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Tesla CPO price drops

Tesla CPO price drops

I just recently bought my MS 85 a few weeks ago and of course I get on the CPO site and see all the prices have dropped drastically and there are tons of them for sale. This is very disheartening to me as it appears my car could have lost $10k in value overnight. Is anyone else experiencing this? What is the reasoning? I must just have the worst possible timing buying electric vehicles because the same thing happened right after I bought my electric motorcycle. I understand the EV market is going to be more volatile than others but this is just seems drastic to me.

mjwellman | 17. joulukuu 2015

Not a concern for me. I suppose if I was buying a new car every year or two it would be a problem but I generally keep my cars for at least ten years. I've had my car for 4 months but I'm very happy with my choice and love driving it. I don't think I will be selling it any time in the near future.

Roamer@AZ USA | 17. joulukuu 2015

Every car on the CPO site is a pre auto pilot and pre four wheel drive car. Those two upgrades along with the 90kW battery created a glut of VIN 50,000 and below cars. It is kind of a win win. Tesla created a better product so many people were willing to trade new low mileage cars for the newer offering. This has resulted in an over supply of low mileage two wheel drive non AP cars.

So price sensitive buyers have an opportunity to buy a Tesla as other buyers took a small trade in hit to get the newer technology.

The P85D and AP created a used Tesla car market almost over night.

JMAC7 | 17. joulukuu 2015

Waiting on P85D pricing to hit low 80's and then i'll make trade late 2016.

eye.surgeon | 17. joulukuu 2015

This just in: luxury cars depreciate fast.

70D-Tesla | 17. joulukuu 2015

Do you pay sales taxes when you lease from Tesla in Virginia? i know some states roll the sales taxes into the monthly payment, and some require it up front.....but does anyone know for Virginia?

Red Sage ca us | 17. joulukuu 2015

Everything must GO!

Checks calendar...

Hmmm... last two weeks of the month, quarter, year...

DUH.

tes-s | 17. joulukuu 2015

Criticized for offering low trade-in prices.
Criticized for charging so much for CPO cars.
Criticized for dropping prices on CPO cars.

Tough crowd.

artC | 17. joulukuu 2015

@Roamer

As of 10:15PM PST there are 11 AP CPO models for sale.

See: http://ev-cpo.com

AoneOne | 17. joulukuu 2015

Did you notice that the Tesla pre-owned page, https://www.teslamotors.com/models/preowned, also sells loaners? It shows them as being eligible for the federal tax credit (which they include in the headline price).

whoosh1 | 17. joulukuu 2015

P85 prices seem to be worse than the 85? Or at least no advantage in price for P85?

Tropopause | 17. joulukuu 2015

That's the way the cookie crumbles. You win some, you lose some. Cars are not an investment.

Just have fun with the vehicle. What's done, is done.

sp_tesla | 18. joulukuu 2015

Any used Tesla price should drop by the minimum amount of the tax credit, California = $10K.

Instant gratification buyers willing to pay more, they obviously don't have the patient to save many thousands of dollars by waiting for delivery of new unused car with factory lead time.

EVino | 18. joulukuu 2015

Where are these doctors who don't have the patient but wiling to buy a CPO?

sp_tesla | 18. joulukuu 2015

Sorry for typo, meant patience.

Any used Tesla price should drop by the minimum amount of the tax credit, California = $10K.

Instant gratification buyers willing to pay more, they obviously don't have the patience to save many thousands of dollars by waiting for delivery of new unused car with factory lead time.

whitex | 18. joulukuu 2015

CPO prices are set by the market, not by Tesla. If they could sell all CPO's for $150K each I guarantee you they would love that. Based on what I've seen, Tesla CPO's start at some price Tesla thinks they may be able to get, but the price is then lowered if the car is not selling (it costs Tesla to store, plus the interest on the value of the car). So, if you see a CPO you like, you have a choice, you can buy it today and own it, or you can wait and hope nobody else will buy it, so that you can get it for a cheaper price. It's quite simple really.

lolachampcar | 18. joulukuu 2015

xmj,
You bought a Zero as well I suspect. The SWAG did not make up for the price drop!

J.T. | 18. joulukuu 2015

@tes-s +1

lolachampcar | 18. joulukuu 2015

tes-s,
You forgot-
criticized for playing in a market where they add less value (used MS market)

EVRider | 18. joulukuu 2015

@AoneOne: The inventory cars that show up on the CPO page (the ones eligible for a tax credit) are not necessarily loaners, they might be showroom and test drive cars. You can also lease inventory cars, unlike other CPO cars.

Roamer@AZ USA | 18. joulukuu 2015

"artC | DECEMBER 17, 2015 NEW
@Roamer

As of 10:15PM PST there are 11 AP CPO models for sale.

See: http://ev-cpo.com "

You are correct. Instead of "every" I should have said 97% of the CPO cars are pre auto pilot.

I have to admit I have never paid much attention to the CPO cars. Your link is a pretty good resource if you are searching for used Teslas. Thanks for providing it.

msung330 | 18. joulukuu 2015

Supply/demand wins out again! Great for new Tesla buyers who don't need/want a new vehicle or AP...

PhillyGal | 18. joulukuu 2015

Must. Resist. Temptation.

Tropopause | 18. joulukuu 2015

With the savings on a CPO, one can also get a Model 3.

wildcatzoo | 18. joulukuu 2015

I'm surprised at the low mileage on most of the CPO's, we have 50,000 on our June 2013 S85.

jordanrichard | 18. joulukuu 2015

Red Sage, do/will CPO cars count towards Tesla's guidance for selling/delivering 50K cars?

I can't remember from the last earnings call whether they were counting CPO sales.

Noubie | 18. joulukuu 2015

I knew they'd be dropping before the end of the year, especially watching inventory build up.
I waited for this last one and bit. A 10% drop is significant but I felt like the time was right and they probably wouldn't do another one any time soon. Or at least hopefully.

Red Sage ca us | 18. joulukuu 2015

jordanrichard: The CASH counts, toward the bottom line. Otherwise, they are seen as 'inventory'... But demo/loaner cars sold 'new' certainly do count toward the 50,000 unit total.

carlk | 18. joulukuu 2015

It is said a high end car drops 20% in value the moment you drive it out of the dealer lot. It's not surprising since these cars usually have very high production margin and dealer mark up. That's what one has to keep in mind if you plan to sell the car in a year or two. The loss is only on paper though if you keep the car for a long time.

lolachampcar | 18. joulukuu 2015

Most manufacturers will keep their CPO off their primary books as there is no way they can maintain corporate wide gross margins on the CPO side of the house.

Haggy | 18. joulukuu 2015

As of 10:15PM PST there are 11 AP CPO models for sale

Interestingly, and perhaps not surprisingly, none in Fremont. They won't stay around long, so there are only a handful in the country.

There are also a dozen inventory cars with AP, also not in Fremont. And all but one recent one are P85. So they were ones made before the D announcement but after AP was added, and were likely slated to go to people who changed their orders. One of them is P49024, which is quite low for an AP car.

If I were in the market today, I'd definitely consider a P85 with autopilot, especially if I could find one near me.

The car (at least mine) dropped 10% when I took possession because of the tax incentives alone. If the total drop was 20%, I did rather well.

ST70 | 18. joulukuu 2015

In America we have this thing called supply and demand....

sp_tesla | 18. joulukuu 2015

ST70 | DECEMBER 18, 2015
In America we have this thing called supply and demand....

Perfect response.

Haggy | 18. joulukuu 2015

I demand that they increase supply so prices can drop.

nctalkinghead | 18. joulukuu 2015

Maybe my timing was good this time around! I scored a P85 AP inventory with 11k miles. Original list was $111,770 and it was discounted $27k plus the tax credit. Picking up on Dec 23 - MERRY CHRISTMAS

Tropopause | 18. joulukuu 2015

Score! Nice deal.

Mark Z | 18. joulukuu 2015

I am encouraging people to consider previously owned Model S vehicles.

If you want to make a deposit on Model III, why not enjoy Tesla performance during the wait by purchasing a used Model S during the wait time?

(I am still at zero referrals. Why? Buying a used Model S features a lower price than $1000 from the new pricing.)

plafor | 18. joulukuu 2015

Tesla may have kept CPO prices high to not compete with new car sales in order to not reduce their chance to sell 50,000 cars in 2015. The recent drop in CPO prices may be an indication that it is now too late to order a new Model S to be delivered in 2015 or that they now have enough new car orders to reach 50,000 cars sold in 2015.

Redmiata98 | 18. joulukuu 2015

You can get my P+ with autopilot, list $123k, 8k miles, in northern Virginia for $90k

sp_tesla | 19. joulukuu 2015

"Redmiata98 | DECEMBER 18, 2015
You can get my P+ with autopilot, list $123k, 8k miles, in northern Virginia for $90k"

You can buy new 85D 0-60 4.2seconds w/autopilot @ $86,500, rebate of $7,500 Fed Credit, cost = $79,000

Unless you have a a lot more additional options, why would anyone be willing be pay $11,000 more for a used car W/8K miles?

Redmiata98 | 19. joulukuu 2015

It has all the options except cold weather and the third row.

nctalkinghead | 19. joulukuu 2015

A major advantage that the CPO cars have over private resales is the warranty. Tesla is resetting the 4 year/50k warranty clock at the time and mileage at purchase.

AmpedRealtor | 19. joulukuu 2015

I don't understand the criticism of CPO prices falling. Isn't that kind of the point? More Model S vehicles in the hands of more people, not just those who can afford to buy brand new. This is great news! People here need to get beyond the "loss" of value on their personal vehicles. That only matters if you sell the car. If you don't plan on selling your car, you have not lost any value.

I own a P85 from 2013. Pre-AP and pre-AWD. I have absolutely no desire to buy an AP or AWD vehicle. I simply don't need those things. For many, upgrading to those new features was a vanity thing. They wanted the latest and greatest, buying into a promise and not an actual product. AP is still only in beta and has plenty of issues, not the least of which is Tesla removing functionality. I only buy a new iPhone when I absolutely need one, not just to get the newest bling. Same with cars. I owned my VW Jetta for 7 years and my Prius also for 7 years. I expect to be driving my Model S for a long time to come.

Today's Model S is largely the same car made 2-3 years ago. New builds are still leaking, still having squeaks and rattles, still requiring new drive units, still experiencing QC issues, still needing service... in every metric that matters to me, Tesla has not improved the cars much other than adding a few headline-grabbing features. That is not justification enough for me to upgrade. Maybe a different situation when Tesla actually improves the build quality/QC and I stop hearing about owners having the same problems as those from 2012.

PhillyGal | 19. joulukuu 2015

@AR - That's exactly what I was blabbing about to my Hubs yesterday. I texted him the price of the most affordable CPO. When he later asked if I was referring to getting one for myself I said no, it's just really exciting that a new tier of buyers' budgets can now get into a Tesla.
The TCO for a $50,000 MS is certainly comparable to a decently loaded Sonata or Optima and we see those everywhere.

david | 21. joulukuu 2015

Waiting for a sweet deal on a P85D which I expect to happen during 2016 after the X finally starts shipping production models. If they refresh the S with autopilot V2.0 and/or a 110 battery pack, that should also help drive prices down. We are enjoying our 70D (even with its front DU noise issues) and are looking forward go getting a second MS to replace our Honda Odyssey.

mstubbs007 | 21. joulukuu 2015

I hate to say it but better deals can be had from private dealers or private party owners. I purchased two model S vehicles thus far and both were used. One with 670 miles and another with 19000 miles. I could not afford Tesla's prices so I did the next best thing. That 20% loss that happens when you role off the lot with a new vehicle never happened to us. I'm still very happy with the product and services since both vehicles are under full warranty. I just could not justify spending $96,000 to 120,000. I'm looking to purchase a third electric in the near future but again it will also be used and more than likely the model 3 ,model X or what ever might be available at the time.

mrbarnes | 22. joulukuu 2015

Just noticed a MAJOR update to the CPO inventory - yesterday morning there were 394 total vehicles for sale. As of last night/this morning - they added an ADDITIONAL 109 CARS.

WOW.

ev-cpo.com/index.php#

mrbarnes | 22. joulukuu 2015

p.s. - 98 of those newly-added vehicles are INVENTORY cars, NOT CPOs. Which means, they're eligible for the Tax deduction...and with 9 days left in the year!

PhillyGal | 22. joulukuu 2015

Looks like the CPO page now has an option for new vs. used.

Why the heck not have the inventory vehicles listed online? Very logical.

mrbarnes | 22. joulukuu 2015

In the updated listing of Inventory vehicles for sale are 70Ds, 90Ds and 90s for the first time. They had several P90Ds before, but this is the first appearance of the 70D and other 90s.

Good prices. I've been holding out for the Model 3, but man...it's tempting!

JMAC7 | 22. joulukuu 2015

@david
same situation as you. i'm gonna buy private party once the P85D is in the 80k range.
I think that will be this summer!

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