I Sold a 2022 Tesla Model 3 With a Clean Title, Now Tesla Says It’s Salvage and It’ll Easily Go Over $12,000 For My Customer to Fix It

James purchased a 2022 Tesla Model 3 from a dealer. The dealer made sure the car had a clean title. However, Tesla now says it's a salvage vehicle because of an unreported accident, and repairs will cost $12,000. Here is what Tesla buyers need to know. 

Here is a warning for used Tesla buyers. 

Picture this: you've just bought a 2022 Tesla Model 3 with a clean title from a dealer. But now, you're hit with the news that it's a salvage title, and it will set you back over $12,000 to fix the battery and structural damage before Tesla will issue a clean title. 

That happened to James, who recently purchased a previously owned Tesla Model 3.   

Alex (@evautoalex), an EV dealer, did his due diligence and ensured the Tesla he sold to James had a clean title. He checked the Carfax, and there were no reported accidents. He says the Model 3 has a clean title on his TikTok clip. 

He says, 

"We sold a customer a Tesla, but when he took it to Tesla for a simple battery fix, they told him it was marked as salvage. Even though the title is clean, Tesla wouldn't share details, wouldn't restore supercharging, and wanted a crazy amount of money to fix it."

Tesla says it will cost James over $12,000 because the Model 3 has been flagged in Tesla's system as a salvage vehicle. There was an unreported severe accident, and now there is so much damage to the car that must be fixed before they release a clean title. 

Here is James's unbelievable story. 

Alex says, "So we have a customer who bought a Tesla Model 3 from us, and shortly after he bought it, the 12 Volt battery has a warning that it needed to be replaced, which is super common and not expensive. So, of course, we said yes, it's no problem. We will reimburse you for that." 

He tells James, "Just set up a service appointment with Tesla, and they'll fix it, and we will Venmo you the money. So, he took the car into Tesla, and when he got there, they checked it in, and they told him, 'This is a salvage title.'" The frustration and disbelief in his voice were evident.

Alex calls Tesla Corporate to figure out why this Model 3 has a salvage title. 

Here is the conversation,

"Hi, my name is Kate, and I'm a Tesla Advisor." 

Alex gives her the Tesla Model 3's vehicle information and VIN and asks her what's going on with it.

Kate says, "My technician tells me there is structural damage to the car and that it has alerts for the high-voltage battery, which needs replacing. So, Tesla's practice is the car is now a salvage title vehicle. Supercharging gets automatically turned off." 

The Tesla Model 3 Was in an Unreported Accident

"It gets reported to the system if the car got hit hard enough. Someone might not have reported this accident and probably had it fixed at a non-Tesla shop, paid out of pocket, and then auctioned it off.”

"However, since these cars are computers, Tesla was alerted that it was in an accident and a severe one. Now, we have to run tests on it, and if it doesn't pass, we can sometimes recommend things to fix it so it will pass." 

"Other times, it just won't pass, and then once it does, you'll have to pay for that test if you want supercharging turned back on. So, the total for both of those inspections comes to a little more than $1,600, and that's just the start with the car because there's a lot of other things that need to be replaced."

"So, it's going to go over $12,000 easily." 

Alex says, "But I have the physical title, and it's clean. Also, if it were in a severe accident, there would be a police report and an accident report on the Carfax. So, can you give me the date of what your system says it was in an accident?"

Kate says, "No, that is internal knowledge, and we cannot release that information. We just see that there is structural damage to the car." 

Alex states, "Structural damage isn't the same as a salvage title. A salvage title is very different potentially than structural damage." 

The Tesla Model 3 Is Marked Salvage

Kate says, "It's now flagged in the Tesla system as salvage, and I can't release any further information other than what I just released to you." 

Alex goes on to say that he has a physical title that shows it's a clean title. 

Kate says, "That doesn't make it a clean title to Tesla's standards because of the damage to the car. I cannot share times, dates, or alerts because that is internal Tesla information." 

Tesla says he now has to go to Tesla Legal 

"You are welcome to go to Tesla Legal and request the information about that Model 3's VIN. We cannot release any further information about the vehicle from now on." 

Alex says, "So the warning light on the 12-volt battery, you say there's a high voltage alert now?" 

"I would love it if it was a total battery because that's a twenty-minute job on a Tesla. It would make James' day, but I would have to take away his battery warranty, driving warranty, and all that stuff," Kate says. 

Alex says, "Well, you don't get to take stuff away randomly. That's not right."

"Tesla can. Tesla can take those warranties away if the vehicle is salvaged, and it is." 

"No, It's not. I have proof," Alex responds. 

"I'm no longer going to continue this discussion, sir. You're welcome to go to Tesla Legal from this point," she concludes and hangs up.  

What Can Tesla Buyers Do To Protect Themselves?

If you've purchased a used Tesla and later discover it has a salvage title, your first step is to verify the title's status with your state's DMV and then contact the seller to demand a refund or compensation. You may need to consider legal options if the seller fails to cooperate. 

Here's a more detailed breakdown of steps you can take:

1. Verify the Salvage Title:

• Check with your state's DMV: Obtain the vehicle's title and verify if it has been branded as "salvage" or "rebuilt".

2. Contact the Seller:

• Demand a Refund or Compensation: Inform the seller of the salvage title and demand a full refund or a significant reduction in the purchase price.
• Document Everything: Keep copies of all communications, including emails, letters, and phone call summaries.
• Negotiate: Be prepared to negotiate a fair settlement, but stand firm on your position. 

 3. Consider Legal Options:

• Consult with an Attorney: If the seller is unwilling to cooperate or if you are unable to reach a satisfactory agreement, seek legal counsel.
• File a Lawsuit: Depending on your state's circumstances and laws, you may have grounds to file a lawsuit against the seller for breach of contract or fraud.
• Small Claims Court: Consider filing a claim in small claims court, which can be a cheaper and faster option for resolving disputes. 

 4. Tesla's Role:

• Tesla's Warranty: Tesla's Used and Extended Used Vehicle Limited Warranty might offer some protection, but it's unlikely to cover issues arising from a salvage title. 
• Tesla's Policy: Tesla might not be directly liable for the actions of third-party sellers, but they may be willing to assist in resolving the issue if the vehicle was sold through their Certified Pre-Owned program. 
• Tesla's Re-owned Vehicles: Tesla Motors Club suggests that Tesla might strip free supercharging or FSD if they re-owned the car and it was ever salvaged. 

Conclusion.

James thought he was buying a good Tesla Model 3; the dealer did everything right, and still, Tesla salvaged this vehicle. Someone with an unreported accident sold it, likely to a dealer, who had the car fixed and paid cash for the repairs. They sold the car at auction with a clean title. 

When the car was taken into Tesla, they flagged it as a salvage vehicle because the technician found multiple battery and structural issues. Tesla can legally strip the car of its warranty until the vehicle is fixed to its satisfaction. 

It's Your Turn

Have you purchased a Tesla vehicle and later found it had a salvage title? If so, click the red Add New Comment link below and let us know.

Check out my Tesla Model 3 story: The Cops Keep Asking Me If They Can Use My Tesla Model 3’s Sentry Mode, No One Told Me I’d Be Working Part Time For The Police Department

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Alex