I need your advice

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What would you do?

  • A

    Votes: 6 75.0%
  • B

    Votes: 2 25.0%

  • Total voters
    8
Joined
Jul 31, 2018
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#1
So I'm in somewhat of a unique situation. I did not have a reservation, and I configured my M3 on 7/20. Somehow, I was charged for the $2,500 configuration fee twice. I had about $900 on my credit card at the time of configuration. Now because of the $5,000 charge, I have $6,000 charged to a credit card with a $5,000 limit. I spoke with Wells Fargo and they confirmed that the second charge was indeed a separate purchase, and not just a pending charge that would drop a few days later. I called Tesla on 7/23 to have the correct the double charge. They couldn't explain how it it happened, but went ahead and canceled my "second order", and told me it could take up to 14 days to receive the refund. Today I checked my Tesla Account and my Edit button is gone, and I now have the option to apply for financing through Tesla.
Here's where I need your advice. Knowing that my credit card company will report to the credit bureaus on 8/5, do I:
A) Go ahead and apply for financing/shop for loans now and lock in the best interest rate for the next 30 days, or
B) Wait until after I have a delivery date to apply (which will likely be after 8/5, when my bank will report to the credit bureaus), but risk higher rates because my credit score will drop a bit due to the high charge on my credit card?

I guess what I really need to know is once I'm to the point I'm at now (no edit button, loan application option open), how long until I have the car? Likely less than 30 days? If yes, then I think I should go ahead and apply now.
Any advice would be greatly appreciated!
 

SoFlaModel3

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#3
So I'm in somewhat of a unique situation. I did not have a reservation, and I configured my M3 on 7/20. Somehow, I was charged for the $2,500 configuration fee twice. I had about $900 on my credit card at the time of configuration. Now because of the $5,000 charge, I have $6,000 charged to a credit card with a $5,000 limit. I spoke with Wells Fargo and they confirmed that the second charge was indeed a separate purchase, and not just a pending charge that would drop a few days later. I called Tesla on 7/23 to have the correct the double charge. They couldn't explain how it it happened, but went ahead and canceled my "second order", and told me it could take up to 14 days to receive the refund. Today I checked my Tesla Account and my Edit button is gone, and I now have the option to apply for financing through Tesla.
Here's where I need your advice. Knowing that my credit card company will report to the credit bureaus on 8/5, do I:
A) Go ahead and apply for financing/shop for loans now and lock in the best interest rate for the next 30 days, or
B) Wait until after I have a delivery date to apply (which will likely be after 8/5, when my bank will report to the credit bureaus), but risk higher rates because my credit score will drop a bit due to the high charge on my credit card?

I guess what I really need to know is once I'm to the point I'm at now (no edit button, loan application option open), how long until I have the car? Likely less than 30 days? If yes, then I think I should go ahead and apply now.
Any advice would be greatly appreciated!
Your credit won’t drop due to a high charge unless you’re carrying the balance.

I don’t think you have any issues here. As an aside, @AEDennis just posted on Twitter about getting an ACH refund on a canceled order in 4 days including 2 weeekend days mixed in!
 
Joined
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#4
c) ask your credit card company to raise the limit on that card.
Might want to double check with credit card company before doing that... could cause a hard inquiry to raise the limit.

I seem to remember when credit is requested they do a new inquiry and get updated CC balances (usually accurate within a few days), not necessarily based on the last billing statement. Then again, it's been a while, so maybe I'm off on that?

Either way, might be worth calling the credit card company and asking them on both.
 

garsh

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#8
Might want to double check with credit card company before doing that... could cause a hard inquiry to raise the limit.
It can, but it doesn't have to. Ask the credit card company how much they're able to raise it without performing a hard check.
 

SoFlaModel3

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#10
You actually get dinged for using a high percentage of your available credit, regardless of whether or not you pay off the balance in full each and every month.
I guess that’s true — it depends when they report your balance though.
 

Cary

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#13
It's not worth starting a new thread and I can't find it with a search of the forum, but what apr is Tesla charging for M3 loans? My Credit Union charged me 2.99%.
 

GDN

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#14
Unless you're dancing on the edge of bad credit anyway, I can't imagine the credit card issue will show up or cause a problem.

On the other questions - start shopping now for a loan. Being informed is the best thing you can be. You can shop rates and know where to turn for the loan if you don't want to fill out applications just yet.

You will almost always find better rates that what Tesla is going to offer you, but some prefer Tesla because it makes some of the purchase easier all handled through them vs having to coordinate your own payment/check, which is a pretty minor task usually.

Either way - be informed/educated, and look for rates now. If you don't know your credit score a lot of credit card companies have it and you can see it through them. Citi has it on the AA card and a few others I have. It may not be the exact true score, I'm not sure why, but it is usually off by 20 to 25 points, but will be very close.
 
Last edited:

SoFlaModel3

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#16
It's not worth starting a new thread and I can't find it with a search of the forum, but what apr is Tesla charging for M3 loans? My Credit Union charged me 2.99%.
Tesla uses a third party for financing and the rates vary by customer and term so this one is tough to answer.