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To combat the buildup of used vehicles that has plagued other plug-in models, Tesla Motors has built a new showroom to help resell its used Model S sedans.
The carmaker’s newly-opened 23,000-square foot store will offer both new and pre-owned Teslas to buyers. Located in Buena Park – which is about halfway between Los Angeles and Santa Ana – this is Tesla’s first facility in the region to combine a new and pre-owned sales showroom with a service department.
“We really needed to bring a bigger presence,” said Jeremy Snyder, Tesla’s southwest regional general manager. “So if you are looking for a pre-owned Tesla, you can come here and buy one right off the lot.”
About three dozen pre-owned Model S sedans were already on the lot, reported The Orange County Register, with prices starting in the upper $40,000 range. Peggy Kerr said she appreciated the convenience of the new showroom.
“In the past, they had to drive you to the (pre-owned) car … We got to look at four cars today,” said Kerr.
The Buena Park showroom follows up on Tesla’s efforts to make it easier for consumers to buy a pre-owned Model S. Last May, the carmaker began selling its used vehicles online. More than 60 models are currently available through Tesla’s website, with a range of model years and versions available. Pricing online starts at $72,000 and a few cars are still eligible for tax incentives.
Tesla offers a 4-year, 50,000 mile limited warranty on its pre-owned cars.
The online sales and new pre-owned showroom will likely help the brand retain its healthy retention values, currently the highest in the EV segment. These proactive techniques are especially important as three-year leases on the Model S end.
“Getting ahead of this influx of used Model S vehicles and supporting the secondary market with a certified sales program is a smart move on Tesla’s part,” said Karl Brauer, senior analyst for Kelley Blue Book. “Demand for new Teslas has outstripped supply.”
Photo: The Tesla Gallery and Service Center in Paramus, U.S., on Thursday, Dec. 11, 2014. Photographer: Ron Antonelli/Bloomberg