Extended Service Agreements No Longer Transferable?

[stopcrazypp]

Seems like the transferability is sorted out. Well done everyone here for helping Tesla out with this, and repsect to Tesla for listening and responding pro-actively.

"Tesla’s reliability is one of the primary attractions to owning a Tesla."

So now we're just left with the nonsense of 12,500 miles max intervals which for thisa owner doing 25,000 miles/year means a 200 miles round trip and a day's leave every 6 months.
This would cost me more in servicing than my previous Audi RS5, an 8250 rpm revving V8! which needed servicing every 19,000 miles

That seems to only apply to UK under the flexible service interval.

In the USA, Audi uses a 10k or 1 year interval whichever comes first, (except for first year is 5k).
https://www.audiusa.com/content/dam...Audi-Maintenance-Schedule-Model-Year-2016.pdf

 

[sorka]

For those wondering about "upkeep" of the ESA, Tesla's blog post (as of 2/16/2016) at Service plans | Tesla Motors states:


I know this won't affect people who have their agreements from before recent revisions, but I thought it worthwhile for high-mileage drivers to keep this in mind.

This is not in the section on the ESA and even if it was "you'll want" doesn't mean "you must".

 

[Gizmotoy]

For those wondering about "upkeep" of the ESA, Tesla's blog post (as of 2/16/2016) at Service plans | Tesla Motors states:
I know this won't affect people who have their agreements from before recent revisions, but I thought it worthwhile for high-mileage drivers to keep this in mind.

Wasn't similar language included in the original version(s) as well? I know there's been ongoing debate over the years whether we should listen to Tesla when they say it's OK to skip or delay services, or if we need to follow the letter of the contracts. Perhaps that was strictly in relationship to the warranty and not the ESA?

 

[Cyclone]

This is not in the section on the ESA and even if it was "you'll want" doesn't mean "you must".

Of course they would put that right after the ESA section so that I misread it!

- - - Updated - - -

Wasn't similar language included in the original version(s) as well? I know there's been ongoing debate over the years whether we should listen to Tesla when they say it's OK to skip or delay services, or if we need to follow the letter of the contracts. Perhaps that was strictly in relationship to the warranty and not the ESA?

Looking at sorka's comment, I guess I got confused between the ESA and Prepaid Service. I know previously people wondered if prepaid service meant they had to bring it in every 12.5k miles or they just get 4 "annual inspections" to use whenever they want. This doesn't really clarify that, but it does add the expectation that Tesla expects a 25k mile/year driver to get 2 inspections a year, even if the first one is only mostly checks + washer fluid + fob batteries + cabin filter + whatever the inspection warrants replacing.

I'm in the camp that I intend to take my car in based on mileage for the "major" services instead of the minor ones. And seeing as my brakes have been changed (thereby a brake fluid flush), my drive unit was changed (thereby a transmission flush), and my battery was changed (thereby a coolant flush) in the last year, I've basically got the 4 year/50k service done.

 

[MP3Mike]

I'm in the camp that I intend to take my car in based on mileage for the "major" services instead of the minor ones. And seeing as my brakes have been changed (thereby a brake fluid flush), my drive unit was changed (thereby a transmission flush), and my battery was changed (thereby a coolant flush) in the last year, I've basically got the 4 year/50k service done.

I highly doubt that they did a flush in any of those situations. They probably just topped off any fluid that was lost during the service. (Which is not a flush.)

 

[MsElectric]

I'm in the camp that I intend to take my car in based on mileage for the "major" services instead of the minor ones. And seeing as my brakes have been changed (thereby a brake fluid flush), my drive unit was changed (thereby a transmission flush), and my battery was changed (thereby a coolant flush) in the last year, I've basically got the 4 year/50k service done.

It seems the services of real importance are the ones due every other year when the fluid flushes come in. I don't think just changing the brakes would result in a flush but on all these matters you should probably get what was done in writing and verify again for good measure.

When someone has the full text for the actual/updated/current ESA Extended Warranty, please post it here.

 

[Cyclone]

I highly doubt that they did a flush in any of those situations. They probably just topped off any fluid that was lost during the service. (Which is not a flush.)

Potentially. How much fluid do these hold?

Ethylene Glycol Coolant - 50/50 Mix - 1 gallon (1029320-00-A)
Qty 1

Automatic Transmission Fluid - Dexron VI - Synthetic 212B (1031106-00-A)
Qty 2

Brake Fluid Dow Service 1 QT (1060099-00-A)
Qty 2

 

[rxlawdude]

As of 2:18pm PST, the ESA agreement in mytesla still explicitly states it is non-transferable.

Any other speculation is just that. Unless and until Tesla changes the agreement language that one agrees to at the time of executing the agreement, I would advise against purchasing the ESA. (That is, if transferability is important to you.)

 

[sorka]

Of course they would put that right after the ESA section so that I misread it!

Yea, and it's so vague that one might interpret it to mean that all of those Q&A items at the bottom bottom apply to ANY of the service plans above. But then they use language like "want to". I wonder if this is all word smithed as intended or if they just don't have their act together.

- - - Updated - - -

As of 2:18pm PST, the ESA agreement in mytesla still explicitly states it is non-transferable.

Any other speculation is just that. Unless and until Tesla changes the agreement language that one agrees to at the time of executing the agreement, I would advise against purchasing the ESA. (That is, if transferability is important to you.)

Agree 100% with that.

 

[MsElectric]

As of 2:18pm PST, the ESA agreement in mytesla still explicitly states it is non-transferable.

Any other speculation is just that. Unless and until Tesla changes the agreement language that one agrees to at the time of executing the agreement, I would advise against purchasing the ESA. (That is, if transferability is important to you.)

I agree. Can you contact Tesla and request to see the ESA Extended Warranty as they plan to honor it?

 

[liuping]

For those wondering about "upkeep" of the ESA, Tesla's blog post (as of 2/16/2016) at Service plans | Tesla Motors states:

I know this won't affect people who have their agreements from before recent revisions, but I thought it worthwhile for high-mileage drivers to keep this in mind.

Previously they had said by email (and in person at the service center) that it was okay to do the prepaid service visits once a year, but the contract never reflected that policy. Since it was never in the document, they could start enforcing it even for those of us who bought before the recent contract changes.

If that is the case, it is really unfortunate and disappointing. It makes little sense to me that I need to change the cabin air filter, wiper blades, key fob batteries, etc. just 6 months after a major service. Those things are not mileage dependent. So now I have to pay $475 for just a semi annual inspection.

It will make the annual maintenance for a 25000 mile driver is $950 - $1200 (depending on if you prepaid or not, and when). That is by far the most of any car I've ever owned.

 

[Beryl]

As of 2:18pm PST, the ESA agreement in mytesla still explicitly states it is non-transferable.

Any other speculation is just that. Unless and until Tesla changes the agreement language that one agrees to at the time of executing the agreement, I would advise against purchasing the ESA. (That is, if transferability is important to you.)

Agreed. Though not binding, the website FAQ has changed.

Can I transfer my Tesla Service Plan or Extended Service to the new owner if I sell my Tesla vehicle?

Yes, you can transfer the unused portion of their Tesla Service Plan or Extended Service Agreement with the sale of their Tesla. In addition, we’re going to take this opportunity to go one step further: Tesla owners can transfer the unused value of their Extended Service Agreement towards an Extended Service Agreement for a new Tesla Model S or Model X. Please refer to the Terms and Conditions for your Tesla Service Plan or Extended Service for more information. You can view these Terms and Conditions after logging into your Tesla account. Click on “Services Sign Up” and following the appropriate link for your chosen plan.

The inclusion of the emboldened phrase indicates that they were scrabbling sort out this debacle.

 

[mshuang]

It will make the annual maintenance for a 25000 mile driver is $950 - $1200 (depending on if you prepaid or not, and when). That is by far the most of any car I've ever owned.

I didn't pre-pay for my service -- my advice is to do it after you take the car home. (I kept forgetting, and those days when you can sign up for it goes by pretty quickly), so my first service was $600.

At first, I was thinking that my first year's service of $600 was pretty pricy. Then I remembered that the first service on my BMW (post free service period) was close to $1000. My Toyota Celica (way back in 2001) service and maintenance costs for the first year was actually $750.

So, while $600 may seem high at first glance, it's actually not bad. I found it surprising that servicing a a Tesla was actually less than servicing a Toyota or a BMW.

 

[MsElectric]

I didn't pre-pay for my service -- my advice is to do it after you take the car home. (I kept forgetting, and those days when you can sign up for it goes by pretty quickly), so my first service was $600.

At first, I was thinking that my first year's service of $600 was pretty pricy. Then I remembered that the first service on my BMW (post free service period) was close to $1000. My Toyota Celica (way back in 2001) service and maintenance costs for the first year was actually $750.

So, while $600 may seem high at first glance, it's actually not bad. I found it surprising that servicing a a Tesla was actually less than servicing a Toyota or a BMW.

It all depends on which service. So if your "first" service was a major one on an ICE with a timing belt or major fluid flushes it can be expensive.

Having said that each of our Mercedes vehicles needs service only once a year. For years that require a "minor service" we hardly pay $250 for the service. The trick is to not go by what the dealer wants you to do but instead go by what is explicitly called for on the owner's manual. Out of that we do the cabin air filter and other minor items on our own. Suddenly that minor service is basically an oil change and a bunch of checks and it barely costs about $200.

 

[BertL]

It all depends on which service. So if your "first" service was a major one on an ICE with a timing belt or major fluid flushes it can be expensive.

Having said that each of our Mercedes vehicles needs service only once a year. For years that require a "minor service" we hardly pay $250 for the service. The trick is to not go by what the dealer wants you to do but instead go by what is explicitly called for on the owner's manual. Out of that we do the cabin air filter and other minor items on our own. Suddenly that minor service is basically an oil change and a bunch of checks and it barely costs about $200.

I also owned a MBZ as I did a BMW and many Lexus. I'm not going into the rabbit hole that others have earlier in this thread trying to justify costs and explain what trained technicians can do, or the subjective benefits one may receive if one takes their MS to Tesla SCs for their maintenance, except to say that Tesla has a single network of Service Centers and sets a single price for all MS Owners here in the US, regardless of model year, features, and varying costs in different geographies. That simply isn't the case with any other auto mfgr where dealers set their own prices and to many degrees, push the envelope of what service is truly recommended by the real mfgr... Remember, most other mfgrs and dealers make a majority of their profit off of service -- but Tesla's CEO says they do not. I agree that it's prudent to watch what the dealers recommend, vs what the mfgr suggests for preventative maintenance. Perhaps I was lucky, but my 5 different Lexus dealerships were always really good trying to reduce costs to me when they could -- editing out standard dealer items that didn't perhaps make sense or that could be delayed for a future service. OTOH, I used to save more than $100 each year by specifically declining having the cabin filter replaced during my MBZ A-Service -- but still, the best price I could come up with where I live near three dealers was over $325 (vs your $200), and for the B-Service on alternate years that included a brake flush as required by the mfgr to sustain basic and extended warranty, I never got out for less than $450 using dealership discount coupons. I specifically asked what the costs would be if I had the MBZ of my model with the larger engine before I purchased what I did, and my annual costs would have been at least $100 more per year because of only that difference within the same model at the same dealer (hence why I ordered the lower engine size.) My point here is for others reading this is... prices people quote for so-called competitive service are never the same from dealer-to-dealer, and even model-to-model within the same brand -- so coming up with an apples-to-apples comparison across brands and technologies against MS quickly moves from facts into a lot of supposition. Take people's comments on such things, including my own, as input and nothing more.

 

[MsElectric]

I'm not saying anything that anyone who has had experience dealing with premium car brands or just plain car dealers does not know already when it comes to service.

Basically dealer service costs are sometimes inflated. If you just pay them what they want without understanding what it is that they are actually doing and how much it is worth, you usually end up paying more than you have to. You can usually save money by limiting service to only what is exactly called for on the owner's manual. And of those service items that are required if you can change the key fob battery, the cabin air filter, and anything else on your own and save some money why not do that.

As for your implication that I am pushing some agenda, I guess saving money is my grand agenda Perhaps others share this agenda as well...

 

[liuping]

I didn't pre-pay for my service -- my advice is to do it after you take the car home. (I kept forgetting, and those days when you can sign up for it goes by pretty quickly), so my first service was $600.

At first, I was thinking that my first year's service of $600 was pretty pricy. Then I remembered that the first service on my BMW (post free service period) was close to $1000. My Toyota Celica (way back in 2001) service and maintenance costs for the first year was actually $750.

So, while $600 may seem high at first glance, it's actually not bad. I found it surprising that servicing a a Tesla was actually less than servicing a Toyota or a BMW.

$600 a year is not too bad, but for me it is going to be $950 if they stick to the FAQs requirement that you go in every 12500, even if it's only 6 months.

$750 first year maintenance for a Celica seems very high, since the first year should only be minor tuneups and oil changes.


At this point my main concern is what Telsa's policy is going to be for the Model 3. They seem to be moving in the wrong direction in this area. I'm still planning on reserving one on the 31st for My wife, but if maintenance is going to be crazy high, I may have second thoughts.

 

[mshuang]

It all depends on which service. So if your "first" service was a major one on an ICE with a timing belt or major fluid flushes it can be expensive.

BMW (Inspection 1) Minor service (which consisted typically of oil change, filters, some fluids and other checks) on my 12-cylinder BMW averaged $350 at an independent shop -- a couple of hours for labor @$125+ /hour plus parts and BMW approved oil. At the dealership it would have been more.

BMW (Inspection 2) Major service (all of Inspection 1, plus more part replacement) averaged about $1000, depending if there were any extra parts that needed replacing not covered). (Power Seats and Windows would often fail after about 5 years).

After that experience of BMW's post-warranty costs, I believe that it's better to lease a BMW during the free warranty period, return it, and never pay maintenance on a BMW (by continuing to lease them every three years). The smaller the engine, the more economical the upkeep costs if you choose to own.

I'm not sure if this will be the same for Tesla, but $600ish for a year of maintenance.... I can live with that.

 

[MsElectric]

With Tesla the best option for service IMHO is to prepay the services so you are done.

It seems people who prepaid for the services earlier got lucky as unless I am mistaken they actually had the alignments included in the prepaid services.

 

[mshuang]

$600 a year is not too bad, but for me it is going to be $950 if they stick to the FAQs requirement that you go in every 12500, even if it's only 6 months.

$750 first year maintenance for a Celica seems very high, since the first year should only be minor tuneups and oil changes.

$750 first year on the Toyota I drove about 20k miles, with 10k (115), 15k (365) and 20k (135) services along with 6 oil changes (about 30 each). All of these service costs are outside of the warranty, only parts costs are covered under the Toyota warranty.