Tesla’s (NASDAQ:TSLA) Used EVs, the ‘Water in its Backyard’
With more used EVs coming in, Tesla (NASDAQ:TSLA) is said to be partnering with car auction firms in an effort to sell out those used cars.
According to a new report in the media, Tesla is working with Manheim and Adesa KAR to sell larger volumes of vehicles through wholesale customers: “To manage a growing used car business, Tesla is relying on outside firms, including Manheim and Adesa KAR , according to 2 people familiar with the situation. These businesses help move and manage used cars, putting them through inspections, reconditioning and sales to wholesale customers.”
When a car goes to a wholesaler and run thru an auto auction there is no reserve, there will be a lot learned here, we will keep and eye on it.
At a dealer auto auction it is “Where is, As is , Nothing else promised.”
All of the companies involved refused to comment on the report.
It would not be the 1st time that Tesla partnered with 3rd-parties for its used EV business, as few buyers seem to want used Teslas
Last year, the automaker expanded its used car business online with inventories on Autotrader and cars.com.
Tesla is currently receiving a big influx of vehicles as more 36 month leases are ending.
The Fremont California maker is now handling an increasing number of used cars and it outlined in its latest earnings that it expects its used car business to grow significantly.
When a lease ends or an owner upgrades, Tesla generally takes back the vehicle, refurbishes it, and puts it back for sale in its inventory aka Water in its Backyard.
Earlier this year, it was reported that the company updated its policy with some new cars being added onto Tesla’s list of used vehicles without being refurbished.
They were listed with this ‘Not Refurbished’ warning: “This car has passed a 70-pt mechanical inspection and will be cleaned before delivery. If you would like any additional work that is not covered under your warranty, we can help arrange service after delivery for an added cost.”
Tesla salespeople have been telling buyers that the automaker is still making sure that the vehicles are up to company standards for the warranty, but they are not fixing cosmetic issues anymore.
And there are issues.
Tesla not offering real pictures of the used vehicles is the Key 1, and the stories say that the policy is not acceptable.
The company says that they are making it easier for people to request pictures, but the jungle telegraph is saying Tesla salespeople pushing for sales to people before they having seen the car.
Tesla should list the cars online, along with the details and photographs for anyone to see just like every other used car seller does. Strange.
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