TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Tesla double dips on Destination Fee

Discussion in 'Model S: Ordering, Production, Delivery' started by Gig103, Oct 12, 2016.

  1. Gig103

    Gig103 Member

    Joined:
    Oct 6, 2016
    Messages:
    155
    Location:
    Phoenix Metro Area
    Hey all,

    As I've said in other threads, I'm working on finalizing my 2014 Inventory car; it should be on a truck in a few days, I'm told. But I had an unpleasant surprise today when I was told that the $1200 Destination Fee doesn't actually cover the delivery to my local SC and that I will need to pay another $750.

    This really irks me, even though it's < 1% of the price of the car, because they keep on fawning over how "inventory cars are treated like new cars" in the showrooms. Then I put my deposit down, and Tesla turns into the "shady dealership" with surprise fees.

    I would understand if I was buying a CPO car in which the destination fee was already used to deliver a car, but mine is expressly not CPO.

    /rant
     
    • Informative x 1
  2. Reeler

    Reeler 6 Years of Pure EV

    Joined:
    Oct 14, 2015
    Messages:
    645
    Ask your DS to have the $1200 destination fee waived. They did it for me a couple weeks ago, but I did have to pay the $750.
     
  3. zjfk2

    zjfk2 New Member

    Joined:
    Oct 12, 2016
    Messages:
    3
    Location:
    Tennessee
    Is there a communcation issue? I have had extreme diffculty communicating with Tesla after I put down a deposit. My car has been sitting in the southeastern rail distribution center for the last ten days with no updates. Did you get the final "dealer worksheet" from Tesla? I had to harass people and escalate to get my DS to send it to me, but there hasn't been a 750 fee in addition to the 1200 delivery yet.
     
  4. Gig103

    Gig103 Member

    Joined:
    Oct 6, 2016
    Messages:
    155
    Location:
    Phoenix Metro Area
    I tried, and she didn't budge

    No, I asked flat out and pointed out the Destination fee hasn't been used. Her excuse was that "it was to deliver the car to the showroom." Not sure if there is a supervisor or someone at Tesla Corporate I can talk to.
     
  5. nishT

    nishT Member

    Joined:
    Sep 18, 2016
    Messages:
    26
    Location:
    Frisco, TX 75035
    I recently got my new 2016 inventory model. Before ordering it, I was researching on CPO vehicles as well. They clearly mentioned there will be additional Shipping charge on CPO vehicles, depending on how far they need to ship it from. It can be anywhere between $500 - $3000. It is also mentioned in Tesla CPO website.
    Its only on the new vehicles, Shipping is free or included in Destination charges.
     
  6. Gig103

    Gig103 Member

    Joined:
    Oct 6, 2016
    Messages:
    155
    Location:
    Phoenix Metro Area
    Do you happen to have it in writing that "shipping is free or included" for new vehicles? My car is coming as an Inventory car, never titled, thus 'new'.
     
  7. virtualsmack

    virtualsmack Member

    Joined:
    Jun 22, 2016
    Messages:
    45
    Location:
    SoCal
    i believe tesla doesn't consider inventory cars to be new. Elon's post a couple of weeks ago, amidst all the discounting, stated they would never discount a "new car coming out of the factory in pristine condition" which seemed contradictory to all the inventory deals that were taking place. but they don't consider inventory cars to be new so that statement was accurate in their minds.

    so from your standpoint, their definition of new differs from yours and isn't based on if it has been titled or not. the inventory car still has to be moved like a CPO does, so they prob charge shipping as a result.

    from my experience, the team at the service centers/stores are way more helpful than the ones on the phone/corporate. I had some questions about using some old deposits that I had lost (I put a down for a CPO and then bailed after the price drop was announced) Anytime I called the corporate# they weren't able to do much but my DS and store manager were way more helpful w/ regards to filing a case for me and when I had questions about how I could get in on the end of quarter discounts. If your DS isn't getting back to you, I'd consider going to the store and speaking to the manager. The DS's sit there too so you could talk to them face to face but I'd go directly to the manager at some point.

    finally, I ran into an issue with my initial CPO purchase where the site said they charge shipping "to" hawaii but they didn't say anything about charging shipping "from" hawaii. they ended up wanting to charge me shipping and when I noted there was nothing on the site that stated that, they acknowledged that and let me switch cars 2 times vs. 1 time without charge.
     
  8. nishT

    nishT Member

    Joined:
    Sep 18, 2016
    Messages:
    26
    Location:
    Frisco, TX 75035
    As my Sales rep, if its an Inventory car (not a Loaner/Testdrive car), there will not be any additional Shipping fee. There will be Destination Fee ($1200) for all vehicles though.
     
  9. azdryheat

    azdryheat Member

    Joined:
    Jul 6, 2016
    Messages:
    117
    Location:
    Mesa, AZ
    Since you are so close, I would fly to San Jose and pick it up.
     
  10. nishT

    nishT Member

    Joined:
    Sep 18, 2016
    Messages:
    26
    Location:
    Frisco, TX 75035
    Check with your DS. In somecases, if you pick up a car from a different state that you plan to register it, you might have to pay double tax (in both states). When I asked my DS that I like to fly to Atlanta (where my inventory car was) and drive back to TX (where I live), he mentioned I might have to pay tax in both the states.
     
  11. andrewket

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

    Joined:
    Dec 20, 2012
    Messages:
    5,043
    Most states have an exclusion for out of state buyers and/or the state you have residence in will deduct the tax paid to the other state from the taxes you owe, which can result in zero additional taxes. California is particularly bad: they don't exempt and they have some of the highest tax rates.
     
  12. Az_Rael

    Az_Rael Active Member

    Joined:
    Jan 26, 2016
    Messages:
    1,227
    Location:
    Palmdale, CA
    Except with an actual CPO, there is no destination fee. Only the shipping charge.
     
  13. JediNinjaLady

    JediNinjaLady Member

    Joined:
    Jul 31, 2016
    Messages:
    29
    Location:
    NW Alabama
    I bought my CPO in Atlanta and did not pay GA taxes...
     
  14. nishT

    nishT Member

    Joined:
    Sep 18, 2016
    Messages:
    26
    Location:
    Frisco, TX 75035
    Did you take the delivery/pickup of your CPO in Atlanta or did they ship it to your state where you took delivery ?
    My comment was, if you live in a different state but picked or delivery of the car in a different state, you might be subject to pay sales tax in the state you picked the car, and also in your state when you do registration. Also, this changes from state to state, subject to their rules
     
  15. HankLloydRight

    HankLloydRight Fluxing

    Joined:
    Jan 18, 2014
    Messages:
    5,770
    Location:
    Connecticut
    Just a point of info, when I bought my Inventory car in 2014, I had to pay both:

    Destination and regulatory documentation fee $1,170.00
    Transportation Fee $750.00

    Transport was from Maryland to New York. I think that would be $500 today.
     
  16. Gig103

    Gig103 Member

    Joined:
    Oct 6, 2016
    Messages:
    155
    Location:
    Phoenix Metro Area
    Thanks for posting your experience, because it is useful to know Tesla is being consistent. I guess I won't get anywhere arguing against it with them. I still think it's a raw deal to double dip since "Destination fee" is the fee the dealership charges in order to bring a car to the first buyer, which includes all of us buying Inventory cars.

    It crossed our mind for the fun road trip, but two plane tickets to SFO, plus the extra 0.7% sales tax, cost more than the transportation fee. I get that it costs money to move cars, but that's what I'm paying in my Destination fee.
     
  17. HankLloydRight

    HankLloydRight Fluxing

    Joined:
    Jan 18, 2014
    Messages:
    5,770
    Location:
    Connecticut
    I'm not arguing either side, but Tesla did have to ship my car from the factory to MD, and then to NY. The destination fee also covers doc fee and title, reg, runner, and plate fees for me. It's not just shipping.
     
  18. Gig103

    Gig103 Member

    Joined:
    Oct 6, 2016
    Messages:
    155
    Location:
    Phoenix Metro Area
    That's interesting that your Dest/doc fee also covered title, registration, runner, and plate fees. In Arizona those are separate on the purchase order.
     
  19. brianman

    brianman Burrito Founder

    Joined:
    Nov 10, 2011
    Messages:
    15,487
    I see a lot of mixed use of terminology, which is bound to lead to trouble.

    My understanding is:
    1. new/custom: order from the website (or in person, but your config is built 'later'), never titled, never used as loaner/testdrive/marketing vehicle
    2. "inventory new": never titled, may have been used as loaner/testdrive/marketing vehicle
    3. CPO: certified pre-owned; delivered + titled by an owner (i.e. ownership transferred from Tesla and registered for use with DMV)

    Some people use "inventory" to refer to both 2 and 3, and it's terribly confusing when that happens.
     
  20. Reeler

    Reeler 6 Years of Pure EV

    Joined:
    Oct 14, 2015
    Messages:
    645
    In Colorado, you need to go to the DMV to register the car and pay the taxes. We should get a discount because they are not handling any of that which is included in the fee.
     

Share This Page