Why do people purchase CPO vehicles?

[MalcolmmmX]

Hey everyone,

I am planning to purchase the MS soon, so I've been comparing prices between CPO and New.

Now, I don't know if it's just me but CPO vehicles doesn't seems to be much of a bargain when you factor in the the 10K rebate that you get from purchasing the new MS.

What are some reasons that people purchase CPO vehicles when you can purchase a brand new one for only 5K to 10K more?

I feel like vehicles from Tesla do not depreciate much at all or maybe Tesla is pricing CPO vehicles way more than what they should be.

What are your thoughts?

 

[Tam]

...CPO vehicles doesn't seems to be much of a bargain...

I count at least about 8 Model S85 that are $45,000 or less. You don't need tax rebate for that kind of price.

 

[MIT_S60]

Hey everyone,

I am planning to purchase the MS soon, so I've been comparing prices between CPO and New.

Now, I don't know if it's just me but CPO vehicles doesn't seems to be much of a bargain when you factor in the the 10K rebate that you get from purchasing the new MS.

What are some reasons that people purchase CPO vehicles when you can purchase a brand new one for only 5K to 10K more?

I feel like vehicles from Tesla do not depreciate much at all or maybe Tesla is pricing CPO vehicles way more than what they should be.

What are your thoughts?

I had spent many months looking at pricing on CPO's last year before buying a new Model S and had the same thoughts as you. I found that CPO's had more options (like upgraded audio, paint, interior, smart air suspension), but the new cars have more refinements and some features that were options previously are now standard (many features from the original tech package). Ultimately I decided the federal tax credit and state rebate made buying new a much better buy, and couldn't be happier with my decision. AutoPilot 2 is amazing and EAP is worth every penny for my driving. I have driven a few older Teslas (pre-AutoPilot 1), and felt like they were less refined (plus not having Hold mode drove me crazy). Good luck with your decision!

 

[nagypite]

plus -1000$ and free supercharging for referral code

 

[Sir Guacamolaf]

The only reason to purchase a CPO is to get a price break + warranty on a Tesla.
And IMO if you got extended warranty + private sale, you are probably much better off buying a used single owner vehicle from the owner directly, especially if they can produce all maintenance records (that Tesla does not share for CPOs).
Lets not forget, a lot of CPOs are ex-loaners, and usually pretty abused.

 

[croman]

I also found that buying new was far more worthwhile but there is a lot of luck involved either way with a Tesla. New doesn't always mean better build quality.

 

[CKCland]

Two main reasons it makes sense to buy a CPO. The first is you avoid the depreciation and typically get a good deal. The second is because the price point better fits your financial situation or attitude (towards money).

A new Tesla can depreciate as much as 30-40% in the first year. Mine did. I agree with Croman regarding build quality, but obviously the tech on a new car is way more advanced.

 

[Az_Rael]

Hey everyone,

I am planning to purchase the MS soon, so I've been comparing prices between CPO and New.

Now, I don't know if it's just me but CPO vehicles doesn't seems to be much of a bargain when you factor in the the 10K rebate that you get from purchasing the new MS.

What are some reasons that people purchase CPO vehicles when you can purchase a brand new one for only 5K to 10K more?

I feel like vehicles from Tesla do not depreciate much at all or maybe Tesla is pricing CPO vehicles way more than what they should be.

What are your thoughts?

It's all about price. When I was buying, I could have gotten a fully loaded P85 or a new base S60 with no options for the 10k difference. If I wanted the bigger battery new (which I did), the price differential jumped to $20k.

For our recent CPO purchase, the price differential was even more stark: we got a fully loaded 2015 P85D for $75.5k. (We might even be able to upgrade it to an L for $5k, although I haven't verified it's VIN is on that list yet). To buy a "P" car new today you are over $125k! For us, THAT was totally worth missing out on the new features and the biggest battery. I can always pick up a used P100D in a few years at a significant discount once new cars have AP3 and the new interior or whatever else shows up for new Model S's.

 

[KidDoc]

Also not every state has a rebate. The federal applies all over unless you don't pay much income tax.

 

[Pipcecil]

In Texas we don't get any additional rebate over the standard federal. Additionally, in my case, the CPO was much cheaper. I wanted a long range EV to take on trips so I wanted the range of an 85 or more. A new 75D was close enough so new would require a 75D or 90 (the 100's were not out yet). Even a bare bones 75D (at the time) was 80k (it might have been more but it wasn't the 75k it is now). Even with a federal tax break thats still 72.5k or even at today's prices its 67.5k. Completely bare bones. My CPO was basically fully loaded and was 20k lower than today's price WITH tax break taken into account. And for someone like me, the CPO price was actually barely in my price range. A new one - well not so much. Not all of us that own Tesla's make lots of money. What also makes that more difficult, in Texas you have to pay your taxes out of pocket (they don't go into the loan) so a 75k vehicle versus a 48k vehicle makes a big difference on taxes out of pocket.

CPO's allow people like myself to get my dream car. Maybe when I am older and make more money I can afford a new one, but as it stands, the CPO program is the perfect fit.

 

[Buster1]

Similar for me.

A CPO means I can get a fabulous Tesla, and avoid $20k depreciation the first year.

Additionally, the tax incentives aren't incentive enough for me to go new. Let's say I'm looking at a new $70k Tesla and a CPO $70k Tesla (hypothetically speaking). After the purchase, my bank account is $70k lower in either case. Sure, I'll get my tax credit later, but I never really "see" that liquid money. My bank account stays $70k lower in this hypothetical situation.

 

[BoldSharpe]

Additionally, the tax incentives aren't incentive enough for me to go new. Let's say I'm looking at a new $70k Tesla and a CPO $70k Tesla (hypothetically speaking). After the purchase, my bank account is $70k lower in either case. Sure, I'll get my tax credit later, but I never really "see" that liquid money. My bank account stays $70k lower in this hypothetical situation.

By that logic, since my paycheck is auto-deposited every two weeks I don't ever "see" that liquid money either. In all seriousness, the tax credit is real money and should be taken into account during the purchase process assuming you have at least $7,500 in income tax liabilities.

 

[Jashev]

In all seriousness, the tax credit is real money and should be taken into account during the purchase process assuming you have at least $7,500 in income tax liabilities.

Absolutely, however, in my case I am retired and smartly "tax planned" so I don't have any federal tax liability. In that case, the credit is meaningless. Also being older, I don't like taking loans so instead, I buy things with cash and the CPO program provided that opportunity with the peace of mind that a new car warranty provides. 7 months and 10k miles later my car has been pretty much perfect. It had 22k miles when I bought it for $54k. In a few years, I'll do it again and get to play with all the FSD capabilities that everyone keeps complaining don't work well ;-)

 

[iluvmacs]

I just purchased (but have not yet received) a CPO S85 for half the price it was originally. I don't care about the miles on it, and while AP would be nice, it's not worth $25k. I would never be able to justify the price of a new S. We only justified a $40K CPO S because it's basically the same price as the 3 we had reserved, and we get a lot more bang for the buck.

 

[EarlyAdopter]

Similar for me.

A CPO means I can get a fabulous Tesla, and avoid $20k depreciation the first year.

Additionally, the tax incentives aren't incentive enough for me to go new. Let's say I'm looking at a new $70k Tesla and a CPO $70k Tesla (hypothetically speaking). After the purchase, my bank account is $70k lower in either case. Sure, I'll get my tax credit later, but I never really "see" that liquid money. My bank account stays $70k lower in this hypothetical situation.

If you have earned income you can realize the federal tax credit right away by adjusting your W-4 paycheck withholdings to account for the fact you will owe $7500 less when you file next April. Same thing if you pay quarterly estimated taxes.

 

[jddssc121]

If we could fast forward a few years I would gladly get a CPO... the reason I got new this time was I wanted some of those early growing pain build quality issues ironed out....

 

[Chopr147]

Being on this forum I have heard so many members say the same: "I would never spend this kind of money on any other car" That goes for me as well. I never looked into CPO's . The few I did see seemed too high and I liked the facelift so much better anyway.
Add the fact I traded in my Yukon for a decent price and it was a no-brainer. I looked into the BMW 535i which would have been cheaper but after

 

[Happychaos]

I got a CPO for the simple reason that it was a 1 year old car with relatively low mileage for the right price and features (S85, autopilot 1 and rear facing seats). Your mileage may vary but they took really good care of us and while the car isn't new, the folks at West Palm Beach took great care of us. Kudos to those of you who can afford new and I admit I love the look of the facelift models, but for us it made sense, and we love the car so much we're trying to get a second one

 

[Qbenjamin]

in Texas you have to pay your taxes out of pocket (they don't go into the loan) so a 75k vehicle versus a 48k vehicle makes a big difference on taxes out of pocket.

This isn't true, I purchased plenty of cars in Texas and rolled the taxes into the loan for the vehicle.

 

[gaswalla]

If you are looking at a newish car, I agree not much benefit with getting it used.
However, if you are willing to look at a car a couple years old, without the latest tech (autopilot 1 for example), you can get an absolutely amazing vehicle for almost half the price.
Of course, this may not apply to folks who want ap2 and a 100 battery