Tesla Wants To Sell You A Used Model S

The only thing better than a new Tesla is a cheap Tesla, and the company reportedly is set to unveil a program to address the sticker shock and it isn’t a cheaper car. It’s used cars.

Certified pre-owned vehicles are big business for luxury automakers. Speaking to automotive News, Tesla vice president of communications, Simon Sproule, confirmed that the electric car maker is developing a program to resell Tesla vehicles.

Tesla would sell used Model S sedans under the “certified” moniker hoping to lure buyers who want quality at a lower price. BMW and Mercedes-Benz have done this for years, but Tesla’s entrance into this market would be a boon for consumers and the car company itself.

Unlike BMW or Mercedes, Tesla owns its dealerships, allowing it to retain much more of the used car’s profit than a traditional auto maker.

Elon Musk previously guaranteed the resale value of the Model S. Announced in April 2013, those who financed a Model S are allowed to return the vehicle after three years for 43 to 50 percent of its sticker price — just in time to buy a new Tesla vehicle.

Tesla is set to unveil an updated Model S and another electric vehicle later this week. The Model X SUV will hit the market early next year and an inexpensive Tesla (somewhere around $35k) should be available late next year. If Tesla’s trade-in program is successful, it needs to be able to offer current Tesla owners something other than another Model S.

This trade-in program would also serve consumers who want to forgo gas and buy a Tesla but cannot afford the high price of a new Model S. supposedly, Tesla dealerships would thoroughly inspect the returned Model S before reselling it, hoping to alleviate some anxiety with buying a used electric car.

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Kiran Upadhyay

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