On buying a returned Model 3

[Axtrader]

I have seen various threads of folks having problems with their Model 3 and returning their vehicle within the 7 day, 1000 mile window. What happens to these returned vehicles? Are they resold as new or used? And what about the tax credit for the previous or next owner? Has anyone bought one of these returned vehicles and what was your experience? Did Tesla disclose it was a returned vehicle?
We are current owners of MX100D and MS100D and have thoroughly enjoyed our cars but they both have spent more than their fair share of time at the Service Center for all types of problems/issues. Tesla has always made it right after each visit and we have confidence in the entire service team that we have gotten to know over the last two years.. We are now planning a Model 3 SR+ purchase and strongly considering a returned vehicle with the right price incentives because we have confidence Tesla will make it right... who knows? maybe the returned vehicle we purchase comes from an original buyer that didnt like the color. Wishful thinking, yes I know... Who else here in TMC would or would not buy a returned Model 3? What price adjustment would make you consider? $500 / $1000 / $2000 / $4000?

 

[OCR1]

I think it comes down to how much of a discount they are offering you. If it’s only a few hundred dollars I’d rather have a brand new car. If it’s more significant I’d probably be comfortable with it but I would be inspecting the car really closely before accepting it.

Tesla likely won’t tell you the real reason for the return. I don’t think they even keep track of it anywhere that is accessible to the reps you are speaking with.

 

[Az_Rael]

Are they resold as new or used?

I would think they have to be resold as used. They would be ineligible for the tax credit for the 2nd buyer as they had previously been titled and placed in service.

 

[Axtrader]

I would think they have to be resold as used. They would be ineligible for the tax credit for the 2nd buyer as they had previously been titled and placed in service.

If the car has been titled and placed into service, would the person returning the car still be eligible for the tax credit? If so, it opens up the return policy to a flood of tax credit abuse.

 

[OCR1]

The return policy states that if an owner has submitted a request for a rebate or credit their vehicle is not eligible for a return. They have to sign a document stating they have not requested any rebates or credits when the return is processed.

The federal tax credit would not come up until next year’s tax returns. The California rebate requires a license plate number, which takes at least three weeks to get.

So it’s unlikely that any rebates or credits would have been submitted and processed within the first 7 days of ownership.

 

[Axtrader]

The return policy states that if an owner has submitted a request for a rebate or credit their vehicle is not eligible for a return. They have to sign a document stating they have not requested any rebates or credits when the return is processed.

The federal tax credit would not come up until next year’s tax returns. The California rebate requires a license plate number, which takes at least three weeks to get.

So it’s unlikely that any rebates or credits would have been submitted and processed within the first 7 days of ownership.

Thanks for the policy clarification. If the car has 1000 miles on it, I can't imagine Tesla selling it as new to the next owner. Who gets the tax credit if it is designed for new cars only?

 

[OCR1]

Thanks for the policy clarification. If the car has 1000 miles on it, I can't imagine Tesla selling it as new to the next owner. Who gets the tax credit if it is designed for new cars only?

You will have to ask Tesla if the title has already been transferred to the first owner. A title transfer in California usually takes around 3 weeks so it’s possible the transfer was never processed but you will definitely have to get that confirmed before the purchase.

California requires you keep the car for 30 months to be eligible for the rebate. Here is the wording:

1. Rebate recipients who do not retain the eligible vehicle for the full 30-month ownership or lease period will be required to reimburse CARB all or part of the original rebate amount.
   1. Vehicle purchaser or lessee is required to notify the Administrator to arrange for early termination of vehicle ownership in advance of intent to sell or terminate a lease prior to the required 30-month ownership period.
   2. CARB will periodically check vehicle identification numbers with vehicle registrations to ensure that CVRP applicants meet this requirement. If an applicant violates this requirement, CARB or its designee reserves the right to recoup CVRP funds from the original vehicle purchaser identified on the rebate application form and may pursue other remedies available under the law.

Terms and Conditions

 

[Az_Rael]

You will have to ask Tesla if the title has already been transferred to the first owner.

I think you would need to see the certificate of origin or MCO for the car. Tesla sends that document to the DMV when they start the title process. If they still have the MCO for the car, then I think you can be assured it was never titled and is eligible for the credit.

(This used to be an issue in the Volt world where you would find a year old inventory Volt for a deal and needed to verify the dealer never titled the car for the credit)

 

[Raphymartinez]

A vehicle is considered “new” as long as it hasn’t been titled and registered. Regardless of the miles. At the dealership I worked at for over 10 years (been in the automotive business for over 15 years now but no longer on the retail side) managers and the family that owned the dealership kept demos for anywhere between 3 and 5 thousand miles. Those vehicles were then discounted and sold as new because they had never been titled or registered.

Same applied to Tesla and any other new car.

 

[SoManyM3s]

I was offered a returned standard range plus with 220 miles on it for a $300 discount. Wouldn't even consider it unless $2000 discount, it's a used car.

 

[C141medic]

For me, a $1000 adjustment would be fair. And the mileage would have to be under a 1000 miles. I don’t think the rebate would be an issue because as @Raphymartinez has mentioned these cars are still considered “new.”

 

[TMarque]

I think when taking all other things equal into consideration, meaning no damage or defects, or any sign of wear and tear; indistinguishable from a brand new car, other than mileage, that buying a returned Tesla is just like buying a new Tesla that you rented out for a week. In that case, I would expect a minimum of $150/day, which is about $1050. If there are other issues, those need to be dealt with rationally. This also is taking into consideration that I don’t have to worry for a week whether or not the car gets damaged, and that I don’t have to pay any insurance during this period. I think that would be a fair deal, assuming mileage is less than 1,000 and it has a new title. If it’s a used car, the appropriate discount needs to be applied.

 

[Leafdriver333]

there can be many different kinds of returning reasons. I am too skeptical to buy a returned vehicle.
New or Used are preferred to Returned for me.

 

[zhu-]

I think $1000-$1500 would be reasonable depending on the miles but unless it was $2k-3k, I would prefer a new one.

 

[Jack007]

Ya know, Tesla would be smart to offer a software unlockable feature, like the heated seats or whatever. If the car looked alright after inspection, something like that would get me in.

 

[Nocturnal]

For the SR price range 1k discount seems reasonable. The car has a full warranty so it's not like you will get burned by a defect.

 

[ngogas]

2000 for 250 miles. That is a crazy expectations.

 

[Nocturnal]

2000 for 250 miles. That is a crazy expectations.

I'd be happy to sell you 250 miles on my car for 2k.