Now that Tesla has a multitude of used cars coming in, it's high time to ramp up its used vehicle sales.
The Tesla Model 3 has attracted an enormous amount of attention to the Silicon Valley electric automaker. Some half a million people have a reservation for the company's new, small, lower-priced sedan. However, we've learned that there are just some people that are not willing to wait for their delivery, which makes perfect sense since depending on your global location, it may still be awhile.
It comes as no surprise that some people have splurged and bought a Model S or even a Model X instead. Moreover, a used Tesla may be a solid option, and since Tesla offered some lease options on the Model S and Model X in the past, these used cars (lease returns and trade-ins) are continuing to stream in. Buyers could try to grab up a used Model S for the time being and then take delivery of their Model 3 down the road, or even wait a bit longer in hopes of securing a used Model 3.
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In order to facilitate the above situations, Tesla has teamed up with Manheim and Adesa KAR Auction Services, which is owned by Cox Enterprises. We are already aware that Tesla is buried in operational "hell." So, dealing with used cars is just another piece of the pie that can't be getting easier for the electric automaker. However, selling as many of them as possible is a key strategy that arguably needs to happen, and sooner rather than later.
People familiar with the situation have revealed that Tesla is turning to these second-party auction services for assistance. The companies will help Tesla to deal with inspecting, reconditioning, and selling its used vehicles. Those aware of how Elon Musk and company operate may be surprised by this news, since the automaker tends to try to keep everything "in-house."
The reality is that we may begin to see these type of partnerships pop up more readily as Tesla grows. While its business model doesn't necessarily lend itself to this, there comes a point that it just makes sense, especially as Tesla always aims to put the customer first, added to the fact that it has openly admitted that in its attempt to follow that model, some customers have surely suffered. We can only imagine that Musk, and Tesla as a company, want to make every effort to right any undesirable situations.
The recent report cites a Tesla employee who revealed that about half of the vehicles that go to such partners return to Tesla ready to sell as CPO vehicles. In addition, these cars can be utilized as service loaners or employee cars immediately. The remainder of cars are actually sold by the auction houses.
The aforementioned auction companies and Tesla have not officially commented on this new situation.
Source: Yahoo! Finance