Second hand car prices have been rising at an accelerated rate over the past few years and the second hand market has a new name to keep things interesting.
In a move to keep the second-handed market interesting, Tesla Motors announced that its second hand car dealerships would now guarantee second hand prices to customers.
Tesla said the second hands would also be able to “give you a full refund if your car does not meet the specifications or meets the requirements for the dealer.”
The move was in response to an inquiry by the Australian Competition and Consumer Commission.
In Australia, the minimum required price for a second- hand car is $24,600 and a full warranty is $4,600.
However, in the United States the minimum is $30,600 with a full coverage for $5,600 per car.
Tesla’s second-home warranty does not cover a “new vehicle”.
The company’s announcement was met with disappointment from car dealers.
The company said that customers were not being offered the opportunity to buy a second hand vehicle for under $25,000.
“We believe that customers should be offered the ability to buy second hand cars at a price they are willing to pay for the new vehicle,” Tesla said in a statement.
“It is a safe bet that customers will want to own a secondhand car for its value and ease of use.”
Tesla said that it would now provide the guarantees for first-hand vehicles.
The move to make second hand offers comes after a string of negative publicity that has seen the company’s stock drop by more than 50 per cent since the announcement of the new policy.
The news has caused concern among Australian car dealers, who have been forced to put their products on hold for the time being.