We've had a lot of discussion lately about various CPO, warranty, service and other policies and I thought I'd share some thoughts about what I think would be helpful for customers as well as Tesla in the long-term.
I don't think these are unreasonable requests given that they each represent what you can expect from a car dealer.
For now Tesla has the premium EV market to themselves but these points I've mentioned are going to matter to customers sooner or later when they have more competition. It's better for Tesla to address some of these concerns now, rather than when they have 2X or 3X more cars (and customers).
I still consider Tesla to be the world's finest car company and the Model S is without a doubt the best car available to buy at any price but I think some policies can be made better for customers, and that will be better for Tesla in the long term.
- Be particular about which cars qualify for CPO. If a car is not in perfect condition, auction it off. It seems the vast majority of the CPO cars are in great condition so I don't think this is an endemic issue but news about Cyclone's car and what he's going through is distressing.
- Certify a car BEFORE it goes up in the CPO database. Take pictures of the actual car so a potential buyer can see photos of the actual car they are about to buy, including photos of each of the wheels. Stock photos of the car are pointless.
- A certified car should mean the car has been thoroughly checked out including the paintwork and Tesla should stand behind the car, shoddy work by the previous owner included. The whole point about buying a Certified car is knowing that the car has been thoroughly checked out and the manufacturer will stand behind the car being sold. If this means a higher price, so be it.
- Be transparent about the CPO cars you sell. List the in service date along with the service history for the car. I can't imagine buying a used car without seeing the car's history. Knowing the car's service history is the most basic critical bit of information to look at in buying a used car.
- There have been reports of Tesla owners being refused to see the service histories of their own vehicles. This is just wrong on so many levels.
- When you buy a Mercedes CPO car you can request to see the VMI (Vehicle Master Index) that shows all service records. The same goes for just about any other car dealer. Tesla should be at least as transparent as a car dealer about a car's history.
- Get rid of the absurdly high $200 deductible per issue for extended warranty repairs. No other premium car maker in this segment has such a high deductible. If you go in for 3 malfunctioning door handles that's $4,000 for the extended warranty plus $600 in deductibles.
- Price the Extended warranty with a zero deductible (as in the case of Mercedes) or a $50 deductible and make the availability of an extended warranty consistent for new and CPO cars.
- If a customer can buy a 4 year extended warranty for a new car within the first 4 years and the same applies to a private party sale, the same should also apply for CPO cars. Why withhold the Extended Warranty option from those who buy a CPO car when those cars have been presumably thoroughly checked by Tesla?
- The $600 service fee regardless of whether it is a minor service or major service is absurd. Charge for annual services based on the actual work done like a car dealer would.
- For minor services our Mercedes dealer charges right around $200. On years when no fluid changes are required a Tesla, an EV, should not cost $600 a year to maintain. This is all the more important considering annual service is a requirement for not voiding the Extended Warranty.
- Make it absolutely clear that the extended warranty would be voided if the annual service is skipped. I doubt many people who buy the Extended warranty realize this as it just became clear to me only recently.
I don't think these are unreasonable requests given that they each represent what you can expect from a car dealer.
For now Tesla has the premium EV market to themselves but these points I've mentioned are going to matter to customers sooner or later when they have more competition. It's better for Tesla to address some of these concerns now, rather than when they have 2X or 3X more cars (and customers).
I still consider Tesla to be the world's finest car company and the Model S is without a doubt the best car available to buy at any price but I think some policies can be made better for customers, and that will be better for Tesla in the long term.