I asked two OAs at different stores and got the same response that the CPO inventory is what we see online. No other un-listed hidden cars.
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Tesla Model S CPO Website - Now Live
- Thread starter Benjamin Brooks
- Start date
I asked two OAs at different stores and got the same response that the CPO inventory is what we see online. No other un-listed hidden cars.
freeewilly
Member
Not true, there is always un-listed hidden cars. I asked a few local OAs and got the same response as yours. I learned who is willing to check un-listed cars from TMC, and got a CPO from him.
/chuckle
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The goal might be to set the CPO market price. More specifically, if the "will sell" CPO market prices need to be lowered below some internally decided limit they might just pass them off to standard used car outlets. This also means that such cars don't have a warranty from Tesla's perspective -- another potential $ impact.
I still think any attempt to set and artificially manipulate the price of the used car market will fail.
Though we are all sold on the EV concept, not everyone else is. While most of us here are only open to buying only a full EV others will shop around in the premium car segment. If someone can buy a 2 year old S Class with better interior amnesties for $10-15K less than the cost of a used Model S, they might just buy an S Class. While no Model S, the S Class is not entirely a shabby ride and this is what CPO Model S vehicles will compete with to some extent. Others may just sit out and wait for the prices to come down or the Model 3 to come out.
Almost always artificially trying to set prices that are best left for the open market to set never end up well. A used car is only worth what people are willing to pay for one. Artificially increasing the price, if that is what is happening, is likely to get many to pay more for a used car than what they want to pay.
I also don't think offloading these cars to used outlets will work that well as price conscious used car buyers may balk at buying such an expensive car that only Tesla can work on without a warranty.
Cyclone
Cyclonic Member ((.oO))
But there is a psychological difference here that the bolded part really touches on. Tesla cannot really dictate the used car price, as that is market dictated. However, they do have control over CPO pricing as they hold the monopoly on extending that warranty. Thus, it looks like Tesla has decided that it wants the price of that warranty to be high and thus, CPO cars are premium priced. Anything less expensive will have to go through a 3rd party without the Tesla warranty. Couple this with making the ESA harder to buy, Tesla is effectively controlling the price point of cars that have a "long-term" Tesla Warranty. Sure there are workarounds (like buying private party and having that owner buy the ESA and xfer to the new owner), but by-and-large, the Model S now falls in three categories:
- New $$$$ w/ 4 year/48k mile bumper-to-bumper warranty
- CPO $$$ w/ 4 year/48k mile bumper-to-bumper warranty
- Used $ w/ remainder of original warranty
* with the occasional Used + ESA (maybe $$ ?).
From here, whatever doesn't sell at the premium prices, rather than reduce the price, Tesla just seems more apt to move the car to the loaner fleet. As they grow, they will likely need more loaners, so they are sacrificing lower-cost CPO sales rather than providing more inventory to have inventory discounts.
Again, you're making an assumption / drawing a conclusion. Tesla is in control of what prices they offer for CPOs. That might have an influence on the overall used car market or not. If it does, that still doesn't imply that Tesla has intent behind whatever impact that makes.
I also wonder if the CPO cars are interesting for foreign destinations. For example - China and Norway are both LHD countries. Importing into Norway is a no-tax situation for used EVs. CPOs could do well there. As would in China as lower-cost cars. Then having no CPO cars here in the USA would actually help the used private-sale market. While moving current CPO out of the way as new off-lease cars come in from the fleet of 2013 started 3-year leases.
But then they bring a 20k miles used car to near new condition that you can't tell the difference. And if you add the full 50K mile + unlimited battery warranty on top of that, it is as good as new. So in an ICE if it depreciates 30%, it is only fair for a Tesla CPO it can demand a depreciation of only 15%.
An ICEv wears a lot more compared to Model S at 20K miles.
An ICEv wears a lot more compared to Model S at 20K miles.
In theory. But I still don't buy the argument that an EV depreciates only half as much as an ICE. If for no other reason than the rapid pace of innovation and improvement we will see.
Until we see Consumer Reports data showing otherwise at the moment reliability is worse than average.
They don't add a 4 year warranty. They top off the existing warranty to 4 years. So if you buy a 2015 CPO, they are essentially only "adding" one year of warranty. Other manufacturers CPO warranty adds to the factory warranty while Tesla replaces it.
freeewilly
Member
I bought a 2014 Nov built RWD S with AP, and there has been no innovation between now and then that I really care about.
On the warranty they give you a 4 year, 50k miles from the date of the CPO purchase. Which is exactly one gets when they buy a new car - 4 year, 50k miles from the date of the purchase.
Xpress
Member
New theory -
Load up the CPO site with INV cars prior to April 1 when the 100D and other new features are announced. Better to sell these 'old' cars as quick as possible because there will a strong draw toward new features (100 battery, new seat from X, auto doors from X, etc.) on the new cars and these INV cars will be harder to sell.
Load up the CPO site with INV cars prior to April 1 when the 100D and other new features are announced. Better to sell these 'old' cars as quick as possible because there will a strong draw toward new features (100 battery, new seat from X, auto doors from X, etc.) on the new cars and these INV cars will be harder to sell.
mmd
Active Member
I was looking at the remaining 38 CPOs in US. Almost all (35/38) have a little triangle next to them, indicating price drops. This one below went through $30K price drop, still no takers. Looks like a good deal to me with such a big drop. Just wondering, if the interest in CPO cars has decreased, now that the first wave of buyers already bought last year. Any insights from the experts?
I was also surprised to find 9 Model X already on ebay, and rarely reaching their reserve price.
Tesla: Model X P90D FOUNDERS EDITION
I was also surprised to find 9 Model X already on ebay, and rarely reaching their reserve price.
Tesla: Model X P90D FOUNDERS EDITION
Super_Popular
Well-Known Member
Personally, I am not buying another Tesla until there is changes to the S. Wither that is in a month, 6 months or later. I feel that Tesla may do some changes to the S soon and that will be it for a few years so they can focus on the 3. I am hoping they announce changes with the 3 launch. The price for the CPO's to me is not worth it, I would rather just buy new.
Zaphod
Galaxy President (former)
I won't claim to be an expert, but my take is that the market for $70K+ used cars is quite limited, and even more so who are looking at Teslas. The sweet spot I believe was in the low $50s to mid $60s. Plus with 70/70D inventory cars for not much more, that might be more appealing. And as someone else mentioned, no AP hardware can be big detractor.
I really think they are pushing inventory cars for sales this quarter. Once the quarter is over I suspect (and hope) more attractive CPO offerings will come back.
SmartElectric
Active Member
Thanks to Hank's historical reports, I've seen a goodly number of inventory cars with prices reduced by more than $30K (Canadian dollars), some as much as $50K based on the posted prices on Tesla's CPO/INV web site. The vast majority of INV cars show little or no price reduction. This is a mystery....
I would say the CPO program is dead as Hank's ev-cpo.com hasn't shown any new CPOs for over three months. Unlike traditional dealers Tesla makes more money from selling new cars than used cars. Many also think the current CPO sales model is a money loser. My current theory is trade in and off lease cars are being sent to auction. Sending them to auction is likely better for marketing as more people are exposed to the brand. I don't see any reason why Tesla would stockpile them.
I'm not sure if the large number of inventory cars is a good thing or a bad thing. Many people like test driving the actual car they're going to buy. Looking at VINs 129001 to 130000 the inventory production is greater than 11% (ev-cpo.com US and Canada current listings). I'm not sure how many more cars the Historical data would add. Also some of the cars in that range are likely still in shipping.
I'm not sure if the large number of inventory cars is a good thing or a bad thing. Many people like test driving the actual car they're going to buy. Looking at VINs 129001 to 130000 the inventory production is greater than 11% (ev-cpo.com US and Canada current listings). I'm not sure how many more cars the Historical data would add. Also some of the cars in that range are likely still in shipping.
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