What the diff between a "pre-order" and an order?

[Robert Fahey]

Is there a difference, or is this another case of redundant language such as "added bonus," "final result," "end goal," "own your own business" etc?

 

[ItsNotAboutTheMoney]

Is there a difference, or is this another case of redundant language such as "added bonus," "final result," "end goal," "own your own business" etc?

Pre-order says that the item is being ordered before release, and may mean even before specifications are fully available.

(End goal isn't actually redundant, since you can have intermediate goals with value. E.g. Tesla's has a goal to max Fremont production with Model 3, but the end goal is much bigger than that.).

 

[gregincal]

As the previous post said a pre-order is an order before something is released. Generally with a pre-order you can cancel at any time before the item is actually released. You are just holding a place in line, but can change your mind. Tesla uses the term reservation instead.

 

[Red Sage]

Preorder could mean exactly what so many have said since it was noted that Elon Musk used the word instead of 'Reservation' months ago on Twitter: The terms are interchangeable and just allows you to hold a place in line to consider placing an order.

Preorder could mean that prospective buyers make an early commitment to purchase a car or quantity of cars: This could include leasing firms, rental agencies, and fleet sales companies that typically order in bulk, in addition to individuals.

Preorder could mean that you will be able to fully specify every conceivable aspect of a car from interior and exterior colors and materials to wheel size and creature comforts, so that the precise configuration you specify will be available at the earliest possible time.

 

[CmdrThor]

A pre-order will be a reservation agreement. The language in the agreement for Model 3 will likely be very similar to this Model X agreement: https://www.teslamotors.com/sites/d..._x_reservation_agreement-eu_english-pdf_0.pdf.

The key paragraph:

The Reservation Payment is fully refundable by us to you at anytime (for example, if you choose to cancel or abandon yourreservation, or if we decline to maintain you as a reservation holder).This Agreement does not constitute an agreement for the sale of aModel X and does not lock in pricing, a production slot, or anestimated delivery date. You are under no obligation to purchase aModel X from us, and we are under no obligation to supply you with aModel X or any other vehicle. If and when we notify you of theavailability of a Model X and you wish to proceed with the purchase ofa Model X, such sale and purchase will be governed by a separateand legally binding Purchase Agreement between you and us orbetween you and another Tesla subsidiary (Tesla).

 

[Lonnie123]

Pre-order typically implies paying the full price up front, doesnt it? This is how it works in other industries at least. Sometimes a discount is offered, sometimes not.

"Reservation" typcally means you are reserving your spot in line for some amount of money, but not paying the full price of the vehicle.

 

[Red Sage]

Pre-order typically implies paying the full price up front, doesnt it?

Not necessarily. Some stores allow you to do a Preorder of, for instance, a videogame or BluRay months ahead of its release. All it costs is a $5.00 deposit. Some people will place that deposit at multiple stores, and then buy from the first location to contact them that it has come in. Then, they'll either get a refund on their other deposits, or transfer them to a Preorder for something else. In other industries, there might be a deposit that is proportional to the overall cost of the order being made. Sort of like getting something on consignment. I'm pretty sure that is very much how 'independent franchised dealerships' operate. They make an order in bulk based upon a bet placed as to both: 1) how popular they believe the vehicle will be and 2) how many they believe they can sell. Most States allow them to decline a requirement by the automobile manufacturer to accept a certain minimum of a new vehicle design, saying it is an 'unreasonable' request.

 

[Tam]

Is there a difference

"Reservation Agreement" or "Deposit" is not legally binding.

You can decide not to order or Tesla can unilaterally not allow you to order.

An order is a legal binding contract. Either party can suffer some kind of consequences if backing out: Tesla cannot refuse you once you ordered and you cannot cancel your order.