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Can tesla legally sell new inventory vehicles with accident report?

Discussion in 'Model S: Ordering, Production, Delivery' started by No2DinosaurFuel, Sep 29, 2016.

  1. No2DinosaurFuel

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    I know CPOs can have accident history but I was wondering if it's possible or even legal for tesla to sell new inventory service loaner vehicles with accident history. Has there been a case where an inventory vehicles in the service loaner fleet encounter an accident and tesla still sells them as new inventory after some repairs?
     
  2. Stoneymonster

    Stoneymonster Active Member

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    I'm confused, isn't an inventory loaner an oxymoron? My impression was that inventory cars were "new". A loaner cannot be sold as such.
     
  3. Az_Rael

    Az_Rael Active Member

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    Some inventory cars are used as loaners. That's how they get so many miles on them (some have over 1000). They are "new" in that they have never been titled and are still eligible for the federal tax credit.

    They are probably closer to what a regular dealer would refer to as a "demo" car.
     
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  4. Stoneymonster

    Stoneymonster Active Member

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    Ok, but are they sold as "new" cars legally beyond the federal tax credit rules?
     
  5. EinSV

    EinSV Member

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    Most of these cars are showroom models, demos, loaners and the like.

    To answer OP's question, the "new" Model S I just bought had over 8000 miles along with some rear-end damage that Tesla fixed before I picked it up.

    Edit: I see Az_Rael beat me to the first point.
     
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  6. Az_Rael

    Az_Rael Active Member

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    I guess I am not sure what the distinction would be. I think the answer is legally, yes they are sold as new, otherwise the federal tax credit wouldn't apply. I am also guessing you can get new car financing rates on inventory cars vs having to get used car financing rates.
     
  7. Stoneymonster

    Stoneymonster Active Member

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    Gotcha. Weird. My impression was inventory meant "we didn't sell this, it's waiting for an owner", not "has been sitting in a store/driven by services customers/demoed extensively". Seems misleading.
     
  8. No2DinosaurFuel

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    OK so little things like dirty upholstery or slightly scratches on the sides or rear doors I can understand. But if the car was involved in an accident, I think tesla should only keep those as service loaners or at least reveal it during the sale transaction to the purchaser.

    Did they tell you it had rear-end damage before the sale? Or you found this out on car fax or other report?
     
  9. Az_Rael

    Az_Rael Active Member

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    Yeah, I think it has to do with the fact Tesla doesn't keep lots of cars parked just waiting for people to buy them like a traditional dealer. Maybe eventually they will get to that point as they grow past being production contstrained.
     
  10. MP3Mike

    MP3Mike Active Member

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    But those are the same. They haven't sold it, and it is waiting for an owner. During that time it may have been used as a loaner or for test drives.

    I think the same happens at most auto dealers. Cars get taken out for test drives before they are sold. (Though they probably don't use them for loaners.) And yes it can be in an accident during a test drive, be repaired, and still sold as "new".
     
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  11. EinSV

    EinSV Member

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    #11 EinSV, Sep 29, 2016
    Last edited: Sep 29, 2016
    Yep, I went over quite a few inventory models with the first Tesla representative I spoke with and she pointed it out. There were other cars available that had not been damaged, but since the price was reduced significantly and I was getting a two-year lease I decided to choose the one that I did. I thought it was the best deal available at the time.

    The car was perfect when they delivered it so I am very happy with the decision.
     
  12. No2DinosaurFuel

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    Ok so they can be sold as new, but do they have to disclose to you the details of the accident? I mean if so, it probably means your car is diminished in value, but you are thinking it was a new car. I guess there can be a case where the car has been in an accident repaired and still sold as new? If so that seems a bit shady to me if they do not disclose the details of the accident. I mean when you buy a new car, you don't ask for the car fax because it's new and the record should be blank.
     
  13. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    Inventory just means "Tesla has it". What they're doing with it is up to them.
     
  14. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    Will depend on the state. Here's North Carolina:
    Disclosing Car Damage
     
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  15. MP3Mike

    MP3Mike Active Member

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    I think you have to remember that in terms of cars "new" means not previously titled. (Not still in the sealed box.)
     
  16. Stoneymonster

    Stoneymonster Active Member

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    I want to see the box :)
     
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