A Tesla Motors Inc (NASDAQ:TSLA) Model S owner is facing issues in getting his car activated after he bought it at an auction for approximately half the price, says a report from San Diego 6. Peter Rutman, a San Diego resident, got his hands on a 2012 Model S Signature after paying $50,000 and then shelled out another $8,000 to repair it.
Tesla’s sales model creates a hurdle
“I’m blacklisted all across the country,” he said. “Nobody’s allowed to help us. They’re not allowed to sell us parts. They’re not allowed to service the car. Nothing.” Rutman said that getting the car fixed was easy, but dealing with Tesla has been a challenge.
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Tesla operates through a direct sales model, which requires individuals to deal with the company directly rather than dealers. In the case of any issue or dispute, the buyer is left with no other option, believe experts. Rutman’s Model S is a salvage title car, which means that sn insurance company has labeled the vehicle as a total loss.
Tesla wants Rutman to sign a liability release form that gives the company a final say on the road-worthiness of the vehicle. Rutman said that the document did not mention that there would be any repairs to the car, adding, “They can take the car. They can keep it. They can do whatever they want with it.”
Buyer should know the risks
Dave Cavano, car buying manager at the Auto Club of Southern California, said that state regulations still do not have any rules on such purchases, but Rutman should not have bought the car until he knew the technical details himself. Cavano added that it is vital to remember why companies take extra precautions with the liability related to salvage title vehicles.
These salvaged cars pose a threat to everyone if they do not work properly. Rutman said that if he had known the terms and conditions of Tesla beforehand, he would not have purchased the car. A Tesla spokesperson told San Diego 6 that he needs more information to comment, but still no response has been received.
On Wednesday, Tesla Motors shares rose .69% to $252.14, and year to date, the stock is up by over 65%.