CPO deposit price now jumped up from £1000 to £4000.

[nexsuperne101]

Not that it is a problem, but does that mean that we get a better deal on finance if we are now putting down 8-10% of what a P85 now costs?

It's only been the last 2 days, as I was going to transfer the £1000 from my M3 reservation to the P85, but was waiting until today for a test drive to see if the MS is the behemoth they say it is.

Now I can't get my money down fast enough, but I don't want to pay out £4000 if I can't get finance (not likely, but you never know!).

So, in the UK, do we now get better deals for more up front?

TIA

 

[hmmm]

Well, technically this is a down payment so all else being equal, you would need to borrow less and this may get you a lower rate if this is one variable taken into account (in addition to loan duration). I am not on your side of the pond though, so worth checking with Tesla directly before putting money down.

I wonder if they started doing that to reduce the number of "trigger happy" people putting one grand down only to back out? Either that or they like cash and would rather collect as much up front as they can?. Or both.

And yes, it's a behemoth, both from a size and fun level perspective!

 

[whitex]

At delivery is really the first time the customer sees the car or is even able to confirm what options the car has or doesn't have. I suspect that there was a percentage of CPO purchasers who took a look at the car and declined to take delivery because of missing features they thought they were getting (I thought it had the "+" suspension, I thought it came with heated steering wheel, etc), or condition of the car (there is a smell in the car, it is very loud, the doors don't close right, there is a scratch on the fender, etc). The problem is that CPO's are not perfect and never will be, but sometimes people expect a 100% new condition car (often because it cost more than a lot of new cars). Reconditioning + transport is likely costing them more than £1000, so maybe the bump in non-refundable deposit is to cover and/or discourage such rejections at delivery.

 

[nexsuperne101]

The car I am looking at is only 50 miles from where I live, so I can go and look at it first.

 

[Tesmotorfaqcom]

I think maybe with the M3 launch they want to make sure people don't back out

 

[KL670]

I'm picking up P85 12 hours from now =)
In all fairness Tesla puts a lot of effort into reconditioning the CPO cars before delivery (maybe I should say this after I take delivery) and that's cost and resource. Especially with the recent flood of CPO's, the prices often beat private party sellers.
In answering the OP's question, I think it is true that it's a bigger risk at 4000£. For example, about 6 months ago, I used a credit card I normally don't touch for a purchase because it offered some discount. It had old mailing address and I hadn't even set up paperless billing on the card. Long story short I totally forgot about it for about 2 months and my credit went from 810 to 720. I know 720 is decemt but things like that could certainly be a surprise when looking for financing.

 

[nexsuperne101]

My credit score could be the problem. I have just paid the final bit of hp off my Nissan Leaf, which was in month 23 of 48. My score is 932 out of 999 on Experian, 433 out of 700 with Equifax and 560 out of 710 with call/Noddle. Equifax is 6 weeks behind, as it isn't showing the hp with the final £2600 cleared yet. I am also about to drop over 50% off my £11K Barclaycard balance, so a high limit with under 50% use should really boost the numbers and help with a low APR.

Have you got any recommendations for a UK finance house with a 6% (or less) APR for borrowing £39K against a £43K car? I will knock £7K off in a couple of weeks after getting the P85, as I will sell the Leaf then, but need transport for work.

Thanks

 

[jankratochvil]

I haven't put down a CPO deposit yet. But I read somewhere if it turns out you do not like the ordered CPO car after visiting its service center you could use the deposit for any other CPO car?

 

[Ross_K]

Now I can't get my money down fast enough, but I don't want to pay out £4000 if I can't get finance (not likely, but you never know!).

When I ordered a custom MS on the UK site with PCP, there was a link to apply for Tesla financing (via Black Horse) as part of the order process. I didn't think about it and just followed the link and completed the form. There was nothing on the site saying the quote/approval/etc was valid for only 30 days etc. The finance was approved and the order placed. Can you not do the same on CPO?

 

[KL670]

I haven't put down a CPO deposit yet. But I read somewhere if it turns out you do not like the ordered CPO car after visiting its service center you could use the deposit for any other CPO car?

You have up to 72 hours to change your order to another CPO without incurring additional charges. After that, they could technically take your deposit. That's the case in the US.

 

[nexsuperne101]

A quick update on this. I had a phonecall from a lovely lady called Maria at Tesla. She tried to upsell me from the 2014 P85 I can afford to the S75D, which is on the new inventory list for about £30K more than I should really spend. Anyway, I had a look, and it is nice and new, but it isn't as fast, or can go as far as the P85. Yes it has the autopilot etc, but I like to drive. So I went back and said thanks, but I really want the P85. So, she has very kindly got the guys her end sorting out finance for me next week. I did suggest my own finance, but TBH, I don't know where to start, and as most of the Tesla guys on here seem to be stateside, not many recommendations are coming through. Hopefully, with a bit of help (and a lot of luck!) I will be pulling the trigger on a P85 CPO by next Friday Really can't wait to get my own Tesla and get rid of the 80 mile per charge Nissan Leaf.

What really pushed this forward was when one of my clients phoned to say that they had lost phase 1 on the incoming mains, due to the air con running flat out and popping the fuse. I had a Leaf, with only 16 miles of charge left, the job was 45 miles away, the nearest rapid was 22 miles away, so I just couldn't get there quickly. If I had already had the Tesla, I would have only done 70 miles that day, and would have had at least 150 more miles to go anywhere at the drop of a hat. My mate suggested buying a petrol vehicle - I have since disowned him!

I maybe in luck. If Tesla still use BlackHorse for their Finance, then they use Experian for the credit score, which I have 932 out of 999, so should get a good rate. I know that 5.9% was mentioned by the sales staff earlier.

 

[Ross_K]

I maybe in luck. If Tesla still use BlackHorse for their Finance, then they use Experian for the credit score, which I have 932 out of 999, so should get a good rate. I know that 5.9% was mentioned by the sales staff earlier.

Yup, Tesla use Black Horse in the UK and Black Horse credit check via Experian. They normally come back with a decision to Tesla within about 4 hours (during 9-5'ish hours 7 days a week). Certainly if you're buying new, the rate with Black Horse is an amazing 1.49%, not sure on CPO, but would be interested to know once you find out!

 

[nexsuperne101]

I know that the 1.49% deal on the new inventory stock is due to end in 6 days, and then it will return to 5.9%. Even at 5.9% I will be quite happy, as I won't be in a Leaf anymore.

 

[AnxietyRanger]

At delivery is really the first time the customer sees the car or is even able to confirm what options the car has or doesn't have. I suspect that there was a percentage of CPO purchasers who took a look at the car and declined to take delivery because of missing features they thought they were getting (I thought it had the "+" suspension, I thought it came with heated steering wheel, etc), or condition of the car (there is a smell in the car, it is very loud, the doors don't close right, there is a scratch on the fender, etc). The problem is that CPO's are not perfect and never will be, but sometimes people expect a 100% new condition car (often because it cost more than a lot of new cars). Reconditioning + transport is likely costing them more than £1000, so maybe the bump in non-refundable deposit is to cover and/or discourage such rejections at delivery.

This points to an inherent issue with the CPO system itself.

Normally used cars are something you get actual photos of, and you can go see in person if you are nearby the sales location.

Tesla's attempt to treat used cars as if they were sort of new cars (to the point that they'd strip cars of Xpel and whatnot), is to blame for this.

I mean, actual photos alone would go a long way (e.g. give a sense of leather being worn out etc.).

 

[whitex]

This points to an inherent issue with the CPO system itself.

Normally used cars are something you get actual photos of, and you can go see in person if you are nearby the sales location.

Tesla's attempt to treat used cars as if they were sort of new cars (to the point that they'd strip cars of Xpel and whatnot), is to blame for this.

I mean, actual photos alone would go a long way (e.g. give a sense of leather being worn out etc.).

They would need to recondition the car before taking photos. They are cash strapped at the moment preparing for the Model 3 launch (hence they just increased their line of credit by $800M) so investing in reconditioning CPO's just adds to the liquidity strain. By getting the customer to pre-pay for the conditioning, there is a few extra millions they don't have to borrow.

 

[AnxietyRanger]

They would need to recondition the car before taking photos. They are cash strapped at the moment (hence they just increased their line of credit by $800M) so investing in reconditioning CPO's just adds to the liquidity strain. By getting the customer to pre-pay for the conditioning, there is a few extra millions they don't have to borrow.

Be that as it may, they have chosen an unconventional method of managing used car logistics and clearly it has some downsides. They could just clean up the cars, take photos and have them at a location where people can come and see, like the rest of the industry does. Instead they strip the cars of anything non-factory (and sometimes even factory if it is no longer a factory option), wait for an order, put the cars through a rather inefficient and not very effective refurbishment process (possible raising expectations unrealistically too), and only then actually show the car to the buyer.

I mean, in cold climate areas Tesla even gives back the winter tires for the car, they don't want them, because they don't fit in their CPO process. To me this is completely unheard of, not selling a used car with both sets of tires. Why would they make the used car buyer make that investment again. Same with Xpel, they take it off and actually lower their valuation because of that work. Factory-option extra charging cables are also not accepted, because they are no longer a factory option... So an expensive cable is thrown away.

They are throwing away selling points, upsides of individual used cars (that Xpel, second set of tires and charging cables could be a great addition to move a particular car), and generally making things harder for everyone involved in the process. And the buyer can only see the car after deposit and a long order process, instead of seeing what is actually on sale (photos, sales locations to visit etc.).

 

[whitex]

Be that as it may, they have chosen an unconventional method of managing used car logistics and clearly it has some downsides. They could just clean up the cars, take photos and have them at a location where people can come and see, like the rest of the industry does.

Agreed that they could, but that requires an outlay of cash and maybe they don't want to do that at this time to not spread their cash too thin. I agree with you it would be a better experience for the customers.

Instead they strip the cars of anything non-factory (and sometimes even factory if it is no longer a factory option), wait for an order, put the cars through a rather inefficient and not very effective refurbishment process (possible raising expectations unrealistically too), and only then actually show the car to the buyer.

I mean, in cold climate areas Tesla even gives back the winter tires for the car, they don't want them, because they don't fit in their CPO process. To me this is completely unheard of, not selling a used car with both sets of tires.

It is not at all unheard of. Any manufacturer when selling a Cerified Pre-Owned strips everything to bring the car back as close to factory condition as they can. To check out CPO Lexus for example, no tint or any aftermarket parts. I've traded higher end cars before, and everybody except for used-car lots which sell the cars "as is" and don't offer any certification, strip all the non-factory options. Why? Because it makes business sense. They neither want to warranty the aftermarket part, or even support it (learn how to use and maintain it). Both require investment in learning about the product, how to fix it (they have to fix it if it breaks if they charged even $1 for that), training their sales stuff so when customer asks "how to I maintain my SuperDuperBrand coating?", they don't have to go research WTF that is and what is good for it and what is not. Say I buy a CPO and come back saying the built in Stinger Radar that came with it is not working anymore, do you think Tesla techs know how to fix it? It costs upwards of $10K to get one installed in your car btw, so in a private sale I could get some value out of it, but as a Tesla CPO it's actually a counter value as it will take time to rip so that if an antenna in the bumper gets loose and starts rattling, Tesla won't be wondering "what's that noise coming from the bumper" and then have to go fix it.

 

[AnxietyRanger]

@whitex CPO programs are location dependent, of course, but Tesla's is an extreme one IMO. Perhaps it is more common in the U.S. To my eyes it seems pretty bureucratic and silly, without corresponding upside especially as a customer.

As said, Tesla strips more than just third-party stuff. They strip even Tesla-sourced winter tires, Tesla-sourced charge cables etc. They don't just take it to used Tesla level, they compare it to factory Tesla level, probably so that the car would fit a database (though not as a quality goal, but features-wise).

Not to mention providing no photos. Many other CPO programs certainly provide photos and a chance to preview the car on-location. Tesla does not.