Super_Popular
Well-Known Member
I would hope so but you would think that the X would have had some of the upgrades or maybe they are going to announce all this stuff and add it to the X as well to help bump up sales?
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Tesla Model S CPO Website - Now Live
- Thread starter Benjamin Brooks
- Start date
I would hope so but you would think that the X would have had some of the upgrades or maybe they are going to announce all this stuff and add it to the X as well to help bump up sales?
Xpress
Member
Yes, agreed. Might be some very annoyed X owners if the battery jumps to 100 or other cool options are added.
I think they'd probably want to standardize on the seats rather than making multiple types so the new ventilated seats in the X would move over the S creating less inventory etc.
I think they'd probably want to standardize on the seats rather than making multiple types so the new ventilated seats in the X would move over the S creating less inventory etc.
Super_Popular
Well-Known Member
My guess in typical Tesla fashion they will come up with the price increase, add some new features and have optional features at the end of the year that will be available to X and S at the end of the year.
Given the lack of 2013s (perhaps permanent loaners now) and generally higher prices of the CPO cars, I do wonder if they are changing their CPO strategy to really be a "The used ones are so expensive, you might as well go new" strategy from here on out. Many car dealers do this same thing with their used car pricing (especially for cars with low miles and only one or two years old as most of the Tesla CPO fleet is). Indeed, Tesla was recently touting how better lease deals were available for new Teslas since they retained their value so well and could thus have higher residuals. This is a way for them to effectively CONTROL the price of used Teslas and thus bump up residuals.
Normally that would sound far-fetched, but as of today their are 294 used Model Ses on Autotrader and 311 in Tesla's CPO program. When you control more than half the total inventory of cars for sale AND are willing to just hold onto them to boost new car sales, you can have an undue influence on the market space. Sure they lose some used car sales, but who cares. As a percentage of their overall sales it is tiny. The fact that we are 3 weeks from the end of the quarter and haven't seen the predicted price drops or push to move CPO cars would seem to further add at least a little fuel to this hypothesis. Indeed, we may not see fire sale pricing of CPO cars until year end when they have to pull out all the stops to "make the numbers"...just like last year.
I understand this strategy, but it is a bit of a bummer for those of us who were hoping to see the prices continue their end of year drop into a territory that was more financially comfortable for us. I'll very likely end up with something else at this point and perhaps "buy back in" when the Model 3 is in full swing in a few years.
Normally that would sound far-fetched, but as of today their are 294 used Model Ses on Autotrader and 311 in Tesla's CPO program. When you control more than half the total inventory of cars for sale AND are willing to just hold onto them to boost new car sales, you can have an undue influence on the market space. Sure they lose some used car sales, but who cares. As a percentage of their overall sales it is tiny. The fact that we are 3 weeks from the end of the quarter and haven't seen the predicted price drops or push to move CPO cars would seem to further add at least a little fuel to this hypothesis. Indeed, we may not see fire sale pricing of CPO cars until year end when they have to pull out all the stops to "make the numbers"...just like last year.
I understand this strategy, but it is a bit of a bummer for those of us who were hoping to see the prices continue their end of year drop into a territory that was more financially comfortable for us. I'll very likely end up with something else at this point and perhaps "buy back in" when the Model 3 is in full swing in a few years.
Not a bad price but no air suspension or premium lighting package.
2015 Tesla Model S 85D at Richard Catena Auto Wholesalers in Teterboro, NJ
2015 Tesla Model S 85D at Richard Catena Auto Wholesalers in Teterboro, NJ
I thought they might've started the "fire sale" earlier in the quarter when I saw the number of vehicles jump from ~90 to nearly 400 on teslainventory.com. By offering them for sale earlier in the quarter they would actually have time to deliver February purchases in March. They've continued to add cars over the past few weeks but the number of available cars has dropped by at least a hundred since the 300+ were added a few weeks ago.
It didn't make much sense to me Q42015 when they added a ton of vehicles with only a few weeks left. There was no way they would be able to deliver all of those CPO/Inventory purchases by the end of the year.
Skotty
2014 S P85 | 2023 F-150L
Huge difference in age before and after purge.
2/11 (before purge)
2016 occurs 0 times
2015 occurs 30 times
2014 occurs 209 times
2013 occurs 173 times
2012 occurs 8 times
2/28 (after purge + inventory fill)
2016 occurs 218 times
2015 occurs 95 times
2014 occurs 49 times
2013 occurs 14 times
2012 occurs 0 times
3/6 (just another data point)
2016 occurs 190 times
2015 occurs 77 times
2014 occurs 39 times
2013 occurs 11 times
2012 occurs 0 times
2/11 (before purge)
2016 occurs 0 times
2015 occurs 30 times
2014 occurs 209 times
2013 occurs 173 times
2012 occurs 8 times
2/28 (after purge + inventory fill)
2016 occurs 218 times
2015 occurs 95 times
2014 occurs 49 times
2013 occurs 14 times
2012 occurs 0 times
3/6 (just another data point)
2016 occurs 190 times
2015 occurs 77 times
2014 occurs 39 times
2013 occurs 11 times
2012 occurs 0 times
Yes, and in type of vehicle offered. Before the purge there were hardly ever any 70D or non-P 90D cars offered. Then in one day, they added hundreds of CPO 70D and 90D cars. :smile:
Drucifer
Active Member
In all honesty, it does make more financial sense to sell the newer ones and put miles on the older ones as service loaners and general "fleet" vehicles, regardless of strategy. Long term, it would make more sense to have a range of age/mileage/equipment/prices on CPO, if having CPO work well was your goal. It seems like that isn't the goal though.
so where do the CPO cars get reconditioned? is it in Fremont or spread out across the service centers?
this is also an interesting read if no-one has posted it already: Tesla Seems To Be Selling CPOs At A Loss - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha
this is also an interesting read if no-one has posted it already: Tesla Seems To Be Selling CPOs At A Loss - Tesla Motors (NASDAQ:TSLA) | Seeking Alpha
Drucifer
Active Member
Spread out across the service centers. Mostly at the larger centers that have CPO deliveries - but due bill items are at any service center.
Super_Popular
Well-Known Member
Drucifer
Active Member
I see they added a bunch of inventory cars with Slipstream wheels already! Nice.
whoa. That was quick.
dgpcolorado
high altitude member
Perhaps.
For the record: mine was reconditioned at the Washington DC service center and then detailed in Denver before being trucked to my side of the mountains and delivered to me.
mmd
Active Member
Unfortunately, this is a negative aspect of Tesla controlling all its inventory, stores and dealerships. Were there independent dealerships/stores, they would have competed against each other, and the CPO prices would have reflected the market rates.
Tesla: Virginia Dealership Lawsuit is Without Merit - Fortune
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HankLloydRight
No Roads
I looked into it, and that's just what happened.
It was listed first on 2/25 for CAN$183,150
And then on March 1st, the price was adjusted to $131,500.
Not much else I can tell you.
Tesla can control the used car prices only to some extent short term. Ultimately it will be dictated by market conditions, and the prices will reflect what people are willing to pay.
So there is nothing unfortunate about what they are doing now, and adding dealership into the equation will only move the slim profits to the dealers instead of Tesla. And why would you want that?
So there is nothing unfortunate about what they are doing now, and adding dealership into the equation will only move the slim profits to the dealers instead of Tesla. And why would you want that?
I agree completely and this is something I've said to people lamenting about the lower priced CPO cars essentially being removed from the inventory. At the end of the day the market will set the prices and if the vehicles are priced too high potentially buyers will just wait. It seems they are intent on keeping CPO prices over $60K even for 2013 S85 vehicles when similar cars were available for more attractive prices about a couple of months back.
This just seems like a really poor time to buy a CPO car given the pricing. And perhaps that was their intent in pushing potential buyers to new cars. Not sure if this strategy will succeed as the likely reason someone is looking to buy CPO is to save money, not pay almost as much as buying a new car so I think many will just wait and not buy anything until prices go down.
Putting the lower-priced CPO cars into the loaner/demo pool and keeping the new cars for-sale raises the market price of the remaining CPO and private-sale market. It also tries to drive more new-unit sales rather than seeing people choose CPOs which do not really "count" for the cars sold number which the stock market is closely watching.
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