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ESA - now eligible even with dealer in chain of ownership?

Wow.....can't we give this whole thing a rest. Everybody has made their point and I conclude that I would never challenge Tesla in or out of court, period. I love the Tesla brand would love to own one but with an extended warranty only. I ran into a young man driving a nice white Tesla and asked about warranties. He said "why have one at all" ? Because his first Tesla was a 2013 and he drove it to over 100K miles and dumped it on a dealer......he said he had zero problems. Now he drives a 2016 S and states that for several K miles he again had zero problems.....thus he says tires and wiper blades and that has been his expenses. I guess I am not a gambler and do not enjoy unexpected expenses. I may wait a couple of years and see who else is building an all electric car with a 300 mile range and has a better build quality tract record.
 

P85Dave

Member
Jan 30, 2018
324
397
McLean, VA
Wow.....can't we give this whole thing a rest. Everybody has made their point and I conclude that I would never challenge Tesla in or out of court, period. I love the Tesla brand would love to own one but with an extended warranty only. I ran into a young man driving a nice white Tesla and asked about warranties. He said "why have one at all" ? Because his first Tesla was a 2013 and he drove it to over 100K miles and dumped it on a dealer......he said he had zero problems. Now he drives a 2016 S and states that for several K miles he again had zero problems.....thus he says tires and wiper blades and that has been his expenses. I guess I am not a gambler and do not enjoy unexpected expenses. I may wait a couple of years and see who else is building an all electric car with a 300 mile range and has a better build quality tract record.

Good thinking to only own a Tesla under warranty. I would not dream of owning my car beyond the extended warranty period.
 

HankLloydRight

No Roads
Supporting Member
Jan 18, 2014
13,213
11,589
Connecticut

I'm sorry, but no, there's nothing to "beware of" here. That's how the ESA works, and it's a very short contract/agreement that everyone should read through so they know what the terms are. It's not 'fine print' -- it's regular sized print in the body of the agreement. It's not like a 48 page EULA for using iTunes that nobody can read or understand. The Tesla ESA is really simple language that clearly spells out the agreement, including how the pro-rated refund works. You buy the ESA, of course Tesla is going to recoup all their costs up to the original cost of the ESA before giving you a refund. I'm surprised anyone would think differently. It's NOT an insurance policy that covers you for the time the contract is in force.
 
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Tforme

Member
Mar 30, 2017
237
245
Spring Lake Fl
Not wanting to revive the argument here but consider this: My partner bought a one owner MS from an independent dealer. Less than a year later I bought the car from my partner. My Tesla account invited me to buy the ESA which I did and have had one repair done under it with no problems. I’m not convinced Tesla makes much of an effort to trace the ownership path of the cars.
 

HankLloydRight

No Roads
Supporting Member
Jan 18, 2014
13,213
11,589
Connecticut
So did you find out? I'm curious because my tesla account shows it as available for purchase, even though I bought 3rd party...

If I were in your shoes, and I wanted to buy it, and it showed available, I'd just buy it. One of two things will happen:

1. They never find out and you have some warranty repairs that are covered by the ESA.
or
2. You have some warranty repairs to be done, and then they find out that you didn't actually qualify for the ESA, and they give you a full refund (they can't pro-rate it without admitting it was valid during that time period). You only lose the opportunity cost of those funds during the interim. Consider it a one-time insurance premium.

That's what I would do.
 
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HankLloydRight

No Roads
Supporting Member
Jan 18, 2014
13,213
11,589
Connecticut
Agree with your description of the EULA, it's right there for all to see. However, it's EXACTLY an insurance policy. Actually it's the definition of an insurance policy. Not that that's bad, it just is what it is. After much research I will self insure.

No, it's not an insurance policy. An insurance policy would not deduct paid claims from future premiums paid. If you're insured, and have a loss, that loss is paid without respect to the premiums paid in the past or the future. As long as the premium is paid for the time period covered, and a covered loss occurs, the insurance company will cover that loss. End of story. You can cancel your insurance policy the next day and get a full refund of pre-paid premiums. That's EXACTLY an insurance policy.

In addition, the reason Tesla calls is an 'Extended Service AGREEMENT' and not a 'warranty' is to skirt around consumer protection laws and insurance regulations in most states. It is very, very, clearly NOT insurance nor a warranty.

My quote above was in reference to the article Plan B posted (see below), where the 'victim' expected a fully pro-prated refund for pre-paid premiums and felt cheated that he didn't get that, and is whinging about it. Since the ESA is not an insurance policy and the terms are very clearly spelled out in the short contract, he should never expected to get a full refund of the pro-rated cost of the ESA.

 

Sunshine State

Automotive Enthusiast
Jul 13, 2017
1,420
1,186
Florida
Was wondering about this. It's purchased AT a dealer but not FROM a dealer.... talk amongst yourselves.
In the states that I’m familiar with that sort of a transaction is not legal. A licensed dealer must do the title work for vehicles displayed on their “lot”. That said there may be a state that might allow a transaction like that but consumer protection laws are very specific to what a licensed dealer must do.
 

Sunshine State

Automotive Enthusiast
Jul 13, 2017
1,420
1,186
Florida
No, it's not an insurance policy. An insurance policy would not deduct paid claims from future premiums paid. If you're insured, and have a loss, that loss is paid without respect to the premiums paid in the past or the future. As long as the premium is paid for the time period covered, and a covered loss occurs, the insurance company will cover that loss. End of story. You can cancel your insurance policy the next day and get a full refund of pre-paid premiums. That's EXACTLY an insurance policy.

In addition, the reason Tesla calls is an 'Extended Service AGREEMENT' and not a 'warranty' is to skirt around consumer protection laws and insurance regulations in most states. It is very, very, clearly NOT insurance nor a warranty.

My quote above was in reference to the article Plan B posted (see below), where the 'victim' expected a fully pro-prated refund for pre-paid premiums and felt cheated that he didn't get that, and is whinging about it. Since the ESA is not an insurance policy and the terms are very clearly spelled out in the short contract, he should never expected to get a full refund of the pro-rated cost of the ESA.
I realize you said most states, there are many states that do see any “warranty” or “extended service agreement” for what it is no matter what it is called. It would depend on what state you are in as to whether an Extended Servce Agreement is regulated as an insurance policy. In Florida extended service agreements are regulated by Florida Commissioner of Insurance Regulation and refunds are prorated less any warranty money paid out.
 

r0xx0r

Member
Jul 9, 2016
438
358
CA
Tesla denied my eligibility to buy the ESA. They still use this message to reponse:
“We do consider a private-party purchase a 3rd party purchase, and under these conditions a person would not be able to purchase the ESA.”
“We consider the seller of a vehicle to be a 3rd party dealer in all situations except when the vehicle is a certified pre owned vehicle being sold by Tesla. For any further information and clarification you can reach out to your local service center.“

Does anyone have experience with this?
 

deaddog

Member
Oct 29, 2017
192
67
Chicago
Tesla denied my eligibility to buy the ESA. They still use this message to reponse:
“We do consider a private-party purchase a 3rd party purchase, and under these conditions a person would not be able to purchase the ESA.”
“We consider the seller of a vehicle to be a 3rd party dealer in all situations except when the vehicle is a certified pre owned vehicle being sold by Tesla. For any further information and clarification you can reach out to your local service center.“

Does anyone have experience with this?

Sounds like Tesla is going back to the original policy of permitting only the original owner to buy the ESA. That surprises me, particularly since its a real stretch (to the point of absurdity) to call a private party seller a "dealer" which is well-defined term that, in my experience, never includes true private party sellers.

I'd push back pretty hard if I were you and tell them their express language ("dealer") doesn't include a private seller who is not in the business of selling cars. And please let us know what happens.
 
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