TESLA - Certified Used Car Sales Program?

[arijaycomet]

I was recently quoted a CPO S85 with 19k mi in the Midwest with tech, pano, air, and sound for $69k... I find it hilarious that so many people are asking way more on autotrader private party!

Something tells me that the CPO program is going to hurt private sales a LOT-- however, given the aggressive trade-in values that Tesla has been offering, and continues to offer with their 3-years guarantee, I have a feeling it will help those of us who trade in for a newer Tesla. Meaning you'll get a good price trading in, but trying to sell private party you may actually take a bit of a loss. That is in contrast to past typical pricing, historically. But who knows... should be interesting.

I have a car, here in the Midwest, that has no air/sound as the car you listed has, but has leather, and my trade-in appraisal value was more than what you have listed-- but it has only 5,500 miles. So the pricing seems fair... I just wonder how much mine will be on the flip side, for sale... as a CPO.

How much do you suppose that car would be worth in 3 years with 80k miles, maybe $40k?

Typically cars in this classification lose about 20% of value their first year, and then about 10-12% each year there after. So it seems proper that a car which was probably $90k new is now $69k (as per PokerBroker's example above) as that is a 25% loss for a car that is about 1.5-2 years old (based on mileage anyhow). In 3 years that car would be as much as 5 years old, so it should be worth about 35% of original value, or $30,000 actually. However, as these cars hold good value thus far, $40k isn't perhaps too far off. Only time will tell, however, as there isn't such a thing as a 5-year old Model S yet...

 

[CHGolferJim]

Typically cars in this classification lose about 20% of value their first year, and then about 10-12% each year there after. So it seems proper that a car which was probably $90k new is now $69k (as per PokerBroker's example above) as that is a 25% loss for a car that is about 1.5-2 years old (based on mileage anyhow). In 3 years that car would be as much as 5 years old, so it should be worth about 35% of original value, or $30,000 actually. However, as these cars hold good value thus far, $40k isn't perhaps too far off. Only time will tell, however, as there isn't such a thing as a 5-year old Model S yet...

Thanks, I'm running numbers on a new 85D vs. CPO 85 (speculated) wondering if it might be sensible to buy a CPO for 3 years then trade-in for a new "~120D" with worked out autopilot, more color options, various tech upgrades. A month ago, an 85D/Pearl/pano/textile/matte obeche/tech was $88 after credit, so $59-$62 after 3 years depreciation using your rates = ~$29 = same as the $69 CPO......hmmmm!

 

[tomas]

Thanks, I'm running numbers on a new 85D vs. CPO 85 (speculated) wondering if it might be sensible to buy a CPO for 3 years then trade-in for a new "~120D" with worked out autopilot, more color options, various tech upgrades. A month ago, an 85D/Pearl/pano/textile/matte obeche/tech was $88 after credit, so $59-$62 after 3 years depreciation using your rates = ~$29 = same as the $69 CPO......hmmmm!

What I'd say (after seeing your posts for a while, Jim) is that you REALLY want a Tesla, you've got the bug. So, when one with spec, milage, and features you want meets your price... you should go for it... look forward to seeing a VIN in your signature soon!

 

[arijaycomet]

Thanks, I'm running numbers on a new 85D vs. CPO 85 (speculated) wondering if it might be sensible to buy a CPO for 3 years then trade-in for a new "~120D" with worked out autopilot, more color options, various tech upgrades. A month ago, an 85D/Pearl/pano/textile/matte obeche/tech was $88 after credit, so $59-$62 after 3 years depreciation using your rates = ~$29 = same as the $69 CPO......hmmmm!

What I'd say (after seeing your posts for a while, Jim) is that you REALLY want a Tesla, you've got the bug. So, when one with spec, milage, and features you want meets your price... you should go for it... look forward to seeing a VIN in your signature soon!

Agree with what tomas wrote ... and I really think Tesla will continue to offer aggressive trade-in offers to keep moving product, and built out their CPO network. So if you buy an inventory car now on a discount and trade it in 2-3 years from now, I truly believe you'll be in a good spot. Actually, if you pay down 10% (using Tesla finance) with the 3-year guarantee that is perhaps your best option. However, leasing is better with inventory cars if you can deal with mileage limits because you put down a few thousand less, you actually tend to pay $100-200 less per month, and you don't have to "wait" for the tax credit (hence the monthly savings). But that is just my thoughts..

 

[Seattle]

If you want to do it before July then Tesla is probably your best bet because they'll probably give you more than you could get in a private sale (unless you find and deal with an out of state sale). You're ultimately competing against a new vehicle sale that has the advantage of the tax credit and no sales tax. The sales tax exemption expires in July but it might be extended in some form (probably limited to the first $40k).

Yes, losing the WA state sales tax exemption after $40k will encourage people to trade in to Tesla instead of private sales at that point.

I found two places in Bellevue area, Platinum Motors and EASMotors that have Teslas for sale. And I'll try them out.

If someone in the Seattle area wants to buy my car before one of these dealers or Tesla gets it, a 2012 S85, 18.5k miles with air, leather seats, pano (but no tech package) contact me asap.

The prices some places are asking are crazy high, its amazing anyone would pay that price. Just do a quick web search to establish reasonable prices, people

 

[MattMDK]

I flirted with the idea of trading in my one year old P85+ with 9000 miles to get the D. Tesla offered $80,000, Carmax offered only $70,000.

 

[ecarfan]

Tesla's trade in offer of $80K for your P85+ seems pretty reasonable. I doubt they could sell it for more than $85K.

The CarMax offer seems absurdly low.

 

[CHGolferJim]

What I'd say (after seeing your posts for a while, Jim) is that you REALLY want a Tesla, you've got the bug. So, when one with spec, milage, and features you want meets your price... you should go for it... look forward to seeing a VIN in your signature soon!

No doubt about it! Finger is twitching on the trigger.......

- - - Updated - - -

Agree with what tomas wrote ... and I really think Tesla will continue to offer aggressive trade-in offers to keep moving product, and built out their CPO network. So if you buy an inventory car now on a discount and trade it in 2-3 years from now, I truly believe you'll be in a good spot. Actually, if you pay down 10% (using Tesla finance) with the 3-year guarantee that is perhaps your best option. However, leasing is better with inventory cars if you can deal with mileage limits because you put down a few thousand less, you actually tend to pay $100-200 less per month, and you don't have to "wait" for the tax credit (hence the monthly savings). But that is just my thoughts..

What I think I've learned from this exchange is that with best available rough estimates of depreciation, there is not much difference in contribution to cost of ownership from depreciation between new and CPO. I did some numbers this morning for first 6 years for both cars, and it was only $8 difference. Have almost decided that at the age of nearly 58, I should go for new and keep it as long as I'm able to drive . My last son is in college, and I'm ready to hit the road!!!

 

[aznt1217]

I was recently quoted a CPO S85 with 19k mi in the Midwest with tech, pano, air, and sound for $69k... I find it hilarious that so many people are asking way more on autotrader private party!

Wow! What year?

 

[bonaire]

Tesla's trade in offer of $80K for your P85+ seems pretty reasonable. I doubt they could sell it for more than $85K.

The CarMax offer seems absurdly low.

CarMax is a public company and seems to offer low values for tradeins and outright buys. I got a low offer from them a few years ago. Never want to use them for anything. They are a used car shop with big buildings and pretty signs. They need to pay for all that stuff plus fund expansion and HQ and make the stock strong.

 

[Cyclone]

CarMax is a public company and seems to offer low values for tradeins and outright buys. I got a low offer from them a few years ago. Never want to use them for anything. They are a used car shop with big buildings and pretty signs. They need to pay for all that stuff plus fund expansion and HQ and make the stock strong.

Much of this will be affected by the local environment and your vehicle. CarMax offered me a very good price for a VW Eos (convertible) in South Florida. I didn't sell with them and instead drove it to NC because cars are typically more expensive there. Never could find anything close to that price. Fortunately, I found a very interested private party buyer to end up at the same price CarMax initially offered me. But a convertible in Miami in October does better than a convertible in Raleigh in October!