When Tesla makes an offer on a trade-in or interest on a loan, get second opinions

GONE BUT NOT FORGOTTEN: My 2015 Tesla Model S 60, which I bought new, on the day I sold the zero-emissions vehicle to Carvana after rejecting a much lower offer from Tesla. I'll miss the oval front nose cone, which, along with the rounded front fenders, evoked the styling of Italian sports cars from the 1960s.

CLASSIC STYLING: I never got tired of the styling and the utility of the big, luxurious 4-door hatchback that was first introduced by Tesla in 2012.

Buying a used car on company

website isn't as easy as it looks 

By VICTOR E. SASSON
EDITOR

HACKENSACK, N.J. -- I'll never buy a new Tesla Model S again.

I just took delivery of a 2016 Model S with all-wheel drive and smart air suspension, replacing my 2015 Model S 60 with rear-wheel drive.

The newer Model S 75D, in the same red multi-coat paint as my 2015, has less than 8,000 miles on the clock, a bigger battery, longer range and a sunroof, and cost $53,500.

I bought my 2015 Model S 60 with the smallest battery available at the time to keep the cost down, but I still paid a little over $81,000.

In New Jersey, electric vehicles are exempt from state sales tax (6.625%).

I found my second all-electric car on Tesla.com, which lists "used inventory" that you can search by model and color.

Best of all, reconditioned Teslas come with a 4-year new-car warranty.

Difficult process

But the process of selling my 2015 Tesla and buying the newer Model S was difficult, stretching over 10 days:

• There was a blizzard of emails from and to two Tesla employees in Brooklyn and California, and an occasional phone call.
• I asked for photos of the car I was buying, but they didn't show damage to the bottom of the front bumper, and sloppy touch-up paint, that I only saw on the day of delivery.
• And I made last-minute decisions to reject Tesla's offer for my trade-in, as well as the Tesla-arranged loan for the 2016 Model S -- the latter on the day I picked up the car.
• I got better deals on the trade-in from Carvana and on financing from Alliant Credit Union, which held the loan for my first Tesla.

BETTER IN MANY WAYS: Above and below, the 2016 Model S 75D is more assured than my first Model S, and I welcome the cushioned ride from the smart air suspension, given the horrendous condition of streets, roads and highways in New Jersey.

Two Davids

After I found the Model S I wanted online and paid a $100 order fee, I received a welcoming email from David Hunter, a used-vehicle advisor for the NY Metro Region.

I also was contacted by David Li, an inside delivery advisor (Remarketing), who instructed me to "complete all your tasks on your Tesla account" in regards to financing, trade-in, proof of insurance and registration.  

I was to pick up the 2016 Model S I was buying at the Paramus, N.J., dealer in 9 days (the car was in storage in Newburgh, N.Y., I was told). 

I bought my first Tesla in April 2015 at the Paramus dealer, and took it there for four annual services.

Hunter declined my request for a test drive of the 2016 Model S, explaining every used Tesla goes through a 70-point check, which the company claims costs up to $6,000.

Later, he sent me an email with more than a dozen photos of the car I was buying, showing the exterior and interior from every angle, but not the damage on the front bumper.

Trade-in value

I started shopping for a reconditioned Tesla in the spring, after my fourth annual service, more interested in all-wheel drive and smart air suspension than a bigger battery and longer range.

As a bonus, the 75D I saw on the company website listed an 0-60 time of 4.2 seconds, identical to the more expensive 90D, and had only 7,686 miles on the odometer. 

I had gotten a trade-in value for my 2015 Tesla of $34,600, but Hunter and Li told me the best I could do now was $32,800, because more than 30 days had passed and I had put more than 1,000 miles on the Model S.

Li suggested I look into selling my car to CarMax, and said he might match its offer, but Hunter later said that only applied to trading in non-Tesla vehicles.

That's when I recalled all the TV ads I was seeing, went online and filled out a form at Carvana.com, and immediately received a trade-in value of $37,712 -- nearly $5,000 more than Tesla's offer.

That was a no brainer. I accepted the offer immediately. 

Two days later, three men showed up at my house in a Toyota Prius with "CARVANA" painted on the side, had me sign a few forms, and handed me a check for $33,070.33 -- the proceeds of the sale less the $4,641.67 I still owed on the 60-month loan for the 2015 Model S.

Day of delivery

On Nov. 14, the same day Carvana picked up my first Tesla, I took an Uber to Paramus, using a voucher sent to me by the dealer, and got my first look at the 2016 Model S 75D I was buying.

I had sent an email to Alliant Credit Union to see if I could get a better interest rate on a 60-day loan for $53,500 than offered by Tesla's finance company.

I was assured by Senior Loan Consultant Jon Sipich that 4.24% was available on a 60-month loan, compared to 4.75% from TD Auto Finance.

So, I informed Tesla I was going with Alliant.

Damage to bumper

I finally got a chance to look over the car I was buying, and my heart sank when I saw the damage to the lower part of the front bumper -- damage not visible in the photos Tesla had sent me.

The rest of the exterior, as well as the luxurious interior with dark wood and patterned leather seats, was in excellent condition.

I asked the advisor who was handling the delivery if Tesla would repair the bumper, but he said no.

A friend who had his Model S' front bumper replaced said the part comes prepainted, and costs $900.

I sent photos of the admittedly minor damage to David Hunter and the amateurish attempt using mismatched pain to touch it up, but there also was a small dent in the lower part of the bumper.

He replied that the damage is "at a low visibility point, and would be considered normal wear and tear," so Tesla wouldn't repair it.

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