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

[schonelucht]

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.

Incorrect. Any payments before delivery of a car are booked as 'customer deposits' on the liability side and as 'cash and cash equivalents' on the asset side. The latter is regular unrestricted working capital. Should Tesla gain interest on the account that actually holds the cash, it's theirs.

Customer deposits primarily consisted of cash payments from customers at the time they place an order or reservation for a vehicle or an energy product and any additional payments up to the point of delivery or the completion of installation, including the fair values of any customer trade-in vehicles that are applicable toward a new vehicle purchase.

 

[LM-5]

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.

Yes, you have to do what you have to do in those specific states. If you don't live in one of those states, there's no way you should be sending payment before you're physically sitting in the car and satisfied with it.

 

[mongo]

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.

As @MultiMediaWill said:

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.

My understanding (from other posters) is that they can still roll it back before you drive off..

 

[Uncle Paul]

Same thing with hookers. You gotta pay before inspecting the goods Everytime I purchase something on line or at a store, they make me pay for them before I can even open the box. They have return policies that protect customers in this case...but you still gotta pay up front.

But seriously, Tesla wants to be paid before delivering your car. Waiting until the absolutely last moment does make it a bit difficult for them.

Anyone with a color printer can make out a great looking, but totally bogus check, money order or certified check. They are legitimate in wanting to be able to verify your funds prior to doing the paperwork to register and transfer the title to the new owner.

Not unusual though for them to accept a personal check, but it really puts them in a bind if the check bounces or is fraudulent.

They are also being crunched for time with thousands of deliveries being scheduled every week. A customer that wants to take an hour or so to completely inspect every portion of the car prior to arranging payment can easily clog up their system.

Maybe they will need to develop some sort of Escrow service where an independent 3rd party holds the funds and does the paperwork. But this would just be another level of bureaucracy and expenses that would increase your price for the car.

I trust Tesla. The vehicle they delivered to me. After delivery I mentioned that I thought the headlights were a little too low and they quickly adjusted them for me. EZ-Peazy

 

[Glamisduner]

Just for clarification, I no longer see the step about getting a vin and scheduling a delivery. I guess maybe this is a good thing? Although I still don't have a vin. Also I find it odd that I have to get to "Next Steps" by selecting "overview" and the "next steps" link just shows the screen behind this one.

I think Allegacy wants to send the check directly to tesla, but I lost allot of faith that tesla will actually have a car for me when the time comes. I really don't want to be making car payments, and insurance payments on a car I don't actually have.

 

[NathanielHrnblwr]

This is normal. Wait for your phone call / email to pick up your car in SD. Once you have a date, have the check sent to you from your bank and provide it to Tesla after inspecting the car.

 

[brandonee916]

This is totally normal.... Delivery means you drove off the lot with the car... Tesla requires full payment prior to that is all. Nothing new here..

 

[Glamisduner]

This is normal. Wait for your phone call / email to pick up your car in SD. Once you have a date, have the check sent to you from your bank and provide it to Tesla after inspecting the car.

At what point now do I expect a VIN?

 

[C141medic]

At what point now do I expect a VIN?

Should be listed in your MVPA. Do you have a delivery advisor yet? If not you can always call Tesla and should be able to find out your VIN.

 

[brandonee916]

At what point now do I expect a VIN?

I had multiple VINs... once you get the final MVPA it'll have your VIN that you can then use for your loan. I didn't get mine until 24 hours prior to my scheduled delivery. Everything was super last minute...

 

[whatthe2]

I'm taking delivery in Littleton, CO on Friday. Here's what shows on my account page:

Next Steps

We are drafting up your contract and will contact you when you can make your final payment.

Who must be present at delivery?

All persons listed on the registration must be present to sign at delivery. If you are trading in a vehicle, the registered owner must also be present.

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) - <Emphasis mine>

 

[rxgigli]

i spoke with my delivery person and said i can bring a check or do ach at delivery. they would like you to pay first but its not required.

 

[tomas]

Same thing with hookers. You gotta pay before inspecting the goods Everytime I purchase something on line or at a store, they make me pay for them before I can even open the box. They have return policies that protect customers in this case...but you still gotta pay up front.

But seriously, Tesla wants to be paid before delivering your car. Waiting until the absolutely last moment does make it a bit difficult for them.

Anyone with a color printer can make out a great looking, but totally bogus check, money order or certified check. They are legitimate in wanting to be able to verify your funds prior to doing the paperwork to register and transfer the title to the new owner.

Not unusual though for them to accept a personal check, but it really puts them in a bind if the check bounces or is fraudulent.

They are also being crunched for time with thousands of deliveries being scheduled every week. A customer that wants to take an hour or so to completely inspect every portion of the car prior to arranging payment can easily clog up their system.

Maybe they will need to develop some sort of Escrow service where an independent 3rd party holds the funds and does the paperwork. But this would just be another level of bureaucracy and expenses that would increase your price for the car.

I trust Tesla. The vehicle they delivered to me. After delivery I mentioned that I thought the headlights were a little too low and they quickly adjusted them for me. EZ-Peazy

Large purchase.... cars, boats, houses... have ALWAYS provided for inspections and punch list before you hand over final payment. And, the convention has ALWAYS been cashier's check at time of purchase... at least in my experience. I don't need to take up the Tesla delivery person's time babysitting me during my inspection. They can go off and do other paperwork or whatever. I just need 10 minutes to walk around car inside and out and confirm there's nothing major. I don't think that's making anything difficult for them. If they can't factor that into their delivery process, they need to either have a "no questions asked" return policy (which frankly would be more difficult for them) or be willing to sell only to the part of the market that will pay for a car sight unseen.

Having said that, I've been through 3 Tesla deliveries, and had no problem with being pushed by delivery personnel. They've been totally accommodating and delightful. I've read about people getting poor treatment (rushed to hand over funds, denied inspection time) and - while I believe there are bad apples - I cannot foot that with my own experiences.

 

[Knightshade]

Large purchase.... cars, boats, houses... have ALWAYS provided for inspections and punch list before you hand over final payment. And, the convention has ALWAYS been cashier's check at time of purchase... at least in my experience. I don't need to take up the Tesla delivery person's time babysitting me during my inspection. They can go off and do other paperwork or whatever. I just need 10 minutes to walk around car inside and out and confirm there's nothing major. I don't think that's making anything difficult for them. If they can't factor that into their delivery process, they need to either have a "no questions asked" return policy (which frankly would be more difficult for them).

Actually, they have a no questions asked return policy.

You have 2 days to return for a full refund- that's how they're able to have 3rd parties drop off home delivery cars without anyone from Tesla even being there (and from at least one report- without even the customer being there)

 

[SeanPBlack]

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.

Is Texas a state like that? Mine is telling me that I have to prepay.

 

[Knightshade]

Is Texas a state like that? Mine is telling me that I have to prepay.

Yup, sure is. Tesla is not licensed to sell cars in Texas, so they can't accept payment for one there.

 

[mswlogo]

So you can do an ACH / Wire Transfer on the spot AFTER inspection?
I really like the idea of an electronic method but I really want to inspect first.

 

[Dana1]

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.

For some states, like Texas, it’s always been like this. Folks have rejected cars.

 

[SeanPBlack]

Yup, sure is. Tesla is not licensed to sell cars in Texas, so they can't accept payment for one there.

Thank you. Makes me a bit nervous, but i’ll roll with it.

 

[rachelhikes]

I paid yesterday because I thought they were requiring it even though I don’t have the car yet. (Scheduled for tomorrow.) I pretty well trust that I’ll get a car without issues in due course, but am more hopeful than confident that “eventually” will be tomorrow.

Can’t say I’ve ever had a car buying experience remotely like this!