Cancelled Maintenance Plan

[Struja]

so i cancelled my plan for Nov 2016 Model S AP2 - I got back $600 this month with no warning the amount would be that low. I had it serviced twice but did not take it in the third time as I was hearing mainteance is not needed and assumed I would get 1/2 or 2 services worth back. The explanation from tesla is that I should have by now (40K) used 3 maintanence plans and I would have only 1 left by mileage and got $600. I asked them (and Haven't heard back yet) how come they didn't notify me of the amount and where does it say in the contract that I would have to use the 3rd plan up before cancelling?

They are really screwing ppl over with this. I've asked them to comp me a 3rd service and I will call it even. No reply.

That is almost carbon copy of the BS I was told, only I had a single service and they seem to be unable to grasp that I didn't purchase the plan with the car. When I bought the car I had just over 22k on it and they are using that as the measure for mileage, even after I've produced my purchase receipt of the maintenance plan which is dated six months after I bought the car.

Since you are in the US, you should try to gatther as many people you can find who have been screwed in this way and start a class action. I am surethere are hundreds or maybe thousands like you. If there are 1,000 people screwed nation wide at $1,000 per person, that's $1,000,000.00. Certainly a class action lawyer would consider it.

 

[mknox]

I am following with interest. I also bought 8 years of maintenance when I purchased my X in March 2018 and have had one "annual" done so far. I was planning on doing #2 then asking for a refund on the balance (i.e. the remaining 6).

 

[Struja]

I am following with interest. I also bought 8 years of maintenance when I purchased my X in March 2018 and have had one "annual" done so far. I was planning on doing #2 then asking for a refund on the balance (i.e. the remaining 6).

Watch your km carefully which seems to be the only thing they look at.

 

[Bigriver]

The maintenance plan terms and conditions seem quite clear to me that the timing and mileage requirements are from the date you took possession of the car. This is specifically defined as the “Effective Date.” The agreement could be bought within the first year or 12,500 miles, but service times and mileage are measured from your acquisition of the car.

It specifically says: “Notwithstanding the date this Agreement is purchased or becomes effective, annual service inspections must be performed within 1,000 miles (1,600 km) or 30 days of the specified annual service inspection intervals for Your selected Plan. Any annual service inspections not completed within such time will be forfeited and no annual service inspections will be added as a replacement for any such excluded annual service inspections.”

Under the section addressing cancellations, it says: “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.”

I had clearly understood this as a use it or lose it deal. I’m not a lawyer, but if other’s agreements have the same wording as mine, it sounds like Tesla is issuing refunds consistent with the terms and conditions.

 

[Struja]

The maintenance plan terms and conditions seem quite clear to me that the timing and mileage requirements are from the date you took possession of the car. This is specifically defined as the “Effective Date.” The agreement could be bought within the first year or 12,500 miles, but service times and mileage are measured from your acquisition of the car.

It specifically says: “Notwithstanding the date this Agreement is purchased or becomes effective, annual service inspections must be performed within 1,000 miles (1,600 km) or 30 days of the specified annual service inspection intervals for Your selected Plan. Any annual service inspections not completed within such time will be forfeited and no annual service inspections will be added as a replacement for any such excluded annual service inspections.”

Under the section addressing cancellations, it says: “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.”

I had clearly understood this as a use it or lose it deal. I’m not a lawyer, but if other’s agreements have the same wording as mine, it sounds like Tesla is issuing refunds consistent with the terms and conditions.

Not sure what the USA contract reads but the Canadian terms say Tesla cannot unilaterally cancel the contract. On that basis alone, they are in breach of contact,

However, what you wrote above is a good point and one I contemplated before buying the plan and was told the exact opposite. What I was told at time of purchase of the plan is that when I got my car the 20k service was already done, so I should use my first year for the 40k service. So, when I had my first service, I did exactly that...I was at 46,000 km and within 12 months.

 

[Struja]

@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.

------------------
So, I highlighted two of the most important parts. The first thing to know is that Tesla created this agreement (and black letter law says you must alway construe a contract against the drafter and in the light most favourable to the non-drafting party).

The two elements asserted here:

1. Tesla cannot cancel this agreement (which they have done - thus they are in breach of their own contract) and;

2. You will receive a full refund, provided no services have been provided by Tesla. Here, I have received services provided by Tesla, which is exactly 1 year of the maintenance plan. They refused year #2 and cancelled my plan. Therefore, I should be entitled to the "unused" portion, which is 3 of 4 years, or 75%. 75% x $3,051 = $2,288.25. Pretty simple.

 

[Vawlkus]

@Bigriver
The two elements asserted here:

1. Tesla cannot cancel this agreement (which they have done - thus they are in breach of their own contract) and;

2. You will receive a full refund, provided no services have been provided by Tesla. Here, I have received services provided by Tesla, which is exactly 1 year of the maintenance plan. They refused year #2 and cancelled my plan. Therefore, I should be entitled to the "unused" portion, which is 3 of 4 years, or 75%. 75% x $3,051 = $2,288.25. Pretty simple.

I’ll grant #1, but #2 isn’t explicit in that fashion.

If you’d had NO servicing done, they must return the full amount. Because SOME servicing was done, the amount to be returned is a lot less clear.

Bear in mind I’m not a lawyer, but expressing my opinion on a quick glance here.

 

[Dakkor]

My problem to me is why they accepted to do my year 1 at 35k KM and my year 2 at almost 60K km. Then at year 3 they said no you need to do year for at 80K km.

Im at 110K right now and would do year 4 this month.

So i guess that will be my last one and lost 4 service.

 

[Eco Capitalist]

Following with interest, as I've done 1 of 4 services, odometer is currently 22,970 and the car is two years old at the end of September.

 

[Struja]

I’ll grant #1, but #2 isn’t explicit in that fashion.

If you’d had NO servicing done, they must return the full amount. Because SOME servicing was done, the amount to be returned is a lot less clear.

Bear in mind I’m not a lawyer, but expressing my opinion on a quick glance here.

Well (and this speaks to what @Dakkor wrote below), when they sold me the maintenance plan, the car had about 35k on it. In other words, they sold me a 4 year plan where I already was unable to get the first year of service (at 20k). That means, the contract was "frustrated" to begin with, which I would argue would have made the entire contract void. If so, the same rules would apply... they would be entitled to payment for the service rendered (and nothing more).

Anyway you slice it, I would get a lot more back than $700. That's simply unjust enrichment and I do not believe any Court would let it stand.

 

[Dakkor]

Yeah i just went to see my invoices.

20K (year 1) service done at 1 year (37000km)
40K (year 2) service done at 2 year (57000km)
80K (year 4) service done at 3 year (79000km)

I'm now sitting at 110000km and due for a service

 

[Struja]

*UPDATE*

New email from Tesla.

Says “you bought the plan with 22224 km on the car”. Wrong. Mistake #1. I bought the car with that many km. When I bought the plan, I had around 35-38k km on the car.

When you tried to get service year 2, you had 76,426km. Wrong. Mistake #2. I have that many km today. When I tried to get the service I had about 72k km.

Since you cancelled the plan. Wrong. Mistake #3. Tesla cancelled, not me.

You used 73% of the km allowed, so therefore you get a 25% refund. Wrong on so many levels I literally don’t know where to start.

I wrote him back illustrating his errors, saying I am tired of the nonsense and if I don’t get my refund in two weeks, I am suing. I am disgusted.

 

[Vawlkus]

*sigh* and once again, communication bites them in the ass.

 

[Struja]

*sigh* and once again, communication bites them in the ass.

Honestly, I have been begging them to just get someone in upper management to call me because I have felt that if they just listened to the facts, they would understand.

I thought when the service manager at the Mississauga SC called me, that is exactly what happened, only to find out (yesterday) that all he did was forward my letter to Tesla (sort of like hitting the escalate button). I said to him... "well, did you speak to someone to explain the facts" and he said "no, I just forwarded your letter".

 

[Struja]

***New Update***

Just got off the phone with the service manager at the Mississauga SC. He says he agrees with my assessment of the amount of services used and he agrees that I should get a 75% return (having used 1 of 3 years). Says he will have a cheque in the mail to me in 6 weeks.

So...thankfully, no need for litigation, which was always my preferred direction.

 

[Darthbenji]

***New Update***

Just got off the phone with the service manager at the Mississauga SC. He says he agrees with my assessment of the amount of services used and he agrees that I should get a 75% return (having used 1 of 3 years). Says he will have a cheque in the mail to me in 6 weeks.

So...thankfully, no need for litigation, which was always my preferred direction.

Well the cheque is in the mail. In 6 weeks. Let’s hope you get it.

 

[Chopr147]

**sigh** Why is it always a fight with Tesla on just about ANYTHING? I say "fight" but what I really mean is miscommunication. Or just downright incompetence. Or misunderstanding. I have a story as well. Don't we all? Dealing with Tesla can be so aggravating, even on simple matters. Is it arrogance? Or a new wave of youth with terrible people and writing skills? I don't know but...........

 

[Struja]

**sigh** Why is it always a fight with Tesla on just about ANYTHING? I say "fight" but what I really mean is miscommunication. Or just downright incompetence. Or misunderstanding. I have a story as well. Don't we all? Dealing with Tesla can be so aggravating, even on simple matters. Is it arrogance? Or a new wave of youth with terrible people and writing skills? I don't know but...........

Sadly, this is exactly right. Don’t get me wrong...for me...I have never LOVED a car like I love my Tesla. I just wished the customer service experience matched the vehicle.

 

[Vawlkus]

**sigh** Why is it always a fight with Tesla on just about ANYTHING? I say "fight" but what I really mean is miscommunication. Or just downright incompetence. Or misunderstanding. I have a story as well. Don't we all? Dealing with Tesla can be so aggravating, even on simple matters. Is it arrogance? Or a new wave of youth with terrible people and writing skills? I don't know but...........

I chalk it up to poor training methods. No one else does business quite the same way that Tesla does, so a lot of people coming over from other industries just have a hard time adjusting their ways of doing business and their way of thinking.
New hires are in an even worse spot because they can only rely on training, which is often done by people who are also struggling to adjust to something fairly new.

I’m honestly thinking about writing up a proposal for a review of staffing & training practices for a shareholders meeting. It saddens me to see that Tesla is still struggling with this TBH.

 

[TrevTremaine]

I chalk it up to poor training methods. No one else does business quite the same way that Tesla does, so a lot of people coming over from other industries just have a hard time adjusting their ways of doing business and their way of thinking.
New hires are in an even worse spot because they can only rely on training, which is often done by people who are also struggling to adjust to something fairly new.

I’m honestly thinking about writing up a proposal for a review of staffing & training practices for a shareholders meeting. It saddens me to see that Tesla is still struggling with this TBH.

It's also hard when directives from the top tend to be a moving target on a sliding scale. How many practice changes have happened over the years? I feel that the staff have a hard time keeping it all straight especially when things change monthly.

In this case, Tesla was certainly in the wrong.

Tesla needs to sort out it's customer support model, which should include a straight-forward way of reporting bugs (AND providing feedback). This isn't just with Tesla, but seems to be consistent with the IT marketplace.