Buyer beware. Buying a CPO Tesla feels like a SCAM.

[jsbull]

Wow, I am now enlightened after reading every word in the first 19 pages of this thread. I was upset that I put a deposit down on Saturday and on Tuesday evening, I still haven't heard from a DS. I'm super shocked to learn that my car might be out there as a loaner and I might not hear from a DS for another ~25 days?!?!? At least good photos were taken of the damage to my car, and I can live with it. Now I have to cross my fingers that there's not more wrong with it when I fly 900 miles to pick it up.

 

[cpobuyer]

Now I have to cross my fingers that there's not more wrong with it when I fly 900 miles to pick it up.

Wow, so much power in the hand of seller, even after paying this much money. This reminds me of the recent housing market in the Bay Area. I seriously hope the car is worth the pain.

 

[jsbull]

Wow, so much power in the hand of seller, even after paying this much money. This reminds me of the recent housing market in the Bay Area. I seriously hope the car is worth the pain.

I've been very upset that they were forcing me to fly down to sign in person and wouldn't let me pay to have it transported to me. This thread has shown me why. Clearly they have a lot of bad experiences with this new CPO program and having people look at it in-person at the service center and walk away is a much easier recovery than to truck it back 900 miles.

 

[PhilDavid]

I've been very upset that they were forcing me to fly down to sign in person and wouldn't let me pay to have it transported to me. This thread has shown me why. Clearly they have a lot of bad experiences with this new CPO program and having people look at it in-person at the service center and walk away is a much easier recovery than to truck it back 900 miles.

Or you know, they can hire the people who run the Kia CPO program... Kia has somehow managed to figure out how to sell CPO cars in great shape while making money and offering customers a predictable experience in buying a car in decent shape with quality standards

To the extent that have had bad experiences with the CPO program has to do with them trying to sell damaged/beat-up cars to customers, who understandably didn't want to pay these prices for a car that needs to be taken to a body shop.

One day I hope Tesla customers can have a just as pleasant experience in buying a CPO car as a Kia customer!

 

[mongo]

Or you know, they can hire the people who run the Kia CPO program... Kia has somehow managed to figure out how to sell CPO cars in great shape while making money and offering customers a predictable experience in buying a car in decent shape with quality standards

To the extent that have had bad experiences with the CPO program has to do with them trying to sell damaged/beat-up cars to customers, who understandably didn't want to pay these prices for a car that needs to be taken to a body shop.

One day I hope Tesla customers can have a just as pleasant experience in buying a CPO car as a Kia customer!

Assuming a 3 year lease turn in, Kia sold 625k cars in the US in 2015. Tesla sold 25k cars in the US that year.
So the pool of cars to pick for CPO is 25 times higher for Kia than Tesla. In other words if 4% of Kias are perfect at trade-in, Kia has as many cars available for CPO without reconditioning as Tesla built. If the same 4% of Tesla are perfect at trade in, that is only 1k cars total for CPO, 20 per week for the entire nation.

So, yeah, in the future the pool of used Teslas will expand and with it the number in perfect condition.

Kia: News - Sales Data - Sales Data - Kia Motors America Newsroom
Tesla: http://ir.tesla.com/static-files/f1acc7b1-da77-4dde-a2e7-769ca1e6b847

 

[PhilDavid]

Assuming a 3 year lease turn in, Kia sold 625k cars in the US in 2015. Tesla sold 25k cars in the US that year.
So the pool of cars to pick for CPO is 25 times higher for Kia than Tesla. In other words if 4% of Kias are perfect at trade-in, Kia has as many cars available for CPO without reconditioning as Tesla built. If the same 4% of Tesla are perfect at trade in, that is only 1k cars total for CPO, 20 per week for the entire nation.

So, yeah, in the future the pool of used Teslas will expand and with it the number in perfect condition.

Kia: News - Sales Data - Sales Data - Kia Motors America Newsroom
Tesla: http://ir.tesla.com/static-files/f1acc7b1-da77-4dde-a2e7-769ca1e6b847

You do realize that Mercedes sells fewer S Class vehicles than Tesla sells the Model S -- right? But somehow Mercedes sells CPO S Class vehicles in pristine condition so there goes your argument about how it is not possible to sell undamaged cars with the number of vehicles sold by Tesla.

4% of Teslas are in perfect condition? Where did you pull that number from? From the Tesla vehicles around where we live, I'd say 90%+ of the Tesla vehicles I regularly see in parking lots are in just about pristine shape, with the exception of curb rash that is easily fixed. Every single person I know who owns a Tesla takes exceptional care of their car.

I bet most of the trashed and damaged CPO cars we see are not the result of the original owner but when those cars were used as a part of the rental loaner fleet where they are abused.

I merely pointed to Kia to show that even one of the cheapest auto brands making the least profit per unit still has made the decision that they should treat Kia customers fairly by ensuring the cars they sell are not damaged and trashed.

Selling damaged and trashed cars at about the average median household income in the US is unique to Tesla, excuses by apologists who claim it's not possible to sell undamaged cars not withstanding.

 

[mongo]

You do realize that Mercedes sells fewer S Class vehicles than Tesla sells the Model S -- right? But somehow Mercedes sells CPO S Class vehicles in pristine condition so there goes your argument about how it is not possible to sell undamaged cars with the number of vehicles sold by Tesla.

4% of Teslas are in perfect condition? Where did you pull that number from? From the Tesla vehicles around where we live, I'd say 90%+ of the Tesla vehicles I regularly see in parking lots are in just about pristine shape, with the exception of curb rash that is easily fixed. Every single person I know who owns a Tesla takes exceptional care of their car.

I bet most of the trashed and damaged CPO cars we see are not the result of the original owner but when those cars were used as a part of the rental loaner fleet where they are abused.

I merely pointed to Kia to show that even one of the cheapest auto brands making the least profit per unit still has made the decision that they should treat Kia customers fairly by ensuring the cars they sell are not damaged and trashed.

Selling damaged and trashed cars at about the average median household income in the US is unique to Tesla, excuses by apologists who claim it's not possible to sell undamaged cars not withstanding.

I did not say it was impossible, I did point out the pool of cars is smaller for Tesla than Kia (the comparison you brought up). Tesla previously spent $$$ refurbishing trade ins, but stopped that CPO system.

Tesla is also in a different position since they are are the primary sales path for Teslas vs other brands that off load lesser quality trade ins to 3rd party dealers. So the lesser quality trade in will stay in Tesla"s inventory (and be seen by many people) until someone buys it or they fix it up.

If a person doesn't think a car is worth the price, they are free to not buy it.

 

[PhilDavid]

Wow, so much power in the hand of seller, even after paying this much money. This reminds me of the recent housing market in the Bay Area. I seriously hope the car is worth the pain.

This whole notion of power you mention is an illusion to some extent. With the CPO program, they are seeing how badly they can treat their customers and still have them buy damaged cars. Many people who have posted here has had no problem getting their deposit refunded or transferred to another car if they insisted on that because they did not want to accept a damaged car.

Especially given the "pain" you mention it is up to you to make sure they deliver to you a car that is in decent shape and don't be afraid to tell them you'd rather buy an undamaged car if they present to you a damaged car. To some extent, they will stop selling damaged cars when customers stop accepting vehicle sin such poor shape.

Rather than "hope," why not accept the car only if it is decent shape. You have more power in this transaction than you think, as you decide if you want to pay your hard earned money or not.

 

[mongo]

This whole notion of power you mention is an illusion to some extent. With the CPO program, they are seeing how badly they can treat their customers and still have them buy damaged cars. Many people who have posted here has had no problem getting their deposit refunded or transferred to another car if they insisted on that because they did not want to accept a damaged car.

Especially given the "pain" you mention it is up to you to make sure they deliver to you a car that is in decent shape and don't be afraid to tell them you'd rather buy an undamaged car if they present to you a damaged car. To some extent, they will stop selling damaged cars when customers stop accepting vehicle sin such poor shape.

Rather than "hope," why not accept the car only if it is decent shape. You have more power in this transaction than you think, as you decide if you want to pay your hard earned money or not.

I agree with most of this with the exception that Tesla no longer has a CPO program. They have used car sales with a mechanical inspection and warranty.

 

[PhilDavid]

Wow, I am now enlightened after reading every word in the first 19 pages of this thread. I was upset that I put a deposit down on Saturday and on Tuesday evening, I still haven't heard from a DS. I'm super shocked to learn that my car might be out there as a loaner and I might not hear from a DS for another ~25 days?!?!? At least good photos were taken of the damage to my car, and I can live with it. Now I have to cross my fingers that there's not more wrong with it when I fly 900 miles to pick it up.

Among all the cautionary tales some people are still getting undamaged cars so even with how bad things are currently you can still buy a decent car if you tell them in advance you are not looking for a car that has been beat up and don;t pay them and sign the paperwork until you have thoroughly inspected the car.

You have to be especially careful buying a CPO car because some vehicles are beaten up as loaner rentals.

 

[sharpgator]

This whole concept of buy without looking or test driving is amazing to me.

 

[Sundowner]

My experience buying a Tesla CPO 14 months ago was fantastic. Mindful though that you have to do your due diligence & take nothing for granted, as in any smart business deal. I got a great car with low mileage in show room condition with a new warranty. I received pictures & history of the single owner 2012 Model S P85 Signature before putting deposit down. Then it took about 6 weeks to delivery. I have not had one problem or issue with the car or Tesla.

 

[Gaspony]

I bough my car July 28th and it was in great condition and my local service center corrected the few little things that were wrong.
The only draw back is they haven’t given me license plates yet and it’s almost been four months. They’ve had to renew the dealer plates twice.
Also my loan covered the deposit so I’m due a $1000 refund on the deposit and no one can tell me where that is. So be careful and don’t give them any more money than necessary.

 

[PhilDavid]

My experience buying a Tesla CPO 14 months ago was fantastic. Mindful though that you have to do your due diligence & take nothing for granted, as in any smart business deal. I got a great car with low mileage in show room condition with a new warranty. I received pictures & history of the single owner 2012 Model S P85 Signature before putting deposit down. Then it took about 6 weeks to delivery. I have not had one problem or issue with the car or Tesla.

Since your fanatic experience, they have unfortunately eliminated most of what made your experience fantastic.

Agree about doing due diligence. Especially now with all the awful changes they've made to the CPO program.

Seems like the CPO experience somehow manages to get worse every month. Recently they stooped transferring CPO cars out of California costing some customers as much as 10% extra in taxes and now it seems the 4 year warranty is no longer offered for some cars with fewer than 50,000 miles.

 

[RDoc]

Or you know, they can hire the people who run the Kia CPO program... Kia has somehow managed to figure out how to sell CPO cars in great shape while making money and offering customers a predictable experience in buying a car in decent shape with quality standards

To the extent that have had bad experiences with the CPO program has to do with them trying to sell damaged/beat-up cars to customers, who understandably didn't want to pay these prices for a car that needs to be taken to a body shop.

One day I hope Tesla customers can have a just as pleasant experience in buying a CPO car as a Kia customer!

Well, that's all well and good, but now if you consider the price difference between a used Kia and a used Tesla model S, it makes a lot more sense.

 

[PhilDavid]

I bough my car July 28th and it was in great condition and my local service center corrected the few little things that were wrong.
The only draw back is they haven’t given me license plates yet and it’s almost been four months. They’ve had to renew the dealer plates twice.
Also my loan covered the deposit so I’m due a $1000 refund on the deposit and no one can tell me where that is. So be careful and don’t give them any more money than necessary.

Did they not give you an an itemized invoice of exactly what amount is due prior to closing the sale?

 

[Gaspony]

Did they not give you an an itemized invoice of exactly what amount is due prior to closing the sale?

The did but I initially deposited the $1000 security deposit to reserve the car and then my credit union funded the entire amount so overall we overpaid by $1000. I don’t know why my credit union paid the whole thing but by the time I had flown to pick up the car I didn’t want to wait over $1000. I figured I could just Pay it back when I got the refund.
BTw I just received my plates yesterday so my Tesla purchase is officially complete. The registration tag expires in September of 2019 though. SMH.

 

[CUBldr97]

man the program has gone down hill, I'm glad I got my CPO under the old program in 2016... "those were the days" indeed. my experience was no different than buying new, car was completely refreshed, new floor mats, new charger, air pump, etc

 

[PhilDavid]

man the program has gone down hill, I'm glad I got my CPO under the old program in 2016... "those were the days" indeed. my experience was no different than buying new, car was completely refreshed, new floor mats, new charger, air pump, etc

The real kicker is how much did those floor mats cost Tesla? Heck they could have just added all those costs to the cost of the car they sold and offer a quality product compared to the awful way they are current treating their customers.

It seems every sleazy car dealer does a better job of offering quality refurbished used cars in this price range other than Tesla.

Wish they would charge whatever it costs to make these cars presentable and then offer cars for sale that a customer can drive home happy.

 

[davidc18]

I would encourage anyone thinking of buying a used Tesla from Tesla to inspect the car first, which is the only way you will know if the car will work for you at the advertised price ( based on my experience with the new program ). The car I have now was purchased from a fellow forum member after I refused delivery on a cpo which had undisclosed damage. Best of luck to all buyers and let the buyer beware.