Tesla Now Has a Non-refundable $100 Order Fee

Electric vehicle make Tesla quietly made some changes to its return policy recently and also added a non-refundable $100 order fee.

The company not only raised the prices of its Model 3 vehicles, but also added changes to ordering and returning.

According to the company’s website, instead of a $1,000 reservation fee and $2,500 order deposit, now the company charges a $100 non-refundable order fee.

This means if you decide you don’t want the vehicle anymore, you are out of $100. Tesla will now make money on every other, even if they are cancelled.

The company is also telling customers who return a new car within the allowable window that they cannot buy the exact same trim for another year. The customer will either have to upgrade, downgrade, or buy a different model. They can also choose to walk away.

According to Frost & Sullivan’s Director of Aftersales, Retail & New Mobility Research, Kumar Saha, “Tesla is building its brand and its manufacturing capabilities in front of everybody’s eyes. They also want to torch the existing automotive retail practice and build it up in [CEO Elon] Musk’s image. Musk loves to go ahead with anything that’s disruptive and goes against the current of automotive retail. Since they are not beholden to dealerships and do not have to adhere to franchise laws like other automakers — there’s no reason why they have to follow a traditional path, either.”

Tesla’s website also warns potential customers with the following: “Once you have returned your vehicle, the return process is final and may not be cancelled. At this time, we are not able to facilitate vehicle exchanges. If you decide to order another vehicle, you may not order the same trim for a period of 12 months but may order another vehicle in a different trim at any time. However, if you are found to have abused this policy or have acted in bad faith, you will be prohibited from purchasing any vehicle for a period of 12 months.”

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.