Trade in payoff takes a while

SoFlaModel3

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#1
This may vary by location (not sure if it’s done locally or sent back to corporate), but paying off my trade in took a while in my opinion.

Just wanted to share my experience, so you guys can remember to stay on top of it.

My car payments were due on the 8th of every month and I took delivery of my Model 3 on February 7th. I asked Capital One (my former lender) what I should do about the February payment and they recommended stopping my recurring ACH and allowing the payoff to take care of it. I nervously said ok and proceeded forward. Tesla overnighted the payoff to Capital One on February 20th (13 days after taking possession of my trade in) and Capital One said they take 7-10 days to process a payoff. Meanwhile I was a bit nervous and asked would I be reported to the credit agencies for late payment and they said that’s done after 30 days. As you can see Tesla waiting 2 weeks and Capital One taking 2 weeks to process puts it dangerously close to an unnecessary ding on my credit.

Happy ending, it only took Capital One 2 days to process and my loan is now satisfied.

Anyway, moral of the story is to stay on top of this and just make sure things are moving along even though you’ll want to focus on the new car!
 

kmngq

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#2
Do you feel like you got a decent value for the trade in?
I have a car to get rid of, but I would rather work a little bit to get more value selling it privately.
 

JWardell

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#4
The real question is do you think this added extra time before taking delivery of your 3? It's something I was worried about and therefore have been using my extended wait period to pay off my car early.
 

SoFlaModel3

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#5
The real question is do you think this added extra time before taking delivery of your 3? It's something I was worried about and therefore have been using my extended wait period to pay off my car early.
Oh no not at all. I probably got my car the fastest of anyone not in California from time to configure to VIN to arrival of the car. I had to delay 6 days because of work travel.

My car was configured 1/24, VIN assigned 1/24, and car arrived in Florida on 1/31. It was deemed ready for delivery on 2/1, but I couldn’t take it until 2/7. If I was available to take it 2/1, the financing and trade in was all already done in advance of that date with plenty of time to spare.
 

smak

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#6
How often does the payoff amount change?

If I look every day, will it go down a little? Or is it weekly? Monthly?

My payoff date was 3/8 last time I looked 2 weeks ago, and now it's 3/16, so maybe it changes weekly, along with the amount?
 

SoFlaModel3

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#7
How often does the payoff amount change?

If I look every day, will it go down a little? Or is it weekly? Monthly?

My payoff date was 3/8 last time I looked 2 weeks ago, and now it's 3/16, so maybe it changes weekly, along with the amount?
It actually goes up daily technically as you accrue more days of interest and then when you make your monthly payment or any additional payments to principal it goes down.

Delaying my delivery by a week cost me $6.89 ;)
 

garsh

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#8
How often does the payoff amount change?
Loan interest is accrued every day. But when you ask for a "payoff quote", you'll be provided with a "10-day payoff quote". This is how much you'll owe after an additional 10 days as passed. This is generally what you pay.

If you end up paying earlier than 10 days, you should get a few dollars refund. If you end up paying a little later, you'll owe a few dollars. I just paid off a loan, and I think it was a bit earlier than 10 days, but I haven't received any sort of refund yet. I might look into it, but it's only a couple dollars difference, so I'm not too concerned.

https://pocketsense.com/10day-payoff-auto-loans-18715.html
 

thredge

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#9
This may vary by location (not sure if it’s done locally or sent back to corporate), but paying off my trade in took a while in my opinion.

Just wanted to share my experience, so you guys can remember to stay on top of it.

My car payments were due on the 8th of every month and I took delivery of my Model 3 on February 7th. I asked Capital One (my former lender) what I should do about the February payment and they recommended stopping my recurring ACH and allowing the payoff to take care of it. I nervously said ok and proceeded forward. Tesla overnighted the payoff to Capital One on February 20th (13 days after taking possession of my trade in) and Capital One said they take 7-10 days to process a payoff. Meanwhile I was a bit nervous and asked would I be reported to the credit agencies for late payment and they said that’s done after 30 days. As you can see Tesla waiting 2 weeks and Capital One taking 2 weeks to process puts it dangerously close to an unnecessary ding on my credit.

Happy ending, it only took Capital One 2 days to process and my loan is now satisfied.

Anyway, moral of the story is to stay on top of this and just make sure things are moving along even though you’ll want to focus on the new car!
Not doing the payment the day after taking delivery I would have been a little concerned about, but my understanding is most banks and credit unions don’t report you just for one missed payment. I would expect them to call you and ask before going that far, but maybe I expect too much from my financial institutions.

Loan interest is accrued every day. But when you ask for a "payoff quote", you'll be provided with a "10-day payoff quote". This is how much you'll owe after an additional 10 days as passed. This is generally what you pay.

If you end up paying earlier than 10 days, you should get a few dollars refund. If you end up paying a little later, you'll owe a few dollars. I just paid off a loan, and I think it was a bit earlier than 10 days, but I haven't received any sort of refund yet. I might look into it, but it's only a couple dollars difference, so I'm not too concerned.

https://pocketsense.com/10day-payoff-auto-loans-18715.html
My credit union allows payoff online, so it calculates your they payoff for that moment you pay it. Although I see the issue if Tesla is paying off the car.
 

Protect1989

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#10
I traded in my Jeep when I picked up my Tesla last Wednesday 3/27.

They have still not paid off the loan on that vehicle. I have called Tesla and they said “we have forwarded this on and we will get back to you”.

Meanwhile I have a payment coming due for that loan. When I brought this up to the Tesla rep he said “well if you do have to pay it we will just pay you back” ignoring the fact that I shouldn’t have to pay it in the first place.

Anyone else have issues with Tesla taking a long time to pay off your vehicle trade-in loan?
 

GDN

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#11
I've not heard anyone else bring this up, but you might reach out to your lender and have them note you've traded the vehicle off and they will be reaching out for a loan payoff. It might help to cover yourself with the state to fill out a "Vehicle Transfer Notification" form. Go to https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle and click the "Selling a Vehicle" tab and fill out the form below. This will help you with any case of it taking a while to get the vehicle and title out of your name. You can show you no longer own the vehicle and you notified the state.
 

Protect1989

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#13
UPDATE: I called Tesla today (4/4/19, 9:30am) and was able to get an update. They stated the check went out for yesterday to the vendor for the remaining payout.

I should note that I got a call from Tesla yesterday asking general questions about how things were going. Sort of a follow up call. I was sure to bring this up to them on that call as well. So if that got the ball rolling or its all coincidental timing, I do not know. All I can say is if you are in this same situation stay on top of them.
 

GDN

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#14
Agree - nice to hear you received a call from them. A side note, I see your profile needs updating to show you are now a "Model 3" owner, rather than "No" and while we like them kept reasonable and concise a signature line is nice to know which car you have with which options. It helps with posts when talking about different features to see which options/model car that is being referred to.
 

Protect1989

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#15
Agree - nice to hear you received a call from them. A side note, I see your profile needs updating to show you are now a "Model 3" owner, rather than "No" and while we like them kept reasonable and concise a signature line is nice to know which car you have with which options. It helps with posts when talking about different features to see which options/model car that is being referred to.
Updated! Completely forgot to do that once I took delivery. Thanks for reminding me!
 

jasonm163

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#16
Hey, im in Keller Tx (near you) and Tesla took forever to pay mine off as well. I made two car payments on my traded in vehicle by the time the bank got their check (don't worry though they will refund you the money back since the check to pay off the loan will be larger than what you owed since you made any additional payments)
 

Protect1989

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#17
Hey, im in Keller Tx (near you) and Tesla took forever to pay mine off as well. I made two car payments on my traded in vehicle by the time the bank got their check (don't worry though they will refund you the money back since the check to pay off the loan will be larger than what you owed since you made any additional payments)
2 car payments?? That’s absurd! Sorry you had to deal with that. Tesla needs to do a better job at tightening up some things if they want to stay in business.

Frocing customers to make payments for vehicles they traded in for their Tesla’s is a slap in the face.
 

jasonm163

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#18
Yeah, as long as you arent hard up for the money its more just annoying than anything. But i received a refund from the bank very quickly once they received their payoff amount.
 

SoFlaModel3

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#19
I traded in my Jeep when I picked up my Tesla last Wednesday 3/27.

They have still not paid off the loan on that vehicle. I have called Tesla and they said “we have forwarded this on and we will get back to you”.

Meanwhile I have a payment coming due for that loan. When I brought this up to the Tesla rep he said “well if you do have to pay it we will just pay you back” ignoring the fact that I shouldn’t have to pay it in the first place.

Anyone else have issues with Tesla taking a long time to pay off your vehicle trade-in loan?
On both of our trade-in's to Tesla they took a little while. I notified our lender each time who said it was ok to stop payment, but I worried they'd somehow send me to collections and in each case made an extra payment on the previous car and had to wait for refunds. It all worked out just fine in the end.