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“After I drove the Tesla Model 3 home, my wife changed her mind four days later and now says we can’t afford the car. I love the car. Why didn’t she tell me this before we bought it?”
That is what Alex’s customer says. Alex owns EV Autos (@evautoalex), and now, four days later, the customer wants to return a 2023 Tesla Model 3 he just purchased. Alex can unwind the deal, but it won’t be cheap. It will cost the owner thousands of dollars.
Should this customer keep the Tesla Model 3 or return it for a cheaper car?
Before I answer that question, here is Alex’s and the customer’s conversation.
Alex says, “I have a customer who bought a Tesla Model 3 and wants to return it four days later. So, now I have to call him and give him the bad news.”
Alex calls the customer on the phone.
He says, I think I have an idea of what’s going on, but I want to listen to your side before I respond.”
The customer says, “Yeah, I just called and want to know what the options would be if I wanted to cancel the purchase of the Tesla Model 3. I’m actually very excited about keeping the car, but my wife disagrees.”
“There was a small change at the company I work for, and it might affect my income for the next couple of months. She’s just worried now that we assume that debt now, and it might be a risk for us in our financial matters.”
Alex says, “I’m sorry to hear that. It’s never fun news to get. So, we’ve got some options, but they’re not good ones. The bill of sale and the financing have all been submitted and funded.”
“That one we can unwind, but my team spent time and money on it to get it done for you. My finance manager gets paid for doing it, and then Josh gets paid a commission. So all that has to be covered.”
“We could have sold that car to someone else; so many people are affected by it.”
And then there is the value of the car.
“Returning the car is an option, but it will be costly for you to do that because I won’t take a loss on the car. I can’t rip back commissions from my people who have earned them on this sale and done their job.”
Customer: “So what would that be to return the car?”
Alex: “I’ve got some margin on the car to pay commissions and make a profit on the car. All that profit and everything else is gone after I sold the car to you. So, it just gets costly for you to return the car.”
“What that means now is you would essentially trade it back into us. So, do you still need a car, like a cheaper one? Where are you at as far as a vehicle?”
Customer: “Yeah, I sold my last car already, so yes, I will need a car.”
Alex: “So, now you can trade that Tesla Model 3 back in with us, which would help you some. We need to find a car that’s overall less expensive. I don’t know if you plan on buying a super cheap car because the monthly payment will only go down like $100.”
“So, you’ll be dealing with the cost of gas, maintenance for oil changes, and service on a gas vehicle. So, it could cost you more in the long run.”
“Look. I want to help you. However, I don’t want to be penalized for something we didn’t do. There is nothing wrong with the car; we didn’t push you to buy it.”
Customer: “I’m with you on that because there’s nothing bad on your side, and that’s why I’m asking. I’m not saying I won’t keep the car; I just wanted to know the options so we could make the right decision. I wasn’t expecting this last change. What you just told me has been very helpful. I’ll talk to my wife and get back to you in a few hours.”
Alex: “I’m happy to get on the phone with your wife too if she has questions or concerns if you think that would be helpful.”
Customer: “Sounds good. Thank you so much for your help, Alex.”
Alex: “Ok, call me back. I’ll be happy to chat with you, my friend.”
A Question That Many People Have
A comment from OG says, “He probably didn’t tell his wife about the car purchase. Then, when he got home, she was upset.”
Alex says, “No, she was there when he bought the car. My salesperson, Josh, actually stepped away and gave them time to discuss it. When we rejoined them, they said let’s do it.”
Should the Tesla Model 3 buyer keep or return the car for a cheaper model?
The customer is fortunate to have a dealer like Alex, who is willing to work with him. Most dealers would simply advise him to live with his decision and end the conversation. However, Alex is not a typical car dealer. He understands the customer’s predicament and is ready to assist.
The Tesla Model 3 buyer can get out of the deal, but it will cost him much more in the long run than keeping the Tesla Model 3 he just purchased.
Here is what car buyers need to know.
From the dealer’s perspective, trade-ins are valued at a wholesale price to ensure a profit on resale, not at the retail value the customer might expect. This is an important aspect of the car buying process that many customers may not be aware of.
- Depreciation: The customer’s 2023 Tesla Model 3 lost value when he drove it off Alex’s lot, immediately reducing its trade-in value.
- Negative Equity: For Instance, if he owes more on the Model 3 than its trade-in value, he’ll have negative equity. This means he already owes more than the car is worth, which can be a significant financial burden.
- Rolling into a New Loan: Alex will likely have to roll the remaining balance on the Tesla Model 3 loan into a new car loan, so he’s essentially paying for two cars.
- Financial Strain: The decision to trade back the car will initially drop his monthly payments by $100, but the overall cost of financing will lead to a financial burden in the long term.
Kelley Blue Book suggests that if you’re downgrading to a cheaper car and don’t want to carry negative equity, consider paying off the old loan or exploring other financing options, like a private vehicle sale. These alternatives can help you avoid the financial strain of negative equity.
What Should this Tesla Model 3 Buyer Do?
The short answer is to keep the car. In the long run, it will cost this buyer much more to trade it for a cheaper car.
There are Options For Car Buyers, But None Are Good
Edmunds says, generally, you can’t return a car after signing the contract, but you may have some recourse. First, review your purchase agreement for any cooling-off period or return policy. If not, your best bet is to try and negotiate with the dealership for a trade-in or other options.
Elaborating on your options:
1. Check for a Cooling-Off Period or Return Policy: Some dealerships or states might offer a short period after purchase where you can return the vehicle without penalty. Review your contract carefully to see if this applies to your purchase.
2. Negotiate with the Dealership: Since returning the car is unlikely at most car dealerships, try to work with the dealer to explore alternatives.
- Trade-In: Consider trading your current vehicle for one that suits your needs better.
- Refinancing: If you’re struggling with the loan terms, explore refinancing with a different lender to get a better interest rate or longer term.
3. Consider Private Sale: You may consider selling the car privately if the dealership won’t cooperate. Be aware that you’ll likely experience a depreciation in value.
Conclusion:
Returning the 2023 Tesla Model 3 is an option, but it comes with a significant cost to the buyer. The dealer cannot absorb the loss, and this customer will have to bear the brunt of the financial implications. The dealer’s perspective is clear. Alex cannot rip back commissions from his team who have earned them on this sale and done their job.
What Would You Do?
Have you had buyer’s remorse shortly after you purchased a new or used vehicle? How about after buying a Tesla? What did you do to resolve the issue? If so, click the red Add New Comment link below and let us know.
Check out my unbelievable 2025 Chevrolet Tahoe story: My Customer Just Traded in Her 2025 Chevy Tahoe With Only 98 Miles, It’s the 2nd Worst Trade I’ve Ever Seen.
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you’ll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl via EV Auto Alex
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Source: torquenews.com
