Used Model S Purchase Cancelled by Tesla

[efishonsea]

I have been watching the Used Model S site for the past few weeks, and a few days ago, there were multiple price drops on many used model S's. I ended up grabbing a fairly loaded 2015 P90DL for $42,800 which looked like a screaming deal. They had a few 2014 models in the mid 20s, those sold quickly. Knowing about the v1 battery issues and the stigma around that, I figured that could be the reason, so pulled the trigger, got the call back from Tesla, applied and approved for the financing, agreed to pay the $1k to ship to San Diego and was told now its a waiting game until delivery, which I was in no rush.

Just got a call back from Tesla, they said it was a price mistake, and the price was going to be over $55k, or they could kindly refund my $100. I stated I was unwilling to pay $55k for what is most likely a v1 battery car and they offered the only thing they could do is refund my $100. Being a model 3 owner who had a disaster delivery experience where they tried to deliver 2 damaged vehicles, this is leaving again a really bad impression on me. The plan was to try out the used model S, then go for a brand new one before the 2 year warranty was up.

Looking back on my confirmations, nothing appears as a formal purchase agreement. Fairly certain this means I have no recourse, but wanted to share with the community here, which has been so helpful in my research in both my prior model 3 and what I thought would be a new to me model S. I attached a screenshot of the vehicle.

 

[efishonsea]

I did find my purchase agreement in email and called Tesla back. They said they offer the refund and I can pursue legal action if I would like.

 

[cmarshack]

I am pretty sure laws are pretty strict in California. They cannot bait and switch publicly advertised cars, let alone take your deposit and then ask for $10k more.

 

[Tam]

...nothing appears as a formal purchase agreement...

That's what I understand too: Tesla can penalize a customer when the customer cancels order but the worst penalty Tesla will get when it unilateral cancel your order is to return your deposit.

 

[cmarshack]

There is an agreement made when you place your deposit: (The red are hyperlinks to the agreements on the deposit page)

• Due Today$100

Non-refundable Order Fee
By clicking "Place Order", I agree to the Model S Order Agreement, Supercharger Fair Use Policy, Customer Privacy Agreement, and Payment Terms. I also consent to be contacted at the number provided with offers about Tesla products, including through automated or pre-recorded calls or texts. This consent is not a condition of purchase.
View additional information

 

[glide]

Sounds like you got Tesla’d.

Unfortunately there is no real recourse against pricing mistakes and I’m sure they have some language protecting them against such claims. If there was a P&S signed, that would be a different story.

 

[efishonsea]

When I called back with my agreement in hand is when they pivoted to said you have the right to legal action if you choose. Per review of the agreement it states they have a process of arbitration you agree to. I initiated that, but don't expect anything.

Honestly even at the lower price I hesitated to purchase, and it was online for at least 5 or 6 hours. This was the first time I saw multiple cars sub 30k and appeared to be a Tesla cash grab, in the midst of economic issues.

 

[Neha Car Issue]

I’m very disappointed and frustrated with Tesla’s Customer Service and Purchase policy.

My husband placed an order days ago and put in his time, effort and money in getting financing for the car, posting our used car and obtaining insurance. An advisor from the corporate office called him today on 03/27/20 and said they made a pricing error/ digital error on the pricing of the car we purchased. They stated the car should not have been listed at 30,300.00 and instead should have beenb 39,000.00. They said you can either pay 39,000.00 or cancel the contract. They would not offer him any options to purchase the car or compensation for costs associated with the process. This is the equivalent of signing a purchase agreement and waiting for it to be washed at the dealership and only for them to come back to say they made an error and the contract is canceled. He has not received anything in writing or agreed to any cancellation of the contract that he signed. He spoke to the manager and told them that he had listed our car for sale, got new insurance, obtained financing and have the cheque ready and even told them they have comparable cars on website today that are selling for the same price and she said we cannot offer any compensation and we are moving forward with cancelling and basically said you are responsible for dealing with issues for this transaction.

Based on CA BILL: AB-68 Motor vehicle sale contracts: Car Buyer’s Bill of Rights. (2005-2006)


Bill Text - AB-68 Motor vehicle sale contracts: Car Buyer’s Bill of Rights.


(h) The contract shall contain a notice in at least 8-point boldface type, acknowledged by the buyer, that reads as follows:

“If you have a complaint concerning this sale, you should try to resolve it with the seller.

Complaints concerning unfair or deceptive practices or methods by the seller may be referred to the city attorney, the district attorney, or an investigator for the Department of Motor Vehicles, or any combination thereof.

After this contract is signed, the seller may not change the financing or payment terms unless you agree in writing to the change. You do not have to agree to any change, and it is an unfair or deceptive practice for the seller to make a unilateral change.

Regardless of Tesla’s products, it’s reputation lies on how fair it’s policies are and further, by how their workers follow and represent the company.

This experience shows Tesla’s policies to be one-sided and unfair to it’s consumers, and overall puts a negative mark from consumers point of view. I definitely will not be promoting this company behaviour and endorsing its products anymore.

 

[glide]

When I called back with my agreement in hand is when they pivoted to said you have the right to legal action if you choose. Per review of the agreement it states they have a process of arbitration you agree to. I initiated that, but don't expect anything.

Honestly even at the lower price I hesitated to purchase, and it was online for at least 5 or 6 hours. This was the first time I saw multiple cars sub 30k and appeared to be a Tesla cash grab, in the midst of economic issues.

The arbitration clause would not apply here as there was no MVPA issued.

 

[efishonsea]

The arbitration clause would not apply here as there was no MVPA issued.

It is a clause in the Motor Vehicle Order Agreement that was issued, referring to that agreement.

 

[mcneil141]

They did the same thing to me. I was watching a particular CPO p100d in NY. I looked early Tuesday morning and saw the price dropped $5k. I immediately purchased it.

Via phone, I arranged to have it shipped from NY to NC and would have it on Sunday. Friday afternoon I got the call from Tesla that a pricing error occurred and that I could buy the car for $5k more. I pushed back firmly and was told that they would do nothing to make it right and I was welcome to pursue legal options.

Not a good impression for a first time buyer.

 

[efishonsea]

Wow, my experience was almost verbatim what Neha Car Issue experienced. I would have been ok if they stated it was an error with the first call back, but to confirm the purchase, convince me to hit my credit with the financing and then finish my side of the deal, they backed out. I have not seen the vehicle I had the agreement on resurface on the used listings.

Mcneil141, I can't understand how they would kill a deal for a used p100d over 5k, especially in these economic times...

 

[mcneil141]

Efishonsea, I was blown away. The car is in NY, too. Probably very few deals being made on used cars there!

 

[Qbenjamin]

Sorry to hear this from you all, definitely not something that a business should be doing. I was wondering why the prices dropped so drastically overnight, but now we know that it was done in error on Tesla's behalf.

 

[briancul67]

I ended up grabbing a fairly loaded 2015 P90DL for $42,800 which looked like a screaming deal.
Just got a call back from Tesla, they said it was a price mistake, and the price was going to be over $55k, or they could kindly refund my $100..

I reserved this same car from Tesla on Friday for $42,800. They cancelled the order on me too. It looks like the current price is $51,800.

 

[efishonsea]

I reserved this same car from Tesla on Friday for $42,800. They cancelled the order on me too. It looks like the current price is $51,800.

That was right about the time they cancelled it on me, looks like it must have relisted at same price. Car was in Dallas last week when I reserved, now it is in Scottsdale, looks like it was on its way to San Diego when they cancelled it. Either way they offered the car at 55K, funny how they have been dropping it significantly every day.

 

[WowSuchRicky]

They did this to me once as well - found an amazing 2017 S 75D (8k miles, FSD, etc), but the site did not mention it was located in Hawaii.

Was handed off to 3 different sales reps, the last of which cited some nonexistent law that they "aren't allowed to" (aka don't want to pay up) to bring the car to the states proper. No apology, no nothing. I was the one who had to go and ask for my deposit back as well.

Somehow still ended up buying an inventory 3 after that...