Why is Tesla not using used cars as loaners?

[cwerdna]

Considering every other manufacturer does give free loaners, I don't see how it's a bad business decision.

Nope. It seems to be more of the norm amongst luxury nameplates but I've never owned one of those.

I've written about how many times I've ever gotten loaners from Toyota and Nissan dealers at No Loaners at Tesla Service "Bring back the LOANER CARS!!!!" before. Nothing has changed, so the count for me is between 4 and 5 times in a over 22 year time span.

I also have a Chevy now but it's not gone to the dealer once yet, so I wouldn't know. AFAIK, unless it's something where it needs to be kept overnight, there's no loaner. And, I can recall hearing numerous stories of GM EV/PHEV drivers NOT receiving loaners despite the car being in for service for days or longer.

Heck, some dealers won't even provide a two way shuttle. Some are drop off only. You need to find your own way back to the dealer. I've had personal experience w/this.

 

[cwerdna]

yes but wasn't that only for "3 months likely, 6 months definitely" (paraphrasing that quote)

See below:
Creating the World’s Best Service and Warranty Program
Creating the World’s Best Service and Warranty Program | Blog | Tesla Motors

I'd pointed to these at No Loaners at Tesla Service "Bring back the LOANER CARS!!!!" and probably other times here on TMC.

 

[MS 60]

I have never had that kind of bad service, as you claim you had. I am so sorry for you. My experience has been just the opposite. My MS is now 6 years old and it has been in for service a few times. Every time, I got a loaner with the exception of the last few years. More importantly, the service performed was spectacular! I even received a new main system battery when I was past my warranty! The battery came from the factory and was too heavy to fly to the East Coast, so I had a better MS as a loaner for over two weeks. In fact, the service all along, was a major influence on my decision to buy a new M3P, and subsequently a MXP100D. Currently, I have Cybertruck on order, and after holding my stock since I first got my MS in 2014, I recently cashed most of it out to buy my new home. I do not have anything bad to say about Tesla. They have ALWAYS treated me like royalty (and I am not related to Elon, or anyone else who works there- but I just was made to feel like it)!
There are many positive experiences. I was given many referral gifts when that program used to do that. Upon receiving an autographed HPWC, I did not own a home (I had sold it, and was looking for a new one), so it sat unopened for over a year. When I finally installed it, it was bad out of the box. They overnighted me a new one! Of course, we had to document I had installed it correctly with pictures, as well as confirming my ownership (as it was a referral gift and hence, I had no receipt of sale), but I did have emails showing they did gift it to me. After the credentials were checked out, I got the new unit and all is good. That is just one recent experience, of so many. Bottom line, yes I drank the Koolaid. But I am a big believer in the company, the technology, the whole transition away from gasoline and towards sustainability, as well as the man.
I Always go all in, when I believe in something.
There is certainly a risk when you put all your eggs in one basket, but if it works out, the rewards make it worthwhile. Just my two cents...

 

[MS 60]

I think it was an Elon pipe dream other than out right lie. Sounded like a good idea until he heard about how much it would cost and they convinced him otherwise. They don't want the added cost of maintaining and storing the loaners, which is why they went to Enterprise originally. That was a decent compromise. But now pushing Uber credits is terrible. Most people do not live near their SCs, many have to drive an hour or more. Also many repairs that they can't do with mobile service takes multiple days or weeks. Using Uber during that time to commute to work or elsewhere is nonsensical.

As said above, this is a big problem with not having the dealer system (which is one reason there were laws put in place to mandate dealers) - service. Dealers want to do service, want repeat customers and will go out of their way to keep you coming back when there are many other options. Tesla SCs do not want your business. Every customer that comes in with a warranty issue is a problem and only costs them money. Maybe when there is more out of warranty work being done things will change, but still they are not competing with other service centers or mechanics for your work,

That is no longer true. First of all, there is mobile service tech service. They come to you at your home, work, or anywhere you will be- at your convenience! Another service Tesla performs that “Dealers” can’t, is remote over the air repairs. I have received a few of these (at no charge), and some issues were resolved without even going to a service center, or scheduling and waiting for a mobile tech.
You need to check out all available options before you complain. No other company comes close!

 

[AMPd]

That is no longer true. First of all, there is mobile service tech service. They come to you at your home, work, or anywhere you will be- at your convenience! Another service Tesla performs that “Dealers” can’t, is remote over the air repairs. I have received a few of these (at no charge), and some issues were resolved without even going to a service center, or scheduling and waiting for a mobile tech.
You need to check out all available options before you complain. No other company comes close!

Mercedes offers mobile service option, the only thing they don’t offer is over the air software repairs... but that’s because they don’t break your car down with over the air software updates in the first place.

 

[nuP90D]

I can tell you that Lexus will give you the loaner you desire if you tell them ahead of time but of course, their customer service is excellent in almost every way. The one in Louisville, Ky even feeds us plus dessert!

Yeah, I wish that Tesla service is half as good as my local Lexus service. Free snacks and lounge area if you decided to wait for your service instead of getting a loaner. Also free car wash and free vacuum in the front seats.

 

[Footer]

I got a 2014 P85+ loaner Thursday in Highland Park. Returned it Friday. They had to calibrate my radar under warranty. I've had 5 or 6 loaners in the last 6 years. One time I waited there 1½ hours while they did annual service. 3 years ago after they replaced my windshield they put my car on a flatbed and delivered it to my home in Milwaukee so I did not have to drive the loaner back 77 miles.

 

[ucmndd]

Yeah, I wish that Tesla service is half as good as my local Lexus service. Free snacks and lounge area if you decided to wait for your service instead of getting a loaner. Also free car wash and free vacuum in the front seats.

If Tesla sold Toyotas that were marked up 40%, they’d have a lot more margin to splurge on exemplary service too.

 

[Cheburashka]

If Tesla sold Toyotas that were marked up 40%, they’d have a lot more margin to splurge on exemplary service too.

Seems like Tesla has great margins to make this happen.

 

[CapeOne]

If Tesla sold Toyotas that were marked up 40%, they’d have a lot more margin to splurge on exemplary service too.

There is notable profit built in to the price of Teslas (new and used) which would way more than cover additional service center amenities such as free refreshments, car washes, loaner cars, etc. The issue here is not a matter of lack of margins or markups on prices. Tesla could easily up their game on service center "perks" if they wanted to.

 

[roseng]

"Tesla just doesn't care about the customer, and corporate wants to make sure customers feel neglected"

Really? How about engaging brain before typing? Sorry, but that statement is about as dumb as it can get.

Here is how it works. Tesla, BMW, MB, GM, Ford and all companies of every type everywhere work the same way. There is no FREE anything. Either it's built into the purchase price based on a profitability and the cost of something and you are paying for it up front, or you pay a lower price up front and pay by the item. It's a simple concept.

I have BMW's also and have been driving them for years. Free service , oil changes, bumper to bumper warranty for 3 years 50K miles. Free loaners if available and scheduled up front. Free, free, free, NO IT'S NOT!

For my 2019 e530 (that I lemon Law'ed back after 10 months of constant issues) i paid just under $70k. They charge you for all the free goodies it but it's built into the price up front. Maybe it's a $50k car but the price includes all the stuff you think is free is built into the price.

The Model 3 is a groundbreaking car as are all Tesla's. But the price is artificially low for what you are getting.
Part of their models is to keep prices down bu not having dealership, using kids who know nothing and get paid nothing work in the direct show rooms, and direct on the web ordering for the rest of us.

Would you rather pay $70k and get free loaners for the same car you have now (and BMW service is free for warranty and loaners but still totally crap).

In the 3 months I have owned my car I have seen 5 software updates OTA, and a number of improvements. Try that with BMW. I have had a service tech come to my house to do a repair. Try that with BMW.

They have a LONG way to go to improve customer service in general but in many ways they are much better than Apple. Have an issue? Send us your phone and we'll send you back one soon. 12 hours out of warranty? Credit card please. New model, free update to downgrade the old model.

You got a great car at a great price and you do want Tesla to stay in business to keep your car going and maintain it's value right? That means they need to make a profit. Why is that so hard to understand.

 

[Cheburashka]

I haven't been keeping up with Tesla pricing but my car was 96K new, and even today the S/X are around 80K. Model 3/Y are still around 45-50k all said and done, with dual motor, Autopilot, etc. Hardly a bargain.

BMW sells plenty of cars that are below 50k. I wonder how they turn a profit?!

 

[ucmndd]

There is notable profit built in to the price of Teslas (new and used) which would way more than cover additional service center amenities such as free refreshments, car washes, loaner cars, etc. The issue here is not a matter of lack of margins or markups on prices. Tesla could easily up their game on service center "perks" if they wanted to.

I don’t disagree, but it also isn’t like they’re just paying out the money they’re saving on mediocre service as dividends or something.

It’s all getting dumped back into the company to build new factories, deliver future products, and expand charging infrastructure.

Given the choice between that and fluffing my ego at the service center with snacks and loaners, I’ll take the former.

 

[CapeOne]

I don’t disagree, but it also isn’t like they’re just paying out the money they’re saving on mediocre service as dividends or something.

It’s all getting dumped back into the company to build new factories, deliver future products, and expand charging infrastructure.

As well as to cover the first ($700+ million) of Elon Musk's many and increasingly significant potential stock option payouts.

My point was basically that the "poor card" should not be played when it comes to Tesla. They have more than enough margins, markups and money to cover additional service center perks if they chose to do so. Their choice is largely not to and some customers like yourself are perfectly fine with that while others aren't; hence the creation of this thread.

Besides, it's not like other automakers don't also spend significant sums of money on R&D, future products, new factories or factory upgrades, etc. Tesla is not alone there.

 

[CapeOne]

You got a great car at a great price and you do want Tesla to stay in business to keep your car going and maintain it's value right? That means they need to make a profit. Why is that so hard to understand.

I'm sure everyone realizes there is no such thing as a "free lunch" so-to-speak. Where the debate/issue comes in is that some Tesla owners feel that Tesla makes more than enough margins, profits, etc. to be able to offer more or better service center perks. These owners feel they aren't getting everything they essentially paid for and that Tesla is very much in a financial position to be able to offer service center niceties that various other brands do yet Tesla chooses not to.

 

[AMPd]

I don’t disagree, but it also isn’t like they’re just paying out the money they’re saving on mediocre service as dividends or something.

It’s all getting dumped back into the company to build new factories, deliver future products, and expand charging infrastructure.

Given the choice between that and fluffing my ego at the service center with snacks and loaners, I’ll take the former.

I wouldn’t consider a loaner vehicle an ego fluff. Couldn’t care less about the snacks or coffee/water, in the words of Jackie Chile’s, I can get my own damn coffee. But a loaner vehicle is a necessity, I work 30 miles from home in a rural area, I can take an Uber to work but how the heck am I getting back home. I also have two kids both in car seats, uber is utterly useless for me. They should offer both, if someone is cool with using uber, great.

 

[FarmerDave]

So many service centers don’t have enough loaners, yet they have a lot of used cars in storage at manheim.

Why not spread them out to service centers and use them as a loaner?
That would also add the benefit of being able to allow potential buyers to come in and look at the vehicle and sell it to them on the spot.

I wish I was in charge of that department! Not only would customer service improve, but id be slinging used cars left and right to walk ins!

I get a Tesla loaner whenever I take my car in for service. Sometimes it's an S, other times an X. I took my P3D in yesterday for the FSD computer upgrade and the loaner was a red S.

 

[Cheburashka]

I don’t disagree, but it also isn’t like they’re just paying out the money they’re saving on mediocre service as dividends or something.

It’s all getting dumped back into the company to build new factories, deliver future products, and expand charging infrastructure.

Given the choice between that and fluffing my ego at the service center with snacks and loaners, I’ll take the former.

How much do you think they get to "reinvest into the company" by cutting the phone lines at service centers?