Model S CPO Unusually Low Inventory

[RD36]

I have purchased 2 CPO vehicles in the last 4 years, and I have never experienced the shortage we are seeing now on Tesla's website. I recently determined to purchase a 3rd Model S and I was astonished at price discrepancies compared to just a few months ago, yet more alarming still is the scarcity within the selection. There are now 24 cars listed as of 26 June, 2019. Some have reported nearly 1000 cars available at the beginning of the year.

Whilst some have mused this as Tesla's attempt to preserve resale value, cars being diverted to their newly stated ambition of building a taxi fleet, and others believing this to be normal operating procedure, any thoughts and comments would be welcomed.

I have read EV-CPO's comments in another thread that the lack of inventory is nothing unusual for Tesla, however I would have to disagree since my experience has differed. Granted once I purchased my cars, I did not routinely monitor inventory thus I cannot attest to his claims.

If anyone else has previously seen this sort of inventory shortage please share your experience.

Regards

 

[Ostrichsak]

A few things of note:

1) The CPO program was discontinued so now all of the used cars sold by Tesla are exactly that, used.

2) The number of available used cars has been dwindling steadily since almost a year ago. Some here tried to say multiple times that it coincided with the end of a quarter and some sort of imaginary push. They claimed it would spring back at the start of the following quarter but that hasn't proven true once yet. As a result I think we can safely say that it has absolutely nothing to do with quarterly numbers.

3) The prevailing opinion with lots of supported data is that Tesla is keeping more Model S's back currently as loners to expand their fleet for customer service for various reasons.

4) There's a rather lengthy thread discussing this exact topic that's still current and I believe just had some replies within the last 24 to 48 hours. We houlds probably try to consolidate all of these conversations of the same topic into one thread as to avoid fragmented conversations on the same topic.

 

[nguyentoogood]

I just think it's supply. People are just buying used ever since the price was exceptional good and people were trading in their model S for the 3, so there was a lot of used model S on the market.

 

[RD36]

A few things of note:

1) The CPO program was discontinued so now all of the used cars sold by Tesla are exactly that, used.

2) The number of available used cars has been dwindling steadily since almost a year ago. Some here tried to say multiple times that it coincided with the end of a quarter and some sort of imaginary push. They claimed it would spring back at the start of the following quarter but that hasn't proven true once yet. As a result I think we can safely say that it has absolutely nothing to do with quarterly numbers.

3) The prevailing opinion with lots of supported data is that Tesla is keeping more Model S's back currently as loners to expand their fleet for customer service for various reasons.

4) There's a rather lengthy thread discussing this exact topic that's still current and I believe just had some replies within the last 24 to 48 hours. We houlds probably try to consolidate all of these conversations of the same topic into one thread as to avoid fragmented conversations on the same topic.

That information whilst being widely disseminated is incorrect. The CPO programme still exists, whilst the construct has altered. Telsa will no longer 'refurbish' the vehicles cosmetically, yet they are mechanically repaired and brought up to their 70 point inspection standards.

https://electrek.co/2018/04/11/tesla-stops-refurbishing-used-cars/

 

[murphyS90D]

Now that so many features have been eliminated I no longer have any interest in trading in my car. I also do not believe that FSD will work in my lifetime.

 

[RD36]

A few things of note:

1) The CPO program was discontinued so now all of the used cars sold by Tesla are exactly that, used.

2) The number of available used cars has been dwindling steadily since almost a year ago. Some here tried to say multiple times that it coincided with the end of a quarter and some sort of imaginary push. They claimed it would spring back at the start of the following quarter but that hasn't proven true once yet. As a result I think we can safely say that it has absolutely nothing to do with quarterly numbers.

3) The prevailing opinion with lots of supported data is that Tesla is keeping more Model S's back currently as loners to expand their fleet for customer service for various reasons.

4) There's a rather lengthy thread discussing this exact topic that's still current and I believe just had some replies within the last 24 to 48 hours. We houlds probably try to consolidate all of these conversations of the same topic into one thread as to avoid fragmented conversations on the same topic.

And thank you for addressing the other theories being floated about. I certainly concur that the limited inventory probably means Model S vehicles being reassigned to expand their "loaner" vehicle fleet.

Lastly, I will try to find this thread you mentioned if you indeed have a link, I would appreciate it.

Regards

 

[whitex]

Tesla regularly wholesales off their used cars, including loaner fleets, before end of quarter. This is to reduce the inventory of used cars off the balance sheets, so they can report better financials for the quarter. Those cars often show up on ebay or places lie vroom a month or two later. This has happened a number of times in the past.

 

[Ostrichsak]

That information whilst being widely disseminated is incorrect. The CPO programme still exists, whilst the construct has altered. Telsa will no longer 'refurbish' the vehicles cosmetically, yet they are mechanically repaired and brought up to their 70 point inspection standards.

Tesla stops 'refurbishing' its used cars ahead of big influx of leased vehicles coming back - Electrek

The information is 100% accurate. Find me a single mention of the exact term "CPO" anywhere on the Tesla website. Go ahead I'll wait.

Spoiler alert: You won't find one.

The reason is because Tesla intentionally scoured their entire website and warranty information to intentionally remove that term for a reason. The term CPO denotes a certain level of refurbishment & condition of a used car that Tesla wasn't willing to meet.

Instead they chose to remove that term from their website and now sell used cars with similar warranties. Continuing to refer to them as CPO does a disservice for anybody who is in the market for a used car as they are being incorrectly led to believe that they're getting something more than they really are.

The correct term and is Tesla used car. You can say that it's a Tesla inspected used car but that isn't always the case either.

 

[Ostrichsak]

And thank you for addressing the other theories being floated about. I certainly concur that the limited inventory probably means Model S vehicles being reassigned to expand their "loaner" vehicle fleet.

Lastly, I will try to find this thread you mentioned if you indeed have a link, I would appreciate it.

Regards

I don't have the link handy as I'm currently traveling and don't have an opportunity to find it and paste it.

 

[whitex]

And thank you for addressing the other theories being floated about. I certainly concur that the limited inventory probably means Model S vehicles being reassigned to expand their "loaner" vehicle fleet.

No it's not. I was in service last week, talked with few people there who told me that their loaner fleet was sold off recently, leaving but a handful of cars (hence no loaners available). As I mentioned above, I've seen this end of quarter purge a number of times.

 

[RD36]

The information is 100% accurate. Find me a single mention of the exact term "CPO" anywhere on the Tesla website. Go ahead I'll wait.

Spoiler alert: You won't find one.

The reason is because Tesla intentionally scoured their entire website and warranty information to intentionally remove that term for a reason. The term CPO denotes a certain level of refurbishment & condition of a used car that Tesla wasn't willing to meet.

Instead they chose to remove that term from their website and now sell used cars with similar warranties. Continuing to refer to them as CPO does a disservice for anybody who is in the market for a used car as they are being incorrectly led to believe that they're getting something more than they really are.

The correct term and is Tesla used car. You can say that it's a Tesla inspected used car but that isn't always the case either.

I am a bit perplexed by the aggressive posturing, however I am not disputing the fact that the terminology has changed and that Tesla absolved themselves of the legal ramifications of the norms within a CPO environment, however providing a "used" vehicle with 4 years/50 Miles coverage or 2 years/100K Miles is hardly without warranty which is the basis for any CPO vehicle.

That said, I will have to soon decide whether to wait for this illusory inventory influx or move onto another brand. I am not keep on the i-Pace styling and I the Audi's E-Tron SUV was underwhelming. And I have owned 3 previous Audi vehicles.

Enjoy your holiday.

 

[whitex]

I am a bit perplexed by the aggressive posturing, however I am not disputing the fact that the terminology has changed and that Tesla absolved themselves of the legal ramifications of the norms within a CPO environment, however providing a "used" vehicle with 4 years/50 Miles coverage or 2 years/100K Miles is hardly without warranty which is the basis for any CPO vehicle.

That said, I will have to soon decide whether to wait for this illusory inventory influx or move onto another brand. I am not keep on the i-Pace styling and I the Audi's E-Tron SUV was underwhelming. And I have owned 3 previous Audi vehicles.

Enjoy your holiday.

If you found the eTron SUV underwhelming, I hope your top decision criteria is acceleration, handling, extra large screen for nav map and as much range as you can get. Tesla interior is way inferior to eTron SUV (even the non-prestige model), and you won't find things like surround view or Apple CarPlay or Android Auto, or a HUD in a Tesla. You also won't be able to get the same level of service.

 

[RD36]

If you found the eTron SUV underwhelming, I hope your top decision criteria is acceleration, handling, extra large screen for nav map and as much range as you can get. Tesla interior is way inferior to eTron SUV (even the non-prestige model), and you won't find things like surround view or Apple CarPlay or Android Auto, or a HUD in a Tesla. You also won't be able to get the same level of service.

Thank you for your comments, to be clear, I do believe that Audi is the benchmark for interior design and fit and finish, unless one delves into the ultra luxury marques. However I was simply underwhelmed as I expected better range and performance. The motors are inefficient by comparison, regardless I am happy to see Tesla has competition. From Polestar to all of the EV coming online in the next five years, we can all only benefit from this development.

I am still troubled by the lack of inventory however this morning I noticed 49 "Used" Model 3s on the EV-CPO site when it has only been 2 the day prior.

Cheers

 

[PWlakewood]

It's not just teslas used inventory that's down it's also local supply at used lots in Washington state that are down. I mentioned this months ago and no one seemed to believe it but yet as od today there are even less available except for the overpriced ones that wont sell at current pricing.

 

[RD36]

Unless this is merely a measure to sell used Model 3 inventory evidenced by the sudden influx of some 49 vehicles when the used inventory for Model 3 had been in low single digits, this could possibly signal a longer term strategy to preserve Model S residual value.

By constricting the supply of Model S cars Tesla will also be able to mitigate the cannibalising of Model 3's new and used and create a greater price differentiation between the two models new or used. Certainly this is effective in the short term however this cannot hold within the used market as all manufacturers have to contend with this reality.

The problem stems from the options that inflate a base model 3 into territories that are difficult to justify versus a used warrantied model S.

 

[maximizese]

I suspect there is some manipulation going on whether it is something to do with Tesla's quarterly financial outlook or a macroeconomic strategy. I've been an investor in Carmax over the last few years as the trade-war/tariffs ratchet up. As new cars become more costly, the secondary market should see a rise as the alternative to new cars becomes more popular. Just look at what Carmax and Carvana have been saying compared to Auto Nation, the latter sells both new and used cars while the former exclusively sells used cars.

However, I seem to recall previous periods when used inventory dwindled; though I recall the glut of used Model Ss after the Model 3 and Model X hit their production strides.

I think it's hard to see what's going on in real-time, but I'm sure we'll have better clarity looking backwards 6 months from now.

 

[RD36]

I suspect there is some manipulation going on whether it is something to do with Tesla's quarterly financial outlook or a macroeconomic strategy. I've been an investor in Carmax over the last few years as the trade-war/tariffs ratchet up. As new cars become more costly, the secondary market should see a rise as the alternative to new cars becomes more popular. Just look at what Carmax and Carvana have been saying compared to Auto Nation, the latter sells both new and used cars while the former exclusively sells used cars.

However, I seem to recall previous periods when used inventory dwindled; though I recall the glut of used Model Ss after the Model 3 and Model X hit their production strides.

I think it's hard to see what's going on in real-time, but I'm sure we'll have better clarity looking backwards 6 months from now.

Well said Sir......

 

[Sprandt23]

I don't know if we can qualify it as a 'surge' but I think at the time of these late June posts, I recall seeing around 40ish total used Model S on ev-cpo....looking this morning there are 133 out there now, so definitely an increase here in July.
Obviously impossible to know if this was existing inventory that was not listed, or if this is trade-in inventory from a push of selling new models prior to the end of the quarter. Just wanted to share that the numbers are on the way back up!

 

[Sprandt23]

Also, just noticed that some (not all) of the used listings on the Tesla site have 'actual' photos of the vehicle, this is new to me!

 

[RD36]

Also, just noticed that some (not all) of the used listings on the Tesla site have 'actual' photos of the vehicle, this is new to me!

Thank you, yes, I have noticed during the last several weeks the inventory has steadily increased, and I first noticed actual photos of the vehicle listed about 3 months ago, however the listings were not standarised, thus it seems as though they are attempting to improve their listing process.

I am however getting discouraged by the CPO process and I am seriously considering abandoning the search and awaiting the Polestar since my list of options are difficult to come by, vegan seats and standard suspension.