certified Tesla problem

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Heard about the first certified pre-owned Tesla to hit the market? It's not certified pre-owned by the traditional definition.

That's the polite way of saying exercise caution before buying any certified pre-owned Tesla because the only company that can sell a true certified pre-owned Tesla and it hasn't announced plans to do so.

Basically, a certified pre-owned vehicle is a used car sold by a dealer who represents the manufacturer who produced the vehicle when it was new.

For example, only Ford dealers can sell certified pre-owned Fords.

A company called Carvana, according to an article at AutoRemarketing.com, "Carvana says the Model S is the first of many Tesla cars that will be available on the site, adding that it is the first online retailer to allow shoppers to shop, buy and finance Telsas completely online." Carvana does clarify that the vehicle is not certified by Tesla but there is bound to be confusion when the term is thrown about.

“There has been a lot of news recently around the regulatory limitations Tesla has faced selling their cars in certain states, but because of our unique business model we are able to sell pre-owned Tesla’s to anyone, anywhere,” Ernie Garcia, president of Carvana, added in the article.

On its website, Carvana explains its certified pre-owned program. " At Carvana, we know that trust begins and ends with the car, which is why every vehicle we sell comes Carvana Certified. The process begins well before you land on our site with our rigorous inspection and reconditioning process, and it continues long after we leave your driveway with our 100 day/4,189 mile 'Worry Free Guarantee.'"

In effect, what Carvana is offering – and this is not to diminish it in any way – is a generous warranty. Most certified pre-owned warranties would offer you the full backing of the manufacturer, which Carvana cannot do.

Of course, it will be difficult for Tesla to offer a certified pre-owned program because it does not have an extensive network of service facilities. Customers will have to travel long distances to get work done but the program could succeed if Tesla extends its new-car warranty service to certified pre-owned. That would mean Tesla would supply a loaner car and drop-off and pick-up service. (If that was implemented, it could make Tesla number one for certified pre-owned programs in the United States from the customer perspective.)

As explained in an earlier article on buying a used Tesla, "Buying a used Tesla Roadster is going to be different from buying just any used car. The first factor is there just aren't that many of them. This is going to definitely be a niche vehicle. You're going to have to go, most likely directly to Tesla owners or Tesla dealerships. The latter you can find by going to www.teslamotors.com. Expect prices to be higher at a dealership because of the relative rarity of the vehicle.

Here are some questions you can ask the owner that are specific to a Tesla owner:
  • What is your average range? Trust the owner who low balls the stated 245 mile range. It indicates a level of honesty. Expect to hear 150 miles, which is more than enough for most people's daily drives and even weekend jaunts.
  • How much does it cost to charge? Electric vehicle owners know these kinds of things down probably to the penny. Honestly, you're not buying a Tesla Roadster simply because it costs so little to run but it's just good information to have.
  • Are you selling the charger? Some owners, like the one in Texas, simply plug the Tesla Roadster into their house and opt for the slower charge that takes about eight hours.

You can reach out to Tesla owners through the Tesla enthusiasts page as well. Reach out to a local dealer and see if there is any kind of waiting list for used Teslas. Also, reach out to current owners through the forum and indicate an interest in buying one.

By the way, if you're interested – and it has not sold yet – the Carvana certified pre-owned Tesla can be yours for the low price of $88,000. As Carvana says in a press release that price comes from the fact there is high consumer demand generated by limited availability.

However, John Goreham, writing at TorqueNews.com, says you might be better off spending the money on a new Tesla. He cites as an example, the federal tax credit of $7500 and the $5000 tax credit offered by the state of Georgia, where Carvana is located. At the new Tesla MSRP of $105,000, "That means that a new Tesla … would compare to this used Tesla in terms of acquisition coast to a buyer in Atlanta," wrote Goreham.
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