Used Teslas Are Getting CHEAP!

Used Teslas Are Getting CHEAP!


– So the story I wanted
to talk about today, the first story really
is this one coming to us from CNBC and that Tesla
is turning to partners to help them with a
growing used car business. Now, I thought this was
kind of interesting. The company they’re working for is called Manheim and Car Auction Services and they’re there to help with the upcoming larger volume of used vehicles. The influx of these vehicles is coming right now because in 2015, the company offered three year leases
and then in 2016 of Q3, switched to the two year leases. So everything is kind of
coming in 2018, late 2018 with all the new influx of the lease vehicles being turned in. In 2015, CNBC also
reported that 75% of Evs are leased and almost 50% of
the luxury cars are leased. I think that was in this post here. That means that a large
percentage of Teslas that are out there in the fleet,
if they stand true to these kind of industry stats or whatever, they will also be coming back in. Which means we’re gonna have an influx of these cars being
returned, which is actually, I think a pretty awesome thing. Tesla of course or
additional evidence of this is that Tesla is now hiring people that are used vehicle quality specialists to check them out and do that because any vehicle that does go through the certified pre-owned program is, I mean the idea from everyone
I’ve talked to at Tesla when I got my car which was
a couple of years ago now, it was that when you get the car, to feel like a brand new vehicle to you. I believe they will replace the tires but not always the rims if there is any damage on the rims so there will be little bumps and bruises potentially depending on how hard or long the vehicle was owned prior to you taking ownership but they, as far as I understand,
do a really good job at kind of refreshing
it and making it good. At least that was my experience. Electrek also reported
this so it makes me think this is pretty solid evidence here that this is happening and there will be a lot of used Teslas on the road. To me, I think this is interesting because the revenue off these vehicles should be pretty good for a Tesla. And if you think about it, with the way the car business works,
dealerships in that sense, new cars are what they call skinny deals and these new cars are basically
sold at very thin margins. That’s not always exactly
the case for Tesla but used cars undoubtedly
have a higher margin on ’em. So, it’d be really curious
to see how this works. If we go take a look, you
can see the inventory here. If you go to Tesla.com/used
it’ll redirect you over to one of these pages here and this
is the one that comes up. It automatically knows my
location, I’m in San Diego. And this blew my mind! This was really, I mean look at this. You have a 2013 Model S 60,
this is essentially my car. I have a lot lower miles
though and it’s under $35,000. Then the next one here’s an ’85 which is a great car because
it has a good amount of range. I don’t know if it says yet. 265 miles or is it 208 miles? I doubt this car is getting 208 miles with being that old and
with that many miles on it. Mine gets about 196
right now so we’ll see. Or I guess it would dependent on that. There are some things that
are interesting here though. For example, this power
liftgate was standard option back in 2013 and now it is not. You have to buy that. So there are Model S’ out
there that don’t have the automatic closing liftgate,
the hatchback essentially. So then you have things
like this ’85 here, you have a 20, I mean
look at how many cars are under $40,000 that are Model S’. This is a, you can argue
maybe the Model 3 has, compared to these ones
obviously has upgraded tech and all that but this is
still a tremendous vehicle. This is incredibly functional and it’s still getting updates. I think this is a great deal. Look at that, you have a
lot of the vehicles here. And then of course, if you go down you’re probably getting into the point where you get some newer ones that have some of the other, like
autopilot and those kinda things. Anyways, a lot of these
come, there you go, so like autopilot with
convenience features. Look, a 2016 Model S 70, you might be able to unlock that as well. I forget which ones had
that or not but point being, there are some really great
deals to be had out there. So if you have the Model
3, let’s say you haven’t got it yet but you’re waiting on it and it’s too small for
you or for whatever reason you don’t think it’s gonna
work for your situation. At least where I’m at in San Diego and obviously we have
a lot of Teslas here, there are a ton out there and so this is probably indicative of any of the major markets that Tesla is in and I think are gonna be good because you’re gonna see a lot more
Teslas floating out there. People that’ve never gotten
them before now getting them and then of course after
you have it, you get the bug and you’re gonna want another one, a bigger one, a better one, whatever. I think this is just kind of great news. I would not be shocked if
a very high percentage, in fact I think, something
like 95% of people that currently own Teslas said that their next vehicle would also be a Tesla. So what I’m guessing
you’re gonna see happen is more people that maybe previously could not afford them are getting them. This is a really interesting story. I’m curious to see how
this company handles this, that’s helping Tesla do this because clearly Tesla doesn’t have
the capacity to do this. They have all the people
working on all the other things and they’re still tryna push out with a really awesome
product roadmap as well. Cheers to everyone there. I hope this leads to many more people being behind the wheel of a Tesla. So I’m curious what you guys think. These prices are tremendous! If you look at a used Model S compared to something like a new
Nissan Leaf or something, I mean this is just not
even a contest in my book. Even if it is, with 70,000 miles on it, it’s still not much other than maybe the wear and tear of the
seats and that kind of thing. I’m curious. If you’re in the market for it,
are you gonna go this route? If so what are you gonna get? Leave me a comment, let me know, shoot me a note on Twitter
or something like that. I’d love to hear from you.

About the Author: Michael Flood

22 Comments

  1. We recently bought a 2015 P85 for $46k – no autopilot. Best decision we've ever made. Also – your twitter is suspended?

  2. If the choice were between a new ICE car at 40,000 or a used model S, the model S would be the one leaving the forecourt hands down.

  3. Idea: Buy a used Model S for cheap, then get the new front-fascia from Unplugged Performance like I did, all in you're saving a lot but still have an amazing vehicle with an even better look (I love mine). Also get a discount by using code "sullinsearlyaccess" at https://teslanomics.co/modelsrefresh

  4. It looks good. But I'll be in the market soon for either a truck or off road suv, like a Tacoma or 4Runner. I might consider an ev like a Bollinger or Rivian. But they would have to utilize Tesla's super charger network and same price range as a Tacoma or 4Runner ($50k) vs a Mercedes benz g63 amg or Range rover ($125-250k).

  5. I looked at the site and in my area (250 mile radius)there were 3 used tesla's all with less than 20k miles and all over 4 years old, but I live where it snows and owning a rear wheel drive car is stupid unless you only drive it in the summer.

  6. Any word from Tesla's China push?
    I hear they are stuck at 2% of the EV car market due to pricing.
    In a market where new EV's sell for 10,000-20,000 USD a Model 3 that sells for 65,000USD is only being purchased by rich people, much like they bought Rolls Royce's or Gucci handbags.

  7. Is it possible that teslas could have cheaper lease simply because they are hardy cars that last a lot longer? (imagine in the future)

  8. Buying a used Model S for around $28,000 and with around 100,000 miles on it seems like a really good deal. But how can I be sure it won't have expensive repairs on some of the awesome but expensive tech inside?
    Door handles, computers/screen…
    I want to buy one but that is a hold up I have with it. And would I be able to keep it all the way to 300,000 miles with relatively few or expensive problems to fix? Thanks for your informative videos! I just need to be sure before I can decide to make a purchase.

  9. Would love any help finding my first Tesla, other than the Tesla website? It doesn't show any used vehicles near me. TIA

  10. Hello Ben – I have been following you for over a year now and waiting on this turn of the tide. A few weeks ago, I noticed here in Atlanta that the cars were being advertised at a price point that was tremendously lower than I had ever seen. In addition, I noticed the difference in price for the additional features was minimal; which is great. I am hoping to have my hands on a CPO Model S within the next 6 months myself. One question I do have is, do all the pre-owned vehicles come with free supercharging, or is this something that comes and goes? As always, thanks for all the great info!

  11. Check out the RichRebuilds episode and comments for the terrible experiences many people are having with Tesla’s CPO buying process. Perhaps due to the third party they’ve brought in to help manage the process with the increased volume of used vehicles.

  12. Rich from Rich Rebuilds bought a used Model X from Tesla's certified used car program last year.
    For the past 3 months he's been paying for the car loan and insurance on a car he has yet to take delivery of his car.

  13. Loving your videos! I’m in st george. I’ve seen a video with you and the whatsinside guy who I’ve run into in st G. Next time your here would love to buy you lunch. I’ve been considering a Tesla for a few years actually. Only now have I been seriously looking to buy one. I want a P85 from 2014-2015. I’m worried however after watching someone else’s buying experience with their used inventory recently. Man there are some horror stories out there. My own experience thus far hasn’t been good either. Easy to request photos but difficult to talk to anyone from Tesla about their used fleet in Las Vegas. It’s been 4 days without a call back and I’m a ready buyer. I have a list of questions and concerns I can’t seem to get answered by Tesla and every time I call to speak about a used car the rep wants to sell me a model 3 and then passes my number to the used team who won’t call back.

  14. Yea but they’re out of warranty and are crazy expensive to fix. That’s the issue with used ones but it’s an awesome grab price wise.

  15. Still doesn't make sense for me to switch from my 2007 toyota tacoma. $6,000/yr to maintain driving about 25K mi per year.

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