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Electric-car maker Tesla Motors Inc. has begun selling used versions of its Model S electric cars on its website, an important step for the luxury car maker as it matures from a startup to a mainstream company.
It certified vehicle program, which Tesla TSLA, -1.52% launched without fanfare about a week ago, opens the door to purchasing Tesla’s cars at a lower price than its new vehicles, while offering the manufacturer’s maintenance and reliability checks. Like other luxury car makers, Tesla offers an extended, 4-year or 50,000-mile limited warranty on its used vehicles.
The first batch of vehicles available for sale on the site are mostly cars whose owners traded them for the all-wheel-drive version of the Model S, which went on sale late last year, a company spokeswoman said. Leased vehicles will begin to return to Tesla later this year as the very first cars were sold in the middle of 2012 and the leases were generally for three years.
The used vehicle sales are important to Tesla to gain new customers, ensure residual values are stable and as a source of revenue.
Tesla doesn’t use independent dealers, so it keeps the revenue from the sales of its used vehicles. Typically, used vehicles produce significantly higher profit margins than new car sales at traditional new-car dealerships.
Electric-car maker Tesla Motors Inc. has begun selling used versions of its Model S electric cars on its website, an important step for the luxury car maker as it matures from a startup to a mainstream company.
It certified vehicle program, which Tesla TSLA, -1.52% launched without fanfare about a week ago, opens the door to purchasing Tesla’s cars at a lower price than its new vehicles, while offering the manufacturer’s maintenance and reliability checks. Like other luxury car makers, Tesla offers an extended, 4-year or 50,000-mile limited warranty on its used vehicles.
The first batch of vehicles available for sale on the site are mostly cars whose owners traded them for the all-wheel-drive version of the Model S, which went on sale late last year, a company spokeswoman said. Leased vehicles will begin to return to Tesla later this year as the very first cars were sold in the middle of 2012 and the leases were generally for three years.
The used vehicle sales are important to Tesla to gain new customers, ensure residual values are stable and as a source of revenue.
Tesla doesn’t use independent dealers, so it keeps the revenue from the sales of its used vehicles. Typically, used vehicles produce significantly higher profit margins than new car sales at traditional new-car dealerships.
