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$990 delivery charge for picking up at factory??

I can see paying to have my car delivered to a dealer near where I live but it seems unfair when I have selected to drive to the factory to pick my car up there. The sales person is now calling it a "destination" charge and says it is charged to everyone. I asked why it is listed as an option when selecting the other features. I will get to the bottom of this when I go to Fremont tomorrow morning. Has anyone had this discussion with TM already?

See many other threads about this, but it is the same as buying any new car -- there is a destination charge (and frequently other charges like final prep/etc). By law, they can charge what they like but they have to charge the same for it no matter where you accept the car. So, if you are picking it up at the factory, besides getting the tour you are paying for the people like me that had to have their car shipped across the country.

There is already a very lengthy thread on this subject. Bottom line? Everybody does it, but other mfgs. may cover it up under some fancy words. Tesla is up front about it.

Is is listed as an option? It's certainly not optional. This has been discussed many times in these threads, and the answer seems to be that this is one of those additional charges that just about all car makers tack on, regardless of where your car is delivered.

Here is a Kelly Bkue Book article about it.
http://www.kbb.com/car-advice/articles/destination-charges/

If you want to search these post try
http://www.volkerize.com/

It sure would be nice it this forum was searchable. I spent 30 minutes looking for a similar thread. But thanks for helping me even in my ignorance.

Keeping in mind that I am a huge fan of both Elon and his firm, This always felt like a bit of a ripoff to me. I really believe local pickup should be a LOT less.
www.thepracticaliberal.com

@David59

We're all learning.

Listen, learn, contribute. (not necessarily in that order.)

@David59;
volkerize.com is a reasonable tool for this site.

Actually you can search any site with any search engine by including a site: restriction in the search field. E.g., site:www.teslamotors.com/forum/forums limits search to this forum. Site:www.teslamotors.com/ covers the whole TM site. Etc.

yep, its nonsense. Its not enough to be an early adopter accepting the inherent issues/risks? Tesla should pass on the savings for anyone willing to go for factory delivery. Its like giving Tesla a donation. I currently have 2 reservations, model s and x (i'm a fan boy for sure but come on).

All the other manufacturers do it, blah blah blah. I suppose Tesla will do this until they can't get away with it. I love Tesla and their vision but charging for factory p/u is down right rude...

Tesla could very well charge $200-400 for their time during the delivery of the vehicle so on principle I have to agree with bob...

Yes. This pissed me off immensely as it is really a scam to pick another grand out of our pockets. Tesla touts how they are the future in customer-dealer relationships and the benefit of dealing with manufacturer owned show rooms. Yet they then try to justify a destination charge. If you look at the KBB description about destination charges you'll see that it's associated with transportation costs that the dealers are asking you to reimburse them for since they have to pay transit for the vehicle from the manufacturer to their independent dealership. Yet Tesla isn't paying for such costs when you pick up at the factory or at their showrooms.

"U.S. government has required this fee be itemized on the sticker based on the fact that it is a direct cost, above and beyond the "overhead" companies must incur in bringing a product to market."

I complained pretty vehemently about this but was told there was no choice. One person described it as the 'tour fee' to go see the factory floor when you pick up in Fremont. I think a smart attorney with some time could push this issue as it doesn't meet the definition of a destination fee.

However, with that said, the car is still awesome. Just left a bit of a bad taste...

I live 24.2 miles from the Tesla Factory in Fremont and I am happy to pay the $990 delivery charge plus the $180 for final prep/inspection.

There are many other cost involved in delivering a car besides transportation. Think about how many employees are involved in getting the car ready for delivery? The DS, office people to process the paperwork, someone to prep the car for delivery, the area they use for delivery, the tour guide and etc....
There is an overhead cost that has to be factored into the delivery of every vehicle. It can't be lowered just because we come to the factory to pickup our cars.

I want to see Tesla Motors succeed!!!

mclary - I just want to second that... also I am living close and picking up at the factory. I am glad to pay the delivery charge, because delivering a car across the country through ice and snow costs way more then $990. Not that I need the factory tour, because I have seen many manufacturing lines before in my carrier... but what the heck I will enjoy the Tesla red robot ballet.
In the end if Tesla doesn't succeed we all just bought a worthless pile of aluminum, other metals and materials. So my view is after spending about $100k for a car I want to enjoy it. Bickering about a few extra dollars really doesn't get me to that state of mind.

As I recall BMW used to offer a European Delivery incentive that reduced the price of the car enough to offset much of the cost of the vacation and they included a tour of their factory. Those were the days.

I want Tesla to succeed as well and can hardly wait to get to Fremont later this morning. I will let go of this small hitch in an otherwise pleasant experience but if there was ever a opportunity for a class action I think this scam is it.

I think calling this a 'scam' is harsh. There is ZERO ill-will being shown here. It's a level playing field, is all. Unless every auto maker is going to charge delivery-by-the-mile, this is the way it is. Relax.

@David59 'As I recall BMW used to offer a European Delivery incentive that reduced the price of the car enough to offset much of the cost of the vacation and they included a tour of their factory. Those were the days.'

Done the BMW European delivery twice (so far). They still do it and it's a great experience. (Maybe Tesla can pick up some tips from that)

The discount is due to the fact that there are no dealer incentives for them to pay - about 7%. You still pay delivery.

@David59

Class action for what?! When you configure your car, it gives the price of delivery plain as day. It is not an option that you can choose or delete. So where is the scam? For a class action, you need some kind of tort, and you simply don't have one here.

Using BMW (or any European) factory pick is not a good comparison. They to not have to comply with US law for a car delivered in Germany, Tesla must conform to US law. If you don't like it complain to your congressman, Senator and President. They are the ones that make the law.

David, are you beginning to.... Just remove this post.

You guys aren't listening -- read the other threads if you don't believe it, but a manufacturer selling cars in the US must charge the same destination fee to all buyers, no matter where they are. The manufacturer can choose the amount of that fee, but must charge the same. Picking up the car overseas obviously means that doesn't apply to you.

When I bought the LEAF, I paid an $880 destination fee picking it up at the local dealer. I don't remember what the Camry Hybrid destination fee was before that (which was built in the US), but it was there too. If you buy a new car in the US, you will have to pay it. How many other manufacturers even offer you the option of touring the factory when you get your car?

You guys talking about class action lawsuits and the like should just go away -- if you don't want to pay the fee, just don't buy the car, but stop whining about something that is absolutely bog-standard among US car manufacturers.

How about a discount if they let us assemble the last few items at the factory.... just sayin....

hs;
Nope. No escape. Deal.

As I told Matt yesterday when I picked up my Model S, my opinion was changed upon further reflection and I wanted to have an only positive experience. The tour for my wife and three friends along with the hour long personal introduction to the car that Matt gave me was well worth the delivery fee or whatever you wish to call it. I take back my poor use of the word scam and if I was technologically savvy enough I would remove this thread entirely.
The bottom line is that this car is a true work of art and genius. The ride home was a joy as has been the expressions of everyone who has seen or experienced this car. My hat is off to Tesla Motors.

Congratulations on your car, David!

Do other manufacturers have the same scenario where people actually visit the factory (as opposed to the dealer) to pick up the car? In this situation there is literally no "destination" involved. Picking up a car at the dealer is a completely different situation because the car still has to be delivered to a destination, in that case the dealer.

If they wanted to, couldn't Tessla could get around the legal requirements by offering a bonus for all or part of the destination charge to people who picked up their car at the factory?

Jill S, yes gm

BMW, Mercedes, Ferrari, Porsche...

BMW in South Carolina at the factory. You pay the same delivery charge as the ones built in Germany.

"IT'S THE LAW !! "

I think it originated to prevent one dealer, maybe 30 miles away, from undercutting another close to you. Also, there were questions as to Delivery costs being a catchall for hidden charges. An ugly time in auto dealer history.

This leveled the playing field.

I know our BMW delivery cost in no way reflected the cost to ship it from Munich to the West coast (L.A) and then truck to a distant place like Colorado.

We trucked a car across the U.S. and it cost $1800.

If one feels cheated by the delivery charge - just have it delivered!!!

$990 to Maui, I will consider that a bargain this fall


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