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Tesla To Debut Selling Used Cars Online

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The Wall Street Journal on Friday reported that Tesla Motors Inc (NASDAQ: TSLA) is now selling used versions of its Model S cars on its website.

Tesla will offer an extended four-year or 50,000-mile limited warranty on its used vehicle. The company moved towards selling used cars as many original Model S owners traded in their vehicles for the newly released all-wheel-drive version.

There's also the fact that some of the very first Model S cars were offered to clients in the middle of 2012 under a three year lease term. Tesla is looking for ways to monetize the expected surge in returned fleets, so turning to the used market is a strategic move for the company.

The Wall Street Journal also noted that used vehicle sales are important for the company to expand its customer base, ensure residual values are stable, and perhaps most importantly, create a new source of revenue.

Related Link: Was Tesla's Powerwall Battery Factored Into The Stock Price?

The publication further noted that Tesla is expected to be getting back "hundreds or thousands" of cars returned from leases on an annual basis. Naturally, the company has an incentive to clear its used inventory as quickly as possible and will keep used cars in "groups" across the U.S., but not necessarily at a Tesla retail store.

A look at Tesla's website shows cars available in Atlanta, Chicago, Cleveland, Denver, Florida, Hawaii, Los Angeles, New York, Seattle and Washington DC. The Wall Street Journal stated that consumers can get a vehicle delivered to their home or pick up the car at a regional storage spot.

Potential buyers of used cars can also take advantage of Tesla Lending.

Posted-In: Tesla Tesla Model S Tesla Used Cars Wall Street JournalNews Rumors Tech

 

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