Bought CPO Model S yesterday and now Tesla says they made a mistake and will not honor the Price

[Fryspam]

Hello All!!

After a long time (years) I am ready to buy my first Tesla and after going to and fro between the Model 3 and Model S, I decided to buy a CPO Model S. I have been looking for around 6 months now and finally, yesterday, I found the car I wanted and immediately ordered it. I go the the order confirmation showing the price it was advertised at and I was looking forward to driving the car.
This morning I received the call from the sales guy and and we went over everything and decided the delivery location (I car is in NY and I live in LA). I agreed to pay the cost and I am waiting for the next steps. I just got another call from my sales guys informing me that they made a mistake in pricing the car and that the car now is $13,400 more than it was advertised at. He is asking me to pay the new price or buy a different car and the only thing that he can do for me is that he will waive the shipping charge.

I was and am "speechless".
I can't believe this, how can they go back on their word?
They took my deposit and after my we settled everything with the sales guy, they want to cancel my order.

Has this happened to anyone?
What re-course do I have?

Any advice will be greatly appreciated.

A very sad would-be-no- maybe-Tesla owner.

Thanks!!

 

[ars41902]

I purchased a CPO back in November. While I didn't run into as much of a discrepancy, the price actually dropped on mine $800 while I was debating on pulling the trigger. I immediately took a picture of the small price change and put my deposit down only to find out later what went through was the higher price. I brought this to the attention of the sales person that reached out and even provided the evidence (picture with timestamp) and they still wouldn't honor the lower price.

They offered to refund my deposit if I no longer was interested but I still liked the car and ended up buying it. It wasn't a great start to my Tesla ownership but luckily the car has made up for it!

 

[crashvt]

I would point them to the used Motor vehicle agreement.

"Purchase Price, Taxes and Official Fees. The purchase price of the Vehicle is indicated in your Vehicle Configuration or, if applicable, the buyer’s guide provided to you. This purchase price does not include taxes and official or government fees, which could amount to up to 10% or more of the Vehicle purchase price. Because these taxes and fees are constantly changing and will depend on other factors, such as where you register the Vehicle, they will be calculated closer to the time of delivery and indicated on your Final Price Sheet. You will be responsible for paying these additional taxes and fees. You may also incur additional costs if the Vehicle needs to be shipped from a different location"

 

[ACA Man]

They took your money so legally they can’t go back and ask for more.

 

[glide]

They took your money so legally they can’t go back and ask for more.

Sure they can. You don’t think they have language in their contracts to let them wiggle out?

OP, did you sign any paperwork yet or just put down the initial $2K to reserve the car?

They’re going to make it a nightmare for you so be prepared for that if you decide to move forward.

 

[ucmndd]

They took your money so legally they can’t go back and ask for more.

Of course they can. Pricing mistakes happen. They’re not obligated to honor human error more than any other retailer.

 

[whitex]

They took your money so legally they can’t go back and ask for more.

Sadly, they can. I went through something similar on a new ICE car. Went to the dealer, found that the car I want is in transit to the dealer, spent couple of hours negotiating, we agreed on the price, signed a contract, I put down a deposit, car was supposed to arrive in a few days. A day or two later, I get a phone call that "the sales manager made a mistake, and the price is 10% higher". I spoke with an attorney and it turns out the dealer association over the years has sucessfully lobbied for some great laws to car dealers - after signing the contract I am the only one obligated. The dealer can refund my deposit and sell to someone else up until they hand me the keys. On the other hand, if I wanted out, they could actually sue me for the entire price of the car (though typically they would just keep my deposit and move on).

So, while Tesla and NADA and not friends, it doesn't stop Tesla from benefiting from laws paid for by NADA.

Ps) I complained to Toyota corporate about the aforementioned dealer experience, they told me they can't force the dealer to honor the contract because they are independent from Toyota, but at least they offered me $500 cash if I still bought a Toyota at any other dealer, which I did. Tesla being their own dealer, there would be nobody to complain to.

 

[whitex]

Of course they can. Pricing mistakes happen. They’re not obligated to honor human error more than any other retailer.

Do you think it works the other way too, when the human error is on the buyer's side (buyer accidentally thought they were making more money)?

 

[bhzmark]

until you execute a contract for a specific car for a specific price you dont have a commitment for a certain car at a certain price. did you and a Tesla rep sign a contract

 

[ambition]

What was car an price ?

 

[Camera-Cruiser]

As others have said, they can do this, have done this, and are doing it to you.

I don't know what the laws are called, but it comes down to the fact that dealers/merchants are not obligated to sell things if they "goofed", or often in print advertising/web advertising if someone typed it in wrong.

So if two numbers get transposed, then they are not obligated to sell it at the offered price. So $58,900 should really be $85,900. I also imagine that if when they were pricing it, they could have typed in a wrong code, so that the price was based off a 75 kWH battery, but the car has a 100.

Mistakes happen, it sucks. I think it would be trickier for them if they had delivered the car, and then asked for more money...

I wouldn't waste too many additional brain cells on it. Just get your deposit back. Based on what happened, I can't see them holding it and forcing you to apply it to another car.

Oh, and tell us about the one that got away.

 

[ucmndd]

Do you think it works the other way too, when the human error is on the buyer's side (buyer accidentally thought they were making more money)?

I’m honestly not exactly sure what you mean, but I think until there’s a signed sales contract that both parties have executed, either is free to change the terms of the sale or not go through with it.

OP asked what his recourse is. IMO it’s the swift return of his deposit, as Tesla won’t honor the terms presented when he placed the order. That’s it.

 

[whitex]

I’m honestly not exactly sure what you mean, but I think until there’s a signed sales contract that both parties have executed, either is free to change the terms of the sale or not go through with it.

So you if you order a new Tesla and don't pick it up, you can get your deposit back? Or is taking of the deposit considered executing the contract (in which case the OP had an executed contract).

 

[ChandlerAZOwnr]

Same thing here bought a Model X for 60k saturday night and i have a purchase agreement stating that price from tesla. Tonught during dinner i get call saying they made a mistake and im not the only one. My thoughts are ill talk with Attormey Generals office of both California and Arizona first as well as s legal counsel. This happened a week ago flights to Asia i beleive for 10k+ seats first class sleepers and the airline was forced to sell the seats for the $400.00 advertised.

 

[ChandlerAZOwnr]

Cathay Pacific error sees $16,000 flights sold for $675

 

[ucmndd]

This happened a week ago flights to Asia i beleive for 10k+ seats first class sleepers and the airline was forced to sell the seats for the $400.00 advertised.

They most certainly were not forced to. They made a calculated choice to honor the mistake, as is their prerogative.

 

[ChandlerAZOwnr]

By the way the price Tesla now says the Model x is oriced at is +17000 @ 76000

 

[ChandlerAZOwnr]

Okay not forced to but public outcry or negative P.R. was a motivating factor. Like i said Attorney General's office as well as legal counsel will decide my course of action or inaction.

 

[ucmndd]

So you if you order a new Tesla and don't pick it up, you can get your deposit back? Or is taking of the deposit considered executing the contract (in which case the OP had an executed contract)

My understanding of the deposit is it says you are agreeing to buy X car at Y price, and if you don’t, you forfeit the deposit.

Now if Tesla changes something on their end, through no fault of your own (like the price or the specific car), they’ve changed the terms of that deposit and you’re due a refund if you don’t accept them.

 

[ChandlerAZOwnr]

Also in my case i had already uploaded all docs, adid credit app and finalized that process and was ready to setup delivery/pickup and then i get call. Of note current Tesla owner, was looking to add a Model X and had splken with cpo rep earlier in the week and was actively shopping qith suggestions forwarded to me by Tesla.