While news on Tesla has been dominated by their new Powerwall home battery system this last week, the company made a small change to its primary business of automobiles. If you find yourself in the market for one of Tesla’s flagship electric cars, you will now find the option to purchase a used model when shopping on their website. This marks the first time the company has given customers the chance to buy a pre-owned Tesla, and prices can be several thousands less than brand-new models, despite the used ones being no more than 2 and half years old.
All of Tesla’s pre-owned Model S‘s come with a 4 year/50,000 mile limited warranty. The cheapest one can be found for around $63,000 with just over 13,000 miles on the odometer, making it about $12,000 cheaper than the most affordable new model (not including discounts like tax credits and purchase incentives). While at the upper end is a performance model with nearly 20,000 miles, going for $91,500.
The 2 and a half year age limit on pre-owned means potential buyers could be getting cars from when the Model S was first introduced in 2012. Just don’t count on finding one with all-wheel drive, as that feature was only recently introduced.
While Tesla’s method of direct sales has been ruffling feathers among car dealership associations in some states, the move to selling used cars will be a strong chance to generate revenue. The steeply discounted prices are likely due to Tesla not having to use auto dealers for used models, meaning there’s no one to share a cut with.