1:01 pm, January 13, 2023
Motor trade legal experts have said consumers are perfectly entitled to cancel their Tesla orders to take advantage of the lower price – if they bought them online.
Tesla sales are predominantly taken via the manufacturer’s own website and as such are subject to Distance Sales Regulations.
This entitles customers to cancel their order up until the point of delivery.
However, it will mean Tesla buyers who do so will go to the back of the queue with their new order.
Tesla slashed the price of the Model 3 and Y overnight by nearly £10,000.
As reported by Car Dealer this morning, 16,000 customers who took delivery of their Teslas last month will have no redress.
There are reports that Tesla has said it will honour the new prices for anyone who has an order in the system, but an official statement has not been received by Car Dealer.
One vehicle leasing broker, though, said they had received confirmation from Tesla that the new prices would be applied to their orders.
Consumer law experts at motor trade legal firm Lawgistics said if buyers don’t get offered the new price they can cancel the order.
Kiril Moskovchuk, a lawyer at the firm, told Car Dealer: ‘I suspect that many Tesla sales will be distance sales and the right to cancel will apply.
‘If cancelling under the distance sale rules, the customer can simply change his mind, does not have to provide any reason, and the Tesla price drop will be a perfectly acceptable ground.
‘The 14 days’ cancellation window starts to run from the point of delivery.’
The legal expert added: ‘I also suspect that many Teslas are purchased on finance, in which case the finance provider will act as the trader, the above right to cancel will still apply and the consumer will have the option of complaining to the Financial Ombudsman, for which no fee is charged, if the finance provider refuses to cancel the deal.’
Tom Barnard, editor of Electrifying.com, added: ‘A total of 16,368 people bought Teslas in December – 10,664 Model Ys and 5,704 Model 3s – at the old, higher prices, meaning that British customers buying Teslas last month could have saved £130m if they’d bought in January instead.’
The price drops for new Tesla Model 3 and Y is likely to further impact used prices which are already dramatically falling.
Car Dealer reported earlier this week data from used car pricing experts Cap HPI which shows used Tesla prices are in free fall.
The Model 3 has lost 23 per cent in the last year, dropping £9,900.
Cap HPI data experts told Car Dealer this morning that they will be urgently assessing the likely impact on used Tesla values this price cut will have.
Derren Martin, director of valuations, told Car Dealer: ‘If it encourages buyers into a new Tesla rather than a used one, with the volumes being re-marketed there could be a further impact on used prices, which are already under considerable pressure.’
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