How to justify buying CPO vs New Model S?

[jgd108]

Hi!
I'm sure this thread has been talked about many times but please bear with me.

I've been watching CPOs daily for a few months, and just can't justify buying one because, for instance a moderately used S 85 85 kWh Model S 5YJSA1CN4DFP24204 | Tesla is $48,500 with glass roof and suspension which are now standards, and leather seats.

I don't want leather seats (vegan), so if I buy a new one today with faster 0-60 times, about same range (S 75) and 4 years of upgrades (!), new refreshed design, I have to pay (69,500+1200delivery+1000paint) $71,700 - (7,500fed+2,500CA rebate) = $61,700.

AND I can get a much better financing rate and I checked insurance is also cheaper for new car.. so for $13k more I get a new car (no mileage), 4 years of new tech improvements (in Tesla world's this is a century), the color I want, the new front look, possibility to unlock AP2 later when ready, and new warranties all around.

Please help me understand how CPO (and I read many horror stories on how long it takes to get it delivered) is a "best value". I'm sincerely asking! Thanks !

 

[reserves]

I have written a whole post in a UK forum about how I don't believe Tesla have any interest in selling their CPO's Do Tesla have any interest in selling their CPO cars?

I think their CPO cars are priced as such as it's hard to turn down a new one, they must put a huge amount of value in selling new cars and keeping the sales figures high.

They have at least $15m stock in used cars in the UK, they never get reduced it price and ofter disappear from the system completely even though they are still for sale.

 

[mattym]

I have written a whole post in a UK forum about how I don't believe Tesla have any interest in selling their CPO's Do Tesla have any interest in selling their CPO cars?

I think their CPO cars are priced as such as it's hard to turn down a new one, they must put a huge amount of value in selling new cars and keeping the sales figures high.

They have at least $15m stock in used cars in the UK, they never get reduced it price and ofter disappear from the system completely even though they are still for sale.

Funny... I have the same opinion, but for different reasons. Here in the states, the CPO program suffers from the same items you describe above, but with the complicated factor of a lack of Customer Service. In some regions, it's taking 10+ weeks from ordering a CPO to delivery, with little to no interaction with Tesla during that time period. It's almost as if they want you to cancel your order....

 

[idleuser]

CPO doesn't really make sense considering the price of a new Model S and 3LR. Once the 3LR hits mass production, you can bet the CPO will continue to tank in price. I wouldn't be surprise to see the S85 fall from your listed price of 48,500 down to the mid 20's in a year.

 

[JCLeonard]

Hi!
I'm sure this thread has been talked about many times but please bear with me.

I've been watching CPOs daily for a few months, and just can't justify buying one because, for instance a moderately used S 85 85 kWh Model S 5YJSA1CN4DFP24204 | Tesla is $48,500 with glass roof and suspension which are now standards, and leather seats.

I don't want leather seats (vegan), so if I buy a new one today with faster 0-60 times, about same range (S 75) and 4 years of upgrades (!), new refreshed design, I have to pay (69,500+1200delivery+1000paint) $71,700 - (7,500fed+2,500CA rebate) = $61,700.

AND I can get a much better financing rate and I checked insurance is also cheaper for new car.. so for $13k more I get a new car (no mileage), 4 years of new tech improvements (in Tesla world's this is a century), the color I want, the new front look, possibility to unlock AP2 later when ready, and new warranties all around.

Please help me understand how CPO (and I read many horror stories on how long it takes to get it delivered) is a "best value". I'm sincerely asking! Thanks !

To me $13,000 is a big enough difference to warrant CPO consideration. You will find very few people that say they are unhappy with the generation of CPO you are looking at (or really any generation for that matter). I tend to agree with other opinions that CPO will come down when more short-term leases come back in stock. I just keep watching and tell myself it's still just a car for my kids to stink up so I might as well wait for the cars to reach my comfort level price-wise. Of course, if you consider yourself an early adopter or just want the newest stuff then the $13,000 difference might not be a big deal. To each our own!

Good luck with your decision, I am sure you will be happy with either route!

 

[jgd108]

To me $13,000 is a big enough difference to warrant CPO consideration. You will find very few people that say they are unhappy with the generation of CPO you are looking at (or really any generation for that matter). I tend to agree with other opinions that CPO will come down when more short-term leases come back in stock. I just keep watching and tell myself it's still just a car for my kids to stink up so I might as well wait for the cars to reach my comfort level price-wise. Of course, if you consider yourself an early adopter or just want the newest stuff then the $13,000 difference might not be a big deal. To each our own!

Good luck with your decision, I am sure you will be happy with either route!

Agreed on all posts that have been posted. And yes JCLeonard 13k is not small but on a $70k car I would hope the difference for used cars would be greater than $13k! At least closer to 50% of the cost. Non-CPO cars are not much better and I would want the extra warranty knowing many of these cars were the first 20k or so ever produced and have to be maintained by Tesla for now.

I think the theory that they want to sell new cars to increase their stock price is valid, event at the cost of maybe selling less CPOs.

 

[Carl]

I have written a whole post in a UK forum about how I don't believe Tesla have any interest in selling their CPO's Do Tesla have any interest in selling their CPO cars?

I think their CPO cars are priced as such as it's hard to turn down a new one, they must put a huge amount of value in selling new cars and keeping the sales figures high.

They have at least $15m stock in used cars in the UK, they never get reduced it price and ofter disappear from the system completely even though they are still for sale.

My last ICE was a Lexus RX hybrid, and sometime early 2011 I was tempted into buying a new Lexus hybrid. Asked them an offer for my then three-year old one, got a price, and when I left the dealership I saw, just in front of the entrance to the showroom, "my" car (same year, similar mileage, same options, even same color) - as a s/h offer from Lexus - at nearly twice the price!

So when I got home I sent them an e-mail asking how that was possible. I got a six paragraph letter back full of poetry (from Toyota Belgium incidentally - Toyota has no Lexus dealers in Belgium, they sell direct, the Tesla way).

Toyota/Lexus was obviously putting those cars there not to sell them, but to indicate to persons entering the showroom how well their cars retain their value. Not sure what they end up doing with those cars - probably selling them to a middleman, and given that they by hypothesis only pay half of the price they afterwards claim the car is worth, they're not losing any money doing so).

I'm not at all saying Tesla does the same thing (as I haven't compared CPO pricing to what Tesla offers as trade-in value - what I do know is that Tesla trade-in prices were, when I traded in my first Tesla, in accordance with the market - minus 5% or so, but that's normal I suppose).

But that Lexus experience was, for me, something which opened my eyes as to what brands sometimes do (in respect of CPO's) simply to support sales of new cars. I was rather disgusted (and I reserved my first Tesla MS the next day).

 

[Az_Rael]

It depends on what car you are buying.

P Model CPOs can be found for MUCH, MUCH less than new, so if the Performance model is what one is looking for, then CPO saves a bundle. We just bought a 2015 P85D for $75.5k which was $127k new per the window sticker. Considering the only P model you can get new is the P100D going CPO just made sense.

And there is the whole P suspension issue. If you want a P car with the limited run sportier suspension, you have to buy used. At least until Tesla starts making the P suspension unique again.

 

[Spidy]

To me $13,000 is a big enough difference to warrant CPO consideration. You will find very few people that say they are unhappy with the generation of CPO you are looking at (or really any generation for that matter).

I would not. Keep in mind that those CPOs will also just have 4 years of battery and drive train warranty left, so in 4 years you are on the hook yourself or if you want to sell it the buyer would be. If you sell a car you buy new today the buyer has the assurance of being covered for around another 4 years. I don't think there will be many buyers interested in touching these 2013 CPOs in 3-5 years.

 

[benemac]

jgd108, I personally wouldn't take a 2013. And maybe if you were told what the payments would be for a 2013 vs a new 2017, it might not be a huge difference. You mention a $13,000 difference, but I didn't see the referral reduction of $1000. So if you have someone's referral code, you'll lower the diff to $12,000. I don't think it works on CPOs. The other thing is I like the latest tech in the car. If anything, for safety reasons. And the fact that they now have vegan seats is a bonus for me. We unfortunately didn't get to take advantage of that when we upgraded in december. They later offered vegan seats after we took an inventory car. If we ever get a new one, I'm sure this option will be the only one available and I hear those seats are very soft. Regarding warranty, you'd have the full 8 yrs on the drive train and the battery. If you have any questions about AP2, etc, just ask. It's great on the freeways.

 

[davidc18]

I would not get a CPO without AP1. We are almost at 60k miles between the 2 cars and use AP all the time. Good luck with your decision.

 

[nagypite]

Hi!
I'm sure this thread has been talked about many times but please bear with me.

I've been watching CPOs daily for a few months, and just can't justify buying one because, for instance a moderately used S 85 85 kWh Model S 5YJSA1CN4DFP24204 | Tesla is $48,500 with glass roof and suspension which are now standards, and leather seats.

I don't want leather seats (vegan), so if I buy a new one today with faster 0-60 times, about same range (S 75) and 4 years of upgrades (!), new refreshed design, I have to pay (69,500+1200delivery+1000paint) $71,700 - (7,500fed+2,500CA rebate) = $61,700.

AND I can get a much better financing rate and I checked insurance is also cheaper for new car.. so for $13k more I get a new car (no mileage), 4 years of new tech improvements (in Tesla world's this is a century), the color I want, the new front look, possibility to unlock AP2 later when ready, and new warranties all around.

Please help me understand how CPO (and I read many horror stories on how long it takes to get it delivered) is a "best value". I'm sincerely asking! Thanks !

-$1000 referral code = $60700 + free supercharging

 

[thgchris]

I'm in a similar boat. Trying to decide between P85D CPO and a new 75D. Before the spec bump on the 75D I felt like the decision was simple if I was after the performance but now the base model 75D is just as quick as the early P85's 0-60.

 

[Az_Rael]

I would not get a CPO without AP1. We are almost at 60k miles between the 2 cars and use AP all the time. Good luck with your decision.

You know, everyone says this, but we just bought an AP1 car, and so far TACC is all I like. I am not a huge fan of Autosteer - feel like I have to babysit it too much and it was more stressful than just steering myself.

I suspect there is a personality effect going on, though. I am a nervous passenger when other people drive, so when AP wanders at exits and at hill crests, I will correct it enough it disengages. I read about people letting it cross the lines or hug lines during curves just to see what it would do, and there is no way I am letting it get that far out of line before I take over. Any hint of truck lust and I disengage, for example.

So, if you are a bit of a control freak like me, AP is definitely not a requirement for a CPO.

I AM jealous of our 2015's folding mirrors that my 2013 is missing though.

 

[NeverFollow]

I would not.
Keep in mind that those CPOs will also just have 4 years of battery and drive train warranty left,
so in 4 years you are on the hook yourself or if you want to sell it the buyer would be.
If you sell a car you buy new today the buyer has the assurance of being covered for around another 4 years.
I don't think there will be many buyers interested in touching these 2013 CPOs in 3-5 years.

Having a new battery instead of a 4 years old battery, and resale value after 4 years.
I think those are factors I will consider first.

 

[CLLACAB]

You can add the folding mirrors. Depending on you VIN, you may need to replace the wiring harness. I picked up the harness and the mirrors from a totaled car. The painted covers pop off and can be switched.

 

[Don TLR]

Where are you finding an S for 71, the cheapest red with a sunroof I can find is 84..

 

[stan23]

I'm in a similar boat. Trying to decide between P85D CPO and a new 75D. Before the spec bump on the 75D I felt like the decision was simple if I was after the performance but now the base model 75D is just as quick as the early P85's 0-60.

I was in a similar position, and i'm sure it drove my wife nuts for the last week. Budget for me was 60-70 Ish.

I first convinced myself to buy a new stripper 75 with the updated motor. No options, cloth seats. With the referral and inventory discount, it was 67K. I liked that all the hardware for AP2 was there - I wasn't convinced on it, so I decided i'll just 'enable' it later to keep costs down for initial purchase. Reason for wanting new was new battery, new tech, and new front end look. I wasn't 100% confinvced about ordering a new car since it seemed like a compromise to me to order a stripper.

I then started looking at high optioned CPO cars, Coming from a sports car background, I convinced myself I needed the P85+. The Ds were out of my range. I promptly ordered one that I liked fully loaded for 61K.

After a few days, I went back and re-configured the new motor 75, I would have liked--no compromise, and it was 80K. With referral, and inventory discount. It was 78K. With the 7500 tax credit from fed, 2500 from state, and 500 PGE, that brought it down to 67,500. Plus Tesla lending is offering .99 interest rate right now.

Kinda made it a no brainer. I know get a new car with fresh battery, AP2, the exterior and interior color I wanted, and have the restyled front end look.

I will say one thing, not having the ability to see the CPO prior to delivery was a huge turn off for me.

 

[jeepn30]

I bought my CPO 10 months ago, and have been extremely satisfied with it. This is the car I plan to keep for a long time, as now with 4 kids I cannot just go out and trade cars every year or two financially. It looks like cars now with the rear facing seats cost more than they did a year ago, so I got in at the right time. When I was looking last year, a new one would have cost roughly about 18-20k more than what I paid. I preferred this route as it is much more within my comfort zone. Hopefully by the time I get done paying this one off, a CPO model X will be affordable for the Mrs.. Autopilot really isn't much of a concern for me, as my commute is 10 miles on 2 lane roads with minimal traffic.

 

[Nick B]

I got my 2014 non AP P85+ CPO 1 year and a half ago. I paid (in Canadian dollars) 85k when the original price was of 125k. The car only had 35 000 km's (so around 22 000 miles). It was brand new and almost fully equipped. The cheapest P85D with AP currently offered by Tesla is still more than 100k right now. What does it offer more? 0-100km in 3.1 vs 4 secs and AWD (and AP 1.0).

A new 75D is 115k and that with no other option than the AWD and AP 2.0 gear. It's still slower than my P85+ and the handling really isn't as stable and aggressive as my car.

For me, CPO made perfect choice but to each their own... maybe my priorities will change over time.