A Knoxville woman says she was forced to return her Tesla weeks after purchasing it because her financing was unexpectedly denied, only to later discover the vehicle had nightmarish hidden problems.
TikTok user @1xchan_ posted a video explaining that she had been driving her new Tesla for nearly a month when the dealership informed her that the bank hadn’t actually approved her loan. The video has amassed more than 77,700 views.
“I FEEL SCAMMED!” she shared in the caption. “I really can not believe this is happening!!”
Why Was She Able To Take The Car?
She asks how she was able to drive the car off the lot if her loan hadn’t yet been approved. “They are giving me my money back because this was out of my control. This had nothing to do with me.”
The scenario she describes is likely what is referred to as spot delivery, which is when dealerships let customers drive away with a car before financing is fully approved. This tactic is often employed by dealerships to lock in a customer’s sale before their financing can be approved, preventing the customer from changing their mind.
“Is this even legal?” she asks in the video. “Like, how y'all let me drive off the lot with the car, said that I was approved, just for y'all to call a month later and say, ‘You have to return the car because the bank did not approve the loan’?”
Generally, spot deliveries are considered legal. It is also notable that the video creator had specified that she was able to receive her money back with no issue. The question of legality, which varies state to state, would become more complicated if the dealership tried to pressure her into signing an additional agreement under false pretenses.
Prior Problems
In a follow-up video posted five days later, the former Tesla owner shares that after returning the vehicle, the car salesman informed her that he later learned there were additional problems with the vehicle that were not reported.
“Come to find out that Tesla had been wrecked. They did not report it to the Carfax, and it’s going to need a battery replacement.”
While the details are unclear based on the user’s description, it is possible that there might be some legal issues regarding which information was not disclosed.
Under Tennessee law, dealerships must disclose if a vehicle has a salvage or rebuilt title. The Tennessee Code requires written disclosure of such history, and state regulations mandate dealers to disclose known prior damage before a sale. Failure to disclose this information can be considered deceptive trade practice.
However, based on the information revealed in the videos, it is unclear who was made aware of the information about the previous damage, and the extent of the damage, at the time of sale.
