Tesla Perhaps to Launch Pre-Owned Program; Might be Offering Existing Owners Generous Residuals to Trade-Up

I think its universally accepted that Tesla's vehicles are amongst the most innovative and eco-friendly out there. Now its Tesla's turn to offer some more GREEN to its existing customers and to perhaps move some inventory.

My neighbor who owns a 2013 Tesla Model S P85 (one among a stable of 5 other cars he owns), arrived home recently with a brand new Tesla. He said that Tesla contacted him with a special program they are offering existing Tesla owners to buy back their existing car at 75% of its initial sales price, if they would purchase a new, more expensive Tesla. His Tesla is a little less than 3 years old and has about 20,000 miles he says, so this is a very rich offer (I think typical lease residuals for comparable luxury cars would be at the 50% to 60% range).

He told me that Tesla told him that they were buying the cars back in order to start a Tesla Certified Pre-Owned program.

Questions to AutoSpies members -

(a) Is Tesla smart in pursuing a Certified Pre-Owned Program (if in fact they are doing so, as I don't believe that such a program has been previously announced) to get people into Tesla's at lower price points?

(b) If such a rich buy-back program is wide-spread, is it a veiled attempt to juice Tesla's quarterly sales and work down some inventory of new, unsold cars?

(c) If such a program exists, is it really a back-ended, hidden, discount on new Tesla's?

(d) Would you buy a certified pre-owned Tesla?

MDarringer - 6/29/2015 1:30:13 PM

+1 Boost

If they are going to offer owners "generous residuals" that means that all is not well with the company. Elon Musk's little confidence swindle is showing some red flags. The long delay of the Model 3 suggests lack of money to make it happen. This move is an effort to make it seem that sales are good on paper.

vdiv - 7/1/2015 8:14:39 AM

+1 Boost

It was announced a few months ago and the predominant complaint is that the CPO cars are still too expensive:

http://www.teslamotors.com/models/preowned

The better part is they come with a long warranty and together with inventory cars (demos) can instantly satisfy someone's desire to drive electric.