2016 S60 CPO’s?

[Vittitow]

Stupid question...

I see Tesla listing several 2016 S60’s in their CPO inventory. If it’s just a software update to enable the 75 kWh capacity, why are they not performing the upgrade and raising the cost of the vehicle?

 

[glide]

Because the margins will be higher when you buy the car now and pay for the software unlock down the road.

 

[cookie99]

as long as they arent priced like a 75, i would totally buy those. charge to 100% all day everyday!

 

[whitex]

Because the margins will be higher when you buy the car now and pay for the software unlock down the road.

Margin is (price-cost)/price. So assuming fixed cost, lower sale price means lower margin. $2K now has a higher value than maybe $2K some time in the future.