Dealership never cashed financing check

[Stacy m3]

Jurisdiction

California

Bought a Tesla and finance the full amount with my local bank because of the better APR rate. The payment is to be auto debited from my account monthly but since Tesla never cashed the check the loaned ended up being voided. Tesla contacts me 6 months later initially blaming the bank not funding the check. However, after the bank investigation, they tell me Tesla never made a single attempt to submit the check. In other words the check has never been processed in their system except when the loan was initially made. Tesla, finally admitted that their finance team never keyed the check in and has been pushing for me to cancel the check that is now voided. Since the back and forth and waiting for my bank to finish their investigation, Tesla wants to repo the car for not funding another check to them. Since it's been over 6 months the APR is no longer the same amount that I originally financed and Tesla is not willing to mediate. I don't care about them taking the car back since they don't want to mediate. But do they have any grounds to report or go after me for more money or my credit?

 

[adjusterjack]

But do they have any grounds to report or go after me for more money or my credit?

Yes, they do. Especially your credit. The loan is in default.

I suggest you keep the car and figure out a way to bring the loan current even if you have to have it re-written at a higher rate.

If you allow the repo, it's a repo, and there won't be anything you can do about the consequences because Tesla financing will just turn a deaf ear to your protestations and process the repo like any other repo.

 

[Stacy m3]

Yes, they do. Especially your credit. The loan is in default.

I suggest you keep the car and figure out a way to bring the loan current even if you have to have it re-written at a higher rate.

If you allow the repo, it's a repo, and there won't be anything you can do about the consequences because Tesla financing will just turn a deaf ear to your protestations and process the repo like any other repo.

But technically, there isn't a loan. My loan was with my financial institution which ended up dissolving because Tesla never cashed the check. And I do not have a loan with Tesla.

 

[adjusterjack]

My rather cynical advice comes from a long lifetime of dealing with bureaucrats who mindlessly follow procedures without ever considering alternatives.

Your name is attached to a car that hasn't been paid for. Maybe nothing bad will happen if the repo takes place.

I can't say one way or the other but I would certainly get something in writing, from whoever is asking for the car back, that you will have no financial responsibility for the car.

 

[zddoodah]

I don't care about them taking the car back

Have you offered to call and return the call in exchange for payment for the time you've had the car and an agreement not to report anything on your credit? If not, why not?

 

[Stacy m3]

Have you offered to call and return the call in exchange for payment for the time you've had the car and an agreement not to report anything on your credit? If not, why not?

I was in process of getting another check made out. My financial institution would not reissue the check because it has been 6 months out. So essentially I would have to do another credit check to reapply for a new loan under the current APR which is double of my original rate. During this process Tesla sent my account to their collections team because I was not getting them their money fast enough. It doesn't make sense to me to be monetarily penalized with a higher APR and another hit on my credit because of their error.

 

[Stacy m3]

My rather cynical advice comes from a long lifetime of dealing with bureaucrats who mindlessly follow procedures without ever considering alternatives.

Your name is attached to a car that hasn't been paid for. Maybe nothing bad will happen if the repo takes place.

I can't say one way or the other but I would certainly get something in writing, from whoever is asking for the car back, that you will have no financial responsibility for the car.

This is what I am working on. The only response I receive from Tesla is the same prompt "Without funding, Tesla will not release title/lien. from there this VIN will be assigned to repossessions." As they don't want to hear anything else. So I am really left with limited options and quite over their inability to fix an error that was created by them.

 

[zddoodah]

I don't care about them taking the car back

Have you offered to call and return the call in exchange for payment for the time you've had the car and an agreement not to report anything on your credit? If not, why not?

I was in process of getting another check made out. My financial institution would not reissue the check because it has been 6 months out. So essentially I would have to do another credit check to reapply for a new loan under the current APR which is double of my original rate. During this process Tesla sent my account to their collections team because I was not getting them their money fast enough. It doesn't make sense to me to be monetarily penalized with a higher APR and another hit on my credit because of their error.

That's not an answer to the question I asked. If you don't care about the dealer taking the car back, why not make arrangements to return the car, pay for the time you had the car, and get the dealer to agree not to ding your credit?

 

[welkin]

This is what I am working on. The only response I receive from Tesla is the same prompt "Without funding, Tesla will not release title/lien. from there this VIN will be assigned to repossessions." As they don't want to hear anything else. So I am really left with limited options and quite over their inability to fix an error that was created by them.

I would be proactive and write to all three credit bureaus explaining the circumstances of the transaction.

 

[flyingron]

No dealer, he's dealing with Tesla corporate.
Yes, the are that screwed up.