Current Ads selling Model 3 Reservations...anyone else seen them?

[heysteveh]

I Know Tesla is adamantly against this, and there are so many complications with tax credit issues, etc....
But people are already doing it anyway. Here is an excerpt from a current local ad where I live. He is a current Model S owner:

"Get a Tesla Model 3 before anyone else.

If you place a reservation today you will wait over a year and a half. I am scheduled to have one of the first deliveries in (Name of State).

With current situation I am planning on keeping my Model S and selling my Model 3. I was going to order the car and sell it when it got here. I figured someone would want to customize the car and pick out a certain color and options. I am willing to sell my reservation for $7000 and you get to keep my $1000 deposit. So it is $6,000.

I don't know if Tesla is going to make me purchase the car in my name and then I can turn around and sell it to you or if they will let me purchase it or register it in your name. I know they will let me put it in a business name so I don't think they would have a problem with putting it in someone else name. You will be responsible for all sales tax and registration fees.

I am willing to meet in person, you can come to my office and we can pick out options you want. I would want $3,000 to place the order with your specific requests and then the other $3,000 when the car gets here. I should be getting an email in the next few weeks to configure the car and the sooner I do that the better.

Please call or text with any questions. "

 

[Gdbrown56]

They won't allow this. The car must be registered in the name of the reservation holder...

 

[heysteveh]

They won't allow this. The car must be registered in the name of the reservation holder...

True. But this guy sounds like he's willing to register it in his name and then sell it. Of course there are all kinds of problems with who gets the tax credit... or no one gets the tax credit. Bottom line is it appears people are willing to figure out ways to sell either their reservations, or take delivery first and then immediately turn it over to another party based on a prearranged sale.

 

[Gdbrown56]

By doing that, they both pay taxes on the car too. I can't see anyone willing to go through all that

 

[heysteveh]

By doing that, they both pay taxes on the car too. I can't see anyone willing to go through all that

Where I live there is no sales tax on a private party sale... but still there are so many other complications with this regarding qualifying for the tax credit that I can't see anyone who knew what they would be getting into wanting to do this.

 

[HankLloydRight]

They won't allow this. The car must be registered in the name of the reservation holder...

We have absolutely no proof of this yet. I have a M3 reservation. If I wanted to "gift" it to my step-daughter (completely different name), I'm sure they would allow it. The question then becomes, where do they draw the line on relatives? Parents, grandparents? Cousins? Second cousins? etc. Is Tesla going to be in the business of validating a family tree? Nope. It's a slippery slope, and I suspect that when the time comes as long as the reservation holder approves/requests it, the cars can be registered in anyone's name or business. Even under that path, the "reservation" was never "transferred."

 

[WileyTheMan]

Tesla is taking steps to avoid this very issue, so don't expect this guy's plan to go off without a hitch. That said, Tesla has proven to be flexible in specific situations such as passing a reservation to a family member in the event of a reservation holder passing, so I guess it depends on how deceptive this person wants to be.

 

[HankLloydRight]

Do you think Tesla is actually going to deny selling someone a car over the name on the registration?

NO CAR FOR YOU!

I think TSLA shareholders would have issues with that policy.

The policy looks good on paper, and they are 100% not allowing "reservations" to be transferred, and I suspect they won't back down on that policy. But I really have my doubts that they'll literally refuse to sell someone a car at delivery time over the names on the paperwork.

 

[smartypnz]

OK. I'm in!!!! Do you think he'll take cash? Maybe Krugerrands? Then all I need to do is wait for the phone call for delivery!!

 

[Gdbrown56]

We have absolutely no proof of this yet. I have a M3 reservation. If I wanted to "gift" it to my step-daughter (completely different name), I'm sure they would allow it. The question then becomes, where do they draw the line on relatives? Parents, grandparents? Cousins? Second cousins? etc. Is Tesla going to be in the business of validating a family tree? Nope. It's a slippery slope, and I suspect that when the time comes as long as the reservation holder approves/requests it, the cars can be registered in anyone's name or business. Even under that path, the "reservation" was never "transferred."

Being the slippery slope that it is, If Tesla begins to allow it under certain circumstances it becomes a nightmare to manage. I see them holding steadfast to "registration must belong to reservation holder." By standing by this, they don't open any doors for people trying to circumvent the system especially in the name of profiting off their product.

 

[HankLloydRight]

"registration must belong to reservation holder."

But that's not a sustainable policy. They have to allow certain exceptions. So it's a management problem regardless. I could see them requiring both parties be present at closing/delivery, so that curtails Joe in Florida from having his M3 delivered and registered to Joanne in Nevada.

 

[Gdbrown56]

But that's not a sustainable policy. They have to allow certain exceptions. So it's a management problem regardless. I could see them requiring both parties be present at closing/delivery, so that curtails Joe in Florida from having his M3 delivered and registered to Joanne in Nevada.

I am a Model S owner and have had a Model 3 reservation since day one. If they were to allow another person to register my reserved Model 3, then that person would have received an unfair advantage as it relates to delivery times (me being a current owner gives me an earlier delivery date). How are other reservation holders going to feel about somebody stepping in front of them in line?

I would bet that they hold fast to that policy to prevent such hassles. Time will tell because people will certainly be gloating if they manage to "sell" their reservation for a nice profit. Also, talking will be those folks who end up buying someone's reservation and subsequently getting a Model 3 ahead of someone with a legitimate reservation.

 

[PRSIST]

By doing that, they both pay taxes on the car too. I can't see anyone willing to go through all that

Depends on the state. There is no sales tax on owner to owner car sales in Arizona and other states. If the reservation holder does this, the final owner will in affect pay taxes because that person would be reimbursing the reservation holder.

 

[Krugerrand]

OK. I'm in!!!! Do you think he'll take cash? Maybe Krugerrands? Then all I need to do is wait for the phone call for delivery!!

You rang?

 

[gg_got_a_tesla]

...The question then becomes, where do they draw the line on relatives? Parents, grandparents? Cousins? Second cousins? etc. ...

Surely, the immigration ban rules are the Bible for this?!

Couldn't resist...

 

[SMAlset]

The guy's essentially scalping the car for a $6,000 profit on his end. And he wants to make money by not even taking possession of the car. Really hope Tesla pulls his reservation for this. People who decide not to purchase should just drop out of the list and everyone moves up. Tesla was pretty clear on this and hope they hold to it. I would think the only exceptions they make will be registering it to immediately family members or such. Hubby is the registered owner of our MS and the reservation for our M3 is in his name. We might put the M3 in my name though not sure at this point.

I do remember there was a guy Elon got pissed at and pulled his sale. Would be nice to see potential profiteers get the same treatment.

 

[siggyfreud]

Wouldn't the original purchaser be the only one eligible for the tax credit?

 

[gg_got_a_tesla]

Wouldn't the original purchaser be the only one eligible for the tax credit?

First registered party, yes.

 

[GoTslaGo]

Wouldn't the original purchaser be the only one eligible for the tax credit?

Electric-vehicle tax credit: Does it apply to the owner, co-owne... - TurboTax Support

 

[Ucfjoe]

The seller from ad raises a fair point. If one (either Seller or Buyer) had a business that use the credit you could go that route. Seems like a pain to me but could be done within current allowable structure.