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Cancelled Maintenance Plan

In fairness to Tesla, I thought it important to make it clear that I got a cheque from them this week resolving this matter. I know some (maybe even me) were skeptical that I would actually get a cheque, but I did.

So, the final result is that they refunded me 75% of my money, having only used 25% of the maintenance plan.

While, I am satisfied with the result, I think it is REALLY unfortunate at how it all played out and how it was handled. As I wrote earlier (many of us) come from other "luxury" car brands (Mercedes, BMW, Audi, Lexus, Infiniti etc...) and I was disappointed in how I was treated through this situation, given my prior car ownership experiences with Lexus.

Again, I REALLY REALLY want this company to succeed. I think it is important for Tesla to succeed for a lot of reasons, so I really hope they can work out their customer service issues.
 
Purchased Model S AWD in Jun 2017 and a 4 year maintenance plan in Oct 2017. Some key paras in the contract:

“Effective Date” means the date that Your
Vehicle was delivered to the initial new or certified pre-owned vehicle owner
by Tesla. Once Your application has been accepted by Tesla, Your coverage will be retroactive to this date.”

Pretty clear, and might make sense for my situation.

“After 60 days With or Without Service Inspections: If you cancel your Agreement on or after the 60th day following the Agreement Purchase Date, your cancellation refund will be calculated based upon the balance of the remaining unused annual service inspections for the purchased Maintenance Plan option, excluding any and all used and/or forfeited annual service inspections. Each annual service inspection is not equal in price due to the actual services performed and will be deducted based upon the price of the specific annual service inspections used or forfeited prior to cancellation (subject to change in Tesla’s discretion).”

All pretty clear EXCEPT the last few words in parentheses.... sigh... what does that mean? I take it to mean the prices (or what constitutes a forfeited service) for the performed or outstanding services can change subject to Tesla’s discretion...

..any other ideas?

Anyone successfully receive a check for $475+$850= $1325 regardless of the miles or duration of ownership (but less than 38500 miles and less than 37 months ownership (includes grace time) on a 4 year contract?

Repeated requests for an estimate of cancellation amount have been rebuffed. I have to cancel to find out. Shocking process.

Thanks


 
Purchased Model S AWD in Jun 2017 and a 4 year maintenance plan in Oct 2017. Some key paras in the contract:

“Effective Date” means the date that Your
Vehicle was delivered to the initial new or certified pre-owned vehicle owner
by Tesla. Once Your application has been accepted by Tesla, Your coverage will be retroactive to this date.”

Pretty clear, and might make sense for my situation.

“After 60 days With or Without Service Inspections: If you cancel your Agreement on or after the 60th day following the Agreement Purchase Date, your cancellation refund will be calculated based upon the balance of the remaining unused annual service inspections for the purchased Maintenance Plan option, excluding any and all used and/or forfeited annual service inspections. Each annual service inspection is not equal in price due to the actual services performed and will be deducted based upon the price of the specific annual service inspections used or forfeited prior to cancellation (subject to change in Tesla’s discretion).”

All pretty clear EXCEPT the last few words in parentheses.... sigh... what does that mean? I take it to mean the prices (or what constitutes a forfeited service) for the performed or outstanding services can change subject to Tesla’s discretion...

..any other ideas?

Anyone successfully receive a check for $475+$850= $1325 regardless of the miles or duration of ownership (but less than 38500 miles and less than 37 months ownership (includes grace time) on a 4 year contract?

Repeated requests for an estimate of cancellation amount have been rebuffed. I have to cancel to find out. Shocking process.

Thanks



I encountered the same response that I could not get an estimate. I would have to cancel before I knew the amount. That is absurd. The first thing you should make clear is that your are not voluntarily cancelling the contract but Tesla has compelled you to do so. If the USA agreement is the same as Canada, ours says that Tesla CANNOT unilaterally cancel the agreement, which is why they try to force you to cancel.
 
@Bigriver - in case you (or anyone else) is interested. Here is the language in the Canadian agreement regarding cancellation:

J. Cancellation by Tesla

This Agreement cannot be cancelled by Tesla except for an invalid transfer of this Agreement, fraud or material
misrepresentation on Your part or for Your failure to pay for this Agreement. If Tesla cancels this Agreement due to an
invalid transfer of this Agreement, fraud or material misrepresentation, You will receive a refund equal to the balance of
the remaining unused annual service inspections for the purchased Maintenance Plan option, excluding any and all used
and/or forfeited annual service inspections.

This Agreement is not being sold in any jurisdiction in which the sale or performance of this Agreement is not permitted
pursuant to applicable law at the time of purchase. Any such sale is void ab initio and of no force and effect and will not be
deemed a cancellation. You will receive a full refund provided no services have been provided by Tesla.


my MS is coming up to the end of its original 4 year warranty, and when new I purchased the prepaid 4 year Service Plan Agreement, and have used 3 of the 4 annual services.

now that Tesla is no longer recommending/requiring annual service, I see some people have requested/received pro-rated refunds on unused portion of their SPA.

However looking at my agreement (saved PDF from time of purchase end of 2015), under "J. Cancellation" it says, in full (emphasis in bold, mine):

"This Agreement may not be cancelled by You or Tesla and no return of the purchase price or any other fees or taxes will be provided by Tesla to You. This Agreement is not being sold in any jurisdiction in which the sale or performance of this Agreement is not permitted pursuant to applicable law at the time of purchase. Any such sale is void ab initio and of no force and effect and will not be deemed a cancellation. You will receive a full refund provided no services have been provided by Tesla."

this is different that what I see posted earlier in this thread by @Struja


at bottom footer of my SPA is "CANTSPA032013" which maybe is the version number of the document, there is no other date on the copy I have. Are there different versions?? anyone with same version of agreement as mine?

to any fellow Canadians out there with similar vintage late-2015 MS and pre-paid service plans with unused visits remaining, what are you doing? were you able to get any refund?

Should I be entitled to refund of 25% (having only used 3 of 4 annual services)? Or, if in my version of the SPA no refund is possible, will Tesla simply provide the 4th service?


also - in the main MS forum thread about Annual Service Plans, someone posted this price list for various maintenance items (USA)
does anyone have the equivalent list for Canada service items?
 
Last edited:
I had my local Tesla dealer mock up a service request matching the 3rd year (of 4) service plan. Tough comparison... neither the service plan nor the new recommended servicing mentioned sunroof maintenance... plus if the service contract checks the brake fluid and it fails, they just replace it. I gather some service locations didn’t bother with a test... contributing to the reason to cancel the maintenance plans (I.e., doing unnecessary stuff). So a direct comparison of what a servicing will cost is not straight forward. Here is where I landed for an a la carte 3rd year service:
$195.00 A/C test/recharge (odd, I asked for desiccant bag replacement)
$287.30 HEPA and Cabin filter
$227.25 Brake fluid test and replace

Ignored wipers, fob battery, etc.

So, about $710 if I need it all. Compared to a potential rebate of $850 for the third year service.... except, under the maintenance plan they will rotate and align the tires ($380 estimate). At least they did on the first two services.

So, does not appear to be worth canceling until you consider the maintenance interval is now two years rather than 1.... so $850 back for a service due about now and spend less than that a year from now... still not a slam dunk decision.... assuming Tesla will honor a 3rd year service at year 4.... the local staff say they will, but won’t put it in writing. So do nothing for a year puts $850!at risk if Tesla chooses to declare it “forfeited”.

Is it really this hard?

Anyone cancel just before year three of a 4 year plan was due and feels good about the outcome?

Anyone wait 4 years to get the 3 year service done and Tesla did it? Thanks.
 
  • Informative
Reactions: f-stop
Should I be entitled to refund of 25% (having only used 3 of 4 annual services)? Or, if in my version of the SPA no refund is possible, will Tesla simply provide the 4th service?


also - in the main MS forum thread about Annual Service Plans, someone posted this price list for various maintenance items (USA)
does anyone have the equivalent list for Canada service items?

Your agreement is different than mine for sure but I think the end result should be the same. They cannot sell you a contract for services and then unilaterally cancel without either fulfilling their obligations under the contract or refunding you for the value of services they didn’t fulfill.
 

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