Tesla Officially Launches CPO Program
After first announcing the plan to launch a certified pre-owned program for the Model S last fall, Tesla has officially launched the offering online.
Auto Remarketing confirmed with a Tesla spokesperson that the Model S pre-owned website launched this past Friday.
The website, whose launch was first reported by Clean Technica, features the CPO warranty, front-and-center.
According to the site, every pre-owned Model S comes with a four-year, 50,000 mile limited warranty.
Every pre-owned Model S also receives a full inspection, remaining battery and drive warranty, and 24-hour roadside assistance.
Car shoppers have the ability to search by market area and color. They can also specify which type of Model S they are in the market for, choices which include the 60 kilowatt-hour, 85 kilowatt-hour, and the 85 kilowatt-hour performance Model S.
Model years includes 2012, the EVs debut year, plus 2013 and 2014 models, as well.
Though prices vary across the site, on the lower end is a 2013 60 kilowatt-hour Model S with 24,558 miles, going for $55,000 in the Atlanta market.
On the other hand, an 85 kilowatt-hour Performance Model S with 19,894 miles is going for $91,500 in the San Francisco Bay area.
Underneath the bright red “buy” button for each model is a disclaimer noting the requirement of a $1,000 deposit.
Auto Remarketing followed the Tesla CPO announcement closely this past fall, taking an in-depth look at the questions of pricing and sourcing.
And though electric vehicle residuals remain soft overall, Tesla’s lack of competition and niche audience are keeping used prices strong for the automaker — a statistic that bodes well for the company’s new CPO offering.
According to NADA data, used value retention for the 2012 Model S with the 86 kilowatt-hour battery stood at about 57-percent retention earlier this month.
In comparison, retention for the 2012 versions of the Chevy Volt and Nissan Leaf were at around 35 percent and 27 percent, respectively, according to NADA data.
And NADA Used Car Guide’s latest Perspective report asserted electric vehicles may be a good choice for certified programs such as Tesla’s, which ramp up and lengthen initial factory warranties.
The report explained many three-year-old EVs are nearing the point where they are no longer covered by their respective manufacturer’s basic warranty due to age or mileage accrual.
“This is a potential concern since an extra layer of risk is being added into the mix when used EV buyers are shopping for vehicles,” NADA UCG analysts explained. “As mentioned previously, technology concerns are one of the biggest drawbacks for prospective EV buyers, and the lack of warranty coverage will undoubtedly increase this hindrance further and erode prices on out-of-warranty vehicles accordingly.”
Consequently, NADA UCG asserted CPO programs are a “logical fit” for used EVs, as extended warranty features may prove attractive to shoppers conference about the reliability of new technology.