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TESLA - Certified Used Car Sales Program?
- Thread starter ArtInCT
- Start date
AMPUP
Member
Tesla have taken their time due the trade in values diving the prices down after the D announcement. They will now drive used prices back up with their program, they will have most of the used car market to manipulate this. It's a smart approach to make higher margins.
That's diabolical suspicion. They told me that they had few cars and sold most quickly upon launching offer. That could be because their offers were low and most d buy up people went elsewhere. They are not stockpiling.
For 25% margin, e.g., would need to buy a "2013/2014" that originally sold for $120 at $75, and sell at >$105 if $5 in costs. How many could they buy at that price level, and wouldn't most people prefer to pay $120-$130 for a new car with customized options, all the new tech and tax credit even with a 2-month wait? Might be more viable after tax credits expire, but surely they won't hold the building inventories for 2 years.
dennis
Model S Plaid
Using that logic Tesla would not be able to find buyers for their service loaner pool, which they turn over every quarter. Not everyone has $120K-$130K to spend on a Model S. Plus having a national inventory makes it more likely you can find a used Model S that matches your color/options preference.
arijaycomet
Member
Remember there is also supply and demand to deal with here. Right now the supply of used cars has been limited simply because a LOT Of Tesla owners trade in the newer model. And Tesla hasn't really been selling ANY used cars from trade-in only selling fleet cars (service loaners, demo cars). There have been a few threads/posts on the TMC forums where folks have seen their cars still on-app and able to note the car's location is in a parking lot in California awaiting resale.
One might assume then that Tesla is going to hoard all these cars, retaining them and causing a spike in demand that exceeds supply. This will drive the price of the used market up-- makes me think for a SHORT While that those of us with cars MIGHT be able to sell them private party for an inflated value. But then, they will "burst" that bubble the moment they start selling CPO cars. They will offer this instant demand for cars that are reconditioned, potentially with a longer warranty. That will actually drive the used car costs down-- but again, if they hold MOST of the inventory of used MS cars, they can control the flood to market, and let them out in staggered levels, to maintain value retention.
It surely will be interesting to see how this works. My 2014 had ~1500 miles on it when I purchased in in early December, it was built spring 2014, and my cost was $9,500 off MSRP because of the discount Tesla was offering. So long as they continue to offer that steep of a discount on their in-service cars, the CPO market might be an odd/tough alternative (because those in-service cars are new, and eligible for tax credit that the CPO cars won't be-- making them $7500 less "valuable" to many folks).
One might assume then that Tesla is going to hoard all these cars, retaining them and causing a spike in demand that exceeds supply. This will drive the price of the used market up-- makes me think for a SHORT While that those of us with cars MIGHT be able to sell them private party for an inflated value. But then, they will "burst" that bubble the moment they start selling CPO cars. They will offer this instant demand for cars that are reconditioned, potentially with a longer warranty. That will actually drive the used car costs down-- but again, if they hold MOST of the inventory of used MS cars, they can control the flood to market, and let them out in staggered levels, to maintain value retention.
It surely will be interesting to see how this works. My 2014 had ~1500 miles on it when I purchased in in early December, it was built spring 2014, and my cost was $9,500 off MSRP because of the discount Tesla was offering. So long as they continue to offer that steep of a discount on their in-service cars, the CPO market might be an odd/tough alternative (because those in-service cars are new, and eligible for tax credit that the CPO cars won't be-- making them $7500 less "valuable" to many folks).
Electric700
Active Member
Wow, that is really excellent that they now have a used car program, and a smart move on Tesla's part!
Dennis, agree, just can't see the margin "target" holding unless they can classify various expenses outside the gross margin.
breser
AutoPilot Nostradamus
PokerBroker
Member
Used Model S pricesare going to drop big time this summer as Tesla begins shipments of the S85D and Model X. Used P85s were in the low 70s as those buyers upgraded to the P85D... Tesla better not sit on the used cars they are buying too long or there won't be ANY margin
dennis
Model S Plaid
There is a lot of time (and demand) between now and this summer for Tesla to sell their inventory of CPO used cars.
Clprenz
Member
I just emailed Tesla, Never have gotten official info on CPO or Inventory cars... hopefully I can get some info and know if it's a good deal
SabrToothSqrl
Active Member
I just ordered a CPO car 
it became available literally hours before I called.
6 year, 100,000 mile bumper to bumper warranty
Fully factory reconditioned. Fixed scratches, put on a new nose cone, and fixed any crub rash.
I pick it up the 21st.
it became available literally hours before I called.
6 year, 100,000 mile bumper to bumper warranty
Fully factory reconditioned. Fixed scratches, put on a new nose cone, and fixed any crub rash.
I pick it up the 21st.
I just ordered a CPO car
it became available literally hours before I called.
6 year, 100,000 mile bumper to bumper warranty
Fully factory reconditioned. Fixed scratches, put on a new nose cone, and fixed any crub rash.
I pick it up the 21st.
What's the pricing like one one of these? Do you mind sharing specs and pricing?
How were you able to get a discount. I thought tesla doesn't negotiate pricing
Wow, that's an awful lot of complex, sinister, and risky market manipulation to do for a relatively small amount of return. In light of Tesla's mission, the big potential returns of X, 3, getting China right, etc.... I'm hard pressed to see them spending the cycles to do what you suggest.
I know it seems from forum that EVERYBODY traded in or sold their 85 or P85 to upgrade to D, but I think it's really quite a small % (mostly enthusiasts who are inclined to be active on forum). Of those, judging from anecdote, very few chose to trade in to Tesla because Tesla trade offers were low. Most sold via private sale or to other dealers/wholesalers. So, while used Tesla market increased from almost nonexistent to small as a result of the D (I'm talking 100s not 1,000s), I believe that very small % are Tesla CPO at this time. This myth of stockpiles just doesn't make sense.
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