Tesla offer guaranteed second hand price for electric-cars

The secondhand car market is booming, and it’s not just because Tesla is offering the electric-vehicle manufacturer’s cars for $1,000 less than the retail price.

A report by the South China Morning Post (SCMP) has revealed that the price of a used Tesla Model S has dropped from $62,800 to $51,600 over the past year.

The report cited a Chinese car trade association that said that the two cars have similar “quality, performance, and design.”

“Tesla has started to compete with the likes of BMW, Honda, and Mercedes-Benz in the electric car market, and the two companies are all competing with each other in the secondhand market,” the SCMP said.

“With the recent rise in the demand for electric vehicles, and an overall decline in prices, the second-hand market is in a good spot.”

The report noted that the Model S’ $51.6 million price tag is down by nearly 30 percent since 2015.

“The secondhand cars are still cheap compared to the retail market, but the quality and performance of the Tesla vehicles are far more superior,” the report stated.

The SCMP noted that both Tesla and the Chinese car industry are “finally starting to accept the possibility of selling electric cars at a profit.”

The Chinese government has previously warned that the second hand market could be a bubble that will soon burst, with many of its automakers, including Tesla, reportedly considering bankruptcy.

China’s Automobile Workers’ Union (CWA) said that it is also concerned about the second car market.

“There is still a lot of uncertainty in the first hand car market,” CWA spokesman Xu Yiqiang told Reuters.

“It is too early to predict how this market will develop.

We expect more and more car makers to start selling electric vehicles in the future, and then, if demand does not slow down, we expect to see the Chinese government finally recognize that the first-hand car is a bubble.”

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