Payment Timing

[PRSIST]

Ok Tesla owners. Every car I have ever purchased...I checked it out for stuff that I couldn't live with and then drove it. After it met with my approval, then and only then, did I fill out the paperwork and pay for the car.

Thus far, with my limited knowledge of the process, we configure our car online and then arrange for the payment transfer.

My question is, when does the payment get made to Tesla??? Do I get to see the car that they are giving me first? Can I test drive it and check it out and THEN pay for it, or once it's shipped, it is mine whether I want it or not?

Thanks for input.

 

[Runt8]

This is a good question. I believe once you are able to configure you must make a non-refundable $2500 down payment before they will start to build it, which leads me to believe there isn’t a way to reject the vehicle before paying (at least you will probably lose the $3500).

Hopefully there will be some available to test drive before you are able to configure, but I don’t think there’s a way to test drive “yours.” From what I’ve read of other people’s experiences picking up their Model S/X’s, you generally have to have payment settled before you drive it away.

 

[03DSG]

Ok Tesla owners. Every car I have ever purchased...I checked it out for stuff that I couldn't live with and then drove it. After it met with my approval, then and only then, did I fill out the paperwork and pay for the car.

Thus far, with my limited knowledge of the process, we configure our car online and then arrange for the payment transfer.

My question is, when does the payment get made to Tesla??? Do I get to see the car that they are giving me first? Can I test drive it and check it out and THEN pay for it, or once it's shipped, it is mine whether I want it or not?

Thanks for input.

From what I understand after your order payment you can chose to pay online at any time or with a certified cheque/MO when you pick up the car. NO WAY would I pay without doing a thorough walk around first so I’ll be doing the cheque at pickup.

 

[jason.a]

I didn't hand over the cheque for my Model S until I had reviewed the car and decided that everything was OK. I didn't insist on a test drive first but I would be surprised if they didn't allow it. I expect things would be similar for Model 3.

I've been told that you can walk away from the deal at any point before taking delivery. If you do, you forefeit your deposit but that's about it.

 

[daniel]

I can't remember ever being able to test drive a new car before buying it. I always get to test drive the model, but not the actual car. This is understandable because I would not want to buy a new car, and pay a new-car price, if someone else had test-driven it, maybe several people. If they let you drive it and then you don't buy it, it's not really "new" any more.

I would not buy a car without a test drive first, but I don't expect the test drive to be in the actual car I'm going to buy, for the above reason.

That's why dealerships have demo cars. Then they sell the demo at a discount because people have driven it.

ETA: I won't order my Model 3 until I have test driven one. Even if this postpones my delivery date.

 

[Big Dog]

I can't remember ever being able to test drive a new car before buying it. I always get to test drive the model, but not the actual car.

Indeed. The only time I did actually drive the new car I purchased was bcos it had just arrived from the dock -- dusty, still with the white film covers over the windows.

The Sales guy said, 'let's go to the back lot and we can drive it up to the showroom (~1mile away), where it will be washed & waxed if you like this color'. Otherwise, I could drive a demo of that model.

 

[DR61]

I don't think a deposit can legally be non-refundable in my state (California).

 

[Jason S]

I didn't hand over the cheque for my Model S until I had reviewed the car and decided that everything was OK. I didn't insist on a test drive first but I would be surprised if they didn't allow it. I expect things would be similar for Model 3.

I've been told that you can walk away from the deal at any point before taking delivery. If you do, you forefeit your deposit but that's about it.

That's the way I recall it happening too. I suspect the deposit remains and the made-to-order car becomes the thing they must make right before you'll accept it. Test driving it then saying something like "the seats feel funny and the acceleration isn't as fast as I thought it would be" will prolly fall under the can't-fix-it category and you now have ordered/customized an item you don't really want.
Pretty sure you forfeit the deposit in that case.

Before you sign the contract for them to build the car, it is still a fully refundable deposit. Read the contract before build if this makes you nervous then decide for yourself if the risk is worth it.

On the other hand, I have test-driven a new car at the dealership then driven the same car home (not the Tesla). I'd already contacted the dealership regarding an inventory car and arranged to try it first. Worked out fine.

 

[Krazaak]

Prior to configuration, your $1000 reservation is refundable.

Once you configure and make your $2,500 deposit (an additional payment of $1,500, since the reservation applies to deposit), I believe there is a 3 day window where you can make changes or potentially cancel.

Once that 3 days passes, the deposit becomes non-refundable, although the legality of non-refundable may vary from state to state.

Once your car is ready for delivery, you get to inspect it, pay the remaining balance and take it home.

If there's anything wrong with the car at delivery, it's on Tesla to fix it, before you pay for it. You can walk away from buying it for any reason, but you stand a good chance of losing your $2,500 unless there's something fundamentally wrong with the car as delivered.

Once you pay (or finance) the balance and the car gets registered in your name, it's yours. There is no backing out without significant financial loss, barring lemon law or some other mutually agreed upon transaction.

If you choose home delivery or if Tesla proposes it to meet some delivery date goal, then you will have to pay and the car will be registered to you before it's delivered. You can of course request Tesla fix anything that's wrong or damaged, but you already own the car.

I'm not sure if they'll allow you to take a final test drive at delivery or not, but I can't see why not. I've only ever purchased two cars that I didn't test drive before purchase, a 2002 BMW 540 w/ Euro Delivery and my Model X and now that I think about it, there's no good reason that I didn't drive the Model X before committing to the purchase. The BMW had to be registered in advance, so there was no opportunity.

 

[Krazaak]

I can't remember ever being able to test drive a new car before buying it. I always get to test drive the model, but not the actual car. This is understandable because I would not want to buy a new car, and pay a new-car price, if someone else had test-driven it, maybe several people. If they let you drive it and then you don't buy it, it's not really "new" any more.

I would not buy a car without a test drive first, but I don't expect the test drive to be in the actual car I'm going to buy, for the above reason.

That's why dealerships have demo cars. Then they sell the demo at a discount because people have driven it.

ETA: I won't order my Model 3 until I have test driven one. Even if this postpones my delivery date.

I would never buy a car from a dealership that I hadn't already driven. They may have a demo that they favor for casual test drives, but when it comes to the point that you're filling out paperwork to buy, there's absolutely no reason not do drive the car you're about to buy.

 

[Shygar]

At what point do you get qualified for a loan? Hopefully it's before the day of picking it up

 

[Krazaak]

At what point do you get qualified for a loan? Hopefully it's before the day of picking it up

Before making your $2,500 deposit. You can apply for Tesla financing before you order or get pre-approved for financing with another institution.

 

[Az_Rael]

I would never buy a car from a dealership that I hadn't already driven. They may have a demo that they favor for casual test drives, but when it comes to the point that you're filling out paperwork to buy, there's absolutely no reason not do drive the car you're about to buy.

For everyone except Tesla, I have always test driven the actual car I bought before buying it. Once it was on the showroom floor, so they had to move a bunch of stuff around, but they didn’t have any issues doing that.

However, the Tesla process is a bit crazy, so neither time we bought our CPOs did we get to drive them until after purchase. Worked out OK, but not a process for the faint of heart, especially with a used car.

 

[Az_Rael]

At what point do you get qualified for a loan? Hopefully it's before the day of picking it up

Before making your $2,500 deposit. You can apply for Tesla financing before you order or get pre-approved for financing with another institution.

You get qualified for the loan when you are given an actual delivery date. If you do it before you put your deposit down, the loan pre-approval won’t last long enough to make it to delivery and you will have to do a 2nd hard credit pull closer to delivery. That might change the interest rate you are approved for.

 

[Krazaak]

For everyone except Tesla, I have always test driven the actual car I bought before buying it. Once it was on the showroom floor, so they had to move a bunch of stuff around, but they didn’t have any issues doing that.

However, the Tesla process is a bit crazy, so neither time we bought our CPOs did we get to drive them until after purchase. Worked out OK, but not a process for the faint of heart, especially with a used car.

I think I was just too excited to remember to ask to test drive my X before accepting delivery. I've considered getting a CPO S for my wife and I will insist on a test drive before purchase. I may lose the deposit if I refuse to accept it, but that's better than getting a $60-70k car with some problem I can't remedy.

You get qualified for the loan when you are given an actual delivery date. If you do it before you put your deposit down, the loan pre-approval won’t last long enough to make it to delivery and you will have to do a 2nd hard credit pull closer to delivery. That might change the interest rate you are approved for.

My interest rate for Tesla financing was locked in when I made my $2,500 deposit. Timing might be trickier if you're using 3rd party financing, but a significant interest rate change could be a deal breaker for some.

 

[Az_Rael]

My interest rate for Tesla financing was locked in when I made my $2,500 deposit. Timing might be trickier if you're using 3rd party financing, but a significant interest rate change could be a deal breaker for some.

I am guessing delivery happened within the 30 day window in that case. When buying CPOs it takes about 6 weeks for delivery, so my advisor told me to NOT apply for Tesla financing until I had a delivery date. Tesla financing window for the rate lock was too short.

The question on the 3 is if they will be delivering them within the rate lock timeframe after you configure.

 

[Foxhound199]

This is understandable because I would not want to buy a new car, and pay a new-car price, if someone else had test-driven it, maybe several people. If they let you drive it and then you don't buy it, it's not really "new" any more.

Meh. Every car I've ever bought has been the actual test drive vehicle. Somehow, I wasn't bothered by the thought that mine may not have been the only butt ever to grace the seat.

 

[daniel]

Meh. Every car I've ever bought has been the actual test drive vehicle. Somehow, I wasn't bothered by the thought that mine may not have been the only butt ever to grace the seat.

Yeah, but then you got a discount for taking a car that had been driven, and maybe not all that gently. Not quite a used car, but not quite a new one either.

 

[PRSIST]

I can't remember ever being able to test drive a new car before buying it. I always get to test drive the model, but not the actual car. This is understandable because I would not want to buy a new car, and pay a new-car price, if someone else had test-driven it, maybe several people. If they let you drive it and then you don't buy it, it's not really "new" any more.

I would not buy a car without a test drive first, but I don't expect the test drive to be in the actual car I'm going to buy, for the above reason.

That's why dealerships have demo cars. Then they sell the demo at a discount because people have driven it.

ETA: I won't order my Model 3 until I have test driven one. Even if this postpones my delivery date.

Every new car I purchased, I drove the car I was going to drive off the lot. I would I test drive the dealerships Ace car so they could give me another.

 

[JSkrehot]

I don't think a deposit can legally be non-refundable in my state (California).

If before you make that deposit, you read and sign, or electronically sign that you understand your deposit is indeed non-refundable, uhh, ya, it is.