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Tesla Model 3 SR+
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Discussion Starter · #1 ·
Hello Folks,

Has anyone else had trouble getting bank loan approval to purchase a Tesla Model 3 and whether you have had more success directly with Tesla with a "Tesla Loan"?

I understand from some reading that as the Tesla Loan is secured against the car, you are much more likely to get approval (and at the 3.99% advertised!)

Although my credit rating is great the banks wont touch me and if they do make an offer, the APR is ridiculous.

Any experiences regarding this would be greatly received!

Thanks!

Dean
 

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Why won't they touch you? And how many credit checks have been made against you recently? Multiple checks in quick succession is a massive red flag to lenders.
 

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Discussion Starter · #3 ·
Why won't they touch you? And how many credit checks have been made against you recently? Multiple checks in quick succession is a massive red flag to lenders.
I have no idea why they won't! My credit score is checked and excellent and we have never missed any payments etc. Payments will be a walk in the park as we have no mortgage and we have plenty of disposable income.

Only 2 checks were made 1 offer was accepted but APR was a joke and the 2nd was a refusal.

Dean
 

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Credit scores are meaningless, just used to sell you services. All companies have their own criteria.

It could be lots of things.. eg. you've not got enough credit history, for example (no mortgage will mean no record of paying credit), you've borrowed more than a few % of your available credit (>50% is treated as a big red flag, even though you could simply increase the limit on your cards to reduce it..).

Or could be that the people that lived in the house before you had bad credit. One place I lived I struggled to get any credit at all due to that.

Tesla will always give the advertised interest rate, so they're a better bet unless you're eligible for the scottish EV loan or something really low.
 

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Payments will be a walk in the park as we have no mortgage and we have plenty of disposable income.
It sounds like you maybe have a limited credit history, despite a good score. If you are saying you have plenty of disposable income and no mortgage I sense that maybe you aren't really using any credit at all? Being able to prove a history of regular payments would be beneficial in that sense. If that is the case there isn't really a way to quickly fix this.

Whatever you do, your next application should be your last for maybe 6 months or so. If you keep applying after that you're going to make it look obvious that you are being declined, or make yourself look desperate for credit. Neither will be perceived as a positive thing by potential lenders and you'll only temporarily drop your score lower and almost guarantee refusal by them all for a while.

(Have you checked your credit files with all of the UK Credit agencies? There are 3 that are commonly used -Even if one is excellent, another could be reporting otherwise. Other things to check would be if all information is correct and up to date, if you are on the electoral roll and it's matching up to your file, and finally financial association. Do you have a linked record with a partner for example? If so their score is also taken into account by many lenders)

Finally, it's not all about credit scores. Other checks go on behind the scenes, for example with services like National Hunter. They check your details against other records and past applications. Have your applications for credit always been accurate and consistent? Or have you had recent changes to your employment, income, outgoing expenses etc.? If there are discrepancies this can also lead to a higher risk, and potentialy being refused or referred.
 

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Tesla finance is provided by Black Horse, so it's not going to be wildly different to other financial institutions.

I used an m&s unsecured loan at 2.9% to pay for ours. Took it for 6 years, but just got my settlement figure and will be paying it off in the next few days (a year of lockdown focused my mind on saving up to get it paid off and be free from that), after less than 2 years.

I use creditkarma (transunion) to keep tabs on my credit - they give some bits of guidance as to what is affecting your score and so on.

If you are in Scotland then take advantage of the 0% est loans.
 

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You could sign up to clearscore which is gratis they have tailored loans to your credit score, I used the post office loan via clear score when I needed to buy my M3 a year ago. 👍 rate was 2.8% on 23k.
 

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I was declined by my own bank on the grounds of my relatively low salary, tried to get £25k over 5 years. I paid my mortgage off nearly two years ago and have never had a credit card. Although my credit score was good (just shy of excellent) the fact that I've never needed to borrow anything apart from the mortgage isn't necessarily seen as a good thing, otherwise my credit score could well have been much higher. Either way, less than 3 weeks later I tried out of curiosity to see if Tesla would approve me (this time £24k over 6 years)... Next thing I know, I have a model 3.
 

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Discussion Starter · #10 ·
Hi All,

Thank you so much for taking the time to reply!

DanPaul, my situation is seemingly pretty much identical to yours as we paid off our mortgage a couple of years ago too and your other comments all too familiar!

Also the same outcome! I got accepted by Tesla last night at the advertised rate so we are good to go! It might just be current circumstances but the banks have been a complete waste of space, but thanks to Tesla we were actually able to follow this through!

Now just awaiting our delivery date!

Thanks again to everyone you have been very helpful, I hope this post helps anyone in the same or a similar position!

Take care,

Dean

You can use my referral link to get 1,000 free Supercharger miles on a new Tesla: Earn Free Supercharging Miles or a $100 Cash Award
 

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Hi All,

Thank you so much for taking the time to reply!

DanPaul, my situation is seemingly pretty much identical to yours as we paid off our mortgage a couple of years ago too and your other comments all too familiar!

Also the same outcome! I got accepted by Tesla last night at the advertised rate so we are good to go! It might just be current circumstances but the banks have been a complete waste of space, but thanks to Tesla we were actually able to follow this through!

Now just awaiting our delivery date!

Thanks again to everyone you have been very helpful, I hope this post helps anyone in the same or a similar position!

Take care,

Dean

You can use my referral link to get 1,000 free Supercharger miles on a new Tesla: Earn Free Supercharging Miles or a $100 Cash Award
I think the key is that the loan is secured on the car, and the car's worth way more than the loan. But yeah, not needing to borrow means they can't see how good you are at repaying! Enjoy your car when it arrives, unless there's an inventory model ready you might have a couple of months wait
 
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