Bait and Switch of Trade-in Value?

[SanMan]

I ordered a Model 3 two weeks ago. Post-sales was somewhat unprofessional – they switched VIN numbers, gave me a run around regarding a referral credit, didn’t assign a “delivery specialist” for a week and left me hanging - minor annoyances. My early delivery date didn't budge, which was what most concerned me. Until this morning.

Last week the “delivery specialist” checked with me about the trade-in price. I remembered it as being slightly more, but didn’t trust my memory. I’m glad I checked. Somehow the trade-in price has dropped $2100.

Here's what I sent to my delivery specialist this morning:

Zach,

Please see below. That is the trade-in price I’m expecting. When I look at my remaining balance, it gives my trade-in as only $34K. This is not good business-practice. Please ensure this mistake is rectified before delivery tomorrow between 12 and 2.pm.

I got an email yesterday, confirming delivery tomorrow and telling me my contract could be viewed on line. I opened my Tesla account, but I can see no sign of a contract. You will understand that I want to read the contract before signing - particularly after discovering the discrepancy above. I was hoping I would be able to read the contract today. I doubt you’ll see this email today, Sunday, but please make it available to me as soon as you can, and then rectify my account to show the trade-in price originally agreed.

SanMan

I didn't say: This is what I’d expect from a sleazy guy selling jalopies for a few thousand from a trailer on a site beside a strip club. Maybe there is an innocent explanation.

 

[animorph]

Tesla just gets offers for the trade-in from third-party traders. Your initial trade-in value reflected what they were offered at that time. Now it's less. I don't think I've ever heard of a guarantee for any length of time, though that is quite a difference.

If the trade-in feature is just a convenience for you (not a tax savings due to lowering the new car cost), you can see what the popular buying services will do for you. Not much harder than trading in, and you'll have multiple offers if you want. We sold to Carmax and through Cars.com for our two Tesla purchases. Carvana was also there with a decent offer.

 

[Non3Ya]

Tesla just gets offers for the trade-in from third-party traders. Your initial trade-in value reflected what they were offered at that time. Now it's less. I don't think I've ever heard of a guarantee for any length of time, though that is quite a difference.

If the trade-in feature is just a convenience for you (not a tax savings due to lowering the new car cost), you can see what the popular buying services will do for you. Not much harder than trading in, and you'll have multiple offers if you want. We sold to Carmax and through Cars.com for our two Tesla purchases. Carvana was also there with a decent offer.

My OA has repeatedly told my Tesla honors their trade-in quote for 30 days/1,000 miles. Not sure what to believe at this point.

 

[Need]

In Dec 2017 when we traded in our car, the price dropped too from the initial quote, but in our case it was $200 not $2000+. They said because we put a few hundreds more miles on it. $2100 drop in 2 weeks seems a lot.

 

[SanMan]

I expect a company to honor its commitment. See below.

I like the idea of modernizing the car trading experience. Switching quotes on a customer after he believes the deal is done is a throwback, and probably illegal. I tried to include a screenshot of Tesla's offer, good till Dec 24th.

 

[SanMan]

 

[Need]

That seems very clear to me. Not sure how they could back out of that unless there is some fine prints below the page....

 

[Uncle Paul]

I have seen where Tesla provides a quote, subject to inspection. If they find something wrong, that was not disclosed, obviously that may effect the final value.

Had a friend that was trading in a BMW on another car. Got his quote, but when the buyer discovered that the car had a large, aftermarket sound system installed they required it to be put back to stock or the price would be lower.

Seller expected the expensive sound system to make the car more valuable, but to BMW it needed to go.

 

[jjrandorin]

I have seen where Tesla provides a quote, subject to inspection. If they find something wrong, that was not disclosed, obviously that may effect the final value.

Had a friend that was trading in a BMW on another car. Got his quote, but when the buyer discovered that the car had a large, aftermarket sound system installed they required it to be put back to stock or the price would be lower.

Seller expected the expensive sound system to make the car more valuable, but to BMW it needed to go.

Most people think that their car modifications make the car worth more, and in almost all cases (99 percent), aftermarket anything makes the car worth less, especially as you move up into mass market luxury brands (or true luxury brands). A person buying a BMW who is an enthusiast almost never wants something with aftermarket anything on it... they want the car as close to stock as possible, with evidence that it was taken care of.

Some things dont tend to reduce value (OEM parts or things that were available as OEM parts, like (on BMW at least) rear diffusers, front splitters, carbon fiber mirror caps etc). They dont reduce value but they dont add any either. After market mods actually lower value vs keep it the same.

 

[SanMan]

No modifications, Tesla has yet to inspect the vehicle. They've given no explanation for the revision of the price. Here's the smallprint at the bottom of their 11/24 offer:


This quote will be valid for 30 days as long as the trade-in vehicle is free of major cosmetic and mechanical issues, has no history of any accidents, is drivable, and the odometer reading does not increase by 1,000 miles or more. For more information, request a call. If your vehicle has any non-standard options or packages not represented in this quote, you will have the option to complete a self-inspection after placing an order.

*Your Trade-In credit is your Kelley Blue Book Value ($36,010) minus the estimated payoff amount you provided ($0).

Tesla | All Rights Reserved | 3500 Deer Creek Rd. Palo Alto CA 94304
Privacy Policy

 

[SanMan]

Tesla ended up honoring the original quote. They took it to the wire. I told the guy who called me when he was on the way with the car, told him I expected the original offer. He was noncommittal, but a few minutes later I got an email telling me they would. Four different delivery specialists contacted me in the last 24 hours, each saying they knew nothing of the original offer. I sent more than a dozen texts or emails.

The guy who delivered the car was great. He was patient while I checked the car carefully, explaining anything I queried. His paperwork still reflected the $2K lower trade-in, but the Tesla website had the corrected version, so that was OK.\

Last night I discovered the manuals had only safety and roadside assistance information. No hardcopy of the manual. I hoped there was one and this was an oversight, so I reached out to two of the four delivery specialists by email. No response, so I called. "Ee don't provide hardcopy, you can download if you want."

 

[jjrandorin]

Tesla ended up honoring the original quote. They took it to the wire. I told the guy who called me when he was on the way with the car, told him I expected the original offer. He was noncommittal, but a few minutes later I got an email telling me they would. Four different delivery specialists contacted me in the last 24 hours, each saying they knew nothing of the original offer. I sent more than a dozen texts or emails.

The guy who delivered the car was great. He was patient while I checked the car carefully, explaining anything I queried. His paperwork still reflected the $2K lower trade-in, but the Tesla website had the corrected version, so that was OK.\

Last night I discovered the manuals had only safety and roadside assistance information. No hardcopy of the manual. I hoped there was one and this was an oversight, so I reached out to two of the four delivery specialists by email. No response, so I called. "Ee don't provide hardcopy, you can download if you want."

No hard copy manual (which is the same as BMW right now as well, actually). Any hard printed manual would be out of date pretty fast on any car, and on a Tesla, it would only be as good as the next software update. Translated, a paper manual would be worthless to you in about 1-2 months.

I downloaded the manual from the website in PDF form, and put it in iBooks on my iPad so that I could read it like a book. Insert your tablet of choice if you have one. Worked great, and will be easy for me to upload new PDFs and still read it while I am in the car or on the go.

Congratulations on your new tesla btw!

 

[SanMan]

Thanks for the suggestion, I shall download to my Ipad, but I'd prefer even a dated hardcopy to supplement a current virtual version. Virtual material is harder to browse, and, unless it has a good indexing system, harder to look up. That the delivery specialists haven't bothered top get back to me is particularly poor. Maybe they feel their job ends when they get payment. Another strike against the brand.

 

[animorph]

Pretty clear they should have honored their original quote. Glad they finally did and you got your car.

 

[Esquire]

I'm glad to hear they honored their original quote. Good for you sticking to your guns.

 

[diamond.g]

Thanks for the suggestion, I shall download to my Ipad, but I'd prefer even a dated hardcopy to supplement a current virtual version. Virtual material is harder to browse, and, unless it has a good indexing system, harder to look up. That the delivery specialists haven't bothered top get back to me is particularly poor. Maybe they feel their job ends when they get payment. Another strike against the brand.

Not that this comment is meant to assuage you, but Tesla has been really dismal on customer communications for the past 10 years. Everyone hoped it would have gotten better with a "mass market" car, but it hasn't (and to some it has actually gotten worse).

In respects to the manual, I don't think they have ever offered a printed copy on the S or X either, so the not having one in the 3 isn't a huge surprise. I am curious how much a printed copy would go for, and if it would really be worth it if in a few months it would potentially no longer be relevant.

 

[cpa]

Glad to hear that things resolved themselves appropriately for you in the end. Glad to hear that your persistence was able to remedy Tesla's incompetence and fecklessness.

As others have stated, Tesla's communication protocols and procedures leave a lot to be desired. I know from personal experience!

But I believe that Tesla's $2,100 reduction in their initial agreed-upon trade-in value is not within the realm of the classic street bait-and-switch con. Bait-and-switch, like all cons, is perpetrated by grifters and other sleazeballs whose intent is to separate the unwitting mark from his money. There was and has never been any intent by Tesla to offer a high trade-in value, and then substitute a lower one upon final settlement if the customer were honest when submitting the information on line.

Tesla wants good PR. Tesla wants to sell as many vehicles as they can produce. Tesla wants its stock price to rise. Having a corporate policy or having a surreptitious compensation package to the staff that shares in altered trade-in values does not further these goals.

Bait-and-switch? Absolutely not. Clumsy, feckless, and incompetent? Yeah.

 

[SanMan]

I agree cpa. The question mark denoted that, although annoyed and frustrated, I was willing to change my mind.

A mistake is no big deal. It's when mistakes are not immediately recognized and speedily remedied that the brand suffers. Tesla started with a very strong brand based on excellent cars. That strength is being eroded by poor service and erratic leadership.

 

[Giavid]

My quote dropped by $1000. I emailed my Advisor why but haven’t heard back yet.

 

[SanMan]

Giavid, You're in the stronger position. They have your deposit but want a sale, and they' committed to their original offer . Tell them you plan on paying based on your original quote. Tesla didn't relent with me until the delivery driver was on his way.

My feeling was: I'm trading my car in years earlier than I like - if the deal falls through, it's not a big deal. Small Claims Court was a possibility - either to get my deposit back if it were not repaid, or to reclaim the difference after going through with the lower quote.

Good luck. Let us know how it turns out.