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Resolved: Prepaid Service Plan Initially Not Transferable (now prorated)

Discussion in 'Model S' started by Todd Burch, Jul 22, 2014.

  1. Todd Burch

    Todd Burch Electron Pilot

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    #1 Todd Burch, Jul 22, 2014
    Last edited: Jul 24, 2014
    In RIP VIN P01653 we all learned that my Model S is going to salvage heaven :(.

    I found out today that the 2 years remaining on my prepaid service plan are non-refundable, and cannot be transferred to a new car. That sucks. Basically, if you get a prepaid service plan and lose your car for some reason or another, you're out whatever amount remains. Has anyone else had the same or different experience? Had I known the plan wasn't transferable back when I got it almost 2 years ago, I wouldn't have purchased the prepaid plan at all.

    Something to think about if you're considering prepaying.

    UPDATE: Tesla will be providing a prorated refund for the unused portion of the plan.
     
  2. andrewket

    andrewket 2014 S P85DL, 2016 X P90DL (soon 100)

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    Prepaid Service Plan Not Transferable :(

    Wow. That's a terrible policy. If your model s is totaled and you buy a new one they should let you transfer it. If you sell it and buy another one, I could see Tesla not allowing that.

    Have you tried to claim the additional loss on your insurance?
     
  3. texex91

    texex91 Banned

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    That's a BIG thumbs down. Sorry to hear of this policy :frown:
     
  4. rpo

    rpo Member

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    I am fairly certain that pre-paid service plans must be prorated and refunded back to you in most states. I know California and Washington both have a law requiring this. That is the reason a company like Apple has to give a prorated refund of their Applecare warranty plan if the device is replaced before the extended warranty expires.
     
  5. Todd Burch

    Todd Burch Electron Pilot

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    Yeah, right now it looks like I'm going to get screwed by my insurance company and by Tesla. I hope that turns out to not be the case.

    Jeez Tesla, I put a deposit down in January of 2010. Show a little mercy!

    - - - Updated - - -

    This is from Tesla's Service FAQ regarding transferring the service plan if you sell your car(http://www.teslamotors.com/service/faq):

     
  6. CHGolferJim

    CHGolferJim Member

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    Write Elon.
     
  7. Gizmotoy

    Gizmotoy Active Member

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    Was it someone at Tesla that told you this? You've been around long enough to have seen all the other times where asking someone else gives you a different answer. They're not great at consistent messaging. Might be time to ask someone else (and get their name if it's positive).

    To me, this seems like a pretty clear case where you're owed the unused portion. Or at least a transfer to another vehicle if you replace it with another Model S.

    Really bad policy, I think, if true.
     
  8. Todd Burch

    Todd Burch Electron Pilot

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    #8 Todd Burch, Jul 22, 2014
    Last edited: Jul 22, 2014
    Yes, I heard this from service.

    I am definitely going to call ownership and see if they give the same response. If so, I agree it might be a good issue for them to consider. If true, it's an example of *not* taking care of your customer. It's no skin off their back to transfer it to a new car. [Edit: or refund the remaining amount]. I *assume* Tesla wants me to buy a P85 from them, after all. Maybe not?
     
  9. iadbound

    iadbound Member

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    Todd,

    I've been reading about the demise of your car. So sad.

    As for the transfer of the pre-paid service plan, I can see that Tesla doesn't allow a transfer to a different vehicle -- it's probably complicated from a managerial perspective and I expect there are tons of computerized records associated with the particular vehicle and the service plan, as well as service performed.

    Instead, I would expect that Tesla would credit you the unused amount, which you could then apply to a new pre-paid service plan once you get the next vehicle. If Tesla won't do that, I would complain as far up the command chain as possible because prepaid service shouldn't be a gamble. As one poster suggested, go to Elon if you have to.

    Again, I wonder if this is a semantics problem on Tesla's end (transfer versus refund of unused amount). I expect Tesla would gladly refund the unused amount even if they won't transfer the plan.
     
  10. Pilot_51

    Pilot_51 Member

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    I was wondering about this recently. I have 27 days to decide on a service plan (or none) and this might be a major deciding factor. I'm definitely interested in the response from ownership.
     
  11. AbeFromin

    AbeFromin Banned

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    i would think if you bought a new Tesla, they should give you credit. if you don't, you're outta luck.

    if the Sausage King of Chicago owned Tesla, that would be the policy.

    that would be the policy.
     
  12. swegman

    swegman Member

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    I remember reading in the agreement when I got it that the service plan is transferrable to a new purchaser of the car, but that it could not be transferred to another car. They made that clear in the agreement when I got it in March, 2013.
     
  13. Todd Burch

    Todd Burch Electron Pilot

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    When I got mine there was still a lot of confusion and disagreement about what was being offered. Don't want to transfer it to another car? Fine. Then issue a refund for services paid for but not rendered.

    It's common sense and common courtesy. But that's just me.
     
  14. liuping

    liuping Active Member

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    The prepaid service agreement is not cheap. Maybe we need to buy "Service Contract Insurance" that pay out if the car is totaled before the contract is up. :confused:

    Or just stop buying prepaid service. I was on the fence originally, but knowing I'll just loose the $3800 if the car is totaled would have tipped it to the "don't buy" side.
     
  15. apacheguy

    apacheguy Sig 255, VIN 320

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    I don't necessarily see that statement as precluding someone who had their car totaled from transferring a service plan. At the very least, they would need to refund the fraction of the service plan that was not used if they aren't going to transfer.
     
  16. Lloyd

    Lloyd Active Member

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    Hmmmm..... it is transferrable to a new owner if the car is sold. So if the cars title goes to the insurance company when it is damaged,then it is transferrable to the I.C., but Tesla will not horor it with a salvaged title, as well as the warrenty, so moot. I think you should get it in writing from Tesla that you will NOT get credit, then you have a claim against the car's insurance, or homeowners as an additional loss.
     
  17. ENZA

    ENZA Member

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    That sucks. I think they should be able to transfer it regardless if you're buying a new one. Regardless, I agree that you should get it in writing from Tesla for insurance purposes.
     
  18. Todd Burch

    Todd Burch Electron Pilot

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    I have emailed ownership to get confirmation on this policy.
     
  19. 3mp_kwh

    3mp_kwh Member

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    What would be interesting is if any manufacturer's service plan actually doesn't attach itself to the car. I don't know why anyone would think it is something the owner possesses? How could a service contract be written without knowing the VIN of other cars it might be transferred to? I don't see a maker taking that risk. If they did, imagine all the A-packs failing and the owners of more reliable, later cars trading "their" warranties at a profit, so the 2012s can get fixed on Tesla's nickle. Does this make sense?

    It's a tough pill to swallow, but the service plan follows the car. People who like to "pay it forward" can see about insuring against the loss of value on the service contract, too, but at some point you realize there's a limit to how much paying it forward really makes sense.

    Sorry, I hope you have better luck with your next car.
     
  20. liuping

    liuping Active Member

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    We prepaid for 4 or 8 future services. If the car is totaled and replaced with a new one, it costs Tesla nothing to transfer the remaining services to the new car. Anything else is just Tesla profiting from the car being totaled, which is not good form and not what I think they will do in the end.
     

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