Model S depreciation

[JoRey]

I have been keeping tabs on the prices of used Model S. It has been my observation that there seems to be a disconnect in the price of used Model s and the price of a CPO model s. I have observed that as of late Tesla has been pricing their CPO cars more competitively then used car dealer and what owner are asking for their cars. Tesla has been posting used 60, 70, 70d, s85 from 2014 and 2015 from 40-47k with autopilot with 20,000-100,000 miles. I have also seen "classic" 60, 85, and p85 in my local market sold by tesla selling anywhere from 30-40k with again between 50,000-100000 miles. Supply seems to be high and new choices are added daily.

I have also seen used Model 3's in california priced from 40k for a "base" model to 50k for a fully loaded model 3 and a couple for 45k. What confuses me is the price discrepancy in the used car market with private sellers and especially dealers. Who often price the same car for more then what Tesla would charge for a comparable car and often have way more then 100,000 miles (Tesla does not sell cars with over 100,000 miles). I have seen the price range from 30-40k for used "classic" Model S from private sellers and often over 40k for cars that often have 100,000 miles or much more. These cars do sell which I attribute to simple ignorance and the difficulty of finding the CPO page on the Tesla site. Which brings me to this question.

What is the price of a Model S with 100,000 miles for the 60, 85 and p85 variants?

Especially compared to the value and technology that the Model 3 offers. Not to mention other ev's that are about to hit the market. (mainly from kia and hyundai)

 

[Az_Rael]

These cars do sell which I attribute to simple ignorance and the difficulty of finding the CPO page on the Tesla site.

Tesla changed their CPO program to make it terrible. Cars are now being delivered with dents and other damage. Even saw one post with a CPO from Tesla with a shattered rear glass and a hole in the bumper. So the only thing the CPO program gets you now is the 2 or 4 year warranty. So I am not surprised to see private sales prices going up. I know if I was in the market, I will no longer shopping directly from Tesla.

 

[BBB4000]

Any idea why they changed their CPO policy? I remember thinking I would take a huge hit selling my car bc it would have to go back to Tesla since no one in private party would buy it. While this seems like a set back for purchasers of used Tesla’s, it appears to benefit current owners.

 

[BBB4000]

Any idea why they changed their CPO policy? I remember thinking I would take a huge hit selling my car bc it would have to go back to Tesla since no one in private party would buy it. While this seems like a set back for purchasers of used Tesla’s, it appears to benefit current owners.

 

[JoRey]

Cars are now being delivered with dents and other damage.

Do you really expect any different from private sellers and especially dealers (who buy their inventory from auctions) to be any different? Tesla has sent me pictures in a prompt fashion each time i've requested them and they show damage. Not to mention that a used car is expected to have scratches, dents, dings, blemishes and curb rash. One would also expect people posting on forums to have had negative experiences and hear all sorts of horror stories. I would take warranty from Tesla over a out of warranty car from dealer or private seller that in my experience often have 100,000 miles or way more then 100,000 miles. Not to mention that getting financing for a CPO car is infinitely easier then getting a loan to buy a from a private seller.

 

[JoRey]

Any idea why they changed their CPO policy? I remember thinking I would take a huge hit selling my car bc it would have to go back to Tesla since no one in private party would buy it. While this seems like a set back for purchasers of used Tesla’s, it appears to benefit current owners.

Any idea why they changed their CPO policy?

Tesla was refurbishing all their used models. This was at significant cost to Tesla and created a bottle neck. Tesla should certainly have the cars detailed and replace minor parts before being offered for sell. Ultimately by ending that policy they could sell more cars for less money.

 

[Az_Rael]

Do you really expect any different from private sellers and especially dealers (who buy their inventory from auctions) to be any different?

Well, the advantage to buying private or from a dealer is getting to inspect the car in person, and even, (gasp!), test drive it. Then if it is too worn, I can easily pass. Tesla requires you to put down a non-refundable deposit before you see the car in person, and you are not allowed to test drive the car at all. It’s a bit crazy, really. The only reason I bought two cars from the program was under the old one, they did refurbish the cars. So even though you were buying used sight unseen, you knew Tesla would make it right.

I will probably buy from CarMax for our next S. They have rock solid extended warranties on all their cars and allow you to do all the service and repairs at Tesla. And I can test drive the car I will buy. They are probably more expensive, but I would consider it worth it.

 

[MC408]

I recently bought from Tesla’s “CPO / used” car program.

Agree, deposit before pictures and seeing the car seems crazy, but it was a risk I was willing to make as prices and CPO warranty are better than buying private party

Deposit is refundable or transferable to another vehicle if you are not happy

Picture quality sucks, and is inconsistent, you may get a set of detailed pics of a car and close ups of damage or areas of concern or you may get a low res group of photos from 15 feet away

You are not committed to the car until you inspect it and agree, otherwise you are just committing to traveling to the car and seeing it in person (which is a risk if you need to travel far)

Correct, you cannot drive the car before accepting terms, this is the one major thing they need to fix. I felt comfortable with my decision as I felt cosmetics issues were the only thing tesla would not make right under warranty. So mechanical issues I was not too worried about.

I still would do it direct again as Tesla’s warranty is and the pricing makes it a good buy.

I personally don’t think and understand why the private party ones are selling at higher prices, I just think they are overpriced and don’t know the market is dropping so fast with a major influx of supply.

If your in the market, I would keep an eye on Tesla’s program. it is getting better and supposed to enlist the support of a 3rd party to help manage the inventory and sell cars. Not sure if it will effect pricing but I’m sure the process will get better.

 

[JoRey]

Unable to test drive before purchase seem like a serious oversight from Tesla and they will overtime be forced to change it. But, I would imagine that you could easily persuade Tesla to let you test drive the car. You also have to remember that good deals go fast and a deposit guaranties that you have the chance to get the car. CPO warranty from Tesla is bumper to bumper. You do not have to get authorization from carmax to authorize the repair and if you are ever in trouble Tesla will take car of you. Not to mention that you have to pay the carmax premium and the bumper to bumper warranty coverage.

 

[JoRey]

I personally don’t think and understand why the private party ones are selling at higher prices, I just think they are overpriced and don’t know the market is dropping so fast with a major influx of supply.

The only conclusion I can come up with is simple ignorance from consumers who do not know the prices tesla is selling their CPO models. Prices will remain high as long as people keep buying the cars for that price and I expect prices to crash soon.

If your in the market, I would keep an eye on Tesla’s program. it is getting better and supposed to enlist the support of a 3rd party to help manage the inventory and sell cars. Not sure if it will effect pricing but I’m sure the process will get better.

It would help immensely and have a immediate effect on prices if Tesla would post on autotrader and cars.com. Dealers and private sellers would be forced to reduce their asking prices almost immediately.

 

[Eevee]

First off, Tesla calls their cars "Used" not CPO anymore. So this makes things a bit more confusing.

I bought a used Model S directly from Tesla and so far I'm very happy with it. My car is great. The process was weird and I do have worries that they will screw up my DMV registration, but so far so good. I feel like I got a good deal and I really love my new-to-me Tesla.

I will probably buy from CarMax for our next S. They have rock solid extended warranties on all their cars and allow you to do all the service and repairs at Tesla. And I can test drive the car I will buy. They are probably more expensive, but I would consider it worth it.

Well, right now CarMax only has 7 Teslas TOTAL to choose from. They're all in Irvine, Ca. And only 4 of them are Model S, the other 3 are X. So if that works for you then great.

Buying from Tesla, OTOH, would let you choose from 1,624 different Model Ss (according to EV-CPO.com). And they're located all over the USA. So, there's that.

If your in the market, I would keep an eye on Tesla’s program. it is getting better and supposed to enlist the support of a 3rd party to help manage the inventory and sell cars. Not sure if it will effect pricing but I’m sure the process will get better.

Yes, keep an eye on things and it will likely improve. You can also change your odds by simply searching out for a low mileage car. Lower miles likely mean less damage, period.

I recently bought a used Model S and my car is beautiful. Nothing wrong with it at all.
It had a couple teeny tiny scratches, nothing anyone has noticed. And it had some minor indentations in the back seat from a kid's carseat, which doesn't bother me in the slightest since I have a kid too.

It would help immensely and have a immediate effect on prices if Tesla would post on autotrader and cars.com. Dealers and private sellers would be forced to reduce their asking prices almost immediately.

I think posting on Autotrader would sort of undermine Tesla's desire to do things differently and do direct sales rather than traditional car sales. Tesla approaches the entire process differently, for better or worse.

 

[JoRey]

I think posting on Autotrader would sort of undermine Tesla's desire to do things differently and do direct sales rather than traditional car sales. Tesla approaches the entire process differently, for better or worse.

Not really since in theory Tesla would still be the one selling the car. They would be simply be posting and increasing the potential pool of customers. Competing against owners and dealers. Trust me. I wish I could barter with Tesla and get a better price on a car.

 

[whitex]

If there really is such a price gap for the same product, why aren't there people just reselling CPO cars as private party, pocketing the difference? Private party with 2 or 4 year warranty should be a win-win. Car max should be grabbing them cheap CPO's like hot doughnuts.

I suspect there are 3 things at play here:

1. Individual private party sellers tend to value the cars they owned higher, so they list them higher. It doesn't mean they sell them at that most of the time, even though sometimes they do, - this happens when someone wants a particular combination or simple doesn't do their diligence. I have seen a number of times when owners listed their 1 year old cars for same or more than MSRP - rebates. In a free market prices are not fixed, which is why people sell the latest Nvidia graphics card (RTX 2080ti) on Amazon for $1,652- $1,999, while you can pick it up at MSRP of $1,199 from the manufacturer's website with a bonus latest title game included - somebody must buy on Amazon or they wouldn't be listing them (and stocking them, since some are ready to ship from Amazon's wearhouse where Amazon is collecting "rent" on them).
2. Dealers don't know what they have, someone traded in their S60 but convinced the dealer to pay for a P85 price. This doesn't happen as often today as it used to, but I bet is still does.
3. People who say there is a cap compare based on incomplete information - specs only. They compare the high end of private party against the cheapest CPOs. You can do the same with just CPO's. Look at these 2 CPO cars below. Same age (VIN's 3K apart), approximately the same mileage, the cheaper one has premium package, wheel upgrade, and premium audio, so where does the price difference come from? Obviously there is something there to make the car with $10K worth of extra options list at almost $9K less? Or are people going to start a thread how there is a huge pricing gap between Tesla L.A. and Tesla San Francisco?

• 85 kWh Model S 5YJSA1H19FF080336 | Tesla - $53,900
  
• 85 kWh Model S 5YJSA1H14FF083371 | Tesla - $62,200

 

[dzmconstr]

I recently bought from Tesla’s “CPO / used” car program.

Agree, deposit before pictures and seeing the car seems crazy, but it was a risk I was willing to make as prices and CPO warranty are better than buying private party

Deposit is refundable or transferable to another vehicle if you are not happy

Picture quality sucks, and is inconsistent, you may get a set of detailed pics of a car and close ups of damage or areas of concern or you may get a low res group of photos from 15 feet away

Here a picture from an "X" I got today...makes me want to run and put a deposit on it right away.....How much money is the "used" loosing Tesla - a bunch IMO, more so than the "CPO" cost. But I don't own their stock so I don't care.

Dzm

 

[whitex]

Here a picture from an "X" I got today...makes me want to run and put a deposit on it right away.....How much money is the "used" loosing Tesla - a bunch IMO, more so than the "CPO" cost. But I don't own their stock so I don't care.

View attachment 357115

Dzm

Something doesn't make sense, they expect a customer to pick up a car with a flat tire? Or is this just to show curb rash but the CPO has ot will have new tire?

 

[MC408]

Something doesn't make sense, they expect a customer to pick up a car with a flat tire? Or is this just to show curb rash but the CPO has ot will have new tire?

My understanding is they fix “safety” issues but do not fix cosmetic issues.

I’m my case, they fixed a rock chip in the windshield, so the other post with a cracked pano roof, I think it’s safe to say, they will fix it.

In this case, I think it’s a safe assumption they aren’t gonna sell it with a flat tire, I would hope they check if the rim has a crack or dent in it, but who knows. curb rash, I think we all know they don’t do anything with that. .

 

[whitex]

My understanding is they fix “safety” issues but do not fix cosmetic issues.

I’m my case, they fixed a rock chip in the windshield, so the other post with a cracked pano roof, I think it’s safe to say, they will fix it.

In this case, I think it’s a safe assumption they aren’t gonna sell it with a flat tire, I would hope they check if the rim has a crack or dent in it, but who knows. curb rash, I think we all know they don’t do anything with that. .

I didn't think they'd try to sell it with a flat, therefore wondering why send customer a picture of it, unless it's just to disclose curb rash.

 

[Benjanos]

Just another observation regarding the used prices from Tesla versus Private/Dealer... The cars on Tesla's web site go through a kind of reverse auction, the price drops over time until they get a bite. So comparing prices may not be that easy.

If I look at the Private/Dealer used cars on the internet today, there are still cars for sale that have been there for 6 months or more. Means their price must be wrong, or the seller has time to wait and be opportunistic.

 

[ASMills85]

I didn't think they'd try to sell it with a flat, therefore wondering why send customer a picture of it, unless it's just to disclose curb rash.

I believe Tesla uses a third party company to take pictures of their cars. I wonder if it is a mix of both. The pictures of my car had a large bubble in the sidewall, which was included in the pictures sent to me. The wheel had no curb rash so there would have been no reason to even show me this picture otherwise. I was told the tire would be replaced since it was obviously a safety hazard. I was never able to get a straight answer if they were replacing the single tire or all four (luckily it was all four.)

 

[whitex]

Just another observation regarding the used prices from Tesla versus Private/Dealer... The cars on Tesla's web site go through a kind of reverse auction, the price drops over time until they get a bite.

Tesla didn't invent this. I have seen private dealers do the same with used cars. Not only that, instead of negotiating some of them would tell you ahead of time when the price would go down and how much . A friend of mine bought a car this way - it's actually an effective sales technique.