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Tesla Model S CPO Website - Now Live
- Thread starter Benjamin Brooks
- Start date
Cyclone
Cyclonic Member ((.oO))
Not surprising that as the Model 3 debut approaches, they don't want CPO Model S vehicles within "arm's reach" of the 3, and just move the older/lower priced ones to loaner fleet.
HankLloydRight
No Roads
Usually a day or less. I also have a note into my CPO HQ contact to see what happened, no response yet.
I'm not sure I buy the "permanently moved majority to the loaner fleet" argument.. I suppose it's possible, but that's a ton of cars to move to non-income producing loaners.
Besides, in the past, all loaners were not-yet-sold Inventory cars that were sold off as new to buyers who might wanted one for a discount, while still eligible for the federal tax credit. It was a pretty good program (my car was an Inventory car with 8k miles on it, and was in pristine condition).
Any CPO car-now-as-a-loaner is not an Inventory car available for sale. So that's $15 million of CPO inventory they just absorbed, which they'll never really be able to sell as Inventory OR a CPO down the road. If true, these are now "disposable" Model Ss that will be driven into the ground.
Cyclone
Cyclonic Member ((.oO))
Hank, some locations have been using CPOs as loaners for a while now. That said, they had remained listed for sale.
HankLloydRight
No Roads
I know, but I think that was the exception, rather than the rule (like "oh, we need another loaner today, take one of the CPOs").
But to take 300 cars out of the market just for loaners seems like a harsh decision. But like I said, I guess anything is possible.
Drucifer
Active Member
But to maximize the receipt of Model 3 deposits, they just need to make these cars "disappear" for 2 months or so. If this theory is right, they will all reappear in late April with prices about $2k less than they are now.
Cyclone
Cyclonic Member ((.oO))
This I could see. It would fit the Tesla pattern about being short-sighted in one regard and "visionary" in another. Remove the price-competition of the 3 that very likely would get looked at when the people come into the stores on 3/31, but thereby preventing immediate sales.
I will say it -- 2nd owners of Teslas just are not a primary focus for HQ. They do support them and provide a market for them, but they also make some decisions are that very anti-2nd owner. Maybe not as bad as EVs are to Nissan and Chevy dealers, but we aren't their "first choice" customers. There is a preference to 1st-owners over 2nd-owners, even if it means a 3 in "2017" vs. an S now.
HankLloydRight
No Roads
Eh, the M3 deposits are 100% refundable. Nobody is getting a car for two years. I think there are very very few people who considering the trade off of a MS CPO today, or a M3 two years from now. Certainly not enough to cut CPO inventory by 75%.
What's worse, reporting lower M3 reservation numbers at the reveal, or reporting a mass exodus of M3 deposits when the MS CPOs re-appear and people buy those instead?
Cyclone
Cyclonic Member ((.oO))
If you ask someone in marketing, the will say the latter. You headline "X number of reservations on day 1" and just quietly ignore/not release the stats of those converting to CPOs.
Dynastar
Member
Tesla did beat the "cash is king" drum pretty hard at the last earnings call. I wonder if they took the cars that needed the most reconditioning or were most likely to have warranty issues and sold them all to a wholesaler. 200 cars x $50k (for example) would be a quick $10 mil in the bank.
ArtC
Member
Hank,
How come 134 CPO cars were sold in one day yesterday? Are these cars owned by Tesla or are they on consignment by the original owners?
Thanks
How come 134 CPO cars were sold in one day yesterday? Are these cars owned by Tesla or are they on consignment by the original owners?
Thanks
HankLloydRight
No Roads
No CPO cars are "on consignment".. they're all owned by Tesla.
Also being discussed earlier in this thread (go back a page or two) and also here: What happened to the cpo inventory?
Super_Popular
Well-Known Member
This makes sense. The loaner that I had this week had a lot of miles but had a temp tag in the back window which I thought was odd but clearly they are keeping as I loaner.
Total nut bag, unsubstantiated, blue/pie-in-the-sky reason the CPO's are gone. Tesla will announce a partnership with Apple this weekend and the CPOs are on the way to the largest 300 Apple stores as static displays. It will solve the dealership question and will be coupled with Apple's investment in the current and future gigafactories.
Dream sequence over....please return to your regularly scheduled program.
Whatever it is, hope they resolve soon, driving the X on Wednesday and if I don't pull the trigger, a CPO was plan B.
Whistle2Whine
Member
My own advisor at Buena Park, Colin called me today to say that even their own internal, non public CPO/INV inventory magically vanished a few days back. He claimed to have been given no explanation either. Which sucks because he'd been getting closer and closer to a P85+ w/Parking Sensors for the right price. And if this IS somehow tied to the model 3 release, well then I guess I'm doing the right thing pulling up my plan B to plan A: Lease the Cadillac ATS-V I just drove recently (and loved) until some 2nd hand XP90D's come onto second hand OR whatever the 3Pxx model is at the time. But still...bummer.
HankLloydRight
No Roads
They are barely ramping up Model X production at this point. I highly doubt they are doing this to increase Model 3 demand. If you listened to the last Earnings Call, Elon was quite clear that they did everything they can to not push the Model X until their production ramped up. We are likely at least about 2.5 to 3 years away from a proper ramp up of Model 3 production.
Something else is going on. I know Tesla recently started selling cars in Mexico. Did they figure they can get more for the used Model S cars in Mexico?
Still it seems quite odd that the cars that were removed all pretty much have VIN numbers below 20,000. It's almost as if they did not want to offer CPO warranty coverage for those cars.
HankLloydRight
No Roads
Nope. On 2/17, 133 cars were removed. 35 have VINS less than 20k. The rest have VINs equally distributed between 20xxx all the way up to 77xxx. So that's 20% of the cars removed have VINs < 20k. 80% have higher VINs. Please don't post non-facts.
The exact same distribution holds true for the 135 cars removed on 2/18.
BTW, highest VIN removed: 094411
Zhelko Dimic
Careful bull
Oh, but most people like to think they’re consistent, so once they reserve Model 3 (and commit in their head), it’s much less likely they'll reverse decision. It’s well investigated psychological behavior, starting with Cialdini:
Influence: The Psychology of Persuasion, Revised Edition: Robert B. Cialdini: 9780061241895: Amazon.com: Books
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