3 ms·

Technically the act of requesting and obtaining a loan would involve a hard inquiry on your credit report. [0] It isn't a huge ding and only lasts for about 2

Technically the act of requesting and obtaining a loan would involve a hard inquiry on your credit report. [0] It isn't a huge ding and only lasts for about 2 years (and trails off in impact over that time period), but if you did so repeatedly, that would be a negative signal to future lenders. https://www.experian.com/blogs/ask-experian/credit-education/report-basics/hard-vs-soft-inquiries-on-your-credit-report/ https://www.experian.com/blogs/ask-experian/credit-education...

chrisseaton 6y ago
But credit reports also report the actual money against your name, which in the case of buying a Tesla is going to show tens of thousands of dollars underwater against your name immediately. And what about the refund on your insurance, your DVLA registration, your time... etc. What an admin nightmare!
- jkaplowitz 6y ago
  I don't know about the UK, but where I live dealers can issue a cheap temporary 10-day registration document to let you drive it off the lot and deal with the registration authorities later, and if you already have auto insurance for another car, there's a grace period to cover newly purchased cars before you have to explicitly discuss it with the company. It doesn't have to be an admin nightmare, in other words. I assume the money reported on the credit report would get reversed or marked as paid if the loan is cancelled. That said, my experience is with an all-cash/no-financing face-to-face purchase of a used car much cheaper than any Tesla, following a test drive and inspections both by the dealer and an independent inspector I chose, so mine was not all that similar of a situation.
  - chrisseaton 6y ago
    > if you already have auto insurance for another car, there's a grace period to cover newly purchased cars before you have to explicitly discuss it with the company Wow what if you've insured a $k car but use the policy to drive a $100k car and then total it?
    - corty 6y ago
      Usually this grace period for new cars only applies to the liability insurance, i.e. damages to others, not to the insurance against damages to your own car ('kasko' insurance). Meaning you are out of luck regarding your own new totalled 100k car, but the other car you rammed in the process will be paid for.
    - jkaplowitz 6y ago
      I think they limit the insurance to match what your other car is insured for, though I'd have to check my policy. As the other reply to you implied, insuring yourself for damage to your own car is not mandatory. The mandatory part is insurance for damage to other cars and property (the government here directly provides drivers with bodily injury insurance although policies often provide extra coverage).
- manigandham 6y ago
  Credit reports (in the US) only show the financing organization and the current balance, along with other details like loan length, payment history and current monthly payment amount. They don't list what you actually bought. There's no way to know if you're underwater, and it doesn't matter because credit reports don't list your assets either.

chrisseaton 6y ago

But credit reports also report the actual money against your name, which in the case of buying a Tesla is going to show tens of thousands of dollars underwater against your name immediately. And what about the refund on your insurance, your DVLA registration, your time... etc. What an admin nightmare!

jkaplowitz 6y ago
I don't know about the UK, but where I live dealers can issue a cheap temporary 10-day registration document to let you drive it off the lot and deal with the registration authorities later, and if you already have auto insurance for another car, there's a grace period to cover newly purchased cars before you have to explicitly discuss it with the company. It doesn't have to be an admin nightmare, in other words. I assume the money reported on the credit report would get reversed or marked as paid if the loan is cancelled. That said, my experience is with an all-cash/no-financing face-to-face purchase of a used car much cheaper than any Tesla, following a test drive and inspections both by the dealer and an independent inspector I chose, so mine was not all that similar of a situation.
- chrisseaton 6y ago
  > if you already have auto insurance for another car, there's a grace period to cover newly purchased cars before you have to explicitly discuss it with the company Wow what if you've insured a $k car but use the policy to drive a $100k car and then total it?
  - corty 6y ago
    Usually this grace period for new cars only applies to the liability insurance, i.e. damages to others, not to the insurance against damages to your own car ('kasko' insurance). Meaning you are out of luck regarding your own new totalled 100k car, but the other car you rammed in the process will be paid for.
  - jkaplowitz 6y ago
    I think they limit the insurance to match what your other car is insured for, though I'd have to check my policy. As the other reply to you implied, insuring yourself for damage to your own car is not mandatory. The mandatory part is insurance for damage to other cars and property (the government here directly provides drivers with bodily injury insurance although policies often provide extra coverage).
manigandham 6y ago
Credit reports (in the US) only show the financing organization and the current balance, along with other details like loan length, payment history and current monthly payment amount. They don't list what you actually bought. There's no way to know if you're underwater, and it doesn't matter because credit reports don't list your assets either.