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Found 4 results

  1. Despite the hoopla and endless praise for Tesla and their vehicles, there are a number of owners who aren't happy with the company. Go on to any Tesla forum and you're bound to fin endless posts from owners of the Model X listing issues from poor paint quality to doors not closing. The Model S is no stranger to problems with batteries failing and the infotainment system freezing. This is a big issue for Tesla as they have been burning cash for the past two years, with a good amount of this cash coming going to repairs and warranty costs. CEO Elon Musk has promised investors to slow down the burn and curtail costs retaining to repairs. With Tesla announcing their results later today, we'll see if that promise was kept. But how much is Tesla spending when it comes to repairs? Reuters did some analysis on Tesla's recent annual report by looking at the total vehicles sold and total spending from warranty repairs and accruals - money set aside for future warranty work. Their analysis showed Tesla spent $1,043 per vehicle on repairs and set aside $2,036 per vehicle for future warranty work. The good news is these numbers are 17 and 34 percent lower than 2014. But compared to the likes of General Motors, Ford, and Daimler, Tesla's numbers are quite high. General Motors: $400 per vehicle on repairs, $332 for future work Ford: $429 per vehicle on repairs, $308 for future work Daimler: $970 per vehicle on repairs, $1,294 for future work It should be noted that Tesla only sold 50,000 vehicles last year, while GM, Ford, and Diamler sold millions. Nevertheless, spending just over $150 million of the total $700 million burnt for repair work isn't a good sign. Telsa in a statement to Reuters said it has reduced the cost of repair claims in the first year along with the amount it reserves for future repairs. Source: Reuters
  2. While Americans are keeping their cars longer (Experian Automotive says the average ownership length is now 7.75 years), there are some models that owners can't wait to get rid off within a year of buying. iSeeCars.com recently compared new car sales against used-car purchases in 2014 to figure out which vehicles were traded-in the fastest. Their analysis showed that on average, around 2.7 percent of all new vehicles are traded in after only a year’s ownership. More surprising was the vehicles that had the highest amount of trade-ins. The expectation would be that the vehicles with the highest amount of trade-ins would be cheap. Not so fast. iSeeCars.com in their analysis the vehicles with highest trade-ins range from $18,000 to $45,000. “iSeeCars.com analysts think the fact that consumers are giving more of these cars up than the average is directly linked to quality or perceived quality of the cars,” says Phong Ly, CEO of iSeeCars.com. “Because purchasing a new car is expensive and something most people tend to spend a lot of time on, it stands to reason they would make a change shortly afterward if they felt the quality was lacking.” Here's the list of the vehicles with the highest trade-in amounts, Buick Regal - 10.7 Percent Traded-In Chevrolet Sonic - 8.9 Percent Traded-In BMW X1 - 7.8 Percent Traded-In Dodge Charger - 7.7 Percent Traded-In Mercedes-Benz C-Class - 7.4 Percent Traded-In Chevrolet Cruze - 7.2 Percent Traded-In Nissan Frontier - 6.9 Percent Traded-In Source: Forbes
  3. Despite the hoopla and endless praise for Tesla and their vehicles, there are a number of owners who aren't happy with the company. Go on to any Tesla forum and you're bound to fin endless posts from owners of the Model X listing issues from poor paint quality to doors not closing. The Model S is no stranger to problems with batteries failing and the infotainment system freezing. This is a big issue for Tesla as they have been burning cash for the past two years, with a good amount of this cash coming going to repairs and warranty costs. CEO Elon Musk has promised investors to slow down the burn and curtail costs retaining to repairs. With Tesla announcing their results later today, we'll see if that promise was kept. But how much is Tesla spending when it comes to repairs? Reuters did some analysis on Tesla's recent annual report by looking at the total vehicles sold and total spending from warranty repairs and accruals - money set aside for future warranty work. Their analysis showed Tesla spent $1,043 per vehicle on repairs and set aside $2,036 per vehicle for future warranty work. The good news is these numbers are 17 and 34 percent lower than 2014. But compared to the likes of General Motors, Ford, and Daimler, Tesla's numbers are quite high. General Motors: $400 per vehicle on repairs, $332 for future work Ford: $429 per vehicle on repairs, $308 for future work Daimler: $970 per vehicle on repairs, $1,294 for future work It should be noted that Tesla only sold 50,000 vehicles last year, while GM, Ford, and Diamler sold millions. Nevertheless, spending just over $150 million of the total $700 million burnt for repair work isn't a good sign. Telsa in a statement to Reuters said it has reduced the cost of repair claims in the first year along with the amount it reserves for future repairs. Source: Reuters View full article
  4. While Americans are keeping their cars longer (Experian Automotive says the average ownership length is now 7.75 years), there are some models that owners can't wait to get rid off within a year of buying. iSeeCars.com recently compared new car sales against used-car purchases in 2014 to figure out which vehicles were traded-in the fastest. Their analysis showed that on average, around 2.7 percent of all new vehicles are traded in after only a year’s ownership. More surprising was the vehicles that had the highest amount of trade-ins. The expectation would be that the vehicles with the highest amount of trade-ins would be cheap. Not so fast. iSeeCars.com in their analysis the vehicles with highest trade-ins range from $18,000 to $45,000. “iSeeCars.com analysts think the fact that consumers are giving more of these cars up than the average is directly linked to quality or perceived quality of the cars,” says Phong Ly, CEO of iSeeCars.com. “Because purchasing a new car is expensive and something most people tend to spend a lot of time on, it stands to reason they would make a change shortly afterward if they felt the quality was lacking.” Here's the list of the vehicles with the highest trade-in amounts, Buick Regal - 10.7 Percent Traded-In Chevrolet Sonic - 8.9 Percent Traded-In BMW X1 - 7.8 Percent Traded-In Dodge Charger - 7.7 Percent Traded-In Mercedes-Benz C-Class - 7.4 Percent Traded-In Chevrolet Cruze - 7.2 Percent Traded-In Nissan Frontier - 6.9 Percent Traded-In Source: Forbes View full article
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