Selling a Tesla just got a lot harder

[Buddyroe]

With Tesla now offering 50-80k mile cars for $40-45k (with a 2 year, 100k mile warranty), it's going to be tough for people selling their 50k+ mileage cars for much above $35k. I guess Tesla is trying to shift some of the M3 demand to a used MS. Smart on Tesla's part, but not real good for the resale value of the current owners' cars.

 

[thefortunes]

With Tesla now offering 50-80k mile cars for $40-45k (with a 2 year, 100k mile warranty), it's going to be tough for people selling their 50k+ mileage cars for much above $35k. I guess Tesla is trying to shift some of the M3 demand to a used MS. Smart on Tesla's part, but not real good for the resale value of the current owners' cars.

Agreed that Tesla just dropped the price floor for a used Model S by about $5k.

One clarification, however. It isn't a 2 year, 100k mile warranty - it is a warranty up to 2 years or 100k miles on the odometer, whichever comes first.

 

[slipnslider]

Welcome to the world of first-owner EV driving.

As a lifelong member of the second-owner club, we thank you for your willingness to experience massive depreciation.

The more technology musk packs into these cars, the faster they will depreciate.

 

[Buddyroe]

One clarification, however. It isn't a 2 year, 100k mile warranty - it is a warranty up to 2 years or 100k miles on the odometer, whichever comes first.

True. And thanks for pointing that out. But, does that really need to be said? When you buy a new car and they give you a 4 year, 50k mile warranty, don't most people know what that means? Sure the contract says that, but most people and most advertisements say 4 year, 50,000 mile warranty, or 10 year, 100,00 mile warranty and people simply know that it means "whichever comes first."

 

[Buddyroe]

Welcome to the world of first-owner EV driving.

As a lifelong member of the second-owner club, we thank you for your willingness to experience massive depreciation.

The more technology musk packs into these cars, the faster they will depreciate.

Who are you thanking? I don't even own a Tesla yet. So I am actually quite happy.

I am looking at this car though.

2013 CPO

 

[Saghost]

True. And thanks for pointing that out. But, does that really need to be said? When you buy a new car and they give you a 4 year, 50k mile warranty, don't most people know what that means? Sure the contract says that, but most people and most advertisements say 4 year, 50,000 mile warranty, or 10 year, 100,00 mile warranty and people simply know that it means "whichever comes first."

I think it's an important point to note, because it's a big change to the CPO program. The previous, low mileage CPO cars are sold with a 4 year, 50,000 mile warranty *from the mileage when you buy it* - four more years, 50,000 more miles.

As the post you quoted notes, the new bargain set are 2 more years, but up to 100k total miles instead, independent of the mileage at purchase.

 

[thefortunes]

True. And thanks for pointing that out. But, does that really need to be said? When you buy a new car and they give you a 4 year, 50k mile warranty, don't most people know what that means? Sure the contract says that, but most people and most advertisements say 4 year, 50,000 mile warranty, or 10 year, 100,00 mile warranty and people simply know that it means "whichever comes first."

Yes. These are CPOs, not new cars.

There is a BIG difference between a 2 year and 100k mile warranty vs one that STOPS at 100k miles on the odometer. That may only be good for 10k-20k miles on some of these cars!

 

[kort677]

With Tesla now offering 50-80k mile cars for $40-45k (with a 2 year, 100k mile warranty), it's going to be tough for people selling their 50k+ mileage cars for much above $35k. I guess Tesla is trying to shift some of the M3 demand to a used MS. Smart on Tesla's part, but not real good for the resale value of the current owners' cars.

that is how free markets work, it sucks if you have a car that is that age but there is little that can be done about it.

 

[Buddyroe]

I think it's an important point to note, because it's a big change to the CPO program. The previous, low mileage CPO cars are sold with a 4 year, 50,000 mile warranty *from the mileage when you buy it* - four more years, 50,000 more miles.

As the post you quoted notes, the new bargain set are 2 more years, but up to 100k total miles instead, independent of the mileage at purchase.

Great point and I stand corrected.

 

[roblab]

Somewhere down the road, literally, people will stop thinking about how many "miles" are on a car, because they will all be electrics. The drive train on a Tesla is guaranteed to infinity, and the battery "8" years, the costliest thing to replace. So why don't we talk years? This is not an old oil burning car with a thousand moving parts wearing out even when sitting still at a stop light. Even the brakes don't wear out at anything near the normal rate.

My car has 45,000 miles on it. My old one had 82,000 when I sold it. Both are still like new. And I can still beat the $400,000 Bentley in town. Woohah! And mine's bigger inside.

Buying a used Tesla is almost comparable to buying a new one, except for the tech advances. How can you tell the differences? Of course, if people are willing to take less because of mileage, hey, take advantage!

 

[cwerdna]

The drive train on a Tesla is guaranteed to infinity,!

No it's not. It's the same as the battery warranty, which on currently sold as new models is 8 year/unlimited mileage. So, it stops at the 8 year mark.

On the 60 kWh models, the battery warranty and thus the DU warranty is 8 years/125K miles. You can see the battery warranty at https://www.tesla.com/sites/default.../model_s_new_vehicle_limited_warranty_2.1.pdf.

My car has 45,000 miles on it. My old one had 82,000 when I sold it. Both are still like new.

Some folks have been thru multiple DU replacements. Edmunds had 3 within ~30K miles (noise, total failure then noise again). I think the record here is someone on their 8th DU. Here are two folks in that boat.

6th drive unit replacement and more
Drive Unit Replacement Poll

There are some other items that could fail, (some pricey) like water pumps, OBC, the center stack LCD unit, and the door handles. See Model S Not Ready For Commercial Use Prime Time. Can I afford to own this car?.

 

[OBX John]

You know, I'm totally fine with it. I want more people to be able to drive a Model S. I'll suffer the burden of driving a new Tesla every few years to help supply the CPO market...

 

[tekdemon]

Yeah, I've been poring through the new CPO listings and there's a surprising number of 2014's for under $50K, it seems like only the cars with AP1 and optimally the ones with AWD have managed to keep more of their resale value. Anybody who has a 2014 or older without AP1 just took a big hit on resale. Tesla seems to have even undercut wholesale auction prices on these cars.

 

[kort677]

No it's not. It's the same as the battery warranty, which on currently sold as new models is 8 year/unlimited mileage. So, it stops at the 8 year mark.

On the 60 kWh models, the battery warranty and thus the DU warranty is 8 years/125K miles. You can see the battery warranty at https://www.tesla.com/sites/default.../model_s_new_vehicle_limited_warranty_2.1.pdf.

Some folks have been thru multiple DU replacements. Edmunds had 3 within ~30K miles (noise, total failure then noise again). I think the record here is someone on their 8th DU. Here are two folks in that boat.

6th drive unit replacement and more
Drive Unit Replacement Poll

There are some other items that could fail, (some pricey) like water pumps, OBC, the center stack LCD unit, and the door handles. See Model S Not Ready For Commercial Use Prime Time. Can I afford to own this car?.

hasn't the DU issue been fixed in the newer cars? I had a DU replaced in my '14 but now with over 20k miles on my '15 I haven't had that issue, yet.

 

[nowtleft]

I just got a 2½ year old P85 with 30000 miles on clock in UK for £57k. It has every extra on apart from rear kids seats BUT I see no reason to change it for years (10 plus) as there is so little to go wrong with it and it is so advanced. Apart from flying what else could it do?

 

[jelloslug]

No it's not. It's the same as the battery warranty, which on currently sold as new models is 8 year/unlimited mileage. So, it stops at the 8 year mark.

On the 60 kWh models, the battery warranty and thus the DU warranty is 8 years/125K miles. You can see the battery warranty at https://www.tesla.com/sites/default.../model_s_new_vehicle_limited_warranty_2.1.pdf.

Some folks have been thru multiple DU replacements. Edmunds had 3 within ~30K miles (noise, total failure then noise again). I think the record here is someone on their 8th DU. Here are two folks in that boat.

6th drive unit replacement and more
Drive Unit Replacement Poll

There are some other items that could fail, (some pricey) like water pumps, OBC, the center stack LCD unit, and the door handles. See Model S Not Ready For Commercial Use Prime Time. Can I afford to own this car?.

The battery/DU warranty was retroactively upgraded to unlimited miles years ago.

 

[jim5359]

With regards to the warranty, Tesla offers an Extended Service Agreement that is transferable. So if you purchase the ESA you can sell your Tesla privately and offer essentially the same warranty as a CPO vehicle.

 

[CalBlue 85D]

The battery/DU warranty was retroactively upgraded to unlimited miles years ago.

Unlimited miles during those eight years, then it ends.

 

[Raincloud]

I was planning to lease it but then figured out the Tesla lease is so expensive that it is better to buy it. On a $100,000 MX (before Federal Tax credit), I would have paid around $63,000 over a period of 3 years. I figured if I buy it, at the end of three year, with 40,000-45,000 miles, I should be able to sell it for more than $30,000.

 

[slipnslider]

S

The battery/DU warranty was retroactively upgraded to unlimited miles years ago.

So Telsa will replace any and all drive units whenever they go bad, FOREVER?