Extend Warranty or not

[XCare EV]

Yes, it's cheaper to buy it now. I said that.

But, it's a much better deal for you. If someone buys early (34K) you get the money earlier and have more time to invest it. You're not out anything for a while because they have to (right?) go through the OEM until it's expired. And, they don't get the benefit of a full 75K additional warranty because they bought early and saved $500 (I ran a comparison on one with 34K and 50K). So, they "save" $500 by buying now and gave up 16k miles of coverage.

No you do not have to go through the OEM until its expired. You absolutely can use X-Care to cover service costs but X-Care has a $100 deductible per visit so it wouldn't make too much sense to do so since you would already be under warranty. However, you can use some of the benefits of X-Care...for instance, if your vehicle had a breakdown and you are more than 100 miles away from home, you can take advantage of Trip Interruption with X-Care while your car is being fixed by Tesla. We would cover lodging and meals up to a certain amount. These benefits that are not offered by Tesla but are by X-Care are at your disposal at any time.

Tesla offers this same cost benefit to early purchasers. If you purchase the ESA within 180 days of initial delivery, the cost is $4,250. If you purchase after 180 days of initial delivery, then its $4,750. This is pretty normal across the board.

Extended Service Agreement

 

[DanInSunnyFL]

Tesla offers this same cost benefit to early purchasers. If you purchase the ESA within 180 days of initial delivery, the cost is $4,250. If you purchase after 180 days of initial delivery, then its $4,750. This is pretty normal across the board.

Extended Service Agreement

You're saying Tesla starts their warranty ticking the same way that yours does? So, that buyer who bought w/i 180 days of delivery and drove 3,000 miles would spend $4,750 on an extended warranty that lasted 3,000 miles???

 

[Magellan55]

I was on the fence for months, but pulled the trigger on my 2018 right before the 180 day discount ended. Had several issues the first few months of ownership, including the dreaded front suspension rattle, so I figured in 8 years I will likely rack up some repairs. Plus a co-worker had just had his inverter fail on him on his 2013 and was kicking himself for not buying the extended warranty. I keep my cars 10 years, and never bought an extended warranty before, but then I'm coming from Honda/Acura/Toyota/Lexus. Just seemed prudent on a manufacturer without much track record.

 

[XCare EV]

No you do not have to go through the OEM until its expired. You absolutely can use X-Care to cover service costs but X-Care has a $100 deductible per visit so it wouldn't make too much sense to do so since you would already be under warranty.

Tesla offers this same cost benefit to early purchasers. If you purchase the ESA within 180 days of initial delivery, the cost is $4,250. If you purchase after 180 days of initial delivery, then its $4,750. This is pretty normal across the board.

Extended Service Agreement

You're saying Tesla starts their warranty ticking the same way that yours does? So, that buyer who bought w/i 180 days of delivery and drove 3,000 miles would spend $4,750 on an extended warranty that lasted 3,000 miles???

I am sorry, I really don’t understand your question...I was stating that there is a cost benefit of buying the warranty early while you are still within the window of your original factory for both the Tesla ESA and X-Care.

 

[DanInSunnyFL]

I am sorry, I really don’t understand your question...I was stating that there is a cost benefit of buying the warranty early while you are still within the window of your original factory for both the Tesla ESA and X-Care.

Well, you said that you and Tesla do the same thing. You said that Tesla starts the odometer ticking the same way that your company does. So, you're saying that the Tesla extended, say it was purchased when the car has 15,000 miles on their S, the extended would only be good until 65K miles on the odometer???

Also, you say it's a "cost benefit", but is it? You client could "save" $500 by purchasing your warranty a year before you need to (OEM warranty runs out). In exchange for the "savings" they get an extended warranty that has 16,000 miles less coverage (going back to my price comparison of a car with 34K v 50K, the $500 price difference and the 16K less covered miles on the 34K mile car).

I'm glad your company is out there, I really am, but I'm trying to point out a major flaw - if someone gives you their money early (before their OEM warranty runs out) they shouldn't be penalized with shorter coverage.

 

[XCare EV]

I am more than happy to help explain futher.

Well, you said that you and Tesla do the same thing. You said that Tesla starts the odometer ticking the same way that your company does. So, you're saying that the Tesla extended, say it was purchased when the car has 15,000 miles on their S, the extended would only be good until 65K miles on the odometer???

I stated we do the same thing as far as the cost benefit of buying the warranty ahead of time rather than waiting. Tesla ESA is not an add-on time and miles as X-Care is. They do not warrant a vehicle for longer than 8 years or a 100,000 miles. X-Care does. I think you may be confusing something. If you buy the Tesla ESA at 15,000 miles, then you would add another 4 years and 50,000 miles when your factory warranty expires. With X-Care, that if you purchased an 8 year and 100,000 mile X-Care coverage shortly after your purchased your vehicle, then it would imitate that type of coverage. So in your example, it would warrant the car 8 years from time of purchase and 115,000 miles.

If you still have questions on how it works, please feel free to call me directly; Milad Davoodi: 832-613-5018

Also, you say it's a "cost benefit", but is it? You client could "save" $500 by purchasing your warranty a year before you need to (OEM warranty runs out). In exchange for the "savings" they get an extended warranty that has 16,000 miles less coverage (going back to my price comparison of a car with 34K v 50K, the $500 price difference and the 16K less covered miles on the 34K mile car).

You do not "need" to wait until your OEM warranty runs out. I think that is the biggest difference here in what we are saying. For example, If you just took delivery of a 2019 Model S, then getting an 8 year and 100,000 mile X-Care coverage (which means 4 years and 50k after your factory warranty expires) is only $4,099. If you had a 4 year old Model S with 50,000 miles and now leaving the warranty window, a 4 year and 50,000 mile X-Care coverage would be $4,599.

The rates increase as your vehicle age and mileage increases. So if you wait unit your car is older and has more mileage, then its more expensive. So therefore, if you purchase a longer coverage term when your vehicle is younger and lower mileage, then you would be saving money.

I hope this makes sense to you. If not, please feel free to call me so we can discuss further.

I'm glad your company is out there, I really am, but I'm trying to point out a major flaw - if someone gives you their money early (before their OEM warranty runs out) they shouldn't be penalized with shorter coverage.

I appreciate that however i think there is just a large level of misunderstanding. they are not penalized per my description above. If you think I am mistaken, I would love it for you to give me a call, show me what you are seeing and maybe this is something we can fix on our side. We really car about customer feedback but need to understand the real problem in order to bring out a real solution. I am going through the numbers and I just don't see how someone would be "penalized" based on knowing how the rates work.

 

[DanInSunnyFL]

A 75K mile extended warranty on a car that comes with a 50K OEM warranty should cover the car to ... 125K miles, not 111K.

And, it can - if you're willing to wait until the OEM warranty runs out and pay a little more.

I'm not here to dump on your product, I'm trying to point out a flaw that penalized folks by giving them shorter coverage than they would get if they paid a bit more and waited till the OEM ran out.

Regards

 

[CraZ8]

Same boat here. My 2015 model S P85DL has been relatively dependable. I have had 3 door handle mechanisms replaced, the main fuse and just had the 12volt battery replaced. Right now I have 43800 miles and two months left on the original warranty. I plan to upgrade to a new model S once the new battery/ motors and new interior become available. The battery/ motor is slated this third quarter and the interior may or may not be tied to it time wise. So let’s say I wind up purchasing first quarter 2020 is it really worth it to get 2 years of warranty for $3400 if I plan to keep the car approx 8 months more beyond the expiration date of the initial warranty ( and the driveline battery warranty of course is still in place)

 

[DanInSunnyFL]

I think a good warranty that's already in place puts people at ease - something to keep in mind if you're selling privately.

 

[Droschke]

I think a good warranty that's already in place puts people at ease - something to keep in mind if you're selling privately.

Assuming you mean the Tesla offered extended warranty, I definitely agree. For me, it was worth it.

 

[Droschke]

If you purchase after 180 days of initial delivery, then its $4,750. This is pretty normal across the board.

Not accurate.

 

[XCare EV]

View attachment 396621
A 75K mile extended warranty on a car that comes with a 50K OEM warranty should cover the car to ... 125K miles, not 111K.

And, it can - if you're willing to wait until the OEM warranty runs out and pay a little more.
View attachment 396620

I'm not here to dump on your product, I'm trying to point out a flaw that penalized folks by giving them shorter coverage than they would get if they paid a bit more and waited till the OEM ran out.

Regards

X-Care is an add-on time and miles. The 6 year and 75,000 mile coverage was made out of the request from owners with 2 years left on their existing warranty (to resemble a 4 year and 50k mile post factory warranty).

The idea was, if you had a 2 year old car with 25,000 miles, then you could get a 6 year and 75,000 mile coverage (Covers up to 100,000 miles and 4 years after your factory warranty expires) for $4,499. If you waited until your vehicle was 2 years older and 50,000 miles, then a 4 year and 50k (also expiring at the same coverage as that 6 year and 75k coverage that i mentioned before) for $4,599. $100 savings.

That was the thought process around it.

 

[XCare EV]

Not accurate.

It states it on Tesla's website.

Extended Service Agreement

Model S Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,100 $2,600
4-Year Extended Service Agreement $4,250 $4,750
Model X Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,400 $2,900
4-Year Extended Service Agreement $4,800 $5,300
1 Purchase price if purchased within 180 days of the vehicle’s date of initial delivery by Tesla.
2 Purchase price if purchased after 180 days of the vehicle’s date of initial delivery by Tesla.

 

[Droschke]

It states it on Tesla's website.

Extended Service Agreement

Model S Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,100 $2,600
4-Year Extended Service Agreement $4,250 $4,750
Model X Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,400 $2,900
4-Year Extended Service Agreement $4,800 $5,300
1 Purchase price if purchased within 180 days of the vehicle’s date of initial delivery by Tesla.
2 Purchase price if purchased after 180 days of the vehicle’s date of initial delivery by Tesla.

This apparently applies if you buy the car today or has been applicable for the later model years (not sure when the prices changed). However, I took delivery of my car 4 years ago and recently purchased the extended warranty just few weeks before the 4-year anniversary with 40k miles on the car. I purchased it online on the Tesla website in January of this year. My price was $4,250 + tax and happened to be exactly the same amount my delivery adviser told me at the time of purchase. Different owners of different model years can check their "My Tesla" accounts to see the exact amount.