Current Conditions

Icon
San Diego 59.0 °
More Weather

San Diego man's $58,000 nightmare with Tesla Model S

Tools

By Derek Staahl

SAN DIEGO -- A San Diego man bought a high-end Tesla at auction for nearly half price, but now he can't get the company to activate the car.

Peter Rutman purchased the 2012 Model S Signature at auction in March for $50,000 then spent another $8,000 fixing it.

He says repairing the car has been easy; dealing with Tesla has been the challenge.

"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's Model S is a salvage title car, meaning an insurance company determined the vehicle was a total loss. Salvage titles are a notoriously risky proposition, but Rutman's case appears to illustrate something unusual: no alternatives.

"Tesla has created a situation where there is nowhere to go. They've blocked every avenue," he said.

Unlike other automakers, Tesla has a direct-sales model. That means car buyers must deal directly with the company, not independent dealers. And in the case of a dispute, the buyer has virtually no alternatives, according to industry experts.

Rutman says he needs a Tesla-certified mechanic to switch on the car's brain so it will accept a charge. But Tesla won't do it unless he signs a liability release form. The form also gives Tesla the final say on whether the car is roadworthy.

"The document they wanted me to sign didn't indicate they were going to do any repairs to the car, or get it up and running," he said. "They can take the car. They can keep it. They can do whatever they want with it."

A spokesperson for Tesla responded to those assertions Thursday in a written statement, which is copied below in its entirety.

"It's probably something the state regulations haven't caught up on yet. But he shouldn't have bought it to begin with unless he had the technical know-how himself," said Dave Cavano, car buying manager at the Auto Club of Southern California.

Cavano says it's important to remember why companies are careful with the liability surrounding salvage title vehicles.

"Those [cars] are a danger to everyone if they don't act mechanically as designed."

Rutman says he never would have purchased the car if he knew about Tesla's terms in advance.

Now he's trying to challenge the insurance company who sold the car under the salvage title designation by arguing it's not repairable. Under DMV rules, cars that can only be used for scrap should be sold with an "nonrepairable vehicle" title. So far, it hasn't worked.

"I want my money back. Just walk away from this and get back to my life," he said.

Simon Sproule, vice president of communications for Tesla, issued the following statement to San Diego 6 on Thursday:

"Safety is Tesla’s top priority and it is a principle on which we refuse to compromise under any circumstance. Mr. Rutman purchased a vehicle on the salvage market that had been substantially damaged in a serious accident. We have strong concerns about this car being safe for the road, but we have been prevented from inspecting the vehicle because Mr. Rutman refused to sign an inspection authorization form. That form clearly states that in order for us to support the vehicle on an ongoing basis, we need to ensure the repairs meet minimum safety standards.

Regardless of whether or not the car passed inspection, Mr. Rutman would have been free to decide where to conduct any additional repairs and to leave with his vehicle. There was never any threat to take away his vehicle at the inspection or any time thereafter and there is nothing in the authorization form that states or implies that we would do so.

Additionally, Mr. Rutman opted to have his vehicle repaired by a non-Tesla affiliated facility. We work with a network of authorized independent repair facilities to ensure our safety standards are met. It is also worth noting that Mr. Rutman is not on any “blacklist” for purchasing Tesla parts. While we do sell certain parts over the counter, we do not sell any parts that require specific training to install. This is a policy that is common among automakers and it is in place to protect customers from the risk of repairs not meeting our safety standards."

Sproule told San Diego 6 that Rutman is still welcome to have his vehicle inspected at a Tesla-certified facility, and the company will waive the inspection fee. But Rutman would still need to sign the liability release form in advance.

Leave a Comment

Most Popular