Tesla is now asking for payment in full before seeing the car?

[Glamisduner]

Just noticed the "next steps" on my account have change. The schedule delivery and get a vin steps are no longer there"

It appears they will tell me when they want the full payment and will then tell me when I can pickup the car?

If I refuse can I get a full refund? I don't don't like these new terms and with all the qc issue there is no way I can see myself handing over $80,000 for the car site unseen.

I really want the car but I'm not insaine. I hope I'm missing something or else it looks like I may be getting a different EV.

 

[P85_DA]

Wow that’s a big change ...honestly Tesla has always done right post delivery ...it’s a given you will find some imperfections in the car ..I’m also sure they still will have some reject/return policy where only your deposit is in question ..I wouldn’t necessarily let this deter you from getting a car ..after having three of them I can’t wait for my fourth ..

 

[Point 3]

Pretty sure that’s how it’s always been.
Mine was paid for before I saw the car.

 

[suwaneedad]

I brought a cashier's check to delivery and handed it over after I had inspected my car. There is a ton of momentum behind your delivery at this point; you have a ton of leverage. The car will be there, it will have been prepped, and so on, regardless of whether you have funded the car via the website before your delivery appointment time. Stick to your guns; bring a cashier's check w you and all will be well.

 

[1deepthink]

No need to pre-pay. Cashiers Check, ACH, wire after inspection is fine.

 

[mzairboy]

Just noticed the "next steps" on my account have change. The schedule delivery and get a vin steps are no longer there"

It appears they will tell me when they want the full payment and will then tell me when I can pickup the car?

If I refuse can I get a full refund? I don't don't like these new terms and with all the qc issue there is no way I can see myself handing over $80,000 for the car site unseen.

I really want the car but I'm not insaine. I hope I'm missing something or else it looks like I may be getting a different EV.

Does your account also say this?

What do I need to bring with me to delivery?

• Your driver's license (for all registrants)
• Copy of your current auto insurance (or proof of Tesla policy, if required)
• Final payment (if you are picking up your vehicle in a Tesla sales licensed state)

When I was assigned a VIN it said please pay the car in full online. There was no way I was going to do this without seeing the car.
But then Tesla offered me a home delivery, and said it needs to be paid in full before dropping it at my house and driving away.
They said if the car arrived and I wasn't satisfied I could refuse delivery and get a new VIN. Fair enough, and it sounded reasonable.

But then I paid in full and they canceled my home delivery, gave that car to someone else and told me to wait for a new VIN.
Got a new VIN and was told if I don't pick it up on the 28th I'll get reassigned to another car.

So I called Devon, PA delivery center and they said my car wasn't even scheduled to arrive until Oct.
Now my account changed and says an Oct 4 delivery.
I called the delivery team and they said it appears they have a home delivery scheduled for me on Oct 4 but they don't know for sure.
I hope it is a home delivery. That would make me happy.

Do what you want, but there is no way I would pay the car in advance if your account says you can bring final payment when picking up the vehicle. Or if you believe in Tesla's mission and want them to have the extra cash on hand for the quarter results, go ahead and pay in full.

Your car, your call. I'm just sharing my experience that after I paid, I keep getting jerked around with delivery dates and options.

 

[The805]

No need to pre-pay. Cashiers Check, ACH, wire after inspection is fine.

Interestingly, this was on the bottom of my reminder email from Tesla for my pick up appointment tomorrow.

"Personal checks will be accepted for final payment through September 30th"

I don't think you need to pay prior to seeing/inspecting the vehicle.

 

[tomas]

Agree, the website instruction to do pre-payment is misleading. YOU DO NOT HAVE TO. Bringing a cashier's check to delivery is sufficient. Tesla should really change the website to make that fact prominent.

 

[tomas]

Or if you believe in Tesla's mission and want them to have the extra cash on hand for the quarter results, go ahead and pay in full.
/QUOTE]

OK, I do not know the GAAP rules, and would love to hear from someone who confidently does (not someone else postulating). But I believe that Tesla cannot book a sale until they have delivered the car. One of the most common ways that companies run afoul of GAAP is... mis-stating revenue... and as much as they are under a microscope, I believe Tesla would go to great lengths to avoid mis-steps there.

 

[Point 3]

To be clear, I did not pay days or weeks in advance but I did bring payment with me to delivery center.
Signed all paperwork, made payment, and then was brought back to the car.
So yes, I did pay in full before seeing the car.

 

[ewoodrick]

I get mine at the beginning of summer and it had the option to pay before delivery, which I did, and was extremely happy.

How many cars do you think are being delivered in the last few weeks of the quarter? Maybe well over 10,000? How many reports of issues have you seen in the forums? Maybe less than 50? People who have issues are much more prone to post than those who are driving their cars.

 

[mzairboy]

OK, I do not know the GAAP rules, and would love to hear from someone who confidently does (not someone else postulating). But I believe that Tesla cannot book a sale until they have delivered the car. One of the most common ways that companies run afoul of GAAP is... mis-stating revenue... and as much as they are under a microscope, I believe Tesla would go to great lengths to avoid mis-steps there.

I don't know the rules either. Tesla transferred the money out of my bank account though, so they have it. Maybe it just can't be reported.

 

[MultiMediaWill]

OK, I do not know the GAAP rules, and would love to hear from someone who confidently does (not someone else postulating). But I believe that Tesla cannot book a sale until they have delivered the car. One of the most common ways that companies run afoul of GAAP is... mis-stating revenue... and as much as they are under a microscope, I believe Tesla would go to great lengths to avoid mis-steps there.

Accountant here. Tesla will report the cash received before delivery of a car as unearned revenue (a liability on the balance sheet). Yes their cash will increase but equally will their liabilities increase. It will have no effect on their net income until delivery.

 

[Wooloomooloo]

I brought a cashier's check to delivery and handed it over after I had inspected my car. There is a ton of momentum behind your delivery at this point; you have a ton of leverage. The car will be there, it will have been prepped, and so on, regardless of whether you have funded the car via the website before your delivery appointment time. Stick to your guns; bring a cashier's check w you and all will be well.

^ This - perfect advice.

The email I got from Tesla said my account will show what the final payment was "before delivery". Before delivery means before you drive away in it, not before it's been delivered to the service center you're picking up from.

 

[Knightshade]

Accountant here. Tesla will report the cash received before delivery of a car as unearned revenue (a liability on the balance sheet). Yes their cash will increase but equally will their liabilities increase. It will have no effect on their net income until delivery.

Well, they get to keep any interest they earn between collecting your $ and recognizing the revenue by delivering the car.

 

[Wooloomooloo]

Well, they get to keep any interest they earn between collecting your $ and recognizing the revenue by delivering the car.

I might be wrong but I think in the US "unearned" or deferred cash has to sit in suspense or client accounts (i.e., it can't be loaned or placed in Firm accounts) and so cannot earn interest for Tesla.

Maybe our accountant can clarify...

 

[Bays]

No need to pre-pay. Cashiers Check, ACH, wire after inspection is fine.

Personal Check when picking up worked fine for me.

 

[patrick40363]

Just noticed the "next steps" on my account have change. The schedule delivery and get a vin steps are no longer there"

It appears they will tell me when they want the full payment and will then tell me when I can pickup the car?

If I refuse can I get a full refund? I don't don't like these new terms and with all the qc issue there is no way I can see myself handing over $80,000 for the car site unseen.

I really want the car but I'm not insaine. I hope I'm missing something or else it looks like I may be getting a different EV.

Don't pay until you have picked up the car.

 

[Knightshade]

Don't pay until you have picked up the car.

Again, that's not an option for many people in many states. In those places you pay first or you don't get a car.

 

[aesculus]

When we picked our car up in March 2016 @ Freemont they showed us the car and we could get a quick look at it but then they wanted the check and have us sign the transfer docs so they could do the paperwork etc. Then with the DS we did a full inspection for about an hour, and luckley found no big issues.

So in my case I could have refused the car during the first few minutes of inspection but after that it was pretty much mine. I would suspect you could do something similar today.