https://www.theverge.com/platform/amp/2020/2/6/21127243/tesla-model-s-autopilot-disabled-remotely-used-car-update

A consumer buys a used Tesla that an automotive dealer had purchased  from an auction.  Then, according to the article posted on www.theverge.com, “Tesla has remotely disabled driver assistance features on a used Model S after it was sold to a customer.”  Tesla claims that the customer “did not pay for the features and therefore is not eligible to use them.”

And so begins a new frontier for the retail car dealer.

Is this legal?  Can Telsa do it without recourse?

The article continues by saying that “the features were enabled when the dealer bought the car, and they were advertised as a part of the package when the car was sold to its owner.”  So, the consumer (whose name is Alec) has a cause of action against the dealer because of (1) false advertising, (2) misrepresentation and  (3) violation of any consumer protection acts that may be available in his state (4) fraud, and (5) breach of contract.  There’s likely more, too.

The dealer may or may not have a cause of action against Tesla.  That’s a whole other article!

So, this is a going to be problem. What’s a dealer to do in this situation?

Simple: get straight with Alec.  Make Alec happy.

Is it the dealer’s fault?  No.  Does that make any difference?  No.

Someone from the dealership should reach out to Alec and satisfy him.   It’s the right thing to do.

As for Telsa, in my opinion, this issue will be challenged in court and it will drag on for years.  Someone or some trade organization will be only too happy to take Tesla to court.  The ramifications of whether manufacturers can remotely remove features on used cars has staggering consequences.  And potential lawsuits. And upset customers.

The dealer should take his loss and move on for now.  It’s not equitable that the dealer should have to pay for Alec to be happy, but it is the “right loss” to take.  Otherwise, the dealer could be involved with this claim for years.  At least, that’s my opinion.   And remember, I’m opinionated but open minded.  Your thoughts?

 

Tom Kline is a Hampton Roads, Virginia based consultant, helping dealers get out of trouble and stay out of trouble.  He can be reached at 757-434-7656.