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What happened to the cpo inventory?

Discussion in 'Model S' started by Nototrader, Feb 17, 2016.

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  1. NewCow

    NewCow Member

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    Not sure what your budget is, but there's CPO P85 RWD for $67k with lots of options

    85 kWh Performance Model S P27031 | Tesla Motors
     
  2. Bimbels

    Bimbels GoldMember

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    Such despair! I'm sure it's hard, but my understanding is you have to move pretty quick on CPO cars so no guarantee the one you saw was going to still be there by the time you'd saved up. Keep saving...you'll get there! There are new CPOs all the time...and I would expect more as people upgrade to AP and trade in for their Xs. It will happen!
     
  3. Jo-

    Jo- Member

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    I keep hearing this with no proof...in regards to what I'm looking for...a sub 50K MS with RFS. There have been several CPOs fitting those requirements, but I haven't seen them AT ALL anywhere else. I had hoped and planned on buying one in 2016, and still hoping that's the case. I'm starting to regret not purchasing in December when there was a bunch of low-hanging fruit....but, I'll hold off worrying about it for now- it won't do any good.
     
  4. HankLloydRight

    HankLloydRight No Roads

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    But what you said doesn't make any sense:

    If they stopped selling Inventory cars, this would make sense. But instead they pulled 75% of their Pre-owned cars (generally not loaners) and zero of their Inventory cars which are still listed.
     
  5. whitex

    whitex Active Member

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    #65 whitex, Feb 19, 2016
    Last edited: Feb 19, 2016
    What it does give Tesla is the ability to write the cars off their books and add whatever revenue they got for them immediately (for example to help the quarter reporting). The wholesaler can take their time to sell off that inventory, plus they take a risk whether they make any money. Notice also that those cars go out without CPO warranty, so they can sell cheaper. If Tesla would suddenly start discounting CPO's in lieu of warranty, that could hurt their brand. So, maybe the CPO car path is this:
    * CPO lists
    * if CPO doesn't sell, price is lowered
    * Once price is at cost + CPO Warrantly and it still doesn't sell, CPO warranty is removed and the car sold to wholesaler at cost

    The above would seem reasonable for Tesla as a business.
     
  6. calisnow

    calisnow Active Member

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    I brought up the declining CPO inventory weeks ago when it was declining from 600 cars to 400 and everyone on the thread told me there was no trend.
     
  7. MP3Mike

    MP3Mike Well-Known Member

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    That makes since to me for a couple reasons:

    * It is a pain when someone has the car out and someone else buys it. Now you have to get the person that is currently driving it to come back and get a different one. (Someone just recently wrote about this happening to them.)
    * You can rack up mileage on them really quickly. And didn't someone say that they discount the cars $1/mile?
    * General wear and tear.

    - - - Updated - - -

    Maybe they decided to stop using Inventory cars as loaners. Mileage/wear/tear add up too quickly and de-value them.

    I have seen a number of people say that they got CPOs for a loaner.
     
  8. Skotty

    Skotty 2014 Model S P85

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    #68 Skotty, Feb 19, 2016
    Last edited: Feb 19, 2016
    Just to clarify, I thought I was saved up, but it was dependent on getting at least close to KBB trade-in value for average condition on my Volt, which I wasn't able to get. So I paid off the Volt, and now I'm waiting for the lien release paperwork so I can just private party sell it at trade-in value, and my wife and I will just get by on 1 car after the Volt sells.

    (According to KBB, good condition trade-in value is $9357, Private party good condition is $11322, and Private party fair condition is $10500, so I figure I should be able to private party sell it for about $9500 without too much trouble?)

    volt-pp-valuation.png
     
  9. calisnow

    calisnow Active Member

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    The D event was supposed to be about the "D" part - that much was announced ahead of time I think. But the autopilot announcement was completely out of left field if I recall (maybe I don't). I was there at the event and I remember Elon telling the crowd that every car built since October already had autopilot hardware - and then we got to take rides with a section that the car drove itself on, etc. etc.
     
  10. HankLloydRight

    HankLloydRight No Roads

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    Yes, the "D" part was announced ahead of time, but until the event, nobody really knew what it stood for, It was just a teaser from Elon "time to talk about the D".

    Although there was a lot of speculation it was dual motors, but also a lot that it was something else entirely.
     
  11. Drumheller

    Drumheller Member

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    My CPO, delivered three weeks ago, did not come with new tires and the dings on the hood were not fixed.
     
  12. DRasheed

    DRasheed Member

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    I don't have any inside knowledge, but here is my speculation.

    Tesla figured out that warranty coverage of the 2012 and 2013 Model S was too expensive in the later years. When they CPO a 2012 car, they new warranty is covering years 4-8 (or 3-7 for a 2013). This would explain the removal of all CPOs with VIN <20K, and the change in the warranty policy to make the extended warranty non-transferable. Both these changes would minimize Tesla's exposure to warranty repairs in the later years of the early VIN cars.
     
  13. Nototrader

    Nototrader Member

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    Lots of new cars have been removed as well.
     
  14. HankLloydRight

    HankLloydRight No Roads

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    The warranty non transferability was retracted.
     
  15. pchilds

    pchilds Member

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    They had to put a little cream in with the crap to cover up the smell. :wink:
     
  16. Gizmotoy

    Gizmotoy Active Member

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    It wasn't that far out of left field. There had been rumors of autonomous driving work at Tesla for awhile, reinforced by job postings. Then we noticed the sensor changes (the front radar in particular), and started to put it together.

    I think the only part that was surprising was how aggressively they seemed to be pursuing it and how far along they already were.
     
  17. Wshowell

    Wshowell Member

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    Could they building a fleet of loaners out of the older, higher mileage CPO inventory? This way they don't need to loan out newer cars that could command a higher price as new "showroom" cars that could be purchased on the spot. Why open a good bottle of wine when the neighbor next door likes Coors...
     
  18. SabrToothSqrl

    SabrToothSqrl Active Member

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    The bigger question will be repairs over $15k, when the cars bought used for $20k...

    going to to see a huge spare parts market at that point.
     
  19. dennisayre

    dennisayre Member

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    Skotty what kind of Model S are you looking for? I have an S85 CPO that I recently bought I could sell for $54k. It's fully loaded and in great condition with 37k miles. If the warranty transfers and you would like a black S85 it might work out for both of us since I'm itching to have an autopilot 85D.
     
  20. HankLloydRight

    HankLloydRight No Roads

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    I've been thinking about what this could possibly mean by interpreting it with different words.

    If what you meant to say is:

    • Tesla has decided to stop using new cars for loaners, and only use new cars for Demos of current offerings
    • Only Demo cars would be available for sale as Inventory cars
    • Sell off the existing fleet of Inventory Loaner cars
    • Replace loaner fleet with aging, depreciating/non-saleable CPO cars

    Then I can see how that makes sense, but that's not really what you said.
     

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