Ineligible for return policy if taking any EV tax incentive

[through103]

ordered my X on 8/12/2019, delivery is set for tomorrow 9/1/2019, just got an email from my delivery specialist and part of the email reads:

"Please be advised, by accepting any incentives (NY Rebate or Federal Tax Credit), your Tesla becomes ineligible for our Tesla Return Policy. Please let us know if you would like these incentives removed from your contracts."

I am seriously doubting tesla's business practice now since I only have one day to decide, can anyone give me any input/advice?

 

[MorrisonHiker]

I don't know how the New York rebate works. Do you get it instantly, with it removed from the price or do you have to apply for it? You don't apply for the federal tax credit until you file your tax return next year. That's well outside the 7 day return period. I don't see how Tesla could remove it from your contract since they have no control over it.

I don't see any mention of tax credits or rebates on the page describing their return policy. Maybe they mean to say that you can't get the rebate or credit if you return the car? Maybe your delivery specialist is just confused?

 

[through103]

The New York rebate is taking off from the purchase price instantly and there is no need to apply, for the model X, it is $500. As for the federal credit, it does seem like they have no control over it. But from the email, it clearly stated that they want me to decide NOW whether I would like to take advantage of the EV credits or they will "void" the return policy. I'm just a little upset because they never mentioned that until yesterday, and essentially gave me a little over one day to decide.

 

[MorrisonHiker]

The New York rebate is taking off from the purchase price instantly and there is no need to apply, for the model X, it is $500. As for the federal credit, it does seem like they have no control over it. But from the email, it clearly stated that they want me to decide NOW whether I would like to take advantage of the EV credits or they will "void" the return policy. I'm just a little upset because they never mentioned that until yesterday, and essentially gave me a little over one day to decide.

Can you ask them where it states that in the official return policy? This is the first I've heard of someone mentioning this and I haven't seen any official policy stating what they've told you.

 

[brkaus]

It does make a bit of sense. Once the vin is filed with the state the car isn’t eligible for another rebate if resold.

But I thought they just held the title processing for the week. If it’s returned it becomes a demo/inventory car.

Agree it’s rude to change at the last minute. They do run a “just barely in time” operation as far as paperwork goes. So I’m not surprised.

 

[rjdoc74]

Federal tax credit could be applied instantly if it’s a lease. In that case it’s subtracted from the residual.

 

[ewoodrick]

If you take a credit, that then indicates that you owned the car. The car cannot then be sold as new.

 

[through103]

If you take a credit, that then indicates that you owned the car. The car cannot then be sold as new.

so you guys are saying that what tesla is doing now is right. My question is why even bother with the 7 day return guarantee when they know everyone is going to go for the EV incentive. To me at least, this is a typical bait-and-switch scam.

 

[through103]

It does make a bit of sense. Once the vin is filed with the state the car isn’t eligible for another rebate if resold.

But I thought they just held the title processing for the week. If it’s returned it becomes a demo/inventory car.

Agree it’s rude to change at the last minute. They do run a “just barely in time” operation as far as paperwork goes. So I’m not surprised.

my thought exactly, they should held title processing for at least one week

 

[Az_Rael]

Yeah, Tesla is trying to keep the title and incentives for the vehicle clean so they can sell it to someone else as a new car. This has caused a few issues, with at least one person reporting they bought a new car from Tesla that had been previously registered. I suspect the return policy is going to be short lived overall, honestly.

Return Policy

• We will accept your vehicle for return if the vehicle:
  • Has an odometer mileage of less than 1,000 miles at the time of return;
  • Has a New Vehicle Limited Warranty that has not been voided;
  • Has not been the subject of any submission or application for any available incentives or perks;
  • Is in new condition, without damage or abnormal wear and tear; and
  • Has not been resold or transferred to any person or entity.

 

[TMThree]

I am seriously doubting tesla's business practice now since I only have one day to decide, can anyone give me any input/advice?

Why not test drive it at a tesla show room, and then decide if you want the car? And if there are defects at delivery, don't accept it. Now there isn't a problem and it's like buying any other car from anyone else.

 

[ajdelange]

I'd say tell them to cancel both so you have the option to return if necessary. Next spring ask you accountant to file for the Federal rebate. What's Tesla going to do at that point? They certainly won't take the car back and can't prevent you from filing. They won't even know you did.

 

[brkaus]

I'd say tell them to cancel both so you have the option to return if necessary. Next spring ask you accountant to file for the Federal rebate. What's Tesla going to do at that point? They certainly won't take the car back and can't prevent you from filing. They won't even know you did.

I doubt the federal one is the issue. But if the state comes right out of the sales price it may be more complicated.

is it possible to file for the state one on your own?

here in Texas they don’t even acknowledge Tesla exists for the Arab debates

 

[ewoodrick]

I doubt the federal one is the issue. But if the state comes right out of the sales price it may be more complicated.

is it possible to file for the state one on your own?

here in Texas they don’t even acknowledge Tesla exists for the Arab debates

If you have title in your name, you can file for whatever. Plus, just the fact that the title is in an end-users name is the problem.

 

[LA88]

Is this for NY only since the state rebate is taken out of the price right away? How about CA, residents qualify for $2500 but I want the option to return the car if I have a motor failure or major problem within the first 7 days. Anyone from CA sees this agreement when taken delivery?

 

[Bentesling]

Don’t forget the other states, where this is not an issue. This is an issue with NY state tax policy; nothing Tesla can do about it.

 

[Tam]

Is this for NY only since the state rebate is taken out of the price right away? How about CA, residents qualify for $2500 but I want the option to return the car if I have a motor failure or major problem within the first 7 days. Anyone from CA sees this agreement when taken delivery?

In California, the owner just have to promise that the owner havs not applied for any incentives for your new car, then the car can be returned fine.

There's no way for Tesla to check whether the promise is true or not because it takes months to find out that the owner did not keep the promise.

When the inventory new owner who bought the rejected car applies for incentives, that's when the problem will appear as duplicated VIN if the promise was not kept.