electracity
Active Member
But isn't this a matter of incurred depreciation and what the market will pay?
Assuming the wholesaler marks the price of the car up and manages to price it at a point where it will sell, didn't Tesla just loose that delta between the price Tesla sold the car to the wholesaler and the price a consumer paid to buy the car from a wholesaler?
Wouldn't tesla then be forgoing revenue for the sake of trying to artificially hold up the value of a car beyond what the market is willing to pay?
Tesla would steadily accumulate less desirable cars. That looks bad, and is bad for cash flow. Tesla makes a nice margin on the more desirable CPO, and unloads the rest a near cost. Since they took these cars in trade for a new vehicle, it is all good.
Tesla practice is likely industry standard, especially in luxury brands. Neither Tesla or BMW want a huge lot of used cars eating up capital and steadily depreciating.
Every premium car maker will forgo low margin sales to preserve the perception of exclusivity.