparently, are only vaguely related to credit risk and liklehood that they will make money from you. Very strange business. Another problem is that the free scoring services give wildly inaccurate versions of your score. Credit Karma reported my score at 120 points higher than whatever the lenders use. They must know. Why would Credit Karma do that? It was very unhelpful.
In any event, one of the Tesla finance guys found a lender for me who was apparently able to see past the strange score and who gave me a reasonable interest rate.
So now I am looking forward to picking up my 90D.