thegruf
Active Member
car dealers mostly the same imo; take non-same brand car as p/ex and send to auction via intermediary, so to cover costs you have trade price (ex auction) less auction fees, less intermediary fees.
The one difference is that Tesla won't keep any of the p/ex cars as they have no forecourt to sell them, whereas most dealers will keep the better ones and get some more back that way.
The problem for Tesla as a manufacturer taking their own cars back is that they make 20-30% on a new sale so expectations are similar for a used sale, whereas a dealer typically works off tighter margins but with target related bonus.
One additional point is that dealers will also offer a great p/ex price (but not discount the new car), or offer a great discount on new so you dont care the p/ex price is mediocre.
As Tesla rightly don't discount new (except when they screw the market up completely with massive price changes themselves) their sales team's hands are tied.
It's not quite that simple but that is the gist of it.
The one difference is that Tesla won't keep any of the p/ex cars as they have no forecourt to sell them, whereas most dealers will keep the better ones and get some more back that way.
The problem for Tesla as a manufacturer taking their own cars back is that they make 20-30% on a new sale so expectations are similar for a used sale, whereas a dealer typically works off tighter margins but with target related bonus.
One additional point is that dealers will also offer a great p/ex price (but not discount the new car), or offer a great discount on new so you dont care the p/ex price is mediocre.
As Tesla rightly don't discount new (except when they screw the market up completely with massive price changes themselves) their sales team's hands are tied.
It's not quite that simple but that is the gist of it.