$100 Order Fee Charged by Tesla Now on Top of Purchase Price

[Reeler]

Not my order, but Tesla is now charging $100 to have the privilege of buying one of their cars. Those that put down a $2500 deposit are presumably not have to pay that on top of the purchase price, but Order Fees to not go toward the purchase price.

My state doesn't charge sales tax on services. I wonder if this $100 will be excluded from the car purchase price for tax/registration forms? This is silly and Tesla should just increase the price of the car rather than having a stealth charge.

 

[paulhlee316]

They charge you the $100 even if you put down the $2500 deposit earlier...

 

[Reeler]

They charge you the $100 even if you put down the $2500 deposit earlier...

Total scam. That is like the fees added to movie or concert tickets. Never happened with a car. How about calling it a "Dealer Replacement Fee" or "Website Booking Fee." With no actual salespeople allowed by most states or a marketing budget, this fee is for the web site order form? Really!

 

[MorrisonHiker]

They charge you the $100 even if you put down the $2500 deposit earlier...

They didn't charge us another $100.

 

[paulhlee316]

I think you’ll see it when you go through the whole process. I uploaded all my info (trade in, drivers license, insurance, etc). In the final payment amount, they add the $100.

 

[myMY808]

My opinion only: calling it an “order fee” may allow Tesla to recognize the revenue from all of these orders as soon as it happens (the “order” has been placed, so work has been done for the revenue) and justifies them keeping it (hence it being non-refundable) since they provided some form of consideration (placing your order in their system) even if you subsequently cancel the order and never take delivery of an actual vehicle.

If I remember correctly, the document you agree to explicitly calls out the fact that you are receiving a service (placement of the order in their systems) for the $100 fee, which justifies them keeping it even if you cancel.

 

[SJC3]

that is BS, adopting bad car dealer behaviors

 

[Y_Wait]

My opinion only: calling it an “order fee” may allow Tesla to recognize the revenue from all of these orders as soon as it happens (the “order” has been placed, so work has been done for the revenue) and justifies them keeping it (hence it being non-refundable) since they provided some form of consideration (placing your order in their system) even if you subsequently cancel the order and never take delivery of an actual vehicle.

If I remember correctly, the document you agree to explicitly calls out the fact that you are receiving a service (placement of the order in their systems) for the $100 fee, which justifies them keeping it even if you cancel.

That's a reasonable rationale; I bet when the Mustang E (or whatever it is) arrives in showrooms, some dealers will be selling well above MSRP!

 

[Watts_Up]

that is BS, adopting bad car dealer behaviors

I agree, I prefer the $2,500 refundable deposit than the non refundable $100 fee.
I made an earlier order and I would be a little bit upset if I will have to pay an additional $100 fee.

 

[Y_Wait]

I'm afraid you will...

 

[EVJonP]

That is so bogus!!!

 

[Reeler]

Tesla doesn't usually keep cars on their lots for sale so all must be ordered. This is just a price increase hidden as a bogus fee with no advance notice. Other models didn't have this non-sense fee. I wonder if you buy a showroom or inventory car, that is on site would you get this B.S. fee added in.

 

[myMY808]

That's a reasonable rationale; I bet when the Mustang E (or whatever it is) arrives in showrooms, some dealers will be selling well above MSRP!

It also places some skin in the game for buyers. If the $100 fee was refundable, it’d be very feasible to order several configurations (for example, if you thought certain configs or colors would be fulfilled faster, which is what actually seems to be happening) with the intent of cancelling all but one.

While I would rather not pay anything additional for the “privilege” of placing an order (I mean, who would?), I can understand their needs from a business perspective. Ultimately, if it helps them run the business more efficiently (and profitably) so they can reinvest in improving vehicle quality or furthering their innovation, so be it.

 

[EVJonP]

So I went back and checked my order agreement - the $100 wasn't on there - so I think I have reasonable grounds to dispute it

 

[AdVanced]

,where do you go to view the order agreement?? Is that after the contract is available? I've entered in all of my information.

On the topic at hand, I also have the $100 fee. I don't think it's unreasonable, just wish there was a better explanation behind it. The crappy part is (perhaps on in certain states?) I have to pay a $200 electric vehicle fee and get no rebates or incentives. Good ol Ohio.

Ohh, the order agreement is when you place your order. NM, forgot about that.

 

[seattlite2004]

That's a reasonable rationale; I bet when the Mustang E (or whatever it is) arrives in showrooms, some dealers will be selling well above MSRP!

Then a few weeks/months later....well below MSRP.

 

[Reeler]

It also places some skin in the game for buyers. If the $100 fee was refundable, it’d be very feasible to order several configurations (for example, if you thought certain configs or colors would be fulfilled faster, which is what actually seems to be happening) with the intent of cancelling all but one.

While I would rather not pay anything additional for the “privilege” of placing an order (I mean, who would?), I can understand their needs from a business perspective. Ultimately, if it helps them run the business more efficiently (and profitably) so they can reinvest in improving vehicle quality or furthering their innovation, so be it.

Most states require deposits for all products to be refundable regardless of what any vendor or consumer contract says. Is the Order Fee a end run around that to keep the $100? That would be even more sleasy.

 

[PagodaY]

There's no way to view the order agreement with the detail after you have placed the order? I did mine in Oct. and all I can find is the "View Build Details"

 

[EVJonP]

There's no way to view the order agreement with the detail after you have placed the order? I did mine in Oct. and all I can find is the "View Build Details"

Have you not got the original attachment they sent with order confirmation?

 

[jleonar1]

Bottom of page click order agreement.