Tesla Lease Mix Up
Discussion
Long-time PH reader (20+ years), often relied on threads here for car choices — Volvo V90, BMW M50, and a hybrid VW Passat among them. Now I’m seeking advice on a Tesla lease issue.
1. I leased a Tesla via a PCH agreement arranged through their suggested lease company (Black Horse).
2. The car was collected from Tesla on Saturday morning; the model and registration matched all paperwork.
3. Later that day Tesla phoned to say the finance agreement is not compatible with the ex-demo vehicle they supplied, and demanded its immediate return. No substitute car was offered.
4. I advised Tesla that the issue lies between them and the lease company, not me as the customer, and refused to return the car.
5. On Sunday I exchanged multiple emails with the collection hub. Tesla are still insisting the car is returned but cannot guarantee a replacement vehicle while they source a new one.
6. I have checked my PCH contract and can find no clause allowing the lease company to reclaim a vehicle due to a supplier error.
7. My position is that my contract is with the lease company. Returning the car would leave me with a finance agreement but no vehicle.
8. I continue to refuse the return and have spoken to my lease company, who have said they have 8 weeks to review my complaint.
I accept mistakes happen and I am willing to cooperate, but my question is, do Tesla have any right to reclaim the car supplied in error, leaving me with an active finance agreement but no vehicle?
Thanks in advance — I’ll keep the thread updated.
1. I leased a Tesla via a PCH agreement arranged through their suggested lease company (Black Horse).
2. The car was collected from Tesla on Saturday morning; the model and registration matched all paperwork.
3. Later that day Tesla phoned to say the finance agreement is not compatible with the ex-demo vehicle they supplied, and demanded its immediate return. No substitute car was offered.
4. I advised Tesla that the issue lies between them and the lease company, not me as the customer, and refused to return the car.
5. On Sunday I exchanged multiple emails with the collection hub. Tesla are still insisting the car is returned but cannot guarantee a replacement vehicle while they source a new one.
6. I have checked my PCH contract and can find no clause allowing the lease company to reclaim a vehicle due to a supplier error.
7. My position is that my contract is with the lease company. Returning the car would leave me with a finance agreement but no vehicle.
8. I continue to refuse the return and have spoken to my lease company, who have said they have 8 weeks to review my complaint.
I accept mistakes happen and I am willing to cooperate, but my question is, do Tesla have any right to reclaim the car supplied in error, leaving me with an active finance agreement but no vehicle?
Thanks in advance — I’ll keep the thread updated.
I would assume Tesla can claim that the agreement has not been activated therefore they have not been paid for the car.
The next steps will depend if you actually paid the lease company any money in the form of advanced payment?
Either way I would expect the lease company to stump up a rental car.
The next steps will depend if you actually paid the lease company any money in the form of advanced payment?
Either way I would expect the lease company to stump up a rental car.
AIUI:
What's meant to happen is that Black Horse purchase the car from Tesla.
You then sign a contract with Black Horse, that they allow you the use of their car in exchange for £xxx a month for yy months.
At the end of the contract term you return the car to Black Horse, it being their property.
I think you're correct that your contractual relationship is with Black Horse, not Tesla.
If I were you I'd say that you have a contract for supply of a Tesla, if they want the current car back that's fine, they can send a driver with another car that meets the contracted specification, and swap them over. It's their error, it's for them to sort it out while continuing to fulfil their side of the contract.
I suppose it's possible that BH (not Tesla) might be able to cancel the contract unilaterally and then demand their car back (in which case you wouldn't have to make any further payments either). But such a cancellation should come from BH and include cancelling your payments to them.
What's meant to happen is that Black Horse purchase the car from Tesla.
You then sign a contract with Black Horse, that they allow you the use of their car in exchange for £xxx a month for yy months.
At the end of the contract term you return the car to Black Horse, it being their property.
I think you're correct that your contractual relationship is with Black Horse, not Tesla.
If I were you I'd say that you have a contract for supply of a Tesla, if they want the current car back that's fine, they can send a driver with another car that meets the contracted specification, and swap them over. It's their error, it's for them to sort it out while continuing to fulfil their side of the contract.
I suppose it's possible that BH (not Tesla) might be able to cancel the contract unilaterally and then demand their car back (in which case you wouldn't have to make any further payments either). But such a cancellation should come from BH and include cancelling your payments to them.
I guess black horse want to cancel finance agreement where tesla dealership is a party. Or worse, they have done so.
This probably leaves dealership in quite a desperate situation.
There is an expensive asset they dont have possession over.
Black horse must be idiots to give the dealership the finance for the vehicle where risk profile is unadequate. So doubt they would settle this
Do you have alternative for a vehicle? Something you own or can easily get?
This probably leaves dealership in quite a desperate situation.
There is an expensive asset they dont have possession over.
Black horse must be idiots to give the dealership the finance for the vehicle where risk profile is unadequate. So doubt they would settle this
Do you have alternative for a vehicle? Something you own or can easily get?
samoht said:
AIUI:
What's meant to happen is that Black Horse purchase the car from Tesla.
You then sign a contract with Black Horse, that they allow you the use of their car in exchange for £xxx a month for yy months.
At the end of the contract term you return the car to Black Horse, it being their property.
I think you're correct that your contractual relationship is with Black Horse, not Tesla.
........
That's what I'd have thought - in which case I don't understand why Tesla are talking to the OP. Tesla should be talking to BH. What's meant to happen is that Black Horse purchase the car from Tesla.
You then sign a contract with Black Horse, that they allow you the use of their car in exchange for £xxx a month for yy months.
At the end of the contract term you return the car to Black Horse, it being their property.
I think you're correct that your contractual relationship is with Black Horse, not Tesla.
........
If the car has to be changed (which would be odd, as it's correct on the paperwork, so it's not that the OP has been given the wrong car), it's up to BH to arrange it.
I know that Black Horse will not fund used or ex-demo Tesla products as similar issues have cropped-up on other forums.
It looks to me like Tesla have proposed you to Black Horse, whom have accepted you for the finance, you ve taken the delivery of the Tesla and when Tesla have gone to drawdown the funds from Black Horse its come to light and they re not funding the vehicle.
It begs the question as to where the contractual relationship sits.
IALBNYL and in my mind, your contract a) sits with Tesla for the supply of the vehicle and b) Tesla have sold you a finance product which is not fit for purpose under the personal circumstances and needs element, and as such, its a clear case of mis-selling by Tesla.
I would imagine that any advance payment or deposit would have been paid to Tesla directly, which further underpins their liability.
Tesla, as we know, like to play hardball. They will no doubt threaten to report the vehicle as stolen which will be a red-herring on their part as it is a clear civil dispute and not criminal act - it does not meet the test to permanently deprive Tesla of the asset and you clearly have no intention of doing so.
TL:DR - It s a Tesla issue and not a Black Horse issue legally.
It looks to me like Tesla have proposed you to Black Horse, whom have accepted you for the finance, you ve taken the delivery of the Tesla and when Tesla have gone to drawdown the funds from Black Horse its come to light and they re not funding the vehicle.
It begs the question as to where the contractual relationship sits.
IALBNYL and in my mind, your contract a) sits with Tesla for the supply of the vehicle and b) Tesla have sold you a finance product which is not fit for purpose under the personal circumstances and needs element, and as such, its a clear case of mis-selling by Tesla.
I would imagine that any advance payment or deposit would have been paid to Tesla directly, which further underpins their liability.
Tesla, as we know, like to play hardball. They will no doubt threaten to report the vehicle as stolen which will be a red-herring on their part as it is a clear civil dispute and not criminal act - it does not meet the test to permanently deprive Tesla of the asset and you clearly have no intention of doing so.
TL:DR - It s a Tesla issue and not a Black Horse issue legally.
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