Why are used Tesla model 3 prices significantly lower on Tesla's website vs CarMax/ Carvana? I am seeing a blue 2020 model 3 in Bend, OR for 28100 with 16k miles. Everything on CarMax/ Carvana is over 30k - I didn't go through the whole process - am I missing something? Does Tesla charge some other fee later? Or are they just selling off things that came off a lease and CarMax/ Carvana don't have those?
You can’t buy the car at the end of a Model 3 lease so I’d imagine they’ve got quite a bit of inventory.
Why do they do that
In 2018 Elon said that they won’t be letting you buyout leases because all the cars are going to be turned into robotaxis in 3 years aka 2021
Sounds good. I’d love an EV but I like the utility of having a truck that can pull a trailer if needed. Ford lightning and cybertruck are like 90,000… my TC isn’t high enough yet
Not sure about Tesla. Generally speaking, prices at Carmax and Carvana are cheaper than dealers for obvious reasons. But certified cars sold at dealers add more quality assurance
Check Cosmetic and Mechanical Standards section under condition - learn more . Better to inspect car in person before pulling trigger
Carmax and Carvana have high sunk cost. Eg they bought cars before discounts and need to recoup the money. Tesla is selling lease returned cars. The remaining value is low, and they can afford to set the right pricing (given discounts on new)
I suppose Tesla isn't directly available in as many locations so people are forced to buy from CarMax / Carvana since they are everywhere and people may not even realize Tesla sells used ones too.
Not true?
Actually I do see lower cost cars at CarMax than Tesla. You might want to double check
I was specifically looking at 2 or 3 years old low mileage model 3 s but maybe something else came along.. hopefully the market is normalizing. A new model 3 after the federal and state tax credits alone in states like CO and MA should be worth $30k or so, otherwise it is a big arbitrage opportunity
This should also help drive down the prices since it makes the monthly payment cheaper on a new car and people who are eligible for the credit don't have to wait for tax time: https://electrek.co/2023/10/06/you-will-soon-get-up-to-7500-ev-tax-credit-at-the-purchase-rather-than-a-return/
id prefer dealer/company over carvana/carmax any day but these carvana/carmax do offer retuen policy