CPO Prices

[Gizmotoy]

I was looking at a Kia Optima, 2016 CPO with 10k miles. Unfortunately, the dealership was doing the same thing -- essentially saying they were getting new one's for cheaper then they could sell the used. Wouldn't even give me a better quote on the CPO vehicle I came to see/drive.... I think this happens pretty often nationwide, it's just not as easily noticed due to shady dealership practices. Needless to say, this was frustrating for me then and also now with Tesla (although not quite as much for some reason, probably because I realize the product is way better and worth waiting a bit for a drop if needed).

The point, though, was that while an individual dealership may do this when they have lots of unsold new inventory, it's not going to apply to every CPO Kia everywhere in the entire country. I bought a CPO from another manufacturer recently, and thought they were too expensive at the closest dealership to me and out of line with the market value. I went to the next closest, and they were thousands cheaper for the same options. That's impossible here.

 

[No2DinosaurFuel]

Good info, that is exactly my thinking. Only negative for me is I live in WA state, no state incentive and the tax on a new vehicle essentially wipes out the federal tax credit .

I thought WA waives taxes for new cars? If so, it's actually better than CA and CO rebates IMO because taxes here can be pricey.

 

[hpartsch]

I crunched the #'s and CPO just made more sense by $20-25k (38-47% increase in price). Sure I'd love a new car with the new features but the finance/accountant in me just doesn't justify it.

My CPO S85 has the following and cost me around $49k including shipping + sales tax ($53k OTD)

• Pano
• Tan Leather
• Air Suspension
• Tech Package (Includes Power Liftgate, LED Fog Lights, Lighted Door handels, Ambient lighting)
• Obeche Gloss Trim
• ~260 mile range at 100% and 234 at 90%

A new 60 that I'd order would be $80,200 (factoring referral savings) and $72,700 after tax credit + Sales tax ($78k OTD). Sure I can skip some options like the paint color, subzero, next gen seats and get it down to $75,700 (69,200 after tax credit or $73k OTD).

• Pano - must have for me though would I need a new whispbar for the newer pano setup?
• 218 mile range at 100% and no real need to charge to 90 which is sufficient for my use and history of trips I'd be OK with it

What I'd skip:

• Air Suspension (love it but wouldn't pay $2,500 for it)
• Upgraded Trim - Dark Ash seems fine
• Premium upgrade - will lose out on stuff I have now but can't justify $3k

What I'd add because I couldn't get the new car without these options ($12.5k)

• Dual Motor ($5k)
  
• Autopilot ($3k)
  
• Next Gen Seats ($2,500)
  
• Subzero ($1k)
• Blue Paint ($1k)

I'd also get:

• Parking sensors - have had them on loaners and I find them useless and annoying.
• Auto folding mirrors - do like this would enjoy having it
• Slipstream wheels - i do like them
• TPMS visible readings at the wheels - nice to have

When did you buy your CPO, your price seems reasonable? I would expect an S85 without the pano roof, air suspension, and premium upgrade to be around 45k from Tesla given your pricing. Does that sound about right? I'm curious what month you bought yours? I'd never buy one from another dealer/person unless it had the ESA, but even then the $200 deductible per visit is a turn off.

 

[hpartsch]

I thought WA waives taxes for new cars? If so, it's actually better than CA and CO rebates IMO because taxes here can be pricey.

Unfortunately not . It's about 9.5% for my location.

 

[No2DinosaurFuel]

Unfortunately not . It's about 9.5% for my location.

Yeah I see. Apparently they cap the price of the car to 35K. So i guess you are out of luck.

 

[hpartsch]

Yeah I see. Apparently they cap the price of the car to 35K. So i guess you are out of luck.

I'm not sure that cap is correct, the new optima was 23k out the door, and it had 2k in taxes included in that price.

 

[No2DinosaurFuel]

I'm not sure that cap is correct, the new optima was 23k out the door, and it had 2k in taxes included in that price.

WA still has the tax exemption for new EV. But tesla is excluded because of its price.

 

[JPUConn]

When did you buy your CPO, your price seems reasonable? I would expect an S85 without the pano roof, air suspension, and premium upgrade to be around 45k from Tesla given your pricing. Does that sound about right? I'm curious what month you bought yours? I'd never buy one from another dealer/person unless it had the ESA, but even then the $200 deductible per visit is a turn off.

Deposit early May and delivery June this year.

Best part is CPO is zero deductible and the warranty transfers from me to the next owner.

 

[hpartsch]

WA still has the tax exemption for new EV. But tesla is excluded because of its price.

Oh yeah, I see, for EV's.

WA still has the tax exemption for new EV. But tesla is excluded because of its price.

Ahh yes, I forgot about that exemption.

 

[Ardie]

Yes, I'm beginning to see the shadow of Apple's marketing strategy here:
(1) Price the products about 10% higher than what the public seems to consider the highest price they will pay.
(2) Just before introducing new models, offer sales on current models. Prices vary depending on the desire to move the product.
(3) Introduce the new model(s), making everyone want it, and make the people who bought the current stuff at a bargain feel like they just missed the boat on the-next-big-thing because they wanted to save a bit of money.
(4) Repeat.

Its hard to argue with success.

-- Ardie.

 

[hpartsch]

Yes, I'm beginning to see the shadow of Apple's marketing strategy here:
(1) Price the products about 10% higher than what the public seems to consider the highest price they will pay.
(2) Just before introducing new models, offer sales on current models. Prices vary depending on the desire to move the product.
(3) Introduce the new model(s), making everyone want it, and make the people who bought the current stuff at a bargain feel like they just missed the boat on the-next-big-thing because they wanted to save a bit of money.
(4) Repeat.

Its hard to argue with success.

-- Ardie.

I'm thinking your theory is spot on. Adding almost 400 new inventory cars in the last two days! Ardie I think you theory is spot on....

 

[Pandamoanium]

Yes, I'm beginning to see the shadow of Apple's marketing strategy here:
(1) Price the products about 10% higher than what the public seems to consider the highest price they will pay.
(2) Just before introducing new models, offer sales on current models. Prices vary depending on the desire to move the product.
(3) Introduce the new model(s), making everyone want it, and make the people who bought the current stuff at a bargain feel like they just missed the boat on the-next-big-thing because they wanted to save a bit of money.
(4) Repeat.

Its hard to argue with success.

-- Ardie.

I think this is correct for where it starts. It's also people thinking their car is still worth so much and not really considering it's a depreciating item. Even the original roadsters are way over priced. Realistically they're worth maybe 45K or so, but I was in a finance managers office buying someone's roadster for 90K, because he knew there was a sucker who would buy it staged next to the AMG GTS.

A Lot of the current Model S cars in the market for CPO is overpriced IMHO. Someone trying to sell their 2013 for only 30% off of their original purchase price is just not realistic.