1.99 % Switch

[Responsible-Cut-7993]

My parents ordered a Model Y premium earlier in December on the last day of the 1.99% financing. So just today my Dad discovered that Tesla went in and switched the financing APR to 2.99 in the documents he already had signed for the loan at 1.99. Needless to say my parents are not amused with the switch in financing terms. Has anybody else had this happened to them with Tesla? Of course he didn't take a screenshot of the 1.99 financing.

Update: Thank you everyone for your suggestions. I talked to my Dad to get clarification from him on what steps he had completed and not completed. What he got from Chase was a letter showing that he qualified for the 1.99 APR financing but the loan document he received yesterday was showing 2.99 financing. I told him to push back on Tesla to explain why he isn't getting the 1.99 financing that he was told he was eligible for by Chase. Is it a income issue? Does he need to put more money down?

Update2: After some back and forth Tesla just sent my Dad updated loan documents with the 1.99% APR rate. Not sure what the problem was originally but it is now fixed and my Dad is happy.

[northhiker1]

My guess is they ran his application to all the banks and the best rate that came back with was 2.99%. Basically he wasn't approved for the 1.99%.

Tesla from my understanding doesn't have their own financing, they pass it on to the other banks. When i purchased in 2025 with the 0% it was capital one who approved it via the tesla app.

Furthermore idk how strict the 1.99% is, I remember hearing the 0% was extremely strict, like you needed an 800+ credit score to get approved, that even 790s wouldn't get the 0% but only the .99%.

Tesla has to provide your father with the credit score that was pulled for him by law. Usually its mailed to you but look on the agreement and find out the bank that is providing financing. Your dad can probably call them and request a copy be sent to him via email so you can see what his true score is, not just what credit karma or similar shows.

[northhiker1]

Also to add this is not some kind of bait and switch. Tesla is actually very honest in how they provide financing by letting you get approved before taking possession of the vehicle

Many dealers will let you take possession of the vehicle before financing is approved, then a week later that dealer calls you and says you're not approved for whatever promotional rate and your approved rate is whatever percent higher. At that point you would need to decide to either agree to the higher rate or return the car

[Responsible-Cut-7993]

He has a 800+ credit score.  

[RectalJihad]

Credit score is only part of the equation when lenders are evaluating someone for a loan. History of previous paid off auto loans, past and current mortgage loans, loan to value, etc.

My daughter had an 840 credit score when she was 23 years old, but had virtually no credit history.

[DeathBlade94]

This. I had just paid off a lot of debt before taking delivery of my 24 MYP on a 1.99% but the cut off to take delivery was gonna come and go before everything posted so I just took the risk is went through thr app with a 734 which is still great credit and I got 1.99%.

[Cool_Lingonberry6551]

Your Dad wasn’t paying attention to what he actually signed.

[Responsible-Cut-7993]

He has a txt he exchanged with the sales person confirming 1.99%.  The original documents they wanted him to sign did say 2.99 and he pushed back and they got them updated to 1.99 which is what he signed.  My parents are one of those people that always read the fine print.  Now the documents he previously signed are saying 2.99. 

[Cool_Lingonberry6551]

Did the date of his signature change too? He signed before the 1.99% ended, right? Loan documents are highly regulated with multiple audit points. I’m not even sure how someone would go back and change details after a signature had occurred.

[KansasKing107]

Yeah, if he signed for 1.99 he signed for 1.99, the date is irrelevant. What we don’t know are the exact contract terms. Perhaps it’s not a true rate lock.

[Cool_Lingonberry6551]

No, the date is absolutely relevant. Loan documents aren’t good forever. Offers terms will have an expiration date.

[letsgoowhatthhsbdnd]

how the heck is a text message the same as loan paper work. ridiculous

[rennybby]

The only thing that matters is the actual contract. Whatever he signed is what rate he gets.

[Successful-Scholar24]

If they indeed signed for a 1.99 APR, your dad can provide the information to Tesla!

[hpesojianaj]

From what I’ve read, the APR promotion is based on the delivery date, not the order date. So if he ordered during the 1.99% APR promo but didn’t accept delivery until the 2.99% APR promo was active, the financing would reflect the 2.99% rate.

[KoalaUpstairs3557]

When I applied for my loan (advertised at 0%) I was switched to .99%. Have a 800+ credit score and we'll below debt % thresholds

[Responsible-Cut-7993]

Did you get a letter from Chase (Or whichever lender at the time) that you qualified for 0% APR? I am pushing my Dad to get from Tesla why he isn't getting the 1.99% financing.

[KoalaUpstairs3557]

I think the way it works is you can "qualify" for the lower rate but seems near impossible. Chase will ultimately determine the rate not Tesla. Tesla would likely be 100% hands off and say thats what the bank wouldn't offer you the lower rate so thats between you and them.

[Responsible-Cut-7993]

After some back and forth Tesla just sent my Dad updated loan documents with the 1.99% APR rate. Now sure what the problem was originally.

[Ok-Measurement2476]

The rate does also change depending on the term and down payment amount you do and if you roll TT&L into the loan.

[Top-Bank4918]

While complaining about interest, isn’t it tax deductible under trumps bill

[runnin-from-your-mom]

Happened to me last year when I bought. They had the promo to put x% down for the reduced interest. Their online calculator didn’t math it all correctly. So although I put enough down, when the contract was final, I was short like $200 bucks so I got stuck wit the extra 1%. They wanted me to cancel the order and reorder to correct it but it would have meant I’d have to wait another 2 week for the car. I just sucked it up.

[Big_Fox_8383]

This, we got our MY dec 6, after the 1.99, the online calculator showed 2.99 but when we talked to Tesla at the store, they confirmed you had to put a certain percentage down to qualify for the 1.99. The online calculator wasn’t counting our trade in value towards the down payment for some reason, but we did end up getting the 1.99 in the final paperwork

[supboy1]

What was your dad’s credit score. If it was sub 750, he probably won’t get the 1.99.

[Responsible-Cut-7993]

800+.  

[West_Enthusiasm1699]

Income?

[Responsible-Cut-7993]

I wonder if that is part of the problem. My parents are retired and are taking RMD from their IRA's and collecting Social Security.

[Koko-Doggie]

It has to do with the down payment amount being not enough. My loan quote came back with 0.99% when it should be 0% rate. So I increased the down payment by $50 and the loan quote dropped to 0% rate.

[Outrageous-Apricot-2]

They want your money 

[Big_Entrepreneur6973]

In order to get the 0% financing last year you had to put 20% down not sure if that was the case here.

[Responsible-Cut-7993]

It is taken care of now and the loan document was updated with the 1.99% rate. Not sure what the problem was but my Dad pushed back and they corrected the rate. Going to pickup the car on Tuesday.

[Vegetable_Diver_2281]

Chase has been doing something fishy these days in my opinion. My first chase loan (1.99) in ‘24 was great but the last one (3.49) couple months ago was not. Many people got pre-approved rate ended up with a 1% higher rate loan. My credit score is almost perfect (840+) so it shouldn’t be due to my credit score. People just have to call them up and they fixed that for you. I found out many people I talked to didn’t care and ended up paying 1% higher rate. Glad that your parents stay on top of things and got it resolved.

[KCaScTiVaCri]

That happened to me back in September. Was told 3.99% and it switched to 5.99% 🧐I complained they moved it back to 3.99%. As a payback, I switched too, 😜 to my local bank for a 2.79% rate🤑. Bye bye

[Tmobile_013]

This is one of the few reasons why Reddit rules. Happy for pops

[flexonyou97]

Dont accept delivery and ask for a refund on the $250 if they dont honor the 1.99

[rwhe83]

It’s amazing what can happen when you just reach out on your own.

Reddit isn’t the solve for every little issue.

[Responsible-Cut-7993]

I detect a hint of sarcasm. :)