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How is this even REMOTELY legal?

Discussion in 'Tesla Motors' started by tinm, Jul 13, 2016.

  1. tinm

    tinm 2013 S85 Owner

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    I have been told, at a Service Center, that I am welcome to buy an Extended Service Agreement (ESA) for my Model S, using the My Tesla checkout process, BUT, if I ever show up at a Service Center, they will promptly refund my money because I am ineligible for the ESA.

    How can that be?

    I am told that "by law we can't offer you" the ESA. Whose law? You guessed it, New Mexico. Apparently no Tesla owner in New Mexico can get an ESA.

    Now here is I question the legality of this.

    1. If I pay online $4000 to a company based in California and incorporated in Delaware, for service that would require me to drive up to Denver (or go out to Scottsdale) to receive, then how the f*&% is that any of New Mexico's business? What possible legal interpretation gives New Mexico the right to, from my non-lawyer's eyes, block me from doing interstate commerce? Is this not tortuous interference?

    2. There are no Tesla service centers in NM. So it is impossible to get the service that the ESA would offer, anywhere in the state. Again, how the hell does the state of NM have any right to interfere?

    Finally, this is just what I was told by one service person at a Tesla Service Center. Until I get this in writing or email from Tesla Corporate, I don't believe it. But if anyone's run into this in NM or any other state, I would love to know, because this is infuriating. My car is about to hit 47K mi and time's running out to get the ESA.
     
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  2. deonb

    deonb Active Member

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    Oh, we have the same issue in WA.

    Worst thing is - all other manufacturers are allowed to offer it, and you can buy one aftermarket from any 3rd party. But Tesla themselves can't offer it. Frustrating. I may have to sell my car in the next 6 months because of this.
     
  3. AB4EJ

    AB4EJ Member

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    What you do here may depend on how deep your pockets are. The only thing I would know to do here is to file a lawsuit in federal court against your state, the grounds being that they are interfering with interstate commerce. Since I am not a lawyer, this may be complete hogwash, but I have heard of things like this. A downside is that your car will be 10 years old before the case would come to trial...
     
  4. Chopr147

    Chopr147 Active Member

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    Just more government doing what is best for you. After all the pol's are smarter than us and know what we need :(
     
  5. tinm

    tinm 2013 S85 Owner

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    Could someone explain the legal thinking, from a state's perspective, that makes such a law possible? Who was harmed such that such laws had to be enacted? How is it in the public interest? Are dealer lobbies behind this?
     
  6. jaguar36

    jaguar36 Member

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    My guess knowing nothing about the law would be that they outlawed extended service contracts because alot of the companies that offer them are really just scams at worst, or terrible deals at best.
     
  7. tinm

    tinm 2013 S85 Owner

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    But when it's the original manufacturer...?
     
  8. ChadS

    ChadS Petroleum is for sissies

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    The WA law changed last session, you can buy an extended warranty for the Model S at a service center.
     
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  9. Chopr147

    Chopr147 Active Member

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    There are scams out there of course. But so prevalent as to outlaw ESA's all together? No. Lobbies must have something to do with it.
     
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  10. HankLloydRight

    HankLloydRight Fluxing

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    Here's an idea, but has some hassle and costs. "Sell" your car to a "friend" in some other nearby state.

    Get it titled in that state, you might not even need to register it there. Heck, you might not even need to title it. Just whatever "proof" Tesla needs to sell the ESA to you.

    Buy the ESA.

    "Buy" back the car from your "friend". Re-register it in NM. Done.

    ** Edit: If you sell it to someone in Colorado, and they register it, they might be able to claim a $6000 tax credit.
     
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  11. hiroshiy

    hiroshiy Active Member

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    Not sure about the reason why this law exists in NM? If I have a GM car, can I buy ESA from GM? How does it work to selectively exclude Tesla with the law?
     
  12. HankLloydRight

    HankLloydRight Fluxing

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    I think it has to do with being licensed to sell insurance. GM (or GM Finance) likely has that license. Tesla likely does not.
     
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  13. Electric700

    Electric700 Member

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    I would contact [email protected] to validate whether an ESA can be valid in New Mexico. If it's not, then you can reach out to one or more of your New Mexico government representatives, including your governor.
     
  14. tinm

    tinm 2013 S85 Owner

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    Ha, I emailed ServiceHelpNA two weeks ago. Silence. I'm way past those folks. Already reached out to NM Attorney General and Tesla's lawyers and my local State Senator.
     
  15. tinm

    tinm 2013 S85 Owner

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    #15 tinm, Jul 16, 2016
    Last edited: Jul 16, 2016
    UPDATE: I got an email from ServiceHelpNA, finally. After forwarding them my email from 2 weeks ago and reminding them they'd not replied yet.

    Here's their response: "We apologize for the delayed response. However, we won't be able to sell ESA to Tesla owners in New Mexico due to the state’s local legislature. If there are any other questions or concerns, we’re just an email or a phone call away to help. . . ."

    I replied telling them that was not a good enough answer. No reply.

    So I contacted Tesla's General Counsel. I got a call from someone in the legal office yesterday afternoon. I was told that YES, New Mexians CAN buy ESAs, but they have to buy them in person at a Tesla facility like a store or service center, in some state where Tesla has stores and service centers, like Colorado or Arizona. He told me Tesla would be informing the ServiceHelpNA people as well as service center and store people of the errors of their ways, misleading New Mexico Tesla customers, and that they would be set right.

    So, thanks to the stupid laws in New Mexico, I have to travel to another state just to hand over $4000 to buy an ESA so that if my car ever needs service in its post-50000-mile years, I can get ESA service . . . from a service center in some other state since New Mexico and the enemies of Tesla so kindly continue to screw its citizens.
     
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  16. timk225

    timk225 Member

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    NADA car dealers paying BRIBES to NM politicians to make laws that help them and hurt Tesla. That's all this is.

    The NADA dealers will slowly lose as more and more people realize they do not have to deal with them anymore, and their dealerships go out of business.
     
  17. HankLloydRight

    HankLloydRight Fluxing

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    Well that's a PIA but at least you can get the ESA, and now we know how other similarly affected people can get the ESA.

    Hopefully by the time you need ESA service, the NM laws will allow you to get local service. Good luck!
     
  18. Electric700

    Electric700 Member

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    Good to know that you can get the ESA. May be you can schedule a service visit if you're due for it and cover getting the ESA at the same time? Just call to confirm that they can do it and if they tell you that they can't, let them know what Tesla's General Counsel said.
     
  19. tinm

    tinm 2013 S85 Owner

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    Well the irony is that I just had a service visit 400 miles away, out of state, and while I was there they told me I could not buy an ESA. And now I am told that I can buy an ESA. There's a very good chance I would have bought an ESA while I was at the service center if I had simply known that I could. This is another classic example of communications not being optimal within Tesla, let alone between Tesla and customers. I shared this concern with Tesla this week and hope it sinks in.
     
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  20. Shawn Snider

    Shawn Snider Member

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    Sounds like you need to move to a Tesla-Friendly State? Not much else you can do..
     

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