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Evolution of the Tesla Trade In (or Sanity Check Please)
- Thread starter lolachampcar
- Start date
Jgdixon
Active Member
FYI I just received a quote for my Canadian red Sig with white interior. It has every option but the 3rd seat.
43000 km (about 27,000 miles)
It was for $70,400. I find this very low. I was also told Tesla will keep the car for resale and they saw no extra value as a Sig or with the colour combo. I guess I will be selling privately.
43000 km (about 27,000 miles)
It was for $70,400. I find this very low. I was also told Tesla will keep the car for resale and they saw no extra value as a Sig or with the colour combo. I guess I will be selling privately.
I feel for you Lola. You have been a very loyal customer and have a right to expect fair treatment. Could it be that if they did this for you they would fall victim to being called a "dealer" and play into NADA's hand?
They are a dealer in that they posses a Florida Automotive Dealer's License. NADA is a private organization. The definition of Dealer is the domain of the Florida Department of Motor Vehicles or DMV. Tesla must hold a Florida Dealer's License issued by the DMV to sell new or used cars in the state of Florida. They must also hold a Florida State Sales Tax ID if they are buying or selling materials subject to Florida State sales tax. With that ID comes the responsibility and obligation to collect Florida State sales tax. Tesla is not compensated in any way for this nor do they have any ownership interest in the sales tax monies collected on behalf of the state. They are simply required to do this, along with all the related accounting and reporting, if they wish to operate a business that handles goods or services.
Tesla does not pay your sales tax for you thus they should not take your sales tax credit on trade in from you. It is as simple as that. Using the position of having to collect sales tax to leverage a lower offer on your trade is taking pure and simple.
In addition, NADA has claimed that Tesla can not be allowed a monopoly as they would surely abuse their position and their customers. We all scoffed at that saying "Yea, right. NADA and dealers are going to school us on how Tesla is going to take advantage of their customers.". Well, if ABC BMW low balls my trade in, I go get a competitive wholesale number and request a courtesy trade. ABC can ask for some money to facilitate the paperwork but refusing to do the courtesy trade just has me going down the street to XYZ BMW who will gladly take a customer that has already decided to buy and has money in hand. When Tesla Dania refuses to do a courtesy trade it does me no good to go to Tesla West Palm Beach because, you got it, they are a monopoly and the answer will be the same. What do you know; NADA actually has a point.
Tesla does not pay your sales tax for you thus they should not take your sales tax credit on trade in from you. It is as simple as that. Using the position of having to collect sales tax to leverage a lower offer on your trade is taking pure and simple.
In addition, NADA has claimed that Tesla can not be allowed a monopoly as they would surely abuse their position and their customers. We all scoffed at that saying "Yea, right. NADA and dealers are going to school us on how Tesla is going to take advantage of their customers.". Well, if ABC BMW low balls my trade in, I go get a competitive wholesale number and request a courtesy trade. ABC can ask for some money to facilitate the paperwork but refusing to do the courtesy trade just has me going down the street to XYZ BMW who will gladly take a customer that has already decided to buy and has money in hand. When Tesla Dania refuses to do a courtesy trade it does me no good to go to Tesla West Palm Beach because, you got it, they are a monopoly and the answer will be the same. What do you know; NADA actually has a point.
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Jgdixon
Active Member
I forgot to mention that I did email back that I would probably be selling privately and the response was that they would do a courtesy trade for me for a fee of $500. No mention if that would apply to a wholesaler as well.
Jgdixon
Active Member
It means if I find my own buyer that Tesla will take my car in on trade for the price the private buyer offers to save me the tax. Then they sell it to the private buyer. A charge of $500 to handle the transaction would apply.
FWIW, I did email Elon on an issue I had last year, and he actually replied back and forwarded my email on to others in the org to help out. Now, that was back when the MS was just in the 4 digits deliveries and the stock was still in the double digits (I think).
jgdixon,
I would be more than happy to pay Tesla $500 to process my courtesy trade. They have flatly refused for any amount of money short of them keeping the whole sales tax benefit and me accepting their trade in number. Given that there is zero risk in a wholesale wash through (the term used my dealers when they simply take your trade in the front door and send it to auction or another wholesale dealer) and the very real risk and hassle in selling to a retail buyer, I am very surprised that Tesla is willing to do this for you. Surprised, but happy for you.
I would be more than happy to pay Tesla $500 to process my courtesy trade. They have flatly refused for any amount of money short of them keeping the whole sales tax benefit and me accepting their trade in number. Given that there is zero risk in a wholesale wash through (the term used my dealers when they simply take your trade in the front door and send it to auction or another wholesale dealer) and the very real risk and hassle in selling to a retail buyer, I am very surprised that Tesla is willing to do this for you. Surprised, but happy for you.
Jgdixon
Active Member
We have had a lot of inconsistencies up here. Some people myself included have reported that the trade value is only good for 7 days which is ridiculous when you have a vehicle on factory order. Others have been quoted a number good until their new car delivery subject to a limit on miles and re inspection. They asked me initially to wait until 2 weeks before delivery to get my trade value. When I pushed them by saying how can any consumer budget for their new payment if they don't know the dollar difference they got back to me within hours with my number. I know another Sig owner who has been waiting for a week for his value (mind you he doesn't have a car on order) Our owner's club gets together this Tuesday so it will be interesting to see what perspective 30+ other owners have on this.
One word of warning. I traded a BMW on my first Feb 2013 delivery P85. It was an AutoNation number I received in early December through Tesla. I did not want additional miles on the car nor did I want to "roll through" a calendar year so I gave up the BMW in mid-December to cement the trade value and sales tax credit. When it came time to pay for my P85, Tesla told me they would not give me credit for the trade because they were working though the beginnings of the whole NADA problem and did not want to compromise their legal position. At the same time, Tesla was not remotely interested in making me whole for the loss of the sales tax credit when they, after previously agreeing to take the trade just like any other dealer, unilaterally decided they would not. It took a few letters before Tesla finally gave me Ranger/Service plan benefits equal to the sales tax credit lost. I chalked all of this up to "new dealer jitters".
Knowing what I know now, if would not surprise me in the least if Tesla simply refuses to do the courtesy trade when the time comes...........
Knowing what I know now, if would not surprise me in the least if Tesla simply refuses to do the courtesy trade when the time comes...........
I was not offered a courtesy trade presumably so as not to weaken their offer to me. I was also given a 7 day time limit and limit of 500 kms difference. They have just had it inspected and I'm waiting to find out if they are going to try and reduce the offer. Definitely feels lie dealing with a traditional used car dealer but with less options.
I wonder if they are obligated to offer the courtesy trade but only after someone has explicitly refused their offer - which I had not done.
It would be interesting to learn if Canadians are entitled to courtesy in trades thus Tesla would be obligated to offer the process.
Tedkidd
Member
It would be very interesting to know this for certain. Are you going to give it a shot?
Jgdixon
Active Member
Are you asking if this is the law in Canada? I am actually in the car business and I'm not aware of any such rule.
Ted,
I effectively did this when I went over Dania's head to the S. E. Regional sales manager responsible for many stores and was told no and that it was not in Tesla's interests to see MS product going to dealers.
JG,
Thank you for that. It was just the first time I have heard of Tesla accommodating a courtesy trade in over a year after telling me emphatically that they WILL NOT do one. This is what made me think it may be a regulatory requirement in Canada.
I effectively did this when I went over Dania's head to the S. E. Regional sales manager responsible for many stores and was told no and that it was not in Tesla's interests to see MS product going to dealers.
JG,
Thank you for that. It was just the first time I have heard of Tesla accommodating a courtesy trade in over a year after telling me emphatically that they WILL NOT do one. This is what made me think it may be a regulatory requirement in Canada.
I'm wondering if there is some kind of sensitivity around this. All though they have definitely been playing their advantage with me over the GST benefit, I wonder if I directly asked them to do the courtesy trade if they would dare refuse.
I called Tesla to get a trade quote on my 2013 P85. Got what I thought was a lowball offer. Looked at the Earth Motorcars website where they have 11 Teslas for sale in DFW.
Amazed what they were asking. I understand that a retailer needs some "meat on the bone" when he buys a car, but the delta between what I am being offered and retail is substantial. I actually called Earth to get a quote from them but doubt I'll hear anything back since they have a relationship with TMC it seems. Tesla did a demo in Dallas this weekend at the Earth dealership. Lolachampcar is correct about tortuous interference. I'm reluctant to order a D until I move my P85 so I've listed it on this forum.
Amazed what they were asking. I understand that a retailer needs some "meat on the bone" when he buys a car, but the delta between what I am being offered and retail is substantial. I actually called Earth to get a quote from them but doubt I'll hear anything back since they have a relationship with TMC it seems. Tesla did a demo in Dallas this weekend at the Earth dealership. Lolachampcar is correct about tortuous interference. I'm reluctant to order a D until I move my P85 so I've listed it on this forum.
breser
AutoPilot Nostradamus
I talked to Earth about trading my car. They discussed it with me. If there was a problem with Tesla seems to have been resolved.
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