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Tesla VT - additional repayment taken
First, I would like to thank this website and the excellent posts by @R0b in providing guidance on the whole VT process. Despite having tried to sell my Tesla through Autotrader and then via Motorway & Carwow, all offers were substantially less than the amount owed to Tesla finance.
I therefore took the decision to VT the vehicle and gave notice by email on 19/12/24 as well sending a letter by Special Delivery. Given that the festive season was rapidly approaching and I had heard nothing further, I phoned Tesla Finance (23/12/24) and left a message (the only option) requesting a callback, but there was no response. I chased again by email on 30/12/24 and 6/1/25 and finally received an acknowledgement on 10/1/25. Matters then progressed reasonably quickly thereafter and the car was dropped off on 18/1/25 with no surcharges as the car was in excellent condition.
My query relates to the Tesla taking an additional direct debit in January. The car was purchased 30/6/22 and the first repayment was made on 1/8/22 (debited to my bank account 3/8/22), so the 29th payment was made on 1/12/24. At the point notice of voluntarily termination was given on 19/12/24, I had paid £32,353.34 (Consisting of £100 order fee, £16,000 deposit followed by 29 payments of £560.46). This exceeded the half way point of £32,266.19 specified in the contract. I ceased using the car on 19/12/24 as I had given Tesla notice of the termination.
However, on 6th January 25, Tesla took a further direct debit of £560.46. I deliberately did not cancel the DDR mandate as I did not want a possible defaulted repayment to show on my credit record. I asked for the January repayment to be refunded as it was taken after I gave notice that I wished to terminate the contract and the 50% point had already been reached. However, Tesla are refusing to refund the additional payment as they are saying “Since you chose to voluntarily terminate your vehicle on 19/01/2024, you are still required to pay the January payment, as it covers usage from the previous month in December”. In a separate email, there explanation is:
“So with regards to the monthly payments, despite you notifying us in December that you would like to voluntarily terminate your agreement, we charge all of our customers for the months of the usage of their car and not when they have notified us that they want to return the car.
Since the car was returned in the month of January, the monthly charges apply until the car has been returned to us. Therefore the January direct debit is for the usage of the December month despite you notifying us in December that you would like to voluntarily terminate the contract.”
Are Tesla correct as it appears they are saying they base their calculation on usage, not the date notice was given or the 50% point was reached?
Your help on this point would be very much appreciated please.
I therefore took the decision to VT the vehicle and gave notice by email on 19/12/24 as well sending a letter by Special Delivery. Given that the festive season was rapidly approaching and I had heard nothing further, I phoned Tesla Finance (23/12/24) and left a message (the only option) requesting a callback, but there was no response. I chased again by email on 30/12/24 and 6/1/25 and finally received an acknowledgement on 10/1/25. Matters then progressed reasonably quickly thereafter and the car was dropped off on 18/1/25 with no surcharges as the car was in excellent condition.
My query relates to the Tesla taking an additional direct debit in January. The car was purchased 30/6/22 and the first repayment was made on 1/8/22 (debited to my bank account 3/8/22), so the 29th payment was made on 1/12/24. At the point notice of voluntarily termination was given on 19/12/24, I had paid £32,353.34 (Consisting of £100 order fee, £16,000 deposit followed by 29 payments of £560.46). This exceeded the half way point of £32,266.19 specified in the contract. I ceased using the car on 19/12/24 as I had given Tesla notice of the termination.
However, on 6th January 25, Tesla took a further direct debit of £560.46. I deliberately did not cancel the DDR mandate as I did not want a possible defaulted repayment to show on my credit record. I asked for the January repayment to be refunded as it was taken after I gave notice that I wished to terminate the contract and the 50% point had already been reached. However, Tesla are refusing to refund the additional payment as they are saying “Since you chose to voluntarily terminate your vehicle on 19/01/2024, you are still required to pay the January payment, as it covers usage from the previous month in December”. In a separate email, there explanation is:
“So with regards to the monthly payments, despite you notifying us in December that you would like to voluntarily terminate your agreement, we charge all of our customers for the months of the usage of their car and not when they have notified us that they want to return the car.
Since the car was returned in the month of January, the monthly charges apply until the car has been returned to us. Therefore the January direct debit is for the usage of the December month despite you notifying us in December that you would like to voluntarily terminate the contract.”
Are Tesla correct as it appears they are saying they base their calculation on usage, not the date notice was given or the 50% point was reached?
Your help on this point would be very much appreciated please.
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