Tesla brings in partners to help with growing volume of used cars
Many auto dealers offer “Certified Pre-Owned” vehicles, but Tesla is unique in that the automaker operates its CPO program itself, creating yet another direct link between manufacturer and consumer.
Above: A look at some older "Signature" Tesla Model S vehicles (Image: Tesla)
As several industry observers have noted, Tesla’s CPO program not only gives the company a second chance to make a profit from the same car, it also allows it to exercise an unprecedented level of control over the used market for its products.
Now, as Tesla company deals with “delivery logistics hell,” it has partnered with two outside firms to help it handle its rapidly growing used car business. Cox Enterprises-owned Manheim and Kar Auction Services division Adesa help manage used cars, providing inspection and reconditioning services and marketing the vehicles to wholesale customers.
Above: A look inside the Tesla Model S (Image: InsideEVs)
Tesla is handling a higher volume of used cars than ever before, partly because of the 2-year and 3-year lease options it has been offering on Models S and X. Other vehicles showing up on Tesla’s lot include trade-ins (including gas-burners made by other automakers), lemons (few of these, we trust) and cars repossessed after non-payment.
A Tesla employee involved in the mushrooming used car operation told CNBC that around half of the Tesla vehicles that go to its partners come back retail-ready, to be sold as Certified Pre-Owned vehicles or used as loaners and employee cars. The other half are sold by Manheim and Adesa via physical and online wholesale auctions.
Above: Tesla's Model S (Image: Tesla)
Tesla’s recent online job listings include Used Vehicle Quality Specialist, Remarketing Manager and Used Vehicle Sales Advisor.