Guide to Determining Price/Value of a Used Tesla For Buyers & Sellers

[CapeOne]

Imagine you are a buyer... you find two identical used Tesla Model S's for sale. One is a CPO and one is a private party vehicle. Assume that the private party vehicle is INCLUDING the ESA warranty as part of the sale, thus making it similar to the CPO warranty that comes standard. Assume that all sales tax, tax credit situations, etc all end up being the same. Which would you choose and why?

If everything is truly identical (same age, options, miles, condition, warranty, price, etc.) and both are available locally, I don’t see why you wouldn’t choose a CPO over a private party sale.

The typical advantage of buying from a private party is a lower price. Another reason for buying privately may be because there isn't another car like it available in the area and you have no alternative if that's the car you want.

 

[bro1999]

Imagine you are a buyer... you find two identical used Tesla Model S's for sale. One is a CPO and one is a private party vehicle. Assume that the private party vehicle is INCLUDING the ESA warranty as part of the sale, thus making it similar to the CPO warranty that comes standard. Assume that all sales tax, tax credit situations, etc all end up being the same. Which would you choose and why?

Tesla CPO. First, the private sale w/ESA has a $200 deductible, while the CPO warranty is basically new car b2b coverage with $0 deductible.

Even assuming there was no deductible on an ESA'ed private sale, I would still go with the CPO. That pretty much applies to any used product. Would you rather buy a refurbished Iphone directly from Apple, or the same Iphone from some dude on Craigslist?

Plus I'm sure there are some protections offered via a direct-from-manufacturer sale that wouldn't be available from a private party purchase. That is why private sellers should really be pricing their cars below what an equivalent CPO costs.

But if they can find a buyer that is willing to pay more than a CPO, hey, more power to them.

 

[Msjulie]

Too bad there isn't this guidance for the roadster; different because it's not being made anymore but I see them priced all over. Using eBay as a guide, many folks are asking way too much for some cars - would someone have a different way to get the 'market' value?
cheers

 

[SD_Engnr]

If everything is truly identical (same age, options, miles, condition, warranty, price, etc.) and both are available locally, I don’t see why you wouldn’t choose a CPO over a private party sale.
.

One advantage of the private party sale (that I'm considering) is that the car is still covered under the initial warranty PLUS the extended warranty (if purchased). This would allow for a longer period of warranty coverage than the CPO. For example, a private party 2014 Model S can be covered until 2022, whereas a 2014 CPO purchased at the same time (in 2016) is only covered until 2020. There's a potential of 2 extra years of warranty coverage.

 

[Super_Popular]

One advantage of the private party sale (that I'm considering) is that the car is still covered under the initial warranty PLUS the extended warranty (if purchased). This would allow for a longer period of warranty coverage than the CPO. For example, a private party 2014 Model S can be covered until 2022, whereas a 2014 CPO purchased at the same time (in 2016) is only covered until 2020. There's a potential of 2 extra years of warranty coverage.

Agreed, CPO is he way to go.

 

[flankspeed8]

Agreed, CPO is he way to go.

No, it does not appear that you agree with @SD_Engnr he is advocating for PP sales and you seem to think CPO is the way to go? Perhaps for a PP car that is close to, or out of warranty, yes.

 

[Super_Popular]

No, it does not appear that you agree with @SD_Engnr he is advocating for PP sales and you seem to think CPO is the way to go? Perhaps for a PP car that is close to, or out of warranty, yes.

You are putting way too much thought into my post.

You are assuming that I referred to buying from Tesla's CPO list, I was not. What I said was buying CPO was the way to go, I did not say buying from Tesla's CPO list was the way to go.

I am selling my car that is a CPO and I am PP

 

[Glenn Dickerson]

I am shopping for a used S and I think PP is the way to go because as stated you can get more warranty than buying CPO. Max warranty on CPO is 4 yrs or 50k miles. Not so on the PP sales.

 

[marcebahn]

85 kWh Signature Model S S00961 | Tesla Motors

 

[CapeOne]

One advantage of the private party sale (that I'm considering) is that the car is still covered under the initial warranty PLUS the extended warranty (if purchased). This would allow for a longer period of warranty coverage than the CPO. For example, a private party 2014 Model S can be covered until 2022, whereas a 2014 CPO purchased at the same time (in 2016) is only covered until 2020. There's a potential of 2 extra years of warranty coverage.

Good point. A bit off topic perhaps but does anyone know why Tesla doesn't offer extended warranties on their CPO cars?

 

[Super_Popular]

Good point. A bit off topic perhaps but does anyone know why Tesla doesn't offer extended warranties on their CPO cars?

Most Teslas cars come with a CPO warranty unless they have body damage.

 

[CapeOne]

Most Teslas cars come with a CPO warranty unless they have body damage.

All Tesla CPO cars have warranties but my question is why can't you get an extended warranty (service agreement) beyond the 4/50 CPO warranty in years and/or miles? As pointed out in a post above, a private party car could have a longer 'warranty' than a CPO car thanks to an extended service agreement but 4/50 seems to be the max with a CPO.

 

[Super_Popular]

All Tesla CPO cars have warranties but my question is why can't you get an extended warranty (service agreement) beyond the 4/50 CPO warranty in years and/or miles? As pointed out in a post above, a private party car could have a longer 'warranty' than a CPO car thanks to an extended service agreement but 4/50 seems to be the max with a CPO.

Got it. My guess would be costs to Tesla.

 

[CapeOne]

Got it. My guess would be costs to Tesla.

There would be costs in the sense of any claims against a service agreement but I'm not suggesting Tesla would offer the extended agreement for free just like they don’t offer one for free to original owners. I believe the cost of a 4/50 extended service agreement is $4K.

Tesla, for a price, could offer a similar extended service agreement to customers buying a CPO but for some reason they don't.