Tesla Used Inventory Down 30%?

[Bruin21]

I just searched nationwide and currently Tesla has 23 Teslas scheduled for auction. If you had a couple Tesla vins that disappeared I could tell you if they are actually going to auction. I wouldn’t say this is a big influx because Tesla always has a small number like this going to auction. To put that small number into perspective there are currently 125,789 cars scheduled for auction in the next week or so.

Interested in your thoughts as well as to what’s going on. 485 cars only today.

 

[Pismo]

^ Supply, Demand.

 

[Bruin21]

^ Supply, Demand.

I don’t think it’s that simple. I was following several cars for a week and all of a sudden in one day they all disappeared. Not to mention over a 100 other cars.

 

[spy4007]

I don’t think it’s that simple. I was following several cars for a week and all of a sudden in one day they all disappeared. Not to mention over a 100 other cars.

When so many disappear at once, it statistically should not be demand. Folks do not suddenly buy on a certain day without reason. So this has to be is a supply issue. Which means Tesla pulling cars back for...loaners?

 

[mjptech]

When so many disappear at once, it statistically should not be demand. Folks do not suddenly buy on a certain day without reason. So this has to be is a supply issue. Which means Tesla pulling cars back for...loaners?

Even loaner vehicles are listed for sale... There's one I am interested in, it's on "loan" to someone, but, is still listed for sale. It's a great deal, but, they won't sell it - you'll be told they can't sell it.

I had an overnight test drive vehicle last week, it's listed, and, they use it as a loaner as well.

(for reference, the above two vehicles I mentioned are both Model X)

 

[Sunshine State]

Even loaner vehicles are listed for sale... There's one I am interested in, it's on "loan" to someone, but, is still listed for sale. It's a great deal, but, they won't sell it - you'll be told they can't sell it.

I had an overnight test drive vehicle last week, it's listed, and, they use it as a loaner as well.

(for reference, the above two vehicles I mentioned are both Model X)

Post the vins of the cars that you don’t think have sold and I’ll look to see if they are going to auction. Tesla does sell some cars at auction but there are not that many. There are also cars in the loaner fleet that are not for sale just as there are some new cars that are not for sale. I have looked at new cars that were not for sale before and was told that those cars that are not for sale are listed as "inventory control" cars.

 

[Target]

I am speculating that Tesla is trying to change their process for selling used cars. It makes sense that they would remove them from the listings if they were moved to a new vendor/process and that vendor/process isn't ready for prime time yet. Maybe I am just being optimistic that the process will improve.

 

[David in NC]

I used to look at private party sales quite a bit but have backed off a bit now. When you factor in that Tesla warranty which is over $4K, most private sales are overpriced. It seems private sellers for the most part think their car is worth more than it is. It could be because they're in loans and don't want to be in the negative upon sale. I'm staying away from dealers for the simple fact that I cannot buy a warranty, and going with such a techie car, I need that piece of mind.

and private sellers do not seem to be accounting for the tax credit they took
some want lease takeovers without them taking a penalty for depreciation, they want you to just pick up their lease no different than you can do new

 

[Bruin21]

I am speculating that Tesla is trying to change their process for selling used cars. It makes sense that they would remove them from the listings if they were moved to a new vendor/process and that vendor/process isn't ready for prime time yet. Maybe I am just being optimistic that the process will improve.

Bad time for people like me who missed the bus last week when there were a ton of cars. I guess just have to wait it out for another couple of months and see if these June leases come in.

 

[Sunshine State]

and private sellers do not seem to be accounting for the tax credit they took
some want lease takeovers without them taking a penalty for depreciation, they want you to just pick up their lease no different than you can do new

If a car was ordered at MSRP the lease payment will now be too high to buy out without being seller subsidized. Only the heavily discounted end of quarter lease cars will now have leases that make buyouts reasonable. The last round of end of quarter discounted vehicles couldn’t be leased because of the difference between the original MSRP and the adjusted new pricing. When I say too high I mean too high for someone who understands the value of the car, you can never say never though because there is sometimes someone somewhere willing to overpay.

 

[Bruin21]

Looks like prices are significantly higher on the cars now also. For instance, an almost identical car to the one attached last week sold for $51,400. That car though had AP activated, Next Gen seats, and less miles. This one has no AP software, fabric seats and more miles.

Looks like they’re trying to drive prices up and frankly over pricing them. Time to sit back and wait it out.

 

[Cookie-Monster]

Its getting ridiculous now. I planned on purchasing a used P85D on July, but now that plan went down the drain. guess we have to wait it out

 

[Pismo]

Looks like they’re trying to drive prices up and frankly over pricing them. Time to sit back and wait it out.

I see some small changes, but overall the same. For example, the 75 w/updated front are still in Mid-Upper 40s and the 75D - Low 50s, and you get occasional upper 40s.

The issue I come accross is just it not having one of the main features I want. Either 75D - no SAS, or has SAS but is 75S, or even 75D w/ SAS, but body color roof. .... Soon enough though

I finally began tracking prices in late March.
75S increased from 8 to 25
75D increased 7 to 14, but median stayed same $54k - did have 2 cars at $45 + 47.5k
85D (with SAS, Next Gen, AP1 & 4yr) decreased 80 cars to 25 and median down $2k (lowest listing at 41k)
70D (with SAS, Next Gen, AP1 & 4yr) decreased 35 cars to 17 and median down $2800 (lowest listing $36,400)

 

[Bruin21]

I see some small changes, but overall the same. For example, the 75 w/updated front are still in Mid-Upper 40s and the 75D - Low 50s, and you get occasional upper 40s.

The issue I come accross is just it not having one of the main features I want. Either 75D - no SAS, or has SAS but is 75S, or even 75D w/ SAS, but body color roof. .... Soon enough though

I finally began tracking prices in late March.
75S increased from 8 to 25
75D increased 7 to 14, but median stayed same $54k - did have 2 cars at $45 + 47.5k
85D (with SAS, Next Gen, AP1 & 4yr) decreased 80 cars to 25 and median down $2k (lowest listing at 41k)
70D (with SAS, Next Gen, AP1 & 4yr) decreased 35 cars to 17 and median down $2800 (lowest listing $36,400)

Is this for the older look cars? For facelift models I’m seeing it drastically different. I’m also seeing less cars on the west coast, less next gen seats, and less of the popular colors.

 

[Zishan]

I was thinking about this the other day….the reduction in used inventory. And I thought to myself, maybe Tesla heard us. Since everyone was complaining (me included) about their poor used sales experience, they have essentially outsourced (auctioned to private dealers) a portion of the inventory. Those used dealers typically refurbish (or hide and market well) their cars and take care of the customer service, financing, etc. etc., which Tesla has struggled to do. But at the cost of the Tesla warranty and at a premium price. Just thinking out loud. I'm still hoping to find something that pops up in Tesla's used inventory that ticks my boxes. Fingers crossed.... I hate being patient.

 

[Sunshine State]

I was thinking about this the other day….the reduction in used inventory. And I thought to myself, maybe Tesla heard us. Since everyone was complaining (me included) about their poor used sales experience, they have essentially outsourced (auctioned to private dealers) a portion of the inventory. Those used dealers typically refurbish (or hide and market well) their cars and take care of the customer service, financing, etc. etc., which Tesla has struggled to do. But at the cost of the Tesla warranty and at a premium price. Just thinking out loud. I'm still hoping to find something that pops up in Tesla's used inventory that ticks my boxes. Fingers crossed.... I hate being patient.

I have watched auction sales and your theory is incorrect, there haven’t been many Teslas auctioned and no uptick in auction volume of Tesla cars. Tesla currently has 9 Teslas heading to auction in the entire US. There are another 4 Teslas going to auction in Canada. To put that number in perspective BMW has 1,471 and Mercedes around 1,000 factory cars going to auction this week. Teslas MO is not auctioning cars.

 

[Zishan]

Sorry, wasn't stating facts, I thought I had read that maybe Tesla had sent a large number of cars to auction. I don't keep up with the auctions, but I have also sent a significant reduction in inventory, as it relates to my searches. Maybe a large number did sell all at once. Again, just speculation on my part.

Anyways, I was just thinking out loud, what if our complaints bite us in the butt.

Oh well, I'll try not to theorize too much, as I anxiously wait for my used Tesla to pop up.

 

[nightfly]

You guys are over thinking this. Tesla is simply pulling stock: some for internal uses; the bulk probably just to be relisted later. More supply, lowers prices that is a fundamental fact. If you control the bulk of the supply, false scarcity can help get older models sold off and get better prices. Only if and when Tesla is motivated to move stock will they be forced to both increase supply and lower prices to move them.

There's two primary factors driving demand/price for CPOs down: upcoming S & X refresh and M3 being cheaper with latest tech. Not to mention Y coming around at similar price points to current S. There's some cannibalization going on which is not a + for Tesla.

 

[Bruin21]

You guys are over thinking this. Tesla is simply pulling stock: some for internal uses; the bulk probably just to be relisted later. More supply, lowers prices that is a fundamental fact. If you control the bulk of the supply, false scarcity can help get older models sold off and get better prices. Only if and when Tesla is motivated to move stock will they be forced to both increase supply and lower prices to move them.

There's two primary factors driving demand/price for CPOs down: upcoming S & X refresh and M3 being cheaper with latest tech. Not to mention Y coming around at similar price points to current S. There's some cannibalization going on which is not a + for Tesla.

I do agree with this. They're pulling back stock to drive up price and also get rid of some unwanted stock. When the consumer sees such a drastic decline in inventory, sometimes the reaction is "I better take what's available before they get rid of those too." Holding out will never hurt in my opinion.

 

[PDACPA]

I have been watching the Model S used cars on Tesla's site for a few months and could rarely find a facelift model. In the past day or two, I have seen quite a few now on the used inventory list. I am not sure why the number of available cars has dropped (perhaps to create low supply and move old inventory), but I am glad to see the facelifts showing up as their 3 year leases are ending (think April 2016 was when the facelift came out). My pure guess is that as these facelift models hit the used market, the original nosecone cars are going to have to drop in price as the newer facelift is going to be more desired so they were trying to control supply before the facelift models hit the used market.