Carvana CEO Says Tesla’s Return Policy Is Enormously Powerful
With the current Tesla return policy, you might enjoy your car for up to a week before returning it
When Carvana CEO Ernie Garcia went on CNBC’s Squawk Alley to discuss Tesla’s new sales strategy, he was full of praise for the electric carmaker. The interview centered around the electric car maker’s move to a new, online-centric sales model. Consequently, the whole procedure of customizing & ordering your vehicle will be a much easier and more pleasant experience. And Garcia praised that decision completely.
However, it’s Tesla’s vehicle return policy that will most likely be a deciding factor for some of the customers. And this is especially true when you take into account their recently improved sales and delivery track record.
“I think every business has its challenges, but they’ve done a pretty good job overall. I wouldn’t be betting against them. I think when you buy a new car, questions are different, but the return policy is enormously powerful like it is on the used side. A customer knows they can return it,” the CEO said.
Currently, Tesla employs a standard return period of one (1) calendar day after delivery. However, some owners might take delivery of their vehicle without even taking it on a test drive or having a demo with some of Tesla’s salespeople. In that case, the company understands that you might require some extra time. After all, you need more time to get to know your vehicle. Hence, in that case, Tesla will grant you a return period of seven (7) calendar days after delivery to return your vehicle. Naturally, subject to the terms and conditions of their return policy.
And for most would-be Tesla owners that might purchase the vehicle online, they will essentially get a grace period of a whole week before making the decision on whether they like the car or not. And we aren’t familiar with a lot of car makers doing the same.
This is a powerful advantage Tesla has against their biggest rivals. And for Tesla, the company might not be at a loss in any case. After all, their vehicles are a highly coveted item. In turn, some of the returned Model 3, Model S or Model X, might find their new home rather quickly. On the other hand, this just shows us in what technologically advanced age are we living in. With a move like this by Tesla, ordering a vehicle is getting as easy as it is ordering a new mobile phone. Or a toaster. You go online, pick your specifications, change the colors and add personal items, and that’s it. You get it delivered in a certain amount of time. You don’t like it? You return it back, no questions asked. And that will make ordering a car a great and an easy to do experience.
And when Tesla decides to offer financing through their website in a similar and easy to do way, the rest of the automotive industry will be hard pressed to make some rather difficult decisions. However, for the most part, there’s nothing wrong with that.