Tesla turns to partners for help with its growing used car business

Yet another example of Tesla’s penchant for vertical integration is its Certified Pre-Owned program. Industry observers have noted that Tesla’s lack of franchise dealers allows it to exercise an unprecedented level of control over the used market for its vehicles.

Now, as the company deals with “delivery logistics hell,” it has partnered with two outside firms to help it handle its rapidly growing used car business. Cox Enterprises-owned Manheim and Kar Auction Services division Adesa help manage used cars, providing inspection and reconditioning services and marketing the vehicles to wholesale customers.

Tesla is handling a higher volume of used cars than ever before, partly because of the 2-year and 3-year lease options it has been offering on Models S and X. Other vehicles showing up on Tesla’s lot include trade-ins (including gas-burners made by other automakers), lemons (few of these, we hope) and cars repossessed after non-payment.

Tesla Model X

A Tesla employee involved in the mushrooming used car operation told CNBC that around half of the Tesla vehicles that go to its partners come back retail-ready, to be sold as Certified Pre-Owned vehicles or used as loaners and employee cars. The other half are sold by Manheim and Adesa via physical and online wholesale auctions.

Tesla’s recent online job listings include Used Vehicle Quality Specialist, Remarketing Manager and Used Vehicle Sales Advisor.

 

Source: CNBC