Affordable Used Teslas: What to Watch Out For

Introduction

The launch of a new electric vehicle often brings complaints about high prices. However, the situation is different for used EVs, especially used Teslas, due to a surplus in the market.

Price Wars and Their Impact

Tesla’s Strategy

For over a year, Tesla has been slashing prices to maintain sales in China. This strategy has significantly devalued used Teslas. Read more about the impact of Tesla’s price cuts.

Hertz’s Response

Hertz decided to sell at least 20,000 of its Teslas due to lower residual values. Learn more about Hertz’s decision.

What to Watch For

Potential Issues

“The prices are very appealing, but shoppers must keep in mind that rental cars can and do get abused, and some of these ex-rental units may have nasty surprises stemming from their hard lives. Be sure to have yours checked out thoroughly by a mechanic before buying,” Kim says.

Common minor issues include mismatched tires, minor dents, scrapes, and rock chips. Many of the Teslas that Hertz is selling have been used as Ubers, identifiable by high mileage. Battery degradation is usually minimal, with most cars losing only 4 to 5 percent of capacity. Long Range Teslas should have a powertrain warranty for up to 120,000 miles or eight years.

Battery and Charging Concerns

“One side effect of Tesla’s widespread and reliable DC fast-charging network is that many owners end up relying on it to keep their cars charged rather than dealing with the often considerable expense of installing a home charger and associated home electrical upgrades,” Kim told Ars.

Check the battery’s health before purchasing, which can be done on the touchscreen or during an inspection.

Interior and Exterior Wear

Rental cars often suffer from excessive wear, especially on touchpoints like the steering wheel and rear door cards. Slamming doors and trunks can also cause damage.

Other Potential Headaches

Ownership Transfer Issues

Teslas are highly connected, and many features are accessed via smartphone apps. Transferring ownership from Hertz can be time-consuming, leaving the car in Chill driving mode and restricting access to some settings. You won’t be able to use Tesla Superchargers until the transfer is complete. Contacting Tesla directly can help resolve this, but it may take several days or longer if there’s a paperwork mismatch.

Software Reset

Once ownership is transferred, perform a software reset to remove the fleet version.

Tax Credit Eligibility

Not every car will qualify for the $4,000 IRS used clean vehicle tax credit. The car must be at least two model years older than the current calendar year and cannot be sold for more than $25,000. Income caps also apply, with a single-filing individual earning no more than $75,000 a year to qualify.

Community Feedback

There are plenty of complaints among the Tesla community that Hertz wasn’t set up to handle the tax credit, although recent buyers report improvements. Contact the specific sales branch to ensure they can process the paperwork, especially if you expect the credit to be applied at the point of sale.

Alternative Buying Options

Buying an ex-rental or ex-fleet Tesla from an independent dealer is another option. Many used car lots have bought Teslas at auction from Hertz and elsewhere. This route may offer a smoother experience, particularly for ownership transfer and registration. However, be cautious of third-party warranties.

Conclusion

Ex-rental or fleet cars may have had a tough life, but they are usually well-maintained. As long as you ensure you’re not buying a lemon, it’s a good way to get an EV for less than $20,000.

This story originally appeared on Ars Technica.