Did you buy a used Tesla Model S?

[shrink]

I bought two used Teslas - a CPO Roadster in 8/2013 and a used MS85 in 6/2014 - each for around $72-$73K. Took a low interest loan (1.74%) for the former and paid cash for the latter. I really liked buying the MS used from a private party since I didn't have to pay any sales tax. That saved several thousand right there. Registration was also very low on both cars - $125 for 5 years with car pool lane benefits. However, these are Arizona-specific quirks with used cars and EV's from which not all buyers will benefit.

Buying used was simply the only way I could afford both cars. I have zero regrets. Both cars are still under warranty and my wife and I are enjoying both. I'm actually very hesitant to buy new. I don't mind letting someone else take the depreciation and I don't have to wait around for a tax credit. Tesla owners also tend to baby these cars so - at least in our case - the conditions of both cars were excellent.

I'm considering buying an MS60 used (need to save up a bit more cash first) and using it as a daily driver and babying my precious Roadster. Buying used is far more affordable. You just have to be flexible with your options and you do take a bit of a chance with the condition of the car, but I think that chance is well worth the risk overall.

 

[robby]

I don't own a Tesla yet, but I plan to have one by late next year and I think I'm the prime demographic for this question. I've never owned a car that costs more than $20k new. I live in the Northeast and need 4WD. Cars have always been purely utilitarian for me. If Tesla doesn't exist, I buy a Subaru for my next car, no question.

But I want to get off gas for personal and ethical reasons, and Tesla is the only path to that destination. I can afford a new Tesla, but it would require a great deal of sacrifice. If I can save five figures by going used, it's a no-brainer. I have a Model X reservation because the X is more utilitarian to me than the S, but if I can find a good deal on an S85D when the X comes out, I expect I'll take the S.

 

[hughconn]

I'm having a hard time getting my head around this thread...

Is there something "wrong" with buying a used Tesla? With buying any used car for $70K? Is the implication that people who buy used Teslas are somehow "second class citizens" compared to those who buy new?

Nothing wrong with buying anything at a discount to new. I am researching the demand for used cars that cost $70K, about twice the average household income. Question is who are the people who will spend $70K on a "used" car? How will they use this car, etc.

 

[tga]

Nothing wrong with buying anything at a discount to new. I am researching the demand for used cars that cost $70K, about twice the average household income. Question is who are the people who will spend $70K on a "used" car? How will they use this car, etc.

I still don't understand the point. You haven't stated your hypothesis, and maybe I'm misinterpreting, but you seem to be implying that the people with the financial wherewithal to buy a $70k car wouldn't be caught dead in a used car. If that's true, I think you're way off base.

I don't think the demographics of new versus used buyers will be all that different. Sure, there are a few buyers (a very few) who could buy a new P85D each month without making a dent in their household budgets. Those buyers probably will always buy new and not care about depreciation (a Porsche salesman once told me "I have customers who change cars the way you and I change shoes").

 

[gdavison]

UK Owner here .. I have a D on order, which will hit our shores in July 2015 (or more probably a few months later), however I was wanting to get into a S .. looked at the UK second hand market and there are like 3 cars .. However then found out Tesla UK are rotating their fleet, I was able to grab a 85P Fully spec'd (From Invoice - Sound studio Pack, Twin Chargers, Pearl White, Cold Weather pack, Lighting pack, Perf Plus Package, Black Leather, Panoramic roof, Security Pack, Air Suspension, Tech Pack, 21 " Grey rims, 4 yr Maintenance pack (incl Unlimited ranger), Serviced and valet'd before pick up).. 4 months old, 4 K miles on clock for a chunk of change off list price .. Very happy bunny

 

[Mnlevin]

I was an early adopter, ordering my MS 60 in Aug 2011. I got the car in May 2013 and have loved it. Sharing it with my wife we put 38k miles in about 18 months on the car. I was looking for a used one for a friend and found a great deal on a P85. I would have bought a striped down 85 with only a Pano roof, but that person wanted over 66k for the car. The P85 was being sold by a guy ordering a P85D and taking about a $60k hit. I was thinking I am getting the equivalent of a $120k car, with only about 16k miles and 1 year of use for a $45K discount. That was a car I would never had ordered, but it looked to me like a real value. I don't care about the new tech stuff and yet love the car. Now both my wife and I have great cars. Don't worry about the warranty or the car as I have a lot of trust in the car after owning one for over 1 1/2 years. Happy

 

[Maaz]

i plan on buying a used from a private party eventually, wouldn't consider buying new because of taxes, and the fact that i wouldn't be able to utilize the federal tax credit.

 

[hughconn]

I still don't understand the point. You haven't stated your hypothesis, and maybe I'm misinterpreting, but you seem to be implying that the people with the financial wherewithal to buy a $70k car wouldn't be caught dead in a used car. If that's true, I think you're way off base.

Not at all. Hypothesis is simple. Who buys a used car for $70,000? Probably not many Americans. Most (<1%) would pay $70K for a new car because they do not have the wealth. Therefore target market for used Tesla is rich Americans who are savvy enough to trust Tesla brand and not want to pay the full price of a new car. As a result, population of buyers is extremely small, like maybe 1,000 people who are smart enough, rich enough and motivated enough to buy a used Tesla. That's the demand. Supply side is maybe 3,000 vehicles a year, so I see a short term imbalance.

 

[30seconds]

Not at all. Hypothesis is simple. Who buys a used car for $70,000? Probably not many Americans. Most (<1%) would pay $70K for a new car because they do not have the wealth. Therefore target market for used Tesla is rich Americans who are savvy enough to trust Tesla brand and not want to pay the full price of a new car. As a result, population of buyers is extremely small, like maybe 1,000 people who are smart enough, rich enough and motivated enough to buy a used Tesla. That's the demand. Supply side is maybe 3,000 vehicles a year, so I see a short term imbalance.

interesting guesstimate for a country of 300million with a large, established, high-end used car market. You may want to take a quick cruise on eBay for used cars at the $70,000 price point for some reference

 

[David_Cary]

Right but the point is still that there are no where near 3 million potential buyers on the used high end market (say 1% of population).

The new lease prices are a big hit to used prices in my opinion. I was looking at used but now with better lease prices, I am better off leasing through my company. The majority of people who have the money to drop $70k on a car are owners/partners in a business. Certainly not all but most. That is why most higher end cars are leased. This crushes the used market to some extent.

At some point, people buy $100k cars to show that they have enough money to do so. When you are buying for that reason, you don't buy used. The flip side is that everyone knows that buying a used car is "smarter" so you do have those buyers. I would generally conclude that we have more people in the US that want to show they are rich than want to show they are smart.....

 

[Mnlevin]

Not at all. Hypothesis is simple. Who buys a used car for $70,000? Probably not many Americans. Most (<1%) would pay $70K for a new car because they do not have the wealth. Therefore target market for used Tesla is rich Americans who are savvy enough to trust Tesla brand and not want to pay the full price of a new car. As a result, population of buyers is extremely small, like maybe 1,000 people who are smart enough, rich enough and motivated enough to buy a used Tesla. That's the demand. Supply side is maybe 3,000 vehicles a year, so I see a short term imbalance.

You are just dreaming up your theory with no basis in fact. FACT there is a HUGE market for used High End cars. Check any MB, BMW, LEXUS dealerships. Beyond that there are thousands of Specialty Dealers that focus only on High End cars. People who have money are SMART. I am one of them. I bought a brand new Tesla first, but when I wanted another, it made sense to let someone else pay for the big first year depreciation. Also, I will keep the car for many years, so the used one I purchased is in Like New condition, low miles, no body damage, well cared for and the warranty from TESLA is still another 6 1/2 years to go. There is no reason I wouldn't purchase a used Luxury car in the right condition.

 

[Vitaman]

There is a big market for high end used cars.
Many affluent families need 3 or more cars and have high standards.
Buying a new SUV, Sedan, and sporty car could run close to 400K.
Used cars with warranties could be half that. For many families that is a wise use of funds.

 

[Xenoilphobe]

Mnlevin
I am in the same situation you are - I just missed out on a deal for a loaded 2013 P85+ then just went for ~$80K with 9900 miles ...2013 Tesla Model S P85+ (sold)

 

[Mnlevin]

Mnlevin
I am in the same situation you are - I just missed out on a deal for a loaded 2013 P85+ then just went for ~$80K with 9900 miles ...2013 Tesla Model S P85+ (sold)

If you are patient you will find the deal, keep looking here and on EBAY. I just noticed one on this site at $82k for 2 months, Read my reply to the guy, if the want to sell they need to realize the current market values. Good Luck :biggrin:

 

[hughconn]

You are just dreaming up your theory with no basis in fact. FACT there is a HUGE market for used High End cars.

With respect, those cars don;t cost $75K brand new. My question is how many households in the US can afford, and will spend $75,000 for a used Tesla? I stand behind my 3,000 household estimate. If anyone wants to buy mine, it is for sale for $75,000, model S with 28,000 miles and full factory warranty. Any takers, or just talkers, lol!

BTW, it's not really for sale, but if someone offered $75,000, I'd sell.

 

[sachinsc]

I don't think this qualifies but, I just reserved an inventory vehicle. It supposedly has 11 miles on it and is currently on a truck from Portland to Seattle right now. I pick it up this Saturday.
My reasons:
* No wait
* I got a ~$1K discount for buying a showroom vehicle.
* I can get the tax credit when I file for my taxes in ~March 2015 instead of waiting a whole year.
* Did I say...no wait? :tongue:

The only con is that it has the upgraded sound which I probably would not have ordered if I had customized the vehicle, but everything else is exactly what I wanted.

Can't wait for Saturday!

 

[drsaab]

Yep I did the same 2 weeks ago. 14 miles. 1000 off. Prem sound is a big improvement over base.

 

[sachinsc]

Yep I did the same 2 weeks ago. 14 miles. 1000 off. Prem sound is a big improvement over base.

Congrats! I pick up the car in 18 hours. Not counting the hours at all. Nope. No siree....:whistle:

How are you liking your S?

 

[drsaab]

Congrats! I pick up the car in 18 hours. Not counting the hours at all. Nope. No siree....:whistle:

How are you liking your S?

Love it so far. It is so smooth and revolutionary. I have sold over 1000 cars over 14 years, I Was debating s550 and Model S. I am glad I made the right choice. preheating the interior, full tank every morning... so many little things make it awesome.

I had a hard time waiting 2 weeks. I don't know how ppl wait 3 months

I keep hearing Active Cruise control will be out before year end. That is the real feature I am waiting for which I have had in past cars.

sadly I already had first chip in paint. I would recommend you XPEL the hood and front bumper etc as soon as you get it. Highway trash can hit you anytime. I got 3 tiny scratches. 2 of them would have been protected by the xpel. The aluminum body is soft / easy to ding and the paint is easy to scratch.

 

[bonaire]

I don't think this qualifies but, I just reserved an inventory vehicle. It supposedly has 11 miles on it and is currently on a truck from Portland to Seattle right now. I pick it up this Saturday.
My reasons:
* No wait
* I got a ~$1K discount for buying a showroom vehicle.
* I can get the tax credit when I file for my taxes in ~March 2015 instead of waiting a whole year.
* Did I say...no wait? :tongue:

The only con is that it has the upgraded sound which I probably would not have ordered if I had customized the vehicle, but everything else is exactly what I wanted.

Can't wait for Saturday!

This is why they build inventory cars (that people say Tesla surely doesn't do). It helps sales count, especially this quarter.
There is a convenience to inventory cars and with data in hand knowing what is most commonly bought, inventory car targets can be built during production line activity every day to scatter them to the busy markets. Too bad that not all custom orders were built first, though. Some people had to wait longer the last few months due to mixed in inventory car builds.