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In the Market for a Pre-Loved Model S?

Tesla Model S Has What It Takes, Where's Everyone Else?
Tesla Model S Has What It Takes, Where’s Everyone Else?

The Tesla S isn’t cheap, that’s for sure, and Tesla Motors is fully aware of that.  It’s probably not so much the technology as it is the image. And as luxury cars go, there is a big business for pre-loved super cars like the Roadster.  So the company is now launching a program to satisfy this market.

So this may be the reason why the company wouldn’t reactivate used, refurbished cars without a looksy – they plan to sell “certified” used Model S’s.  This is targeted at the buyer who is on the lookout for quality, but is a bit of a penny pincher.  German automakers like Daimler Benz and Bayerische Motoren Werke AG (BMW) have been doing so for ages, and at a nice profit too.  Analysts say that Tesla’s foray into the pre-owned vehicle market will be great not only for consumers, but for the company as well.

This is helped by the fact that Tesla owns its dealerships, and is poised to make more profit on used cars than traditional car makers.  Furthermore, it could help the automaker deal with trade ins.  Tesla CEO Elon Musk back in April 2013 guaranteed the resale value of the Tesla S.  Those who availed of financing for the sedan could return the car after three years and get 43-50% of its sale price.

The company is about to unveil a slew of new cars – the new Model S and probably also the Model D this week, as well as the Model X SUV next year.  A cheaper Tesla, estimated at $35K, is also set to be released next year.  This will hopefully meet the needs of those who choose to return their cars, and hopefully trade in for one of these new releases.

On the other hand, the pre-loved cars can find new owners among those who can’t afford a new Tesla, but would like to go electric.  To assuage the fears of buyers purchasing these used cars, the dealership will make a thorough inspection of the returned cars.

Who knows, you may just fit in the Terminator’s shoe, I mean Roadster.  You can even say, “”Hasta la vista, baby” as you drive it into the sunset…

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  1. Musk is changing the whole system of new and used cars;  However, I disagree with his idea of controlling which cars get activated.  The car and its software belongs to the buyer, lock, stock and barrel.  It’s the buyer’s responsibility and liability once the car is purchased and the maker has no interest in the car unless the buyer decides so.  Musk is way out of bounds on this one.  The IBM company wanted to control the mainframe computer market and tried this way back by only offering leases on their equipment.  The Courts ruled they must also offer their equipment for sale.  In effect, Musk is trying the same thing.  If you buy a Tesla and you don’t have control of the car, Tesla is leasing it to you and can decide if they will let you drive it or perform your own maintenance on the car.  You have a right to screw up any car you want as long as you own it.  Get out of town, Tesla.

    • Yup, lad2, Tesla owners should have a right to screw up the car that they own. Buying a vehicle is a very personal decision, which is why people name their cars and other means of transport (I used to name my old car Alex and I call my current ride, a bike, Willy Felt). Since we already own these vehicles, we do have a right to make the mods that we want to give them a more personal flavor. If the mod we’re looking at involves tinkering with the original hardware like the battery and engine, or even with the software, the car company’s CEO has no right screwing with that!


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