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CPO depreciation before delivery

Discussion in 'Model S: Ordering, Production, Delivery' started by S.chang, Feb 8, 2017.

  1. S.chang

    S.chang New Member

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    Location:
    Brea, CA
    After debating for over half a year, my wife and I decided to pull the trigger on a 2014 Blue Metallic S85 on Dec 26, with the impression that the car would be delivered within 2-3 weeks. After repeated inquiries, we've now been told that the vehicle will be delivered next week, nearly 8 weeks later. While the delay was mildly frustrating, we've noticed that Tesla has depreciated other model S CPO's listed around the end of December by anywhere between $1500-$4000. Since Tesla essentially sets the price on preowned Tesla's, I feel like the vehicle we ordered has take a several thousand dollar hit even before we take delivery. I emailed the CPO rep about this but didn't hear back. are we just making a big fuss about something that should be expected with a CPO? Is there anything that we can do about it?
     
  2. brkaus

    brkaus Active Member

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    The other cars that are lower price will be delivered in an additional 3-8 weeks... so...
     
  3. skitch23

    skitch23 Member

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    I'm in the same boat. I ordered 12/20 and still don't have my car. I have been trying to avoid looking at the listed CPO's to avoid buyers remorse, but I definitely have some regrets. There was a private party CPO I was looking at before I found my car and while it was ~$2k more, if I would have bought that one instead I would have had it for nearly 3 months now.

    If there would have been better communication on Tesla's part in regards to the status of reconditioning/shipment, I'd feel better but this whole experience has been awful. I'm hoping they can make some adjustments to it before the 3 gets released.
     
  4. northWETwa

    northWETwa Member

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    +1
     
  5. LuPapa

    LuPapa Member

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    Houston
    Did your salesperson tell you that? Was it quoted in an email? From all the data I can find, delivery usually takes 6-8 weeks with some folks getting it sooner. I totally agree that buying a depreciating asset and then waiting 8 weeks to get it is a tough pill to swallow. Would you have preferred to be able to place a deposit, wait for reconditioning, pay up front for the transfer, then when you see it, they update the price to the current CPO market value? Wish we could do that, that was fix your concern about the 2 months delay and handle the loss in the value during that time period.
     
  6. S.chang

    S.chang New Member

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    Brea, CA
    The rep said 5-6 weeks, which in my excitement I took to mean 2-3 weeks. I wouldn't mind the delivery time so much if the price were somehow adjusted to the current CPO value that Tesla itself sets for other vehicles. Don't get me wrong, it's still a phenomenal deal on an exceptional vehicle given that I avoid the bulk of depreciation on a new vehicle, but it just seems patently unjust to stick CPO buyers with the depreciation when Tesla still owns the vehicle.
     
  7. TexLaw

    TexLaw Member

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    I'm trying to understand this. Are you upset because they didn't hold prices after you committed (something that would happen in anyway) or that they didn't deliver according to your imagined expectations?

    If you haven't paid, then call and negotiate.
     
  8. S.chang

    S.chang New Member

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    It's more that Tesla depreciated the CPOs between 3-8% over a 6 week period. I wanted to see if anyone had any luck renegotiating.
     
  9. Gizmotoy

    Gizmotoy Active Member

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    For your own sanity when dealing with Tesla in the future, it's wise to add weeks to whenever they tell you Thing X will be available, not subtract them. ;)

    Tesla's pretty much in a constant state of lowering the price of the CPOs, though. They've set the system up to work like that. If you haven't paid or signed the final paperwork, it's probably fair to call them up and see if they'll do anything about it given the car is late, telling them what you observed and that you're disappointed about it, but I wouldn't be terribly surprised if they won't budge.
     
  10. Az_Rael

    Az_Rael Supporting Member

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    Many CPOs are in the loaner fleet constantly gaining miles. Tesla updates prices to reflect the new higher miles on some schedule known only to them.

    You are on the hook with your car for the $1000 plus any shipping costs. If you find a equivalent CPO for a lot less than you paid, it might be worth switching cars (assuming your shipping was on the lower end and not $2k). If you truly find one that is $4k cheaper, it might be worth doing.

    Of course that restarts your delivery clock, but it might be worth it to save some money (and it might work as leverage to adjust the price on your current car).


    My car took 8 weeks as well and I watched the site like a hawk, but no lower priced cars ever showed up that met my requirements. Even today three months after delivery, no cheaper car has shown up. A few at the same price, but nothing less. (I had pretty narrow requirements)
     
  11. alloverx

    alloverx Member

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    Might pay to mention it when you pick it up and see if they can give you something as a token of thanks/understanding.
     
  12. SHAWNSUNNYVALE

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    Sunnyvale Caiifornia
    i pulled the trigger on my CPO on 1/8 after lurking for several months and talking to the cPO rep about what i was looking for. (ap1) Once the right car came up, i jump on it. I was told 6 to 8 weeks, I am now told it will be early March. Told that the inspection was gonig good. My question, and maybe it been answer on this forum before (and I can't find the answer) why does it take 8 weeks for the CPO? Once you put the deposit on they take the car away as a loaner? Do they only work on the car for 1 day or so? I know you can't hurry up the process .
    thanks!
     
  13. Az_Rael

    Az_Rael Supporting Member

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    The first CPO I ordered was out with a customer as a loaner when I put the deposit down. So I had to wait until the customer could return the car (~1 week) before they could even start on it. Then they found damage they werent aware of so I had to switch cars. Car #2 was shipped fairly quickly to my location (~2 weeks), but then I got stuck in the backlog at my local service center. Compound that with having to send the car to vendors for a wheel repair and a frunk dent repair, and it all adds up.

    Most regular car dealers don't put the car up for sale until all the above has already been done. Tesla works opposite so that's why it takes so long and sometimes involves unpleasant surprises.
     
  14. GQbed

    GQbed Member

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    Did you buy through the site or did your rep find the car for you? I fear they tightly control what shows up on the site as it sets the benchmark for other cars to be sold, i.e. They intentionally prove them high on the site and don't plan to sell them so that the unlisted cars looks like better deals and the third party market stays higher.
     
  15. Az_Rael

    Az_Rael Supporting Member

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    I contacted an advisor because I wanted to see if there was any hidden inventory. The first car I bought was not listed, but the 2nd car I ended up with was on the public site.
     
  16. GQbed

    GQbed Member

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    Thanks!!!! Might be time for me to contact an advisor if I want to buy in June
     
  17. mkjayakumar

    mkjayakumar Active Member

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    This is precisely the reason why it takes this long. These cars sell sight unseen, whereas in a regular ICE dealer you typically walk up to a car which is already prepped up and pick it up
     

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