TESLA - Certified Used Car Sales Program?

It is absolutely coming. Fact.

ArtInCT said:

Do you think that TESLA should have a Tesla Certified Used Car sales program?
Such a program would bolster the brand name and also open the secondary market to a new strata of potential owners.
Thoughts?

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Tesla has already been accumulating inventory for this purpose. Just waiting to see when it will be launched and what will be the flow of the cars around the country. Will they all go home to California first for reconditioning?

Correction: it exists, was launched last Monday. I'm at sales/svc center getting aligned so I asked.

200 point check, anything below standard fixed, warranty extended by 2 years. Sitting next to sales guy, any more questions?

For that matter are they going to show CPO inventory on the website like they did with the roadster or is this going to be like inventory cars where you have to ask a sales guy.

tomas said:

200 point check, anything below standard fixed, warranty extended by 2 years. Sitting next to sales guy, any more questions?

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Can you (will they let you) post some examples with list of options and price? I'm curious how much more they are charging over typical pricing in the used market.

Will not be posted on site. In US can sell any car from anywhere. Call sales rep for pricing examples.

ArtInCT said:

Wow that is some news! Flank and Tomas, do you think these cars will be "reconditioned" and retrofitted or sold as is.
Sold "as is" appears to be the typical method in the industry....

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Sold as is would NOT be the typical method of a "certified pre-owned" program. That's the difference between CPO and just any used car.

What do we figure the convenience, immediacy, inspection/refurbishment, and warranty extension would be worth vs. open used market? $10-$15k?

hmm....wonder if this will be advertised soon, curious to see what the figures would be. Also warranty 2 years is on top of the 4 years i assume?

Two years extension on the original warranty... Not a new warranty + 2 years

PokerBroker said:

Two years extension on the original warranty... Not a new warranty + 2 years

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Yes. That's what I meant

The economics of a Tesla CPO program are very interesting IMO. This is a corporate (as opposed to dealer) program. That means that the sales price of the used Tesla goes to the Revenue line and the trade-in price + any repairs/upgrades goes to the Cost of Goods Sold line. Tesla has guided the analysts to 25+% gross margins. Question: How do you make that kind of margin on used cars? Answer: Buy low and sell high. Buy low explains the lowball trade-ins that everyone has seen recently. Sell high means they will need to make the used cars attractive through extended warranty, national inventory database to match the buyers desired configuration, etc.

Tesla bought my car back last October. It was a loaded P85. My guess it will be for sale around $99500.00

It was shipped back to California to be sold once the program starts.

If your serial number was 49509, it is for sale at $98,009

Nope.

57229

Same Tesla bought my 2 month old S85 with 2635 miles on it in November and shipped it back to Fremont. I'm assuming it's going into the CPO program.

Whoever buys the car is getting a pretty good deal with an extra 2 years of warranty since they're only losing maybe 6 months. The car was tinted, had paint protection film and opticoat on it. So even if they pay close to what a new one costs they're probably still getting a pretty good deal. However, there's no way Tesla is going to clear a 25% margin on my vehicle. They paid way too much for that. But I don't think they paid me a normal value considering what I got out of them.