Tesla Deposit Policy for Model X

[onesixeight]

Hi All:

Like others on this forum, I am very disappointed in the way my X order has transpired. This will be my 3rd Tesla and I feel it has been the worst in terms of communication and information.

My order was confirmed in late March and I have yet to receive any notice that my car is in production. I was told that delivery would be in June but I am very doubtful that will happen given the delays I read about on this forum daily.

My question is, I understand that after an order is confirmed, there is no refunds after this point. But what I feel like is happening here is that Tesla confirms the order but doesn't have any intention of meeting their advertised estimated delivery date. They lock in your deposit and make it non-refundable. I understand delays happen, but there has to be a point where if the car is not delivered, Tesla should refund your deposit?

If Tesla is not holding up to their part of the agreement, why don't buyers get a refund on their deposit.

Tesla always talks about changing the way we buy cars, but when I order a BMW or Mercedes and they don't deliver my car on-time, the dealer doesn't hold my deposit hostage.

Let me know if my thinking is out of line and if anyone has had success getting their deposit back.

Thanks!

 

[Colby Boles]

Check out my post here - I'm inclined to agree with you and think that FTC rules might apply, although you have also explicitly signed a contract which might supersede those.

Do FTC Mail, Internet, or Telephone Order Merchandise Rules apply to a MX purchase?

 

[paintpolisher]

Confirmed Jan 5th and getting our 90D in Atlanta today. IME you might not enter production for another month.

 

[dapao]

Confirmed Jan 5th and getting our 90D in Atlanta today. IME you might not enter production for another month.

Is yours titanium? Looks gorgeous.

 

[aesculus]

Tesla always talks about changing the way we buy cars, but when I order a BMW or Mercedes and they don't deliver my car on-time, the dealer doesn't hold my deposit hostage.

Are you sure? If you order a car from inventory/production that is probably true. What happens if you have them custom make a car for you? That would be the test.

 

[Colby Boles]

Are you sure? If you order a car from inventory/production that is probably true. What happens if you have them custom make a car for you? That would be the test.

I have to think that even if something is being custom made, you don't have an infinite amount of time in which to do it before the customer is entitled to cancel and receive a full refund. The FTC rules I posted above make no distinction for items made on-demand or custom versus off-the-shelf. In all cases you have a limited amount of time to come up with the item after taking some or all of the customer's money. I think the question comes down to whether Tesla's contract overrides these rules. I get the feeling that the Federal Govt. doesn't allow companies to easily have you sign away these rights.

 

[thx1139]

Every car I ordered in the past (and the only cars I havent ordered were our 2007 Camry Hybrid and our 2 Volts) have always been a huge challenge getting updates. This includes a Lexus, a BMW and a Mercedes. Never looked into the refund policy. Having a way online to see production status was laughable.

 

[Roentgen]

If it makes you feel any better, I confirmed 3/8 and received my order 3/30. Granted, my situation was a bit special in that I was part of some factory push to meet expected 1st quarter quotas, but this gives me absolute confidence that they can begin and finish production of 1 car in about a week or two. Everything else probably depends on how many people are ahead of you in the queue.

And (knock on wood) I have been very happy with the X, as I have not (yet) encountered any of the major or significant minor issues others have listed here.

Yay Tesla!

 

[onesixeight]

Are you sure? If you order a car from inventory/production that is probably true. What happens if you have them custom make a car for you? That would be the test.

Even when I custom order a car within production specs, BMW or Mercedes will let me cancel or refuse delivery. It's not as if I'm order a special BMW Individual color like a Yellow 7 series that would be difficult to sell, we are talking about a car build from the normal order guide. Now every dealer might be different but if Tesla likes to say that dealers are crooks and Tesla is the good guys. If that's the case, I would at least expect service that matches top tier luxury brands.

What's even crazier is that Tesla Delivery Specialists won't even let you test drive your car until you sign papers (at least that's what I'm reading here and have heard from others in who have taken delivery in the Seattle area). Ever been to a car dealer that didn't let you test drive the car you ordered before you signed papers? I'm not talking about buying a LaFerrari here...that I would understand but a production car like the Model X?

Like I said, this isn't my first Tesla so I'm well aware of the company's trend of under promising on delivery dates. But what I am unhappy about is the fact that they hold deposits hostage if they don't intend to start building cars for a while or if they are not delivered remotely close to the estimated delivery date.

 

[vandacca]

...
What's even crazier is that Tesla Delivery Specialists won't even let you test drive your car until you sign papers (at least that's what I'm reading here and have heard from others in who have taken delivery in the Seattle area). Ever been to a car dealer that didn't let you test drive the car you ordered before you signed papers? I'm not talking about buying a LaFerrari here...that I would understand but a production car like the Model X?
...

Tesla had a travelling Test-Drive event specifically for those people that reserved the car to help them along in the confirmation process. They would stop at stores/service centers for a day or two to provide these test-drives. There just weren't enough cars and personnel to offer these test-drives to the general public.

By now, most showrooms have a demo car or two and the general public can now go in and request test-drives. That was a very specific and special one-time event for the Model-X. They did the same with the Model-S when it was first released.

 

[aesculus]

Tesla had a travelling Test-Drive event specifically for those people that reserved the car to help them along in the confirmation process.

I think he was referring to the actual car you ordered, not just a general test drive. But I cannot think of an example of where you would need to test drive the car before taking acceptance. Even if you found something, they would just due bill it and send you on your way unless it was undriveable.

I just don't buy that many new cars and have never custom ordered one from specs but I am having a hard time believing you can walk away from this without losing your deposit just because you decided you did not want the car anymore. Sure if they pulled one from inventory I can see it. Also if they have to pay to have it shipped from another dealer they would be out that cost too. Only once I heard from a dealer that pulled a car from another location and then had the deal backed out with no charge. It was because the car they got was so hot, it was worth it for the dealer to have it and it did not last more than a few minutes until it was sold to someone else.

 

[ABCCBA]

Hi All:

Like others on this forum, I am very disappointed in the way my X order has transpired. This will be my 3rd Tesla and I feel it has been the worst in terms of communication and information.

My order was confirmed in late March and I have yet to receive any notice that my car is in production. I was told that delivery would be in June but I am very doubtful that will happen given the delays I read about on this forum daily.

My question is, I understand that after an order is confirmed, there is no refunds after this point. But what I feel like is happening here is that Tesla confirms the order but doesn't have any intention of meeting their advertised estimated delivery date. They lock in your deposit and make it non-refundable. I understand delays happen, but there has to be a point where if the car is not delivered, Tesla should refund your deposit?

If Tesla is not holding up to their part of the agreement, why don't buyers get a refund on their deposit.

Tesla always talks about changing the way we buy cars, but when I order a BMW or Mercedes and they don't deliver my car on-time, the dealer doesn't hold my deposit hostage.

Let me know if my thinking is out of line and if anyone has had success getting their deposit back.

Thanks!

@onesixeight Have you asked your DS about getting a refund if you cancel? You just might be surprised. Can't hurt to ask. (wink)

 

[vandacca]

I think he was referring to the actual car you ordered, not just a general test drive. But I cannot think of an example of where you would need to test drive the car before taking acceptance. Even if you found something, they would just due bill it and send you on your way unless it was undriveable....

My bad. Shouldn't have rushed through that thread.

 

[cdave]

Hi All:

Like others on this forum, I am very disappointed in the way my X order has transpired. This will be my 3rd Tesla and I feel it has been the worst in terms of communication and information.

My order was confirmed in late March and I have yet to receive any notice that my car is in production. I was told that delivery would be in June but I am very doubtful that will happen given the delays I read about on this forum daily.

My question is, I understand that after an order is confirmed, there is no refunds after this point. But what I feel like is happening here is that Tesla confirms the order but doesn't have any intention of meeting their advertised estimated delivery date. They lock in your deposit and make it non-refundable. I understand delays happen, but there has to be a point where if the car is not delivered, Tesla should refund your deposit?

If Tesla is not holding up to their part of the agreement, why don't buyers get a refund on their deposit.

Tesla always talks about changing the way we buy cars, but when I order a BMW or Mercedes and they don't deliver my car on-time, the dealer doesn't hold my deposit hostage.

Let me know if my thinking is out of line and if anyone has had success getting their deposit back.

Thanks!

I confirmed in December and mine is not in production yet. When I asked my DS if I could cancel and get the deposit back, he said it was too late.

 

[onesixeight]

I think he was referring to the actual car you ordered, not just a general test drive. But I cannot think of an example of where you would need to test drive the car before taking acceptance. Even if you found something, they would just due bill it and send you on your way unless it was undriveable.

I just don't buy that many new cars and have never custom ordered one from specs but I am having a hard time believing you can walk away from this without losing your deposit just because you decided you did not want the car anymore. Sure if they pulled one from inventory I can see it. Also if they have to pay to have it shipped from another dealer they would be out that cost too. Only once I heard from a dealer that pulled a car from another location and then had the deal backed out with no charge. It was because the car they got was so hot, it was worth it for the dealer to have it and it did not last more than a few minutes until it was sold to someone else.

That's true in a sense but I still would like to be able to Tesla drive my $150,000+ purchase before signing away a huge check. I just want other buyers to know what I didn't know before ordering. I don't think Tesla makes this clear even when you read the fine print.

I totally get what you're saying and I even have family members who own car dealerships, so I totally understand the cost of running the business. But for a car that hasn't been built or has been delayed significantly, I still believe Tesla should return those deposits if requested by the customer.

I have asked about getting my deposit back. Right after that they said sorry and told me the car would be placed in the production queue/issued me a VIN. But after that no other updates from my DS. Again, I just want to say that Tesla feels like a different company than when I ordered my first Model S 3 years ago. But you didn't me to tell you that, you can see that all over this forum: Delays and No communication from DS.

 

[WABarb]

I have to think that even if something is being custom made, you don't have an infinite amount of time in which to do it before the customer is entitled to cancel and receive a full refund. The FTC rules I posted above make no distinction for items made on-demand or custom versus off-the-shelf. In all cases you have a limited amount of time to come up with the item after taking some or all of the customer's money. I think the question comes down to whether Tesla's contract overrides these rules. I get the feeling that the Federal Govt. doesn't allow companies to easily have you sign away these rights.

I believe when you enter into a contract - that contract determines the delivery rules.

 

[aesculus]

I have asked about getting my deposit back. Right after that they said sorry and told me the car would be placed in the production queue/issued me a VIN. But after that no other updates from my DS. Again, I just want to say that Tesla feels like a different company than when I ordered my first Model S 3 years ago. But you didn't me to tell you that, you can see that all over this forum: Delays and No communication from DS.

I totally understand your frustration. There should be some limit on how long they take to produce the car and what it means to order but not receive one, especially as others are getting theirs.

So part of the order agreement should be a good faith estimate with a clause to cancel after that with no penalty. Right now it puts everything in the customer and Tesla could go on forever without delivering a car.

 

[WABarb]

The purchase contract covers the definition of delivery and when it is guaranteed. All references in the contract are estimated delivery dates and not guaranteed. The contract also made it very clear about the terms of the deposit and at what point it became nonrefundable. I believe this satisfies FTC rules. There are no surprises here. All frustrations aside - (we all want our cars soon) I believe Tesla is making every effort to deliver quality vehicles to us as soon as possible. They are the only manufacturer I have heard of that did their own recall (seats) without being ordered to do so. Yes this caused delays.. but I would rather have a quality vehicle a bit later than one that I have to take in for repairs. If someone is that concerned perhaps they should take this up with their own legal expert that could advise them outside this group.

 

[onesixeight]

They are the only manufacturer I have heard of that did their own recall (seats) without being ordered to do so.

This is not true. Tesla is not the only manufacturer to do voluntary recalls. Many other manufacturers do voluntary recalls without government or regulatory agencies forcing them to do so. I do agree that is contributing to the recent delays on the X.

Like you said, the Purchase Agreement is clear and I don't think I have any legal standing to cancel my order. But what I am saying is that the company should not hold deposits hostage if they are not intending the deliver the car near the promised delivery date or if there are significant delays.

On another note, its been 48 hours now and my Seattle area DS has not returned my messages. The last time, I had to visit him in person to get any updates.

 

[engle]

... All frustrations aside - (we all want our cars soon) I believe Tesla is making every effort to deliver quality vehicles to us as soon as possible...

Elon said during the most recent quarterly conference call that he is working from a desk near the end of the Model X production line. He's been sleeping in his sleeping bag in one of the conference rooms at the factory. What CEO of any company would do that to apply pressure to resolve ramp and QC issues??

In my case, my order was confirmed on 12/01/2015, and delivered to me at the factory on 3/22/2016. Sure, it wasn't easy to wait another 112 days for it after I'd already waited 3 years and 10 months since reserving on 2/10/2012.

Once you finally get your X, if you're like me, you'll enjoy driving it -- and it driving you around -- so much the long wait will fade into your memory. I've already logged ~3,600 miles in 2 months, and am planning a long road trip this summer with my family.

I only started my 2014 Benz E-class once to check the battery was OK, then I plugged it into a trickle charger. I'm going to file "PNO" (Planned Non-operation), $20 in Calif., on it for the last 3 months of its lease. It was my "gap" vehicle when the X was delayed and I had to return my ML SUV. Why pay $400 to renew for a full year when I know I'll never drive it again? I can't wait to get rid of it!