Forums

Delivery Fee

Delivery Fee

Did anyone else notice the delivery of $990???

For me I live in silicon valley. Happy to pick up the car. Totally get the fee if someone needs car delivered, but don't get it for us locals who at happy to pick up at factory. Anyone figure this out???

BYT | August 19, 2012

Everyone pay's the delivery fee to help offset the costs of those who are out in the boondocks.

ddruz | August 19, 2012

This is standard practice for car manufacturers in the US.

bsimoes | August 19, 2012

This also includes instruction about the car.

nav66 | August 19, 2012

Yeah, I saw that, too. I went to the Menlo Park store just to talk to someone about it. It is not optional, you must pay it. So be it. But I did tell them that I planned to take delivery at the Fremont Plant.

stevenmaifert | August 19, 2012

Fees and Taxes (From my MVPA):
1) Personal Delivery $990.00
2) Final inspection, prep, and coordination $180.00
3) CA Sales Tax $6,395.00
4) CA Vehicle License Fee $536.38 (Tax deductible)
5) CA Registration, Transfer and Titling Fees $81.00
6) California Tire Fee $7.00 (I have no idea?)

Sudre_ | August 19, 2012

I am curious. Can pick a car up from any other manufacture?

Mel. | August 19, 2012

Yes, Corvette, but it still have to pay delivery

riceuguy | August 19, 2012

I know it's been mentioned, but this isn't at all out of line with typical delivery charges from other manufacturers. They just build it into the bottom line price, but it's right there on the sticker. Take a look at this: http://diminishedvalueofgeorgia.com/wp-content/uploads/2012/01/2012-must....

Robert22 | August 19, 2012

Don't forget the state excise tax here in MA. $25.00 per thousand of LIST value. My car is scheduled to arrive in the Nov/ Dec timeframe. The law states there is no prorating of the fee. I therefore will receive two tax bills in early 2013, each for the full annual amount despite the fact I used the roads for 1 month in 2012. That's ~ $4350.00. Just bend over and grasp your ankles firmly folks...

jbunn | August 19, 2012

Robert,

I faced a similar situation 14 years ago in Washington. New car and once my temps expired I had a month to go before the end of the calender year. Would have been 700 bucks for one month. So, I stuck it in the garage for a month, and drove the old car. Sucked, but id rather have the cash. For you, id say dont accept delivery before Jan 1. sucks, but for 2k, it would be worth it. Just go on vacation.

Brian H | August 20, 2012

Yeah, you'd have a hard time cutting the marginal tax cost for that month to under $1/mile. 2200 miles in a month would be pretty busy!

Sudre_ | August 20, 2012

I would add a family member or good friend on the title that lives in a different/cheaper state and register the car there. I would then register the car in MA the following year. At that point if you really wanted you could retitle the car.

stevenmaifert | August 20, 2012

$7.00 California Tire Fee. A nuisance fee to keep the environmentalists happy: http://www.boe.ca.gov/pdf/pub91.pdf

jbunn | August 20, 2012

It's a fee to pay for the disposal of your tires. It's much the same as your garbage bill is a nusance fee to keep the garbage man happy.

stevenmaifert | August 20, 2012

@jbunn@hotmail.com - I'm not sure that's a good analogy. Just because you buy a tire in CA doesn't mean it will eventually be disposed of in CA. When we get an oil change for our ICE, we don't get charged a disposal fee for the new oil going in, we pay a disposal fee for the oil coming out. In my view, disposal fees should be paid when things are disposed of, as in your garbage analogy, otherwise it's just a nuisance fee to satisfy some special interest group.

jkirkebo | August 20, 2012

Yeah, except when people have to pay to dispose of things, said things often end up in a ditch instead. It is much better paying in advance so disposal is "free". We have this system in Norway not just for tires, but also for cars and all electric appliances.

jerry3 | August 20, 2012

I had thought that most places had a tire fee. It's $3 in Texas. I think it was $5 in Vancouver.

Brian H | August 20, 2012

I seem to recall someone trying to actually track tire disposal, and any relevant application of said fee, and being unable to do so. Another large trickle into "General Revenue"?

jbunn | August 20, 2012

I agree that the cost of disposal should be at least partialy accounted for at sale. Cars aside, if a manufacturer were required to factor in the cost of disposing of it's product at end of life, including packaging, we should get better outcomes as far as materials used and their recycling options.

Here in Washington, I think we pay for a disposal fee on the old tires, but not quite sure. For 2 bucks a tire every three years, it's cheaper than my having the trash guy haul them off. I also like the idea that the few bucks helps support a system that puts the materials in a tire back into other usefull forms. I'm old enough to remember the enormous piles of used tires.

jerry3 | August 20, 2012

jbunn,

That would be nice but how would you enforce that on imported goods?

Ideally, the cost of a product should also include site cleanup, military, and heath issues too. Of course, that would make many products too expensive to purchase. Right now we just tack those costs onto the national debt so it appears as if there is no cost for those things.

jbunn | August 20, 2012

VATs, tarrifs, duty fees, ect. I'm sure there are many ways.

And yeah, polution is a cost that we all bear, and should be bore by the people making profit off creating the mess.

Brian H | August 20, 2012

Chopped tires make excellent additives to road asphalt. Vastly improves grip and durability.

EdG | August 20, 2012

Imagine how creative manufacturers and packaging people would be if every product needed to list its constituent parts (analogous to foods) and disposal fees were paid before the sale.

Could be like a VAT - add disposal fees along the production of each item. Imported items have to have it added upon entry. A rebate could be had for export.

Robert22 | August 20, 2012

@Jbunn and Sudre-

Appreciate the suggestions to avoid excise tax hell. I may pass on dealing with the DMV twice in two different states in an effort to maintain my sanity. If I deny myself until January, is anyone aware of any 2013 tax code surprises that might push me from frying pan to fire?

Robert22 | August 20, 2012

.....other than waiting a year for my 7500 tax credit should I not fiddle with my withholding.

jbunn | August 20, 2012

Regarding the delivery fees, if you guys ever buy a non-tesla car from a standard dealer, when you get the paperwork pushed across the desk, feel free to just grab a pen, and start scratching them off... Nope. Nope. No, not gonna pay that eiether....

Last time I bought a car from Ford, they had some fees, and I asked what are those for... They mumbled somethign about "covering dealer costs for our expenses... blah blah." Took the pen, and said "That's your problem".

This works with normal dealers, because if you don't want the Ford, you can go get a Mercury, or a similar car from Chevy, or whatever you like. In my case, I really wanted a Chevy Blazer and said so, and the guy selling me an Explorer could see the Chevy dealer over my shoulder on the other side of the street. Secondly, dealers are independent owners, so if you don't like the deal at one Ford dealership, you can go to another with a different owner that may take your deal.

None of this works with Tesla, however. You don't have a comparable choice with another company at this time. Secondly, Tesla does not have independent dealers. Regardless of where you go, there is one Tesla to deal with. For the near future, supply is low, demand high, and there is no need for them to negotiate. And they don't have sales people.

Most important for me, I like the folks, the business model, and the product, which while expensive is at an understandable price point. So no need to be an irritant.

They used to say that the biggest depreciation is when your new car hits the street off the dealer lot. For the first 6 months, for folks getting their car this year, it might actualy be worth MORE than the purchase price to a buyer that does not want to wait in line. Somethign to smile about. Doesn't happen much.

BYT | August 20, 2012

That is true about price negotiations, in fact, the Model S will be the first car I have ever "not negotiated down aggressively" the out-the-door price. It's also the first car I have needed to get a car loan to purchase.

Beaker | August 21, 2012

BYT... and for me the first car with that I got to choose ever option I wanted and didn't have to get what was on the lot. Usually wound up with stuff I didn't want, or my second choice of color.

jkirkebo | August 21, 2012

Can you not order any car to spec in the US ? Are you forced to choose between what the dealer has on the lot ?

Beaker | August 21, 2012

@jkirkebo while you can, it is the dealer mentality is to push what they have on the lot so you can buy 'today'. It is very difficult to get them to let you spec a car. When we purchased our Highlander we asked about one with a DVD player for the kids in the back. The sales guy disappeared (always a bad sign) and came back with 'not really, but we can have one installed'. My wife picked up on the 'not really' and said what do you mean you either do or you don't. He admitted they had one, when we asked to see it he again disappeared, and when he came back he said we could not. My wife sat up straight and said 'then go find me someone who can'. It took another 20 minutes of 'negotiation' to get the dealership to show us the car. It was a color we were not told was an option, but we liked as much as our first choice and had all the options we wanted plus the nav system which we did not. In retrospect nav was a great addition and we got the Tesla with the tech package because of it.

We were then told we could not buy it, because it still had all the plastic on it from shipping, and had not been 'dealer prepped'. There was white temporary paint armor on the upward facing exterior surfaces & seats were still covered in plastic. We had to repeatedly reminded them that our trade in was not with us and we couldn't take delivery 'today' anyway.

In retrospect we discovered that that day was the last day of the quarter for them and they really needed to close a dealt that day. They gave us a good discount to agree to buy the car that day instead of 5 days later when we took delivery and brought our trade in along. They got to make their numbers and we got a better price.

-----------------------------

The Tesla experience was so much better:

I emailed Santana Row the evening before to let them know that we wanted to come in the following morning. We got an email at 10:30pm with details on who to ask for and letting us know that they would expect us any time before noon.

We walked in and one of the reps welcomed us and we said we were there to configure and another called out my name and invited us over.

With my wife in the drivers seat of the car (her first time) we discussed the pros and cons of the choices we were waffling on. Our rep provided great information which we used to make our decisions. At no point did we feel she was steering us toward any given choice, with the single exception of ensuring that we really did decide to go with the performance option which was a firm no at the start of the morning. In the end we added it because perforated leather was just asking our kids to spill water through. Well there is the actual performance benefit and the red piping on black leather that looks really nice too :)

CIAOPEC | August 21, 2012

A "delivery fee" for Tesla owners willing to pick up their Model S at the Fremont factory is bull and out of line. Just my opinion.

If Tesla needs this margin to succeed then they should offer more options with larger markups. Don't try to cheat your customers with this compulsory fee. Just because other auto dealers/manufacturers behave badly doesn't make it right.

Is this delivery fee a certainty or presumed based on roadster owner experience?

ddruz | August 21, 2012

Tesla is following standard practice in the car industry in the US. Here is an informative article about it from Kelly Blue Book.

http://www.kbb.com/car-advice/articles/destination-charges/

ggr | August 21, 2012

It's real, whether you pick up in Fremont or not. It's industry standard.

CIAOPEC | August 21, 2012

Thanks for the link @ddruz

Haggling over the purchase price is also standard industry practice.

I don't want to make a huge deal of this but this pisses me off. Perhaps I will take delivery in Tahoe instead of at the factory and enjoy a nice ride down the hill? Don't want to come off as mean spirited but I'm dissapointed in Tesla with this decision. I'll live

Brian H | August 22, 2012

E-BOY;
Hm. You're sounding a bit like the way your tag would sound as a word ...
Standardizing the fee avoids incredible complications tailoring it to every individual case.

On the other hand, my philosophy about such things is, "INCLUDE it in the price, then state 'No additional charge for delivery if required' " That way there's one less "extra" item on the bill, and no claims about "free", and no quibbles about amount. It's built-in as a cost of doing business, a necessary expense on each sale.

Volker.Berlin | August 22, 2012

Brian H, it's the same with the first four years of service that should be included. However, it all adds up and Tesla has committed to the $57,500 base price early on...

Brian H | August 22, 2012

VB;
Yes, "it's too late now", as they say. But I strongly recommend it for the X, etc.

cmeyers | October 8, 2012

I found this thread as I am about to "sign" my contract and noticed the delivery fee. If I have to pay the fee then perhaps there is a way to compensate.

Take delivery of the car in Oregon. Oregon doesn't have sales tax and vehicle licensing and registration is very low. Use the vehicle in Oregon for a minimum of 90 days and then bring it into California. You should have proof of using the vehicle in Oregon. I guess "gas" receipts won't work in this case..... are people allowed to plug in their electric car in Oregon? (they aren't allowed to pump their gas).

In case you are wondering, I was going to drive my Tesla to Oregon anyway and spend some time there (about 90 days) but through it would be nice to pick up at the Factory and take the tour ;)

stevenmaifert | October 9, 2012

@cmeyers - I'm assuming you are actually a CA resident? If you take delivery in OR and register the car at an OR address, I suppose you could get away with not paying CA sales tax. If you register the car in OR, you will not be eligible for the $2500 CA rebate, although if you have an OR state income tax liability, you might qualify for their $1500 EV tax credit. Seems like a lot of trouble to compensate for the delivery fee.

jkearns97062 | October 9, 2012

There is no longer a $1500 EV tax credit in Oregon. :(

Alex K | October 9, 2012

@cmeyers | OCTOBER 8, 2012: Take delivery of the car in Oregon. Oregon doesn't have sales tax and vehicle licensing and registration is very low.

You can also look into Washington state, since they don't have tax for EVs and registration costs are also low. We're planning to take delivery in WA and registering there, since we have a place there. But we will drive or ship our car to AZ, since we spend most of our time here.

weeandthewads | October 9, 2012

The only thing is missing from the fees is the under coating.

treeva | October 9, 2012

@Robert22 -- The website at http://www.sec.state.ma.us/cis/cisexc/excidx.htm
indicates that the Massachusetts excise tax is prorated ("no excise for the months before the vehicle is registered", which makes me feel a lot better as my car is slated for delivery this month.

cmeyers | October 11, 2012

I anticipate that by next year, my predicted delivery date, the CA rebate will have run out of money. It is first come, first served and it only has approximately $14M left. At 2500 a pop, that only covers 5600 more applicants and since they hand it out to plugin hybrid and electrics I don't see how it will last. With the Nissan Leaf, Chevy Volt and Ford Focus Electric and more Ford plug-ins coming soon California is going to burn through this quickly.

I need to move....