Tesla starts selling used cars on its site
They were traded in for new Teslas ... and they’re still pretty pricey
Tesla Motors is dipping its toe into the used car business. And, as is typical for Tesla, it’s going about it in its own way.
The electric-car maker recently started offering used cars on its website and through its stores.
As CEO Elon Musk told USA TODAY last October, the decision to sell certified used cars — generally more lightly used cars that come with automaker warranties — is aimed to assist customers trading in their older Teslas for new ones.
“We’re trying to make a really smooth process for someone trading in their car to then selling that car to another customer,” he said.
The trickle of used Teslas could become a flood as the original Model S cars come off leases and Tesla introduces new models. It created a new high-end performance Model S with the quickest acceleration time yet, and a new Model X crossover arrives this summer.
“Even people who bought (Tesla) cars may commit to the Model X. We’re going to hit a wave of used Teslas,” says Karl Brauer, an analyst for Kelley Blue Book.
The used cars are displayed by city and price. On the Los Angeles page on Tuesday, 17 Model S cars were displayed. They ranged from a 2012 P85 model with 41,197 miles for $65,000 to a 2014 P85-Plus with 3,141 miles for $97,150. All come with a Tesla four-year, 50,000-mile limited warranty.
When the Model S went on sale in 2012, prices ranged from $57,400 to $105,400, and those asking prices indicate that Tesla doesn’t think its cars have seen the kind of depreciation that has hit some competing electric cars.
Car value researcher ALG says it isn’t yet able to project resale values for Tesla Model S cars. But a rival 2014 Nissan Leaf was expected to retain 36% of its value after three years, a figure that dropped to 30% for the 2015 model. Likewise a 2014 Chevrolet Volt was expected to keep 45% of its value after three years. For the 2015s, that drops to 36%.
But because Tesla demand remains strong and prices are holding up, “They are kind of an enigma in the marketplace and they are holding their value so well,” says Brauer.
“We’re going to hit a wave of used Teslas.” Karl Brauer, an analyst for Kelley Blue Book