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Is the $1000 deposit refundable?

Is the $1000 deposit refundable?

Simple question, but I couldn't find a definitive answer.

Also, how much will it be in the UK? 1000 USD is about £700, but will they just do a quick currency conversion like that, or will it something different?

jbunn | 14 mars 2016

Unclear about the UK exchange rate and timing of right hand drive, but yes it's completely refundable.

jordanrichard | 15 mars 2016

You will need to ask someone in the UK. Here in the states, the deposit is refundable.

SUN 2 DRV | 15 mars 2016

jbunn & Jordan: Do you say it's refundable because of Tesla's past behavior or do you know of some federal or overarching commerce law that makes it always true?

Haggy | 15 mars 2016

The overarching law says that if there's no consideration, there's no contract. Since Tesla is taking a reservation, rather than a deposit in consideration of an agreement to sell you a car, it's refundable. They can't keep it because you don't owe it to them, and a reservation that they have the right not to honor has no tangible value.

Red Sage ca us | 16 mars 2016

Haggy: +1!

SUN 2 DRV | 16 mars 2016

Haggy; Not so sure it's that simple....Doctors and hotels routinely charge for unkept reservations.....

Haggy | 17 mars 2016

A reservation for a hotel room has tangible value. The hotel loses money if you cancel without sufficient notice because they can't rent out the room. They are also promising you a room. Tesla isn't promising anybody a car, if the agreement is written the same way as they did for the Model X, and I have no reason to think they'd do otherwise. It would commit them to something they'd rather not be committed to. If they do, then it would be a deposit.

SUN 2 DRV | 17 mars 2016

Haggy I don't doubt you're right, but I'd rather see what the Tesla reservation agreement says before counting on the reservation fee being refundable. I've learned a long time ago not to assume things and especially not to commit to other's financial matters.

Haggy | 17 mars 2016

If it were in Tesla's best interest to take non-refundable deposits and commit to honoring them, I strongly suspect that they would have changed the Model X agreement by now, since they now know what the final product is. With the Model S, it's an actual deposit, but even that has a bit of wiggle room to change your mind or reconfigure. With the Model 3, they haven't said what the options will be and it's very unlikely that they will allow people to configure the car and select options. They even said that they won't reveal everything about the car. They can't take deposits on a product that doesn't exist when they haven't disclosed what it will cost with desired options and they haven't given buyers an opportunity to specify which options they want. Tesla would have to commit to specific options at specific prices and honor those well into the future for a car that's far from production. That would be far too risky. Offering to hold people's money with no interest, knowing that it will likely take years for them to catch up with demand, is far less risky.

FelixMendeldog | 21 mars 2016

I copied the text below from the Model X reservation agreement—it is unlikely that Tesla would change fundamentally the way reservations work for Model 3.

1. Reservation
By entering into this Model X Reservation Agreement you hereby confirm that you wish to reserve a Model X with us.
2. Nature of Agreement; Non-Binding Reservation Payment
The Reservation Payment is fully refundable by us to you at any time (for example, if you choose to cancel or abandon your reservation, or if we decline to maintain you as a reservation holder). This Agreement does not constitute an agreement for the sale of a Model X and does not lock in pricing, a production slot, or an estimated delivery date. You are under no obligation to purchase a Model X from us, and we are under no obligation to supply you with a Model X or any other vehicle. If and when we notify you of the availability of a Model X and you wish to proceed with the purchase of a Model X, such sale and purchase will be governed by a separate and legally binding Purchase Agreement between you and us or between you and another authorized Tesla dealer (Tesla).

ArieK | 21 mars 2016

from the Model3 blogpost by Tesla: GBP £ 1,000

carlk | 21 mars 2016

@Haggy

You nailed it. The reservation is just so that Tesla will consider to sell you a car but it is under no obligation whatsoever to do that. There is no promise of any kind which many X reservation holders mistakenly and unrealistically thought so.

Haggy | 23 mars 2016

There's no sales contract but realistically it means that when they make the car, it will entitle you to change the reservation into an order. They won't cancel reservations haphazardly, but there could be delays, and in theory they could scrap plans altogether. That's not likely, but no sane company would promise a car that they haven't finished designing.

Haggy | 23 mars 2016

There's no sales contract but realistically it means that when they make the car, it will entitle you to change the reservation into an order. They won't cancel reservations haphazardly, but there could be delays, and in theory they could scrap plans altogether. That's not likely, but no sane company would promise a car that they haven't finished designing.