Hong Kong’s second hand auto market is set to become even more crowded as the first Tesla Model 3 comes to market in 2019, offering buyers an extended warranty and a second chance to score a second car with guaranteed second hand price.
According to Bloomberg, the second hand Tesla Model 2 comes with a $6,000 deposit, and the Model S comes with an MSRP of HK$7,800.
As the first car, it will be priced at HK$65,000.
In order to secure the second-hand car, buyers will need to pay HK$12,600 in cash.
This is equivalent to HK$9,000 for a Model S with a two-year warranty, HK$14,400 for a model S with an extended battery, and HK$17,600 for a second-generation Model S. For buyers with limited funds, a second Tesla will cost HK$4,500 and the buyer will need HK$16,500 to secure a second Model 3.
The HK$18,000-HK$22,500 premium over the original price tag for a regular Model 3 is likely to be a barrier to entry for first-time buyers, who are typically left out of the second car market.
The price of the new second-level Model 3 will not include a $2,000 car finance subsidy.
Tesla and the local government are reportedly considering introducing a new car finance service in 2018 to help the first-timers, and to help people save money, as the cost of financing for a new second car has jumped from HK$20,000 to HK$.30,000 a month.
While HK$10,000 is the typical price for a two car, there is a small markup for first and second car buyers.
The car finance program will reportedly be offered to first- and second-time car buyers, but the price will remain the same for the first and third car.
The HK$15,000 subsidy is reportedly the only car finance benefit available to first and new car buyers in the market.