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Reservation Fee

Reservation Fee

Hello everyone, so this is my first time trying to purchase a Tesla. I guess people that reserved Model X or S would know this answer for sure, but I was wondering what exactly does the reservation fee go towards. Does anyone know? I assuming it goes towards the purchase of the car, but wasn't sure if it went towards the 2500 ordering fee or future deposits or it just went to the full price.

If someone can answer this for me that would be awesome. Thank you.

hoffmannjames | August 3, 2017

I think the $1000 is applied to the price of the car.

AJPHL | August 3, 2017

The $2500 doesn't include the reservation fee and is paid separately to the reservation fee from what I've seen.

np57 | August 3, 2017

I paid the $1000 (refundable until I convert it to a firm order) to get in line for the "3", but obviously haven't been invited to progress beyond that stage so far.

My understanding is that the $1000 gets you in line. When Tesla invites you to configure and convert your place-in-line to an actual order, they need to have a locked-in $2500 deposit (I think after your configure, they still give you a day or two to modify your config, but after that the $2500 is non-refundable).

So: how does Tesla get that $2500 deposit in place? They convert your $1000 place-holder payment to a non-refundable deposit on the ORDER and you pay an additional $1500 to that via your credit card.

That's my understanding. You can always call up Tesla and inquire - just to be 100% sure before you pay.

carlk | August 3, 2017

If I remembered right, someone correct me if I'm wrong, X reservation fee was $2500 which became non-refundable when order was finalized. We did not need to put anything extra when placing the order. For the 3 Tesla may just require you put the additional $1500 but I guess we don't know yet.

Xerogas | August 3, 2017

A screenshot over on Model3Owners shows the $1000 is applied to the price of the car, and you must pay an additional non refundable $2500 at time of order. So you are out $3500 between the day you finalize your order until your car arrives.

Glwkb8 | August 3, 2017

Thanks for the answers. Seems like it's either the full price or goes to the deposit. Guess we will find out when people finally take deliveries of their 3s. I just really don't want to put $3500 down just to apply to the order and then another deposit for my loan amount as well. I would rather do one down payment for the full price.

PhillyGal | August 3, 2017

@AJPHL and @Xerogas - We are assuming it's $2,500 on top of the $1,000 reservation that we've already placed but are we 100% sure employees were required to place a $1,000 reservation deposit? If not, then when the invitation comes around to us non-employees, it might only be another $1,500.

I can't see it being a total of $3,500, which is more than is required for S or X.

Xerogas | August 3, 2017

Good point. It did seem a little odd; perhaps what I saw was the $1000 destination fee.

lorolf10977 | August 4, 2017

Here's how it works. The $1000 was to reserve a M3 with no commitment meaning you can cancel at anytime. You need 2500 to order the car which is non refundable. IF you decided to order the M3 you will need an extra 1500 plus the 1000 that you put down.

martin | October 22, 2017

Hi Guys! Im sure there i another thread somewere where my answer probably lies. But i don´t get if im gonna get my 1000 dollar deposit as a discount on the price when i actually buy the car ,someone?

Yodrak. | October 22, 2017

Not a "discount", a pre-payment amount. Your reservation deposit is credited towards the price of the car.

NumberOne | October 22, 2017

The way it has worked is that it is a cumulative amount. First you pay the 1k, then when you place your order, and additional 1.5k. the total of 2.5k becomes non refundable as soon as your order is finalized. It will not take as long to go from the order to the production process as it has in the past. The 2.5k is accounted for in the final amount you have to pay upon delivery, since you already paid it. A few people answered this question already ,but I thought to explain it this way.

SPBrownJ1982 | June 28, 2018

Then they want 5000 down when you do a loan so all in al 7500 to get the car?

bud | July 2, 2018

The $2500 is a way for Elon to take your money for instant capital and guarantee nothing. Notice the timeline for delivery is all within 2018. 2 - 5 months. Which suggests that you will get your car this year. Don't bet on it. At best he can only deliver 5000 model 3's per week. And with 420000 reservations don't expect you car until next year if at all. So what important about this little trick he pulled? The $7500 fed tax credit will end on 31 Dec 2018 because I can bet within the next few days he will announce that Tesla has now delivered over 200000 cars which makes the company no longer eligible for the $7500 credit. Clever but very deceiving.

jon | July 2, 2018

@Bud that's quite a bit of assumptions and a bit deceiving. First, not all cars are "2-5 months". Mine is 1-3 as an example. Second, we have no idea whether they shipped in June or July the 200,000th car. Also, just because they are doing 5k a week now, doesn't mean that's the ceiling.

linchan77 | July 2, 2018

the credit of $7,500 does not just go away when they hit 200,000 cars. https://www.fool.com/investing/2018/02/27/heres-how-teslas-tax-credits-w...
How the tax break will be phased out
The phaseout calendar starts once 200,000th qualifying vehicle is delivered. Buyers still get the full tax credit in that quarter and the quarter that follows. After that, the tax credit is halved (to $3,750) for two quarters and halved again (to $1,875) for the following two quarters. After that, it's gone.

Example: Suppose Tesla sells the 200,000th qualifying vehicle in July.

Buyers in the third and fourth quarters of 2018 will continue to get the full credit;
Buyers in the first half of 2019 will get a credit of $3,750;
Buyers in the second half of 2019 will get a credit of $1,875;
Buyers after that get no federal tax credit.
.

linchan77 | July 2, 2018

the credit of $7,500 does not just go away when they hit 200,000 cars. https://www.fool.com/investing/2018/02/27/heres-how-teslas-tax-credits-w...
How the tax break will be phased out
The phaseout calendar starts once 200,000th qualifying vehicle is delivered. Buyers still get the full tax credit in that quarter and the quarter that follows. After that, the tax credit is halved (to $3,750) for two quarters and halved again (to $1,875) for the following two quarters. After that, it's gone.

Example: Suppose Tesla sells the 200,000th qualifying vehicle in July.

Buyers in the third and fourth quarters of 2018 will continue to get the full credit;
Buyers in the first half of 2019 will get a credit of $3,750;
Buyers in the second half of 2019 will get a credit of $1,875;
Buyers after that get no federal tax credit.
.

Rocky_H | July 2, 2018

@SPBrownJ1982, Quote: "Then they want 5000 down when you do a loan so all in al 7500 to get the car?"

Hold on. Be clear with who you are talking about. Tesla doesn't do any car loans themselves, so you have an auto loan through some bank. Every bank has their own requirements with each customer about what their loan requirements and whether they require a down payment from you and if so, how much. So what bank is the "they" that you are referring to who you say is requiring a $5,000 down payment?