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What would you do?

What would you do?

I bought a model 3 in mid November. I originally ordered an Sr+ but after sitting in a friends, I decided I wanted the premium interior and longer range of the dual motor.

I called in to the closest Tesla store, and asked if they had any vehicles I could switch my order to. They happened to have one available that day (I wasn’t supposed to get the SR+ until end of December).

I confirmed on the phone that all the same incentives applied to this and she switched my order. I got an email from the delivery advisor with this breakdown:

“Payment:
$11,200 total downpayment - $3200 deposit - $3000 CEV rebate - $5000 iZEV rebate = $0 due at signing
Bring a personal void cheque or direct withdrawal form for financing payments.”

They were late getting the car to me that night, granted they made it happen same day. So we were rushed doing the inspection, signing paper, fixing the charger cover (it didn’t sit close to flush).

A few days later going over the paperwork I realized they didn’t apply the $8000 in combined rebates. They have since said sorry for the miscommunication but that my car doesn’t qualify for those rebates.

I had verbal confirmation before purchase that it did, and I have written confirmation as seen above that it did. They are not honouring it. What would you do?

Magic 8 Ball | 4 december 2019

Chalk it up to lesson learned. Never rely on a verbal agreement.

Fuzzball | 4 december 2019

email can be considered written communication

Mr.Tesla | 4 december 2019

That sucks, if that's truly how it played out. However, it seems to me there would be many other resources for you to learn about the incentive program details, and what qualifies, without depending on the salesman.

bradbomb | 4 december 2019

Who provides these rebates, Tesla or the Government? What made the vehicle not qualify, the total cost?

Frank99 | 4 december 2019

I would go over the head of your delivery advisor. Contact Tesla, explain that $8000 is a lot of money to you, and that you'd like to see this get handled gracefully.

I'm not sure what the CEV or iZEV rebates are; is Tesla even involved in processing those? Perhaps there's a communications issue, and all they're telling you is that you need to apply for those independently.

By the way, I think you're written a very good, concise, summary of the situation.

Bighorn | 4 december 2019

I've never heard of any rebate coming directly off the sale. They are after the sale submissions to the appropriate government authority. What country is this?

Magic 8 Ball | 4 december 2019

My guess is they sent email based on original deal (clerical error). The time to make sure everything is as expected is when you review paperwork upon delivery.

They explained to you that the vehicle that you did take delivery of does not qualify for rebates, seems straight to me.

Ehlive | 4 december 2019

I definitely see your point of view Magic 8 Ball. Don’t agree with it though. They explained to me after purchasing the vehicle that it does not qualify, not prior. And if it was only the email or only the verbal confirmation (two different people) I might agree that it was strictly clerical. However, I called in, asked that the rebates still applied, and was told that they do. After agreeing to go ahead and switch my order, I got the email confirming that the rebates applied from the advisor.

Bighorn, they are provincial and federal rebates in Canada. They are supposed to happen at the point of sale (after tax, so net discount is closer to $7000).

Yes, I could have done more research. That being said, I was told twice by different people Tesla would be applying this towards my down payment of the car. I don’t buy electric vehicles every day, I think it’s fair to expect correct and valid advice and pricing information from Tesla when buying a $65,000 (Canadian) car.

This is not an insignificant amount of money. I’m just not sure who to talk to at Tesla to find a solution, as I’m not willing to just chalk it up to a learning experience. It has definitely soured my thoughts on Tesla and my enjoyment of this car. If you’re able to walk away from $8000 and not worry about it, all the Power to you. To me, that’s a huge issue.

Car sure is fun though!!!

PteRoy | 4 december 2019

The vehicle has to be under $55,000 in Canada to get the rebate. You will not get any rebate if the car is priced above that, which in your case it is. Some exceptions apply (like changing paint colour)

Ehlive | 4 december 2019

That’s correct PteRoy, but that is very clearly not what Tesla told me over the phone and written through email.

You folks would honestly just walk away from $8000 that you were told would be given to you? (Or in this case applied to my purchase)

Bighorn | 4 december 2019

Oh, I see the problem here. You went from a basic, qualifying model to a much more capable i.e. expensive model. Gotta pay to play, as they say. It is a lot of money and probably a shock when you realized your oversight. Objectively, it seems to be your faulty due diligence--Tesla can't hand hold everyone through their government policies. Plenty of people have struggled with keeping their total cost under a certain threshold in order to qualify for government assistance. CA just suddenly started eliminating rebates for cars over a certain price point. Sorry that happened to you since it obviously wasn't part of your calculus.

PteRoy | 4 december 2019

I’m Canadian. So I went through the process. I’m not sure what to say really. Both parties seem to be in the wrong. You for not doing the research to confirm if what you were being told is true, and them for giving out wrong info.

Either way, I’m sorry. A really crappy situation.

Bighorn | 4 december 2019

It may have been something as simple as a miscommunication over US vs CA$s. Personal responsibility sometimes hurts.

PteRoy | 4 december 2019

Do you have the option of returning the vehicle and getting into a sr+ with the rebate?

WW_spb | 4 december 2019

So you trying to strong arm Tesla to give you something that doesn't apply to you just bc they mistakenly told you they will give it? Classy

Ehlive | 4 december 2019

‘ Personal responsibility sometimes hurts‘

So you don’t feel Tesla has any personal responsibly for confirming that I would get $8000 applied to my down payment? Twice. Once on the phone, once on email. The email, very clearly referring to the model I purchased (dual motor long range). And it’s up to the automaker (Tesla) to apply these rebates here, not up to the buyer to claim them after purchase.

It seems clear you think this is on me, which is fine, I disagree, but I’m also confused how you feel Tesla didn’t screw up? You’re okay with a good old bait and switch?

Joshan | 4 december 2019

The rebate is not from Tesla is the issue. They cannot promise you anything that comes from someone else.

WW_spb | 4 december 2019

If you knew the law and that the rebates don't apply for you situation you were scamming Tesla for money. Yeah, personal responsibility doesn't apply to you I guess.

WW_spb | 4 december 2019

Your situation*

WW_spb | 4 december 2019

By the way if you feel so strong about not getting what you were promised why didn't you walk away from the car?

andy.connor.e | 4 december 2019

Tesla screwed up by not confirming your car qualifies for rebates that they included in pricing estimates.

As a piece of offered advice, dont believe anything anyone says, especially when $8000 is at stake. Research and confirm for yourself first. With Teslas new return policy, if it hasnt been longer than the window u can still return the car.

PteRoy | 4 december 2019

@ehlive

If it makes you feel any better (I doubt it) but I live 20 mins from Quebec. So 20 mins away they get $13,000 off the model 3 sr+ and I get $5000 off. That’s the way the cookie crumbles unfortunately.

Bighorn | 4 december 2019

Bait and switch would imply malevolence and it’s probably they didn’t realize you had crossed the $55,000 threshold. Were you not aware? They were likely just offering to adjust the paperwork not recognizing you’d priced out of qualifying.

Joshan | 4 december 2019

Asking so I am clear this is a legit question.

Are you expectingTesla to give you the 8 grand that would have come from the Canadian Government?

andy.connor.e | 4 december 2019

Rebates dont come from Tesla. Tax credits dont come from Tesla. You need to make sure you qualify.

I retract my earlier statement. On Teslas order page for any of their vehicles, they list the tax credit with any qualifying purchase. That is what is available, and you personally need to make sure you qualify. Its not Tesla's responsibility to make sure that the purchaser has the tax liability to receive the full credit.

Ehlive | 4 december 2019

So to clear some things up. At the time of purchase I was NOT aware that cars in Canada over $55,000 did not qualify for said rebates. I naively assumes they did, it was on the paperwork for the SR+ when I put the $3200 deposit down on it online.

I called in to inquire about possibly changing to a higher spec model (and likely higher margin, more profitable model from Tesla). I asked the sales rep if the same discounts applied to this model, I was told they did. So net increase was $10,000 she said - so it seemed like a no brainer to me. I then got the email confirming this.

I did not clue in at signing that it wasn’t on the paperwork, Tesla rushed me through the process as they were slammed with people and it was the end of the day. They also had to do repairs to the car, so it seemed very unorganized.

When I was going through the paperwork, I realized it wasn’t applied. I emailed to inquire, assuming it was something that would be mailed to me. That’s when I got silence for a week or so before being told my model doesn’t qualify, they admitted to making a mistake, and apologized.

I’m not trying to strong arm Tesla. I don’t disagree that I could have done a lot more research. At the end off the day though, I trusted the sales team of a multi billion dollar company to be thorough and honest with me.

The net increase is about $17,000 more than the SR+. That hurts.

My expectation isn’t necessarily to be compensated with cash, as that’s obviously a huge margin hit on this sale for them and I truly believe in the good that Tesla is doing. But an apology seems far away from something fair. They could offer FSD, they could offer free charging, they could offer winter tires. But instead of been apologized to twice, they’ve acknowledged they messed up, but aren’t willing to go further.

I can’t return the car as I financed it and the cost to walk back the loan is just terrible.

rfpmoxie | 4 december 2019

Firstly, I feel your pain and I would pursue this until there is a fair and proper resolve. My first question is...do you have a Consumer Protection Agency in Canada, and, secondly, if not I would move on to the Attorney General (or equiv) official? As indicated, you do have it in writing and to me this is offer/acceptance which should be a slam dunk. In the U.S. there is (I don't know if it varies by State) a grace period for reporting issues like this. Unless I've read your statement incorrectly I can't see how "you lose". With all the folks on this forum there must be real vs armchair Attorneys who can advise. Best of luck...………..

Ehlive | 4 december 2019

@pteroy ya Quebec gets some great rebates, that would hurt living so close!

Andy connor, I ordered this car by phone and got email confirmation of the rebates after the call (within hours) so did not see whatever you’re referencing on the site.

Joshan | 4 december 2019

I feel for you I really do, but unfortunately Tesla is not involved in the rebate and actually have nothing to do with it. It is between the Canadian Government and consumers. It kinda sucks you were given bad info, but are you really making a 60kish purchase on the advice of someone making minimum wage with no research on your own?

Very very painful lesson :(

WW_spb | 4 december 2019

The most important part is to make sure numbers are all there before you sign the docs. Sorry that you screw up. One week full refund applys even if you financed.

lbowroom | 4 december 2019

"the cost to walk back the loan is just terrible"

What fees are involved in cancelling a loan?

and wait, you signed the loan terms which must have a significantly higher monthly payment than you thought, no? You didn't notice that either?

c77m | 4 december 2019

@Ehlive - that's enough money (even in CAD) that I wouldn't walk away from it too easily. I'm not sure what you have up north--in the US we have 3 days for the so-called "buyers remorse" laws, and Tesla provides a full 7 days. I'm sorry to be so blatantly honest, but if it took more than that amount of time to realize you spent $8000 more than you thought you did...it's likely a long uphill battle to show that somebody else has any liability to you. At some point (no more than 7 days), you have to just hike up your pants and trudge through the poop that you didn't pay attention to when signing your name on papers.

Magic 8 Ball | 4 december 2019

Oh, an apology is all you want.

Sorry it happened to you. Education is not free.

Joshan | 4 december 2019

in my much younger stupider years I signed a blank contract at a car dealer... Yes I am a MORON. My brother in law worked there and assured me it was all fine that the finance guy was just gone for the day. I ended up getting FUCKED. Dodge got huge fine for it and that dealership was closed soon after. But I got stuck paying huge. Yes it was 100% my fault but I am still pissed!

Family gatherings were not good for a while...

lbowroom | 4 december 2019

"in the US we have 3 days for the so-called "buyers remorse" laws"

In what state? In California there is no cooling off period or cancellation of vehicle contracts. However, Tesla offers a 7 day return as we all know. Not clear if there is really any financial roll back penalty for the OP to cancel, or just really wants the car and get something back too.

To clarify, this rebate program does seem different than in the US as it applied at time of purchase at not after. In the OP

"$11,200 total downpayment - $3200 deposit - $3000 CEV rebate - $5000 iZEV rebate = $0 due at signing"

So wouldn't that equation have changed and required a payment at signing? If not the total amount financed would have almost doubled which means the payments should have almost doubled. You didn't have a problem with the monthly payment?

Bighorn | 4 december 2019

@M8B
Sounds like he already got an apology or two, He wants some free swag, say FSD.

Magic 8 Ball | 4 december 2019

Dang, I missed that part. So apology is not enough and punishment in the form of compensation is in order?

Cars are not cheap, going in blaming others for "rushing through", to deflect from lack of due diligence, explains 99% of all whiner stories here.

vmulla | 4 december 2019

@Ehlive,
At this point there is only one thing to do.
You said the car was fun, right? Then drive it to the ground and enjoy it.
That's sincere advice too.There's no point babying the car so that it retains it's value, is there? Not after a 8k hit, there isn't.
The best thing I did was really truly enjoy the car at every opportunity - that's one thing that made me not worry about pricing changes or incentives that came after my purchase.
Good luck.

gballant4570 | 4 december 2019

Joshan's description is right - the rebates are not Tesla's to give. However, I agree that sending the software update to you to provide FSD would be a great way to make things right about the misleading communication. That would give you value without costing Tesla margin on their sale.

I would say go above the level you've dealt with to this point, suggesting the FSD fix.

c77m | 4 december 2019

@lbowroom - my mistake, I was conflating the right of rescission that applies to mortgages (I just refinanced this week, should know better). You are correct that buyers remorse law's, where they exist, don't seem to apply to things like car purchases.

Magic 8 Ball | 4 december 2019

He signed the contract upon delivery, he went past checkpoint Charlie.

You don't sign stuff and then blame others later for being casual with your signature.

WW_spb | 4 december 2019

@gballant4570
I doubt they will give him anything. After all OP signed the docs. That is real document and not something that was promised by someone.

rfpmoxie | 4 december 2019

Apparently, none of us who have posted are lawyers. I would suspect that an attorney consult would cost very little as it's a simple question. Surely, when talking about $8K even $50 or $100 is worth the 10 minutes to indicate whether there is a case. Tesla misrepresented the "final price" and it was most likely was unintentional but a written statement is a written statement (my opinion). Best of luck and don't give up!

lbowroom | 4 december 2019

except the written statement, that is the actual purchase agreement, with all numbers and conditions in print was the last document that was signed. Unless there is an error in the numbers presented or it promises something not delivered, it invalidates any prior verbal or written promise.

WW_spb | 4 december 2019

^above +1000

shaunw | 4 december 2019

They did also state that when the noticed the discrepancy, they emailed Tesla and did not get a response in over a week. If that occurred within the 7 day period, I would argue that Tesla should extend the return period if they would prefer to return the car and put in a new order for the cheaper model. Hoping for a freebie sorry gift might not get you anywhere though.

rehutton777 | 4 december 2019

When I purchased my Model 3, I ordered it with 19 in. sports wheels. Due to delivery screw-up (and after I sold my ICE car), they located an identical car but with 18 in. aero wheels. Two days later, at signing, they indicated that they would replace the 18 in. wheels with the 19 in. wheels for the normal $1500 increase, to be paid at the time the new wheels were installed. Nothing was written into the sales contract, but this was all agreed to by delivery/sales personnel and confirmed in e-mail communications.

When I went in (after 3 months) to get the new wheels installed, I was told the price would be over $3500 (normal price for 4 new wheels). I showed them all of the e-mail communications and written agreements, and they did, after some hesitation and discussion, give me the new tires for the "verbally-agreed-to" price of $1500 as referenced in the e-mail communications. I was prepared to walk away if they would not honor the deal - - a luxury that OP does not have.

Point is, I would take it as high up the chain as you can to see if you can get some amount of compensation (such as FSD) to make up for the $8000 in rebates you were told the car qualified for (but clearly didn't). It doesn't hurt to ask, and they might just decide to make good on an erroneous verbal and e-mail commitment from their sales staff, just as they did in my case. Be prepared to walk away empty handed, though.

Pg3ibew | 5 december 2019

In the original post, you speak only of an SR+. And wonder about the missed rebate.
Later on, down in the thread, you mention you recieved a dual motor long range. Clearly a lot more money than the ST+.
I will guess that the LR dual motor put your car over the 55k Canadian, this not qualifying it for the rebate.

Shame on you. You thought you were gonna sneak something past Tesla and the Canadian Govt Laws.

Useless thread as far as I am concerned.

Bighorn | 5 december 2019

@Pg3
Apparently Canada is also dealing with a shortage of personal responsibility and a surfeit of entitlement. Plus he’s happy to ignore all but like minded individuals when his mistake is pointed out. The title should be changed since it’s just another bill of goods. Sad reflection of the “everyone gets a trophy” society we live in. I will point out, I started out rather tactful, but this is really screwed up.

Pg3ibew | 5 december 2019

Let me re phrase, you did mention in the OP that you opted for the long range. You did NOT mention it put you over the 55K and therefore, disqualifying uou for the rebate.

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