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Ordering new model s vs used/cpo

Discussion in 'Model S' started by Nototrader, Feb 19, 2016.

  1. Nototrader

    Nototrader Member

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    Alpine, NJ
    I have kind of a stupid question. Apparently, Tesla sells as many cars as they can produce right now. All of the ordered car sell for msrp. And, I guess, people are happy to pay that. However, there seem to be a lot of used cars at significant discounts to msrp out there will low mileage that seem to sit around for a long time, even though there haven't been THAT many changes to MS in the last 13 months. I know that tesla makes improvements every week - but with that rationale you would be waiting to order a new car forever since once you get it, new stuff has been improved already. So putting that aside, I'm trying to figure out what the deal is with that? Is it more cars are leased rather than purchased? More people want brand new, no matter the cost difference? I, for one, have always purchased new. But, generally, the more expensive the car, the bigger the losses in the first year. So, I need help figuring out what I'm missing? I'm pulling the trigger on a used p85d on Monday (maybe) and want to make sure I'm well informed before hand. Ty in advance!
     
  2. mshuang

    mshuang Member

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    There's something to be said about being able to custom-order the exact car you want. I've always bought new also, and what I got off the dealer lot was always never exactly what I wanted. With Tesla, what you specify is what you get. With the CPOs, generally it's the same case -- they have miles on them, and the exact feature set you want might not be available through CPO. This is especially true of the older MS' available through CPO -- many people traded in their pre-AP for newer cars with AP.

    That said, the CPO is a great way to get your hands on a MS.

    Depreciation is always a factor, and with the CPOs, from Tesla, I think you can still generally get all the tax credits that you would get for buying new.
     
  3. Drumheller

    Drumheller Member

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    The CPOs do not qualify for the federal tax credit. However, some states will offer incentives for both new and CPO cars.
     
  4. chriSharek

    chriSharek Member

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    Sarasota, FL
    Drumheller hits a good point - no federal tax credit on the used ones (that's $7,500).

    Personally, I felt that if I was buying this expensive of a car, I wanted to get EXACTLY what I wanted and not settle for anything. This, coupled with the tax credit, made me go for the new one.
     
  5. JeffS

    JeffS Member

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    Wisconsin
    Depreciation is a function of how long you keep a car far more than it is a function of what you paid for a car. I know everyone knows that, but it is worth saying anyway. We all know how to math it out from there.

    I purchased a 10mos old car that is just wonderful. 80% of what I would have done had I built it myself. Paid $23,000 less than the buyer paid when new. Keeping it for 7yrs (full drivetrain and battery warranty) and 150,000 miles. What it is worth when those miles are done is irrelevant to me. But that's just me.

    These cars are expensive to drive if you flip them every couple of years. More than $1 a mile for the first 30,000 miles or so. After that, they seem to settle down to about 1/2 that through 80,000 miles or so. And after that, there appears to be a price floor of around $35,000 for high miles Teslas. If you buy and hold, you get to enjoy the nearly free miles after 80k.
     
  6. JeffS

    JeffS Member

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    Oh, and if you are going to buy and hold, there are options you don't want. Opinions vary on what those are, but in my opinion those include air suspension and pano roof. Out of the bumper to bumper warranty, those are vulnerable expensive systems to maintain and fix. Just my opinion. But thought I would add it in. If you are OK with $1.25 a mile depreciation and plan to flip in 2yrs...then this doesn't matter...to you...
     
  7. There are a ton of factors to consider in decision like this for us is came down to which variant of MS you want. My wife wanted an 85D which are nearly non-existent on the used market so new was the only option and has been pointed out she got exactly what she wanted. When it came to getting mine I wanted a RWD (since we already had one AWD) and in my budget range meant either a new well optioned 70 or a used p85. I found a low miles P85+ with autopilot for just a bit more than a well optioned 70 so the decision was a no brainier for the used. The downside of getting the used was it had grey interior, I would have gotten tan.

    For a P85D, if they have one that has what you want, used seems like the reasonable way to go.
     
  8. Roadrunner13

    Roadrunner13 Member

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    Montreal
    Biggest drawback for me with CPO, no extended warranty available to go beyond the 4-year/80K miles warranty bumper-to-bumper.
    So once the 'new CPO car' warranty is over, you only have the reminder of the 8 years/unlimited miles for drive train/battery.
    Still did not stop me, that's the way I went for a P85D, a CPO instead of a new 85D...with full prior knowledge!
     

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