Are you planning to own post-warranty?

[cab]

Hello All,

So I currently own an older Model S, and have considered getting a Model 3 or Model Y. As I typically own cars well past their original warranty, I either consider getting an extended warranty or roll the dice and pay up for any repairs. In the past I always rolled the dice since, as a gearhead, I could handle most repairs myself (my old BMW M5 was like getting a car and car-repair hobby all-in-one).

Unfortunately, with Teslas and, I suspect, most EVs these days, anything not common (like brakes/suspension/etc.) really requires the manufacturer (or dealer for other manufacturers) address the problem, so "DIY" is a lot less viable. Sure, there are a TINY number of shops, but they are not widely available - and not exactly cheap either. This all either results in simply paying the higher dealer/manufacturer prices or ponying up for the extended warranty.

When it comes to extended warranties, you usually have the choice between those offered by manufacturers or after-market. None are "cheap", but in general I think most would agree the former can be less "hassle" than the later. Again, we have a dilemma here in that Tesla no longer offers an extended warranty for ANY new Tesla product: S, A, 3 or Y. That forces owners into the (limited?) aftermarket. Not surprisingly, we are seeing a lot of "extended warranty" questions here on the forum now as the first Model 3s start to come off warranty (for anything other than drive units and batteries).

So, that brings me to the question in the title? Are you planning to keep the car post-warranty? Options I see include:

1. Roll the dice and keep car w/o warranty
2. Look for and purchase a 3rd party extended warranty (some are reputable, others, well...um, yeah)
3. Sell it and eat the depreciation and start over with car payments

Sure, the 5 year depreciation on a Model 3 is better than, say a BMW 3 series, but as you move beyond 5 years things can get very different when you compare an option where you keep the car and drop the coin for an extended warranty vs. "buying another car" and re-entering the steepest part of the depreciation curve.

I understand. of course, that some of you just sort of build "always having a car payment" into your life and find having the latest thing worth paying for!

(note: I'm assuming the current insanity in used car prices will, of course, not be permanent!)

Anyway, interested in your plans (and any differing opinions).

 

[Tam]

Hello All,

...Anyway, interested in your plans (and any differing opinions)...

After 4 years/ 50,000 miles only the most expensive parts, main battery and drive unit, are covered until 8 years.

If your car is still under 8 years/100,000 you can buy Xcare warranty that has good feedback in this forum if you search for it.

After 8 years/100,000 miles, it's fine to keep your car as long as you save up for the most expensive parts, battery and drive unit.

 

[cab]

After 4 years/ 50,000 miles only the most expensive parts, main battery and drive unit, are covered until 8 years.

If your car is still under 8 years/100,000 you can buy Xcare warranty that has good feedback in this forum if you search for it.

After 8 years/100,000 miles, it's fine to keep your car as long as you save up for the most expensive parts, battery and drive unit.

So what was your decision on your 2017 100D and 2018 Model 3? Just rolling the dice?

 

[Tam]

So what was your decision on your 2017 100D and 2018 Model 3? Just rolling the dice?

I sold my 100,000 mile 2012 Model S. I'm going to trade in my 2018 Model 3 for Cybertruck. I'll keep 2017 Model X and will pay for $20,000 battery when it fails. Same with $10,000 drive unit.

 

[RayK]

I plan on running my 2018 Model 3 LR RWD for at least as long as I had my previous car, a 2000 BMW 323i. Had that one for 18 years and the last dozen or so years were hurtful to my wallet. I hope that the 3 isn't in the same category after exiting the warranty coverage. I think it helps that my driving is less than half of what it used to be, given that the last three years have been spent in retirement and COVID isolation.

I'm betting that in several years there will be more repair outlets able to handle a Tesla., both from the factory and independent shops. It helps that I live in Silicon Valley as I feel that service expansion has a greater chance of happening here, than say at my wife's preferred retirement location of Astoria, OR. At the moment I am not looking into purchasing any extended warranty but in four years that might change if there's a trend in high repair costs for the car.

If, for some reason, I do need to buy another car, I'm going to pay cash for it. I've gone about 35 years (with 4 cars) without having a monthly car payment and I can't see myself ever doing that again.

 

[Tam]

I plan on running my 2018 Model 3 LR RWD for at least as long as I had my previous car, a 2000 BMW 323i. Had that one for 18 years and the last dozen or so years were hurtful to my wallet. I hope that the 3 isn't in the same category after exiting the warranty coverage. I think it helps that my driving is less than half of what it used to be, given that the last three years have been spent in retirement and COVID isolation.

I'm betting that in several years there will be more repair outlets able to handle a Tesla., both from the factory and independent shops. It helps that I live in Silicon Valley as I feel that service expansion has a greater chance of happening here, than say at my wife's preferred retirement location of Astoria, OR. At the moment I am not looking into purchasing any extended warranty but in four years that might change if there's a trend in high repair costs for the car.

If, for some reason, I do need to buy another car, I'm going to pay cash for it. I've gone about 35 years (with 4 cars) without having a monthly car payment and I can't see myself ever doing that again.

It's a high tech item so it's a good reason to keep switching to new one to keep up with the technology.

 

[Lindenwood]

Honestly I am not sure. I have always purchased vehicles thinking I would run them until the wheels fell off. But, circumstances and interests always changed and the longest I’ve actually ever owned a vehicle was a bought-new Honda Fit I kept for 7 years / 70k. My wife does a bit better, having had her Civic for 3 years and 65k miles (lots of road trips), and now her 4Runner we have had for 6 years / 85k.

Considering my 2022 M3P……If I bought a new BMW M3 today, and enjoyed it as much as I expect I’ll keep enjoying my M3P, there is NO WAY I would expect it to even go 100k without trouble.

Given how much I enjoy driving and modifying my vehicles, but how tired I have grown of repairing them, I wouldn’t be surprised if in 3-4 years and 50k miles I sell the Model 3 to a family member at a healthy discount and move on to something newer.

 

[Petermcg]

My last four cars had over 200K miles each when I sold them, and I don’t expect my 2019 M3 LR to be any different. I currently have 60,700 miles on it, so only 139.3K to go.

 

[jjrandorin]

I am planning on owning my 2018 Model 3P out of warranty, but I am not planning on "driving it till the wheels fall off". I am planning on driving it until there is a significant difference between the new model 3s and my own. I am guessing that is another 2-3 years.

I have been waffling back and forth on selling it, because the values right now are so good in general. My current model 3 is close to being paid off though. The BMWs I drove for close to 20 years before this were all leases, with the car payment just budgeted for. I actually bought the model 3 with the idea of getting off the "lease train" as I am older now, even though I have probably 10 years till retirement.

 

[ucmndd]

I am “rolling the dice” with my 2016 Model S. At 5.5 years and 140,000 miles, my total out of pocket repair costs are under $1,000.

People are generally very poor at value calculations when it comes to stuff like this. If your primary goal is to drive economically it is almost always in your best interest to keep the car you have.

Depreciation alone on a new Tesla (at least in “normal” not-bizarro-world 2022) can easily be a thousand dollars a month, EVERY month, for the first ~3 years of ownership.

Will you amass $36,000 in repairs keeping your current car out of warranty for another 3 years? Maybe, if you’re the sort of person who is also prone to being struck by lightning.


* There are lots of other valid reasons for buying a new car - I’m susceptible to many of them - but again, it’s almost never the right choice financially. When it comes to keeping your out of warranty car and coming out ahead, the dice are very heavily loaded in your favor.

 

[Mrcarcrazy]

I don’t have a clue what I’ll do. I’ve learned that I’m a fickle child. I’ve been very close to ordering a plaid a few times already but I can’t justify the price…and I honestly don’t want a larger car.

I’d prefer an electric 911 fighter as I don’t carry a herd of humans around and I rather enjoy not having to stop for gas on my commute.

I’m already knocking on 50k miles. I’m not at all concerned about owning it out of warranty. (That’s of course subject to change).

 

[scalbert03]

I may be in the minority, but this vehicle should be simpler to fix by a DIYer. The drivetrain has less parts and that is the highest cost area. Modern ICE vehicles with the same performance are more sophisticated when it comes to the drivetrain.

Many believe the technology is an impedance but it is just different, not more difficult. Most of the tech, such as nav and UI are no different.

 

[ay221]

I don’t have a clue what I’ll do. I’ve learned that I’m a fickle child. I’ve been very close to ordering a plaid a few times already but I can’t justify the price…and I honestly don’t want a larger car.

I’d prefer an electric 911 fighter as I don’t carry a herd of humans around and I rather enjoy not having to stop for gas on my commute.

I’m already knocking on 50k miles. I’m not at all concerned about owning it out of warranty. (That’s of course subject to change).

An electric cayman might fit the bill for that.

 

[sjg98]

I’m coming up on the 4 year warranty on my 2018 M3 LR.
On the one hand I’d like something new, on the other hand, I cannot believe how expensive the S/X and really anything else comparable have gotten (Lucid/Taycan CT/EQS).. Not to mention huge uncertain wait times with the supply chain issues.

On top of that I have no interest in the stalk-less yoke S/X driving interface.

So I will hold through warranty but definitely sell before the battery warranty is up.
Then again, if whatever I replace with is $130K, I may keep the M3 around as a beater.
Made 2 trips to the hardware store today picking up 10 bags of mulch each, with back seats down. Then went to the beach and tracked sand onto the rugs again.

Not sure I could stomach that in an EQS or Taycan, haha.

 

[nstig8]

Had my last car 18 years (Subaru WRX STi). I expect this one will be a little less than that, but no plans to get rid of it based on warranty. Pretty much in 10ish more years I won't have to haul kids around anymore so I will get something a little more fun. I'll be whatever the future equivalent of an old man in a Corvette is today, and I don't really care what anyone else thinks about that.

 

[KenC]

Will keep my 2018 3 until the CT is here; then will sell it to my brother.

 

[oreobbq]

I may be in the minority, but this vehicle should be simpler to fix by a DIYer. The drivetrain has less parts and that is the highest cost area. Modern ICE vehicles with the same performance are more sophisticated when it comes to the drivetrain.

Many believe the technology is an impedance but it is just different, not more difficult. Most of the tech, such as nav and UI are no different.

Can't exactly DIY fix a drive unit or battery failure but maybe that'll change in the future. This is a great question though. To sell or not to sell. Pandemic values have really changed the equation. If I had an M3 that's nearing the end of its drivetrain warranty, I'd probably sell it.

 

[Jeremy3292]

Nope - getting rid of at 100k miles before the 120k mile battery/drivetrain warranty is up. With how much I drive that will be 4-5 years from now and I'm sure new EV tech will be vastly superior by then too. Caveat - will see how much battery prices have fallen by 2026ish.

 

[OliverM3]

Hello All,

So I currently own an older Model S, and have considered getting a Model 3 or Model Y. As I typically own cars well past their original warranty, I either consider getting an extended warranty or roll the dice and pay up for any repairs. In the past I always rolled the dice since, as a gearhead, I could handle most repairs myself (my old BMW M5 was like getting a car and car-repair hobby all-in-one).

Unfortunately, with Teslas and, I suspect, most EVs these days, anything not common (like brakes/suspension/etc.) really requires the manufacturer (or dealer for other manufacturers) address the problem, so "DIY" is a lot less viable. Sure, there are a TINY number of shops, but they are not widely available - and not exactly cheap either. This all either results in simply paying the higher dealer/manufacturer prices or ponying up for the extended warranty.

When it comes to extended warranties, you usually have the choice between those offered by manufacturers or after-market. None are "cheap", but in general I think most would agree the former can be less "hassle" than the later. Again, we have a dilemma here in that Tesla no longer offers an extended warranty for ANY new Tesla product: S, A, 3 or Y. That forces owners into the (limited?) aftermarket. Not surprisingly, we are seeing a lot of "extended warranty" questions here on the forum now as the first Model 3s start to come off warranty (for anything other than drive units and batteries).

So, that brings me to the question in the title? Are you planning to keep the car post-warranty? Options I see include:

1. Roll the dice and keep car w/o warranty
2. Look for and purchase a 3rd party extended warranty (some are reputable, others, well...um, yeah)
3. Sell it and eat the depreciation and start over with car payments

Sure, the 5 year depreciation on a Model 3 is better than, say a BMW 3 series, but as you move beyond 5 years things can get very different when you compare an option where you keep the car and drop the coin for an extended warranty vs. "buying another car" and re-entering the steepest part of the depreciation curve.

I understand. of course, that some of you just sort of build "always having a car payment" into your life and find having the latest thing worth paying for!

(note: I'm assuming the current insanity in used car prices will, of course, not be permanent!)

Anyway, interested in your plans (and any differing opinions).

As a gearhead myself I've thought about the same. I figured for me at least the 8 year 120k mile warranty without any extended warranty.
Odds and ends I should be able to figure out and fix. I do worry about things that are coded for the car and I don't have any diagnostic tools yet for Tesla.
Figure I'd play it by ear and see how the first 4 years go

Unlike most I never carry a car payment. Yeah I know it doesn't make sense financially but it's usually only a small chunk when I trade my cars to make up the difference. So why have any payment at all? I like the freedom and have had major life changing events in the past that would have been made much worse with debt.

 

[Ciaopec]

I am “rolling the dice” with my 2016 Model S. At 5.5 years and 140,000 miles, my total out of pocket repair costs are under $1,000.

People are generally very poor at value calculations when it comes to stuff like this. If your primary goal is to drive economically it is almost always in your best interest to keep the car you have.

Depreciation alone on a new Tesla (at least in “normal” not-bizarro-world 2022) can easily be a thousand dollars a month, EVERY month, for the first ~3 years of ownership.

Will you amass $36,000 in repairs keeping your current car out of warranty for another 3 years? Maybe, if you’re the sort of person who is also prone to being struck by lightning.


* There are lots of other valid reasons for buying a new car - I’m susceptible to many of them - but again, it’s almost never the right choice financially. When it comes to keeping your out of warranty car and coming out ahead, the dice are very heavily loaded in your favor.

Spot on! I could not have said this better. I am in the same boat (car) with over 150,000 miles.

I am planning on owning my 2018 Model 3P out of warranty, but I am not planning on "driving it till the wheels fall off". I am planning on driving it until there is a significant difference between the new model 3s and my own. I am guessing that is another 2-3 years.

Unfortunately, unlike @jjrandorin I can't wait for a car with a significant difference between a new MS and my own: it's already here and I really don't care for it.