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A number of people have traded in their Tesla Model S for a Tesla Model S loaner EV.

Discussion in 'Model S: Ordering, Production, Delivery' started by Benz, Jul 19, 2013.

  1. Benz

    Benz Active Member

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    A number of people have traded in their Tesla Model S for a Tesla Model S loaner EV.

    That means that Tesla Motors must have a number of used Tesla Model S EV's in stock.

    When will Tesla Motors start selling these used Tesla Model S EV's?

    How will they sell these used Tesla Model S EV's?

    People who cannot afford to buy a new Tesla Model S, would want to buy a used Tesla Model S EV, as the price will be lower.

    Anyone who knows something about this?
     
  2. deonb

    deonb Active Member

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    Where are you seeing this?

    I am not aware of anybody who did it. The trade-in value hit is so significant that you can do MUCH better just selling the car yourself.
     
  3. Benz

    Benz Active Member

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    It appears that the new Tesla Model S EV's are gone within a few days when they arrive at the Service Centers. What does that mean?
     
  4. rlang59

    rlang59 Member

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    It means that they are being bought by people that do not want to wait to order a car.
     
  5. deonb

    deonb Active Member

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    Showrooms selling them to new buyers.
     
  6. dirkhh

    dirkhh Middle-aged Member

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    Correct. I'm one of those new buyers. I asked about the wait until I could get "my" car. The store manager asked me what features I was looking for. And pointed out that the floor model was exactly the car I wanted and that I could have it within a week. So I bought that :)
     
  7. robballan

    robballan Member

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    Benz: I have no particular knowledge of the claims in your post, but they strike me as strange.

    Loaners are by definition cars that have been used, if only slightly. Why would anyone trade in a car they bought new, get less money back because it is used, and then buy a slightly used loaner of the same model?

    I would be more inclined to believe that people are selling their new Model S's and _leasing_ another one from Tesla.
     
  8. GlennAlanBerry

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    I think a lot of the loaners are being sold to new buyers who don't want to wait for the normal order and delivery process. I know that at least the Park Meadows showroom has also been selling their showroom floor-model to people for the same reason. As a Tesla stockholder, I am fine with that. The more sales the better! As a Model S owner, I can also see the complaint about the Service Center not having any loaners available. Build more cars, the more the better!

    Elon stated that one of the purposes of having "fully loaded" P85 loaner cars was that you might like the nearly new loaner better than your original Model S, so you could buy the loaner and they would take your original as a trade (although that would be an expensive trade-up). Surely at least a few people have done that. So, the OP's original question remains. What is Tesla doing with those trade-ins, and how much do they cost?
     
  9. Benz

    Benz Active Member

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    When the loaner cars were unveiled, the intention was that people could trade their own Tesla Model S in, and buy the loaner car, right?
    Nobody mentioned then that these loaners could be bought by new customers, and by doing so they could avoid the waiting line.

    Anyway, it's good that this results in more Tesla Model S EV's on the roads. As every EV is one less ICE, right?
     
  10. Bardlebee

    Bardlebee Member

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    I would imagine Tesla would like to get quite a few vehicles for sale as certified pre-owned before opening up that can of worms. Perhaps get about 25-50 vehicles. There are plenty of people like myself that are waiting for the right time to buy a new vehicle like the Tesla, but would be enticed by a price decrease from something lightly pre-owned.
     
  11. Plug Me In

    Plug Me In Member

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    A recent Ranger visit from the Raleigh service center and he told me the loaners were getting snapped up pretty quickly. There is no showroom in NC so these would be current owner upgrades. I presume the trade ins are being used as demo vehicles and maybe those are what the new buyers are getting? Just a guess as I didn't press for details.
     
  12. ToddRLockwood

    ToddRLockwood Active Member

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    Yes, but I believe they use the same formula to put a value on the loaner car.
     
  13. rlang59

    rlang59 Member

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    Not necessarily. There was a person on the boards here that lives in VA but was buying one of the NYC showroom cars.
     
  14. Doug_G

    Doug_G Lead Moderator

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    Sure, they need to sell cars... but the bottom line: they get kudos for their wonderful P85 rental program and then they don't execute it.

    Instead of getting a nice new P85 we'll continue to get Enterprise crap cars and a few customers get to hop the queue. (And the rentals can be terrifying.)

    Luckily for me I rarely visit the service center, and usually get Ranger service.
     
  15. RDoc

    RDoc S85D

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    From the accounts of people who've driven the new loaners while their earlier S's were in the shop, it sounds like the new cars are significantly more refined than the early ones. That certainly isn't surprising, but I'd think that unless Tesla can rebuild the used cars to match the latest ones, a fairly significant price cut would be in order for the older ones.

    This is actually an interesting problem with car companies that make running changes. Rather than model years (or "half years") being the criteria for selecting a used car, perhaps there will be ranges of VIN's with specific features.
     
  16. Benz

    Benz Active Member

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    At some point Tesla Motors will be selling both new and used Tesla Model S EV's, that's for sure. Dealers do the same. It's business, right?
     
  17. NJ Plugin

    NJ Plugin Member

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    I could be wrong, but I believe those buying one of the traded in used Teslas would not be eligible for the $7,500 federal tax credit. Where as buying a "loaner" car could because it has not been titled yet.
     
  18. brianman

    brianman Burrito Founder

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    Correct. This was an apparent change in policy or an undisclosed aspect of the original policy. There has been some discussion (and angst) about the prioritization of new buyers over the availability of loaners to existing owners.
     
  19. JPP

    JPP Active Member

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    The downside to this is that service loaners are in chronically short supply. I was down @ Fremont Tuesday and got their one and only loaner (P85 'full spec') as their 2nd one got sold/shipped off the day before. The service manager has to continually handle unhappy owners who are unable to get a Model S loaner because they are being sold as fast as they can be produced.
     
  20. lolachampcar

    lolachampcar Active Member

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    #20 lolachampcar, Jul 19, 2013
    Last edited: Jul 20, 2013
    First, Tesla is selling the loaners in a back door way to act as a stocking dealer. Some people just do not want to wait. New loaners are untitled and thus get the $7500 credit.

    Trade ins are valued at full invoice (not including local taxes) minus 17% minus 1% per month (and for some) minus $1 per mile. Yes, some people have gotten say a P85+ loaner while their P85 was being serviced and decided to stroke a check and keep the loaner. I've also heard of another 60 owner that got a P85 loaner and kept it so, yes, Tesla has access to generating CPO (Certified Pre-Owned) cars. I have no idea if they have finalized the CPO program sufficiently to move those cars. When they do, the $7500 rebate will be accounted for in a price discount.

    I did as another poster suggested and simply sold mine retail. The only consideration with this in a state like Florida is that we get a sales tax credit for the value of a trade in. A secondary market sale does not go through Tesla thus you do not get the sales tax credit. In the case of Florida, you must clear at least 6% more with a retail sale than Tesla is offering.
     

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