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After the Extended Warranty
- Thread starter MarkPerlman
- Start date
ucmndd
Well-Known Member
I mean, by that broad and oddly judgmental stroke so is basically any insurance product.
Though I do think it's reasonable to suggest the economics will get less and less favorable as cars age. Might be worth checking in with @XcelerateAuto on what they offer for older cars, but at a certain point, it's going to be infeasible. 8+ years old is certainly getting to that mark.
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airborne spoon
Active Member
Insurance is a legal requirement but most of the time its the same result.
In general if you just save the money you would spend on an extended warranty if, super big on the IF you have a big ticket item fail, (motor, battery, DC to DC converter, charger) you will have the money to pay for it yourself. But in most cases its only small items that fail and those never equal out to the amount you paid to the extended warranty in the first place.
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just give it a day or two. You'll be getting phone calls from a lady telling you that your warranty is about to expire. She can hook you up.....
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Should You Get an Extended Warranty for Your Car? - Consumer Reports
Should you buy an extended warranty for your car? Consumer Reports consults experts and provides advice.
From a pure numbers standpoint, the smart money is on skipping the protection and instead focusing on buying a model with better-than-average predicted reliability, and then properly maintaining it.
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I would not own any car over $90K without a warranty (factory or extended). After 8 years I might drive it until the repairs became prohibitive. I don't think you will find a warranty after 8 years unless it is absolutely too expensive, and even then it will not cover the battery, which would total the car. After 8 years, just take your chances or get a new car.
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XCare offers world class coverage, based on the Tesla ESA, with only a $100 deductible. Hit me up for a no hassle quote. Just need your City/Zip Code, how many miles on the car currently and how many miles you drive per year. Cheers! Brent [email protected]
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ucmndd
Well-Known Member
I find this point of view a little strange. I think it’s actually more understandable and logical for people to buy an extended warranty on a Chevy Sonic than it is a car that costs $90k.
A large, unanticipated repair bill for the Sonic owner could be financially catastrophic, to the point that the statistical premium paid is worth the elimination of risk.
Someone driving around a $90k car should not be subject to that same risk of financial calamity (emphasis on should), and should feel much more comfortable self insuring and knowing they’re highly likely to come out ahead.
As for me, I would have lost $3,834 on a hypothetical $4,000 ESA for my car.
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When you own a house, you insure it because it is valuable to you, and you can't assume the risk of loss. When you own a car that cost as much as a small home, the same goes. On both you hope you lose the bet, and nothing happens. That is good to have been mistaken on the risk. I see daily repairs of $2000+ on Tesla Model S cars, many just past the manufacturer's warranty. A/C, door handles, Display Screens, in car charger, rear charger port, drive units, air suspension, steering assembly, seat controllers, etc. On an expensive car, things are very expensive to get serviced.
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ucmndd
Well-Known Member
Agreed, the loss would be catastrophic, to borrow my word from above.
Agreed, which is why I carry a full insurance policy on my car to cover me in the event of a total loss.
To continue the analogy, while I carry homeowners insurance, I don’t find the economics of one of those home warranty products to be particularly enticing. If something in my home needs a $2,000 repair, I’ll pay for it myself instead of playing the odds on a game where I know the house always wins.
Also agreed. I’ve just never thought that the risk of a $2,000 repair is worth paying $4,000 to avoid. I have the means to self insure and the maths to know that’s almost always the right financial decision.
But, as this thread no doubt confirms, people have wildly divergent tolerance levels for risk. Some will happily pay 10x more to ensure they NEVER have to deal with a problem themselves and feel super good about that decision. Thankfully there’s a thriving market for people that want to explore those options.
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A major difference is that you can transfer the warranty to a new owner, or get a pro-rated refund if it is not used, or the amount claimed is less than your cost of the policy. Also, I need a rental car, and the extended warranty helps if you are stranded on a trip and need trip continuation assistance. This really cuts your risk of loss down, and can help you sell your used Tesla. If you are 2 years into your 4 year extended warranty when you sell your car and the warranty cost $4000, you can get a refund of $2000, or offer the new buyer a 2 year warranty for $2000. You only pay for as long as you own the car, or until you "won" the bet and received more in claims than you paid for the warranty in the first place.
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As a 2014 Model S owner, I have a lifetime warranty on the battery, but in th 7 1/2 years I’ve owned the car, I’ve replaced the screen twice, had the door handle rebuilt (Tesla doesn’t make the old style anymore) and replaced the charge port door. I’m not looking forward to paying out of pocket for future repairsAgreed, the loss would be catastrophic, to borrow my word from above.
Agreed, which is why I carry a full insurance policy on my car to cover me in the event of a total loss.
To continue the analogy, while I carry homeowners insurance, I don’t find the economics of one of those home warranty products to be particularly enticing. If something in my home needs a $2,000 repair, I’ll pay for it myself instead of playing the odds on a game where I know the house always wins.
Also agreed. I’ve just never thought that the risk of a $2,000 repair is worth paying $4,000 to avoid. I have the means to self insure and the maths to know that’s almost always the right financial decision.
But, as this thread no doubt confirms, people have wildly divergent tolerance levels for risk. Some will happily pay 10x more to ensure they NEVER have to deal with a problem themselves and feel super good about that decision. Thankfully there’s a thriving market for people that want to explore those options.
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ucmndd
Well-Known Member
By “lifetime” you mean 8 years, right?
That’s actually not too bad for a 2014.
Good news for you is the cost of common repairs has come down significantly. Replacing the entire MCU, including both screens, with the newer much faster model costs $1500. Door handle replacements, which used to be ~$800, are now ~$300 for a much simpler and more reliable part.
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I disagree. Extended warranties (and related insurance products) are a useful way to hedge a rare and destabilizing cost. Replacing a Tesla battery is a much better fit than routine maintenance on an ICE which is neither rare nor terribly expensive.
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