Denied Resale Value Guarantee (RVG)

[DoubleE]

When I purchased my 2016.5 Model S I was given the Resale Value Guarantee form which on mine indicated that I would be guaranteed a resale value if sold back to Tesla between 36-39 months from the date listed.

I reached out to Tesla about my RVG and they told me they cannot honor it because I already paid off my car!!

No where in the fine print does it indicate being penalized for paying off my car early.

Anyone else have this issue?

 

[RichardL]

I remember that condition on the RVG for my 2013 S. wasn't a problem for me!

 

[ESoCal]

That condition is on the RVG for my Dec 2015 S. It is listed in the fine print, that the car must remain on the financing until a full 36 months. However, when I was starting to go through the process they also wanted me to provide cleared title, so it is contradictory.

Ultimately, I did it as a trade-in to Tesla on a new S, vs RVG, but with them honoring the RVG price on the trade-in. I had to argue it, as they had tried to offer a trade-in price way lower than the RVG price ... very concerning and upsetting about "trade-in" value from Tesla being close to 5k less than the RVG set value ... which is why I leased my new S.

 

[more863-also]

Everyone here says that Tesla's have the best resale value. If that's the case, then why is an RVG program even needed or desirable?

 

[ESoCal]

more863-also - I believe Tesla no longer offers the RVG program. I think it was ended sometime in 2016? They had it earlier on to give piece-of-mind to earlier purchasers, prior to that, there were not that many used S's on the used market and establishing both used resale value and a residual value was an issue ... my take is the RVG program both gave piece-of-mind so buyers weren't afraid to purchase (no leases earlier on), and artificially created a residual value for when they started to offer leases.

 

[mblakele]

@DoubleE too bad about that fine print. But are you sure you wouldn't be better off with a third-party sale? My TMS went to vroom.com for about 25% more than the RVG was worth.

 

[DoubleE]

@DoubleE too bad about that fine print. But are you sure you wouldn't be better off with a third-party sale? My TMS went to vroom.com for about 25% more than the RVG was worth.

I'll have to look into that! Thanks

 

[neroden]

Always read the fine print!

The RVG has really only been useful for people who got very heavily optioned cars (Performance Plus, fully loaded, most expensive paint, stuff like that), because options (especially Performance) are not worth much on the used market.

If you got one of those... well, triple-check the fine print, but probably it does say they only have to pay the RVG at lease return, not if you ended the lease early. (I'm not sure whether *prepaying* the lease is *ending* it though... something for an expert at fine print to look at).

If you got a more typically specced car (including anything non-Performance), you'll almost certainly get more on a third party sale.