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Holding reservations for others

Holding reservations for others

I've seen and read about several people who made multiple reservations. Are these only for them/their business? I'm curious, does anyone know the rules about holding a "spot in line" so to speak for someone else? I have a friend who owns an MS. He put the $1000 down not knowing for sure whether or not he will actually buy the M3 in the end. Since he is a current owner and if he bails out in the end, could I take his spot? If not, how is this enforced by Tesla?

Chad.Swindall | 14 april 2016

The deposit is not transferable. Your friend would need to buy the car and then sell it to you.

jeffersonhunt | 14 april 2016

After some digging, I found this:

4. Acknowledgements; Non-Transferable
You understand that we will not hold your Reservation Payment separately or in an escrow or trust fund or pay any interest on your Reservation Payment. Your Reservation is not transferable or assignable to another party without the prior written approval of Tesla.

So, I guess it is possible if Tesla gives written permission. What are the chances of that happening though? The M3 is going to be the hottest thing since Tickle-Me-Elmo.

jeffersonhunt | 14 april 2016

Chad, that sounds like a hassle. I'm just looking ahead to the frenzy that will be unleashed in a year or so. Desperate people look for loopholes.

dsvick | 14 april 2016

And, if Tesla did allow the transfer, I'm sure you would lose the prior owner priority. You might still get to keep the current position within the region just without the added bonus.

Haggy | 14 april 2016

Chances are Tesla would give permission under reasonable circumstances. Elon isn't about playing games, and trying to sell a reservation isn't going to get you permission. Wanting to register a car in your wife's name probably will. Doing it for a friend is less questionable than doing it for a stranger and I have no idea how Tesla would feel. He could buy the car for you as a gift and I'm sure Tesla would let it be registered in your name.

One option, assuming you can't transfer the reservation, is to keep the registration in your friend's name, but when it comes time to buy the car, register it in his name and your name. That way it belongs to you from the beginning. Then you can have his name taken off the title. In my state, that's a relatively small fee.

Of course that assumes that it's really from a friend and not a stranger looking for a way around things. It would obviously have to be somebody you trust and vice versa. It's not something I'd suggest risking for a casual acquaintance. But it might turn out that Tesla is fine with him having it registered in your name from the beginning, as long as it's clear he's not trying to profit off the reservation system.

brian | 15 april 2016

I own a model S and put in a reservation, for my brother. I will just buy the car and transfer it to him if need be.

MarlonBrown | 15 april 2016

I would say that the supply and demand will make the car price to go up. If you want to sell it for same price to your friend, just make arrangements to have you paying the car (using a line of credit or your cash) then immediately he buys or finance car buying from you.

vp09 | 15 april 2016

Thanks! Haggy and Brian, I reserved a Model 3, then changed my mind about the Model S, and ordered one of those.

So when the Model 3 comes, would my best way to give it to my daughter be to register it in both our names, or, buy it in my name then transfer the title it to her?

Haggy | 15 april 2016

Each state has different rules, so check your state's DMV website. In my state, I'd be able to register it in my name and then transfer it to her with no penalties or sales tax since she's my daughter. I'd also be able to register it in both our names and take my name off the registration. It wouldn't make any difference, but that might not be true in your state. In some states it might be even easier.

One thing you need to watch out for is financing. Tesla will want both parties to be present to sign when the car is picked up if there are going to be two registered owners. And whoever finances it might insist that the title be in the names of both borrowers, or in the name of only those whose names are on the loan. Since they will hold title until it's paid off, that might not be a big issue, but I'm sure that Tesla wants all parties to be there when the car is picked up.

With my Model S, I had my name and my wife's name, but my delivery got rescheduled three times. I ended up taking my wife's name off since she wouldn't be there to pick it up, and the check for the loan was sent to me by the credit union so I just handed it over and Tesla didn't care about whose name the loan was in. All the details about whose name it would be in were furnished by me online so it was easy for me to change it prior to delivery.

valdezs1 | 15 april 2016

In California, I don't believe you can buy it and then flip it without incurring double sales tax and registration unless you are a dealer. May require more research on doing this.

Haggy | 16 april 2016

That's correct. You can't flip it, because a transfer generally means the new buyer pays the sales tax. There are exceptions though. If it's being transferred to the parent, grandparent, child, grandchild, sibling, spouse or domestic partner (as defined in Family Code section 297) then there's no sales tax. I think the sibling rule doesn't apply to siblings past a certain age, in which case it would be doable by transferring to a parent and then the sibling.

Another thing to keep in mind is the list of required documents. You will need the vehicle title, form REG 256, and not much else (I can't recall off the top of my head if you need proof of insurance or your license but it can't hurt to have them.) In other words, you don't need a marriage certificate or proof that the person is a domestic partner and the DMV will never check. But you do have to sign that it's true, under penalty of perjury, so I'm not suggesting you break the rules.

ishaik | 16 april 2016

I test drove a model S the other day, and I can't wait 3 years for this car. I'm pulling the trigger on a model S. Question becomes what to do with my April 4 model 3 reservation. Interesting points here.

TesMD | 16 april 2016

@ishaik
Congrats on ordering the Model S. I would hold on to your reservation because you will get priority in getting M3. When the time comes, you can decide. A lot of model S and X owners have reserved M3 including myself not knowing if I will really need it but always good to plan ahead. I definitely now have decided to buy M3 regardless even if I don't need a second car now.

EESROCK | 16 april 2016

My husband stood in line and put in two orders, one for us and one for his brother. Both reservations are in my husband's name. The Tesla rep said that the 2nd car can be titled to someone else when the car is eventually purchased. Since we currently own one Model S, I assume that only one of the Model 3 reservations will be given owners' priority in the reservation queue.