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But...
Demand with horrible reliability + warranty > Demand with horrible reliability
An when used Tesla's becomes more mainstream you will have more and more buyers who don't make the math down to the last Dollar. They probably see that Tesla has low reliability rating and might hear there are high repair costs, a warranty can really help here.
Demand with horrible reliability + warranty > Demand with horrible reliability
An when used Tesla's becomes more mainstream you will have more and more buyers who don't make the math down to the last Dollar. They probably see that Tesla has low reliability rating and might hear there are high repair costs, a warranty can really help here.
I agree. Those who don't want one or don't care for an ESA warranty are not affected by this but there is a reason Audi, BMW, and Mercedes all offer extended warranties that are transferrable and cover their vehicles for about 7 years. They offer these extended warranty policies for new and CPO cars. The extended warranties help maintain the resale value as well as protect the owner's ability to sell the car while maintaining the value of the vehicle with the warranty being transferrable.
Without an extended warranty it is like owning a car with a blank check made out to Tesla as without a warranty you have to pay whatever they wish to charge.
If the car's reliability issues have been addressed why are they refusing to offer the ESA for CPO cars and why are they refusing to transfer an ESA warranty to the new owner when you sell. With this horrible policy change we certainly will not consider purchasing a private party Tesla and likely others who value having a warranty feel the same way. Why enact such an unfair policy when they can charge for the Extended Warranty ESA to provide a product/service customers need.
Larry
Member
Are the Mercedes and other high end cars 3rd party warranties? If so maybe that has something to do with Teslas policy. It might not math out for them and as a shareholder I wouldn't want them to lose money on it.
IMO, the problem here is the change and the variance from other premium manufacturers.
I didn't buy the ESA and don't plan to. But if Tesla feels the need to make hugely unpopular changes, then it is worrisome. The other issue of course is that MB and BMW have options for service. Not great ones on expensive stuff but options still. Tesla is very stubborn. That being said, I am absolutely sure that the door handles will have a cheaper fix for those in CA very very soon. Even the screen is probably going to have an option.
Is there a 3rd party Tesla shop yet? Someone should get on it. With the ridiculous prices Tesla is charging for things, it would be easy money. Start with door handles. Buy up a few part's cars. Start tinkering. Figure out a good source for screen replacement. It might be a labor of love but it might pay off quite handsomely when you start becoming the expert who will train the rest of the country - because we can be pretty sure Tesla isn't going to help. In fact, learn enough and Tesla might be forced to hire you just to shut you up.
I didn't buy the ESA and don't plan to. But if Tesla feels the need to make hugely unpopular changes, then it is worrisome. The other issue of course is that MB and BMW have options for service. Not great ones on expensive stuff but options still. Tesla is very stubborn. That being said, I am absolutely sure that the door handles will have a cheaper fix for those in CA very very soon. Even the screen is probably going to have an option.
Is there a 3rd party Tesla shop yet? Someone should get on it. With the ridiculous prices Tesla is charging for things, it would be easy money. Start with door handles. Buy up a few part's cars. Start tinkering. Figure out a good source for screen replacement. It might be a labor of love but it might pay off quite handsomely when you start becoming the expert who will train the rest of the country - because we can be pretty sure Tesla isn't going to help. In fact, learn enough and Tesla might be forced to hire you just to shut you up.
BertL
Active Member
No they are not. MBZ, BMW and Lexus e.g. all offer their own extended warranties generally from their parent financing divisions, and there are also 3rd parties that do the same. Terms between each vary. The challenge for people that do want a Tesla ESA is there is only Tesla today. IMHO it would be tough for a 3rd party to even offer an after-warranty policy today when Tesla does not provide service manuals anywhere except one US State, and they don't seem to have a great track record providing all parts in a reasonable timeframe.
ESA is not about value to you, should you decide to buy it. All you triple analytical value minded owners need to stop with the silly number crunching. It is an insurance policy providing confidence which maintains resale values and is indirectly good for new car sales as well. This is why Tesla responded with the 8 year unlimited warrantee on the battery & the DU, to I still confidence. Mercedes, BMW, etc understand the need for confidence so why doesn't tesla and its owners. All insurance policies provide a profit to the insurer or they need to be subsidized in order to exist. This new policy more than anything raises more worrisome questions. Why does tesla not stand behind their cars & their warrantee once the car changes hands?
This new tesla policy also tells potential 2nd hand buyers they are totally on their own to fend for themselves should they buy this used car. No one is on their side. They cannot even have the car repaired by their favourite local repair shop whom they trust. They need to deal with the mysterious Tesla Service Centre & their unknown cost of repairs. Not everyone is an analytical personality type nor should they be. This does not mean they are stupid & you are smart. There are several different types of intelligence. Your strengths in analysis does not make you more intelligent than others. Not everyone is like you nor should they be.
This new tesla policy also tells potential 2nd hand buyers they are totally on their own to fend for themselves should they buy this used car. No one is on their side. They cannot even have the car repaired by their favourite local repair shop whom they trust. They need to deal with the mysterious Tesla Service Centre & their unknown cost of repairs. Not everyone is an analytical personality type nor should they be. This does not mean they are stupid & you are smart. There are several different types of intelligence. Your strengths in analysis does not make you more intelligent than others. Not everyone is like you nor should they be.
^^ This. My (admittedly early production) MS has been in the service center more times than all my previous cars combined. That's probably why they are raising service cost for everyone else LOL. But seriously, any move from Tesla to limit service further makes me uncomfortable. It was supposed to be a low-maintenance vehicle after all
You made my point with a giant exclamation marker, but said "not true"?? Range Rover is the perfect example. They are worthless as used vehicles. Their values get absolutely crushed as they approach 70,000 miles or so because they are notoriously unreliable. Extended warranties don't prop up the value. The whole fleet of them suffers in value. I don't understand the " not true" part.
BertL
Active Member
I frankly think folks like you live for the debate, as I've been through the same thing on Lexus forums as to if extended warranties are good or bad a zillion times over the years. The FACT is, there is no single answer that is good for everyone, and it's impossible to draw conclusions based on anything other than hope when it comes to Tesla because the brand is so new and there is no AFTER WARRANTY track record for the need of repairs. I'm happy you have made the decisions you have for yourself. They are not however my, and perhaps other's POV.
Reliability is very important to me when considering an auto brand. Unlike some owners, I prefer to keep my rides 6-8 years on average, but I also put a lower number of miles on them (implying I perhaps do far more errands getting in-and-out of my vehicle, than others that do with longer commutes and road trips). I also came from owning a Lexus Hybrid and a MBZ ICE to now my single MS, and I have remote family dependent on me to get there if problems were to arise -- so having my MS available and operational is an imperative. I'm a research hound and spent months looking into Tesla and MS before ordering this past September. Beyond the whole range anxiety thing I had to get over -- and isn't part of this discussion -- my greatest personal debate was if I could trust Tesla reliability and what it would likely cost me to own one for the whole time I have it in my garage -- especially for a vehicle that's base price cost me $40K more than each of the previous luxury brands I owned. I want to budget for the rides I own for their life, and I'm willing to perhaps pay a bit more than some by having an extended warranty if that is what it takes to hedge my bets with total cost of ownership. My personal experience has been I would never own a MBZ or BMW without a nearly bumper-to-bumper extended warranty. OTOH, having one on a Lexus is a more difficult decision as I've not had the same personal need for repairs on any of the Lexi I've owned -- some more than 8 years.
The net on Tesla MS reliability for me was (and is) there is no brand track record to give any true feeling of longer term reliability, so I think it's just a crap shoot what anyone says one way or the other. I do know that Tesla isn't Toyota where some decades old vehicles are still on the road that have had almost no work done to them of any consequence. Tesla does not have the recognized long-term reliability that I've experienced for more than 20 years with Lexus. Some well known luxury vehicles often compared to MS are just flat-out expensive to maintain as they age -- everyone reading this can fill-in their (typically German brand) names with examples they may know. Only the first MS are about to exit warranty, so there are no facts from decent 3rd-party surveys to speculate from, as there is with nearly every other auto manufacturer.
I consider it as only subjective input when one tries to compare the sort of failures owners have encountered during warranty and extrapolate that out to post-warranty. Using data from independent sources like True Delta, is still only using in-warranty data for MS. Comments and horror stories on forums like TMC are what they are, and may not perhaps be representative of the broader set of owners -- but, it's input for consideration just-the-same, especially when no other real data exists. I am uncomfortable extrapolating that my Tesla MS will be as reliable as say Lexus has proven itself to be over 5 models and 20 years of my ownership, along with generally acknowledged trade-recognized statistics... Elon's statements that recent MS (mine?) are more reliable, is just that -- a marketing statement -- not something with facts to back it up that sways me one way or the other.
While it also can be debated, I always look at terms and price a mfgr has for their extended warranty, and use that as an indicator -- right or wrong -- of the mfgr's confidence in their own vehicle in the post-warranty years. Along those lines, mfgrs like Lexus that offered 8-year extended warranty for $1600 with no deductible on my previous 2013 RX450h say something to me, whereas MBZ wouldn't offer more than 7-years at double that price, and my last BMW was also over-the-top price-wise, but had specific exclusions including all the components (motors, struts, etc) on my hardtop convertible -- which are probably the most mechanical part of that vehicle beyond the ICE. As I said, it's all just input, but it does say something to me ...just as Tesla does by making the change to their terms not allowing transfer and increasing price before the first MS ever makes a claim using an extended warranty and early owner may have purchased.
I have traded-in as many vehicles as I've sold on the open market before buying the next one. I would say that with my luxury BMW and MBZ, having the transferable extended warranty made a significant difference allowing me to sell quickly and achieve top of comparative private-party prices. It was a HUGE differentiator with my BMW that I got rid of because of ongoing reliability issues (but still felt OK selling it by providing all service records and it had another 6-years of coverage, even though it ended-up with a class action suit that was won a couple years after I let it go.)
For me though, I just don't yet have sufficient evidence Tesla has built a product that is designed for cost-effective long-term ownership like I want to enjoy, nor do I see Tesla taking actions that are evidence they care about anything other than selling new (and maybe CPO) cars. I hope I'm proven wrong. As you and others point out, a Tesla extended warranty isn't needed to deal with the power train ...but, just like all ICE vehicles, Tesla still has other gears, hinges, motors, switches, 12V battery, and loads of electronics perhaps beyond other competitive vehicles. With a single exception, none of my previous vehicles have ever had problems pre or post-warranty with the ICE and it's components -- it was always with all the other things that a MS has as well -- struts/hinges, electric windows, audio system, steering wheel and seat movement, auto-dimming mirrors, etc. Some failed during warranty, others in years 5-8 ...but that's just my personal 40+ years owning and experiencing Ford, Honda, Acura, Toyota, Lexus, MBZ and BMW -- and now Tesla.
To each their own with a decision on the value of an extended warranty. They don't have sufficient value for me with some manufacturers, but they do with others. As I said earlier, I'm sad for MS owners that didn't buy when they had the opportunity -- assuming they wanted to in the first place, but I am pleased I bought my contract with the transfer terms in-tact when I did.
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Lets see....
JD powers...
What are the benefits of an extended warranty?
An extended warranty is a safeguard against unexpected vehicle repairs. An extended warranty helps to ensure that repair costs are covered without undue financial stress. Many extended warranties are also transferable to future owners. This works in favor of the seller as it may increase resale value. For the buyer, it gives additional peace of mind whenAutomobile Protection Association......
https://www.carchex.com/research-center/goss-garage/up-the-value/
www.practicalmoneyskills.com/personalfinance/.../1024_Warranty.php?...
Oct 24, 2014 - Ask whether the warranty can be transferred to a new owner – that'll boost resale value.
Domestic vehicles tend to require more expensive mechanical repairs and maintenance after the 5th and 6th years. Japanese vehicles tend to require more expensive mechanical repairs after the 7th and 8th years. Extra-cost warranties offer good value for many luxury cars because repairs to these vehicles can be expensive and unpredictable (Audi, BMW, Cadillac, Jaguar, Lincoln, Range Rover, Volvo, Saab, etc.
Automobile Protection Association......
A transferable extended warranty is also good for the resale value should you wish to sell down the road.Globe & Mail....
www.jdpower.com/cars/articles/tips.../do-you-need-extended-warranty
Feb 24, 2012 - Many extended warranties are also transferable to future owners. This works in favor of the seller as it may increase resale value. For the buyer ...
JD powers...
What are the benefits of an extended warranty?
An extended warranty is a safeguard against unexpected vehicle repairs. An extended warranty helps to ensure that repair costs are covered without undue financial stress. Many extended warranties are also transferable to future owners. This works in favor of the seller as it may increase resale value. For the buyer, it gives additional peace of mind whenAutomobile Protection Association......
Extended Warranties Increase Resale Value - Carchex
https://www.carchex.com/research-center/goss-garage/up-the-value/
Extended vehicle protection will not only save you on car repairs, but it will increase the asking price for your used car. Remember that the car is still covered, even when you transfer the title.
Are Extended Warranties Worth the Cost?
www.practicalmoneyskills.com/personalfinance/.../1024_Warranty.php?...Oct 24, 2014 - Ask whether the warranty can be transferred to a new owner – that'll boost resale value.
Domestic vehicles tend to require more expensive mechanical repairs and maintenance after the 5th and 6th years. Japanese vehicles tend to require more expensive mechanical repairs after the 7th and 8th years. Extra-cost warranties offer good value for many luxury cars because repairs to these vehicles can be expensive and unpredictable (Audi, BMW, Cadillac, Jaguar, Lincoln, Range Rover, Volvo, Saab, etc.
Automobile Protection Association......
A transferable extended warranty is also good for the resale value should you wish to sell down the road.Globe & Mail....
Do You Need an Extended Warranty? | J.D. Power Cars
www.jdpower.com/cars/articles/tips.../do-you-need-extended-warrantyFeb 24, 2012 - Many extended warranties are also transferable to future owners. This works in favor of the seller as it may increase resale value. For the buyer ...
So this thread caused me to dig up my ESA agreement from 7/2013 (I purchased it during the grace period after Tesla announced the price increase from $2500 to $4000).
I am VERY alarmed that Tesla has changed the agreement listed on my "My Tesla" page to the new version, despite the agreement saying the following: "No person has the authority to change this Vehicle ESA or to waive any of its provisions."
I will highlight a few notable differences including:
OLD
You acknowledge and agree that You shall be responsible for all applicable state and local taxes
on the purchase price, deductible or transfer fee as required by law. Any such applicable taxes are
not included in the purchase price of this Vehicle ESA.
NEW
You acknowledge and agree that You shall be responsible for all applicable state and local taxes on the purchaseprice, Deductible or Ranger Service as required by law. Any such applicable taxes are not included in thepurchase price of this Vehicle ESA. This Vehicle ESA is not transferrable (sic) by You under any circumstances.
Hmm, since they misspelled transferable, maybe it does not count? I digress...
This change is what this thread has focused on, but there is more to be aware of:
OLD
A. One-Time Deductible Guarantee
Once a part is repaired or replaced under the terms and conditions of this Vehicle ESA, and the
Deductible is paid, any Deductible for a future repair or replacement of that part will be waived for the
term of this Vehicle ESA.
NEW
A. DeductibleYou are responsible for the Deductible of $200 per Visit
This is another substantial change IMO.
OLD
G. Territory
This Vehicle ESA applies to a Vehicle sold by Tesla in the Tesla North America Warranty Region and
transported or driven only in the Tesla North America Warranty Region. For purposes of this Vehicle ESA,
the Tesla North America Warranty Region is defined as all 50 states of the United States of America, the
District of Columbia, and all 13 provinces and territories of Canada. If Your Vehicle was sold, transported
or driven outside the Tesla North America Warranty Region, no warranties or coverage, including this
Vehicle ESA, will apply.
NEW
G. Eligible Purchaser and TerritoryThis Vehicle ESA applies to a Vehicle sold by Tesla directly to You in the Tesla North America Service Region. Forpurposes of this Vehicle ESA, the Tesla North America Service Region is defined as all 50 states of the United States ofAmerica, the District of Columbia, and all 13 provinces and territories of Canada, provided that You are the originalpurchaser who purchased the Vehicle directly from Tesla and that You return to the North America Service Region inorder to receive service pursuant to this Vehicle ESA.
This is mostly housekeeping from the transferability issue.
OLD
J. Transfer of this Vehicle ESA
Contact Tesla and submit the following:
1. A letter requesting that Tesla transfer this Vehicle ESA to the new owner.
2. $100 transfer fee.
3. This Vehicle ESA.
4. Written evidence verifying all maintenance requirements have been met.
5. A copy of documentation evidencing change of ownership and mileage at date of sale.
6. Documents verifying transference of the Vehicle ESA, if applicable.
Conditions:
1. This Vehicle ESA cannot be transferred to another vehicle. It can only be transferred to a different
private owner of the same Vehicle.
2. The Vehicle is subject to inspection.
3. Transfer must take place within 30 days of change of ownership.
4. You may not transfer this Vehicle ESA to a vehicle dealer or to the customer of a vehicle dealer.
5. All remaining underlying warranties also must be transferred to the new owner.
NEW
(this section is absent...)
The cancellation language is slightly different but not materially so.
Well - hope this helps clarify some of the differences. While I don't agree with their decision to make these changes, I hope that changing the agreement on the website for prior purchasers is a clerical error and not an intentional deception...
I am VERY alarmed that Tesla has changed the agreement listed on my "My Tesla" page to the new version, despite the agreement saying the following: "No person has the authority to change this Vehicle ESA or to waive any of its provisions."
I will highlight a few notable differences including:
OLD
You acknowledge and agree that You shall be responsible for all applicable state and local taxes
on the purchase price, deductible or transfer fee as required by law. Any such applicable taxes are
not included in the purchase price of this Vehicle ESA.
NEW
You acknowledge and agree that You shall be responsible for all applicable state and local taxes on the purchaseprice, Deductible or Ranger Service as required by law. Any such applicable taxes are not included in thepurchase price of this Vehicle ESA. This Vehicle ESA is not transferrable (sic) by You under any circumstances.
Hmm, since they misspelled transferable, maybe it does not count? I digress...
This change is what this thread has focused on, but there is more to be aware of:
OLD
A. One-Time Deductible Guarantee
Once a part is repaired or replaced under the terms and conditions of this Vehicle ESA, and the
Deductible is paid, any Deductible for a future repair or replacement of that part will be waived for the
term of this Vehicle ESA.
NEW
A. DeductibleYou are responsible for the Deductible of $200 per Visit
This is another substantial change IMO.
OLD
G. Territory
This Vehicle ESA applies to a Vehicle sold by Tesla in the Tesla North America Warranty Region and
transported or driven only in the Tesla North America Warranty Region. For purposes of this Vehicle ESA,
the Tesla North America Warranty Region is defined as all 50 states of the United States of America, the
District of Columbia, and all 13 provinces and territories of Canada. If Your Vehicle was sold, transported
or driven outside the Tesla North America Warranty Region, no warranties or coverage, including this
Vehicle ESA, will apply.
NEW
G. Eligible Purchaser and TerritoryThis Vehicle ESA applies to a Vehicle sold by Tesla directly to You in the Tesla North America Service Region. Forpurposes of this Vehicle ESA, the Tesla North America Service Region is defined as all 50 states of the United States ofAmerica, the District of Columbia, and all 13 provinces and territories of Canada, provided that You are the originalpurchaser who purchased the Vehicle directly from Tesla and that You return to the North America Service Region inorder to receive service pursuant to this Vehicle ESA.
This is mostly housekeeping from the transferability issue.
OLD
J. Transfer of this Vehicle ESA
Contact Tesla and submit the following:
1. A letter requesting that Tesla transfer this Vehicle ESA to the new owner.
2. $100 transfer fee.
3. This Vehicle ESA.
4. Written evidence verifying all maintenance requirements have been met.
5. A copy of documentation evidencing change of ownership and mileage at date of sale.
6. Documents verifying transference of the Vehicle ESA, if applicable.
Conditions:
1. This Vehicle ESA cannot be transferred to another vehicle. It can only be transferred to a different
private owner of the same Vehicle.
2. The Vehicle is subject to inspection.
3. Transfer must take place within 30 days of change of ownership.
4. You may not transfer this Vehicle ESA to a vehicle dealer or to the customer of a vehicle dealer.
5. All remaining underlying warranties also must be transferred to the new owner.
NEW
(this section is absent...)
The cancellation language is slightly different but not materially so.
Well - hope this helps clarify some of the differences. While I don't agree with their decision to make these changes, I hope that changing the agreement on the website for prior purchasers is a clerical error and not an intentional deception...
Xenoilphobe
Well-Known Member
That is shady - I'm going to check mine as well.
DAMN - they changed the language on the one I purchased in 28 Dec 2013 and uploaded a new agreement dated November 2015 with the same changes. #$#$%!!!
EXTENDED SERVICE AGREEMENT
Tesla’s extended service program covers the repair or replacement of Model S parts due to defects in materials or workmanship provided by Tesla. Coverage lasts for four years or 50,000 miles (whichever comes first) and begins on the date your warranty expires, as long as you purchase this service within 30 days of your warranty’s expiration.
Active
Purchased on 12/28/2013
Read Agreement
SC-15-00-009November 12, 2015
Model:
Model S, Roadster
Vehicle System:
00 - Inspection & Service
Tesla Motors, Inc.Service CustomerDocument
Region:
United States
Vehicle Extended Service Terms And Conditions, United States
These Tesla Motors, Inc.1 (“Tesla”) Vehicle Extended Service Terms and Conditions (“Vehicle ESA”) cover the repair orreplacement necessary to correct defects in the materials or workmanship of any parts manufactured or supplied by Teslaof the subject Vehicle that occur under normal use in the event of a Failure for the selected period of time or mileage(whichever occurs first), with coverage becoming available on and retroactive to the date that Your New Vehicle LimitedWarranty expires (the “Effective Date”), provided that You are the initial purchaser of the Vehicle directly from Tesla andpurchase this Vehicle ESA no later than 30 days after such expiration date. This Vehicle ESA is subject to the followingterms, conditions, limitations, extensions, exceptions and definitions and does not cover, among other specified items,Your Vehicle’s Battery and Drive Unit; for Battery extended coverage for Roadster vehicles, please ask a Teslarepresentative about Tesla’s Battery Extended Service Agreement. No person has the authority to change this VehicleESA or to waive any of its provisions. This Vehicle ESA is for the sole benefit of the purchaser and applies only to thevehicle for which it is purchased.
Agreement Period
(whichever occurs first)ROADSTER:
1 year or 12,000 miles2 years or 24,000 miles3 years or 36,000 milesMODEL S:
4 year or 50,000 miles
Purchase Price2
$3,000.00$4,000.00$5,000.00
$4,000.00
You acknowledge and agree that You shall be responsible for all applicable state and local taxes on the purchaseprice, Deductible or Ranger Service as required by law. Any such applicable taxes are not included in thepurchase price of this Vehicle ESA. This Vehicle ESA is not transferrable by You under any circumstances.
The obligations of Tesla under this Vehicle ESA are backed by the full faith and credit of Tesla and are notguaranteed under a service contract reimbursement policy.3
Definitions:
The following capitalized terms shall have the meanings set forth below:
SC-15-00-009 Page 1 of 7
Tesla agrees to repair or replace any covered part as required due to a Failure.For additional information see Section H. Limits of Liability.
C. Your Responsibilities
The Owner’s Manual includes specific recommendations regarding the use, operations, and maintenance of the Vehicle.To maintain the validity of this Vehicle ESA, You must follow correct operations procedures and have Your Vehicleserviced as recommended by Tesla during the Agreement Period of this Vehicle ESA. If requested, proof of requiredservice, including receipts showing date and mileage of the Vehicle at the time of service, must be presented before anyrepairs under this Vehicle ESA commence. Service within 1,000 miles and/or 30 days of Tesla’s recommended intervalsshall be considered compliant with the terms of this Vehicle ESA. Upon customary and reasonable notice of theoccurrence of a Failure, You shall protect the Vehicle from further damage, regardless of whether or not such Failure iscovered under this Vehicle ESA. Any operation of the Vehicle that results in further damage shall be considered Yourfailure to protect the Vehicle and shall not be covered under this Vehicle ESA. You are responsible to ensure that thewarning lights are functioning before driving the Vehicle. You are required to safely pull Your Vehicle off the road and turnit off immediately when any warning light indicates a problem.
You must give Your authorization to the Tesla Authorized Service Center for teardown, access to Vehicle data and thecosts for these services in order to diagnose a problem. You may be required to supply Tesla with all maintenancerecords for service performed on the Vehicle.
D. Obtaining Vehicle ESA Service
In the event of Failure, You may take Your Vehicle to any Tesla Authorized Service Center. Please have Your mileageand date of Failure ready for Tesla, and make Tesla aware of the existence of this Vehicle ESA before repairs areperformed.
SC-15-00-009 Page 2 of 7
E. Exclusions (What Is Not Covered)
This Vehicle ESA does not cover certain parts or any Vehicle damage or malfunction directly or indirectly caused by, dueto or resulting from normal wear or deterioration, abuse, misuse, negligence, accident, lack of or improper maintenance,operation, storage or transport, including, but not limited to, any of the following:
o Surface or cosmetic corrosion causing perforation in body panels or the chassis from the outside in, such asstone chips or scratches; and
o Corrosion and paint defects caused by, due to or resulting from accidents, paint matching, abuse, neglect,improper maintenance or operation of the vehicle, installation of an accessory, exposure to chemical substances,or damages resulting from an act of God or nature, fire, or improper storage;
o Other maintenance services and parts described in Tesla’s maintenance schedule for the covered Vehicle;SC-15-00-009 Page 3 of 7
• Other Parts not covered:
o Bright metal, sheet metal, bumpers, ornamentation moldings, carpet, upholstery, paint, shock absorbers, battery,
battery cables, lenses, light bulbs, sealed beams, glass (e.g., windshield), wheels, interior trim, body seals and
gaskets (e.g., weather stripping); and
o Removable soft tops, removable hard tops, glass, plastic, framing, cables, or seals;
This document is an application for coverage under a Vehicle ESA. Upon acceptance by Tesla, this application becomesthe Vehicle ESA, and the coverage is retroactive to the Effective Date, provided that You are eligible and purchase thisVehicle ESA no later than 30 days after the Effective Date. The Agreement Period commences on the Effective Date andremains in effect pursuant to the applicable extended service option selected herein. In the event Your application is notaccepted, You will receive a refund of the Vehicle ESA purchase price from Tesla. Nothing herein guarantees acceptanceof this application. This Vehicle ESA may not be renewed by You. Sections C through L shall survive any termination orexpiration of this Vehicle ESA.
G. Eligible Purchaser and Territory
This Vehicle ESA applies to a Vehicle sold by Tesla directly to You in the Tesla North America Service Region. Forpurposes of this Vehicle ESA, the Tesla North America Service Region is defined as all 50 states of the United States ofAmerica, the District of Columbia, and all 13 provinces and territories of Canada, provided that You are the originalpurchaser who purchased the Vehicle directly from Tesla and that You return to the North America Service Region inorder to receive service pursuant to this Vehicle ESA.
H. Limits of Liability
Implied and express warranties and conditions arising under applicable state laws or federal statute or otherwise in law orin equity, if any, including, but not limited to, implied warranties and conditions of merchantability or merchantable quality,fitness for a particular purpose, durability, or those arising by a course of dealing or usage of trade, are disclaimed to thefullest extent allowable by law, or limited in duration to the Agreement Period of this Vehicle ESA. The performance ofnecessary repairs and parts replacement is the exclusive remedy under this Vehicle ESA or any implied warranties.Liability is limited to the reasonable price for repair or replacement of any covered part, not to exceed the manufacturer’ssuggested retail price for that part. Replacement may be made with parts of like kind and quality, including non-originalmanufacturer’s parts or remanufactured parts, as necessary.
In no event shall liability for a Failure under this Vehicle ESA exceed the fair market value of the Vehicle at the timeimmediately preceding the Failure. In addition, the sum of all benefits payable under this Vehicle ESA shall not exceed theretail price You paid Tesla for Your Vehicle.
Tesla does not authorize any person or entity to create for it any other obligations or liability in connection with this VehicleESA. The decision of whether to repair or replace a part or to use a new or remanufactured part will be made by Tesla, inits sole discretion.
Tesla will not pay for or reimburse You for services that are performed by any party other than a Tesla Authorized ServiceCenter or Tesla Ranger. Tesla hereby disclaims any and all indirect, incidental, special and consequential damagesarising out of or relating to Your Vehicle, including, but not limited to, transportation to and from a Tesla AuthorizedService Center, loss of Vehicle value, loss of time, loss of income, loss of use, loss of personal or commercial property,inconvenience or aggravation, emotional distress or harm, commercial loss (including but not limited to lost profits orearnings), towing charges, bus fares, vehicle rental, service call charges, gasoline expenses, lodging expenses, damageto tow vehicle, and incidental charges such as telephone calls, facsimile transmissions, and mailing expenses.
The above limitations and exclusions shall apply whether Your claim is in contract, tort (including negligence and grossnegligence), breach of warranty or condition, misrepresentation (whether negligent or otherwise) or otherwise at law or inequity, even if Tesla is advised of the possibility of such damages or such damages are reasonably foreseeable.
SC-15-00-009 Page 4 of 7
I. Dispute Resolution and Arbitration Agreement
SC-15-00-009 Page 5 of 7
applicable law. NCDS findings and decisions are admissible as evidence in any legal proceedings concerning YourVehicle.
The description provided above is only a brief summary of the dispute settlement program administered by NCDS.The dispute settlement program may be changed at any time without prior notice. Contact NCDS at the above listedaddress or phone number for the most current information concerning the dispute settlement program.
Wyoming ONLY: At the time of any disagreement between You and Tesla, in a separate written agreement the partiesmay voluntarily agree to submit their differences to arbitration. Any arbitration proceeding shall be conducted within thestate of Wyoming.
Oregon ONLY: This section replaces subsection 2 of Section I. Dispute Resolution and Arbitration Vehicle ESA. You andTesla may mutually agree to arbitrate any disputes not amicably settled between You and Tesla related to this VehicleESA through our dispute settlement program and wait for a decision to be issued prior to pursuing any remedy underfederal or state laws. In the event You and Tesla agree to do so, subsection 2 will apply. You and Tesla may alsomutually agree to arbitrate in any location, including the county where You reside. In the event you do not receivesatisfaction under this contract, you may contact the Oregon Department of Consumer and Business Services at 350Winter Street NE, PO Box 14480, Salem, OR 97309-0405 or (888) 877-4894 (toll free in Oregon) or (503) 947-7984(calling from outside Oregon).
J. Cancellation by Customer
To cancel this Vehicle ESA, You must mail by certified mail, return receipt requested your written cancellation request toTesla prior to any sale of the Vehicle, along with a notarized affidavit that states the mileage on Your Vehicle at the date ofYour cancellation request. The right to cancel this Vehicle ESA is not transferrable by You. The amount of Your refund issubject to the following:
This Vehicle ESA cannot be cancelled by Tesla except for a sale of Your Vehicle, fraud or material misrepresentation onYour part or for Your failure to pay for this Vehicle ESA. If Tesla cancels this Vehicle ESA due to a sale of Your Vehicle,fraud or material misrepresentation, You will receive a refund calculated on a pro-rata basis equal to the lesser of theunused portion of the days or mileage that this Vehicle ESA has been in effect, compared to the term or mileage of the
4 Except for Nevada, which shall not deduct the amount of any claims paid or services provided but will deduct anyoutstanding balance on Your account from the amount of the purchase price that is unearned by Tesla when calculatingthe amount of the refund.
5 Except for Nevada, which shall not deduct the amount of any claims paid or services provided but will deduct areasonable cancellation fee, at Tesla’s discretion, and any outstanding balance on Your account from the amount of thepurchase price that is unearned by Tesla when calculating the amount of the refund.
6 Except for Nevada, which shall be ten percent of the purchase price per month.
SC-15-00-009 Page 6 of 7
selected Service Plan, less the amount of any claims paid under this Vehicle ESA. This Vehicle ESA is not being sold inany jurisdiction in which the sale or performance of this Vehicle ESA is not permitted pursuant to applicable law at thetime of purchase. Any such sale is void ab initio and of no force and effect and will not be deemed a cancellation. You willreceive a full refund provided no services have been provided by Tesla.
Minnesota ONLY: Tesla will provide five days’ written notice if the reason for cancellation by Tesla is nonpayment of thefee for this Vehicle ESA by You.
Missouri ONLY: This Vehicle ESA is not an insurance contract.
Nevada ONLY: A cancellation of the Vehicle ESA by Tesla will become effective 15 days after notice of cancellation ismailed to You. The cost of claims paid or services provided will not be deducted from any refund issued pursuant to thisVehicle ESA.
Washington State ONLY: The implied warranty of merchantability on the Vehicle is not waived if this Vehicle ESA hasbeen purchased within 90 days of the purchase date of the Vehicle from Tesla.
Wyoming ONLY: Tesla will mail a written notice to You at Your last known address contained in the records of Tesla atleast 10 days prior to cancellation by Tesla. Prior notice is not required if the reason for cancellation is nonpayment of thePurchase Price, a material misrepresentation by You to Tesla or a substantial breach of duties by You relating to theVehicle or its use.
L. Entire Agreement; Severability; Waiver; Governing Law.
This Vehicle ESA and any work orders executed at the time of service constitute the entire agreement between You andTesla with respect to the subject matter hereof and supersede all prior agreements, statements, promises, understandingsand negotiations, whether written or oral, regarding the subject matter hereof, and any terms and conditions included onTesla’s work orders, whenever delivered. This Vehicle ESA and any work order cannot be amended unless in writing andsigned by duly authorized representatives of each party.
In the event that any provision of this Vehicle ESA or any work order is held by a court of competent jurisdiction to beunenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remainingprovisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if theVehicle ESA or such work order did not contain the particular provisions held to be unenforceable, and the unenforceableprovisions shall be replaced by mutually acceptable provisions which, being valid, legal and enforceable, come closest tothe intention of the parties underlying the invalid or unenforceable provision.
The waiver of any of the terms or provisions of this Vehicle ESA in any one or more instances shall not be deemed apermanent waiver of this entire Vehicle ESA. No waiver shall be effective unless in writing and signed by authorizedrepresentatives of both parties.
This Vehicle ESA shall be governed by the laws of the State of California without regard to its conflict of law principles,except as otherwise required by applicable law. The state or federal courts in Santa Clara County, California shall haveexclusive venue for disputes relating to the interpretation or enforcement of this Vehicle ESA, except as otherwiserequired by applicable law.7
New Hampshire ONLY: In the event you do not receive satisfaction under this contract, you may contact the NewHampshire Insurance Department at 21 South Fruit Street, Suite 14, Concord, NH 03301; 603-271-2261 or 1-800-852-3416.
7 Nevada ONLY: If this Vehicle ESA is purchased in Nevada by a Nevada resident, this Vehicle ESA shall be governed bythe laws of the State of Nevada without regard to its conflict of law principles and the state or federal courts in Nevadashall have exclusive venue for disputes relating to the interpretation or enforcement of this Vehicle ESA.
SC-15-00-009 Page 7 of 7
DAMN - they changed the language on the one I purchased in 28 Dec 2013 and uploaded a new agreement dated November 2015 with the same changes. #$#$%!!!
ADDITIONAL OFFERINGS
EXTENDED SERVICE AGREEMENT
Tesla’s extended service program covers the repair or replacement of Model S parts due to defects in materials or workmanship provided by Tesla. Coverage lasts for four years or 50,000 miles (whichever comes first) and begins on the date your warranty expires, as long as you purchase this service within 30 days of your warranty’s expiration.
Active
Purchased on 12/28/2013
Read Agreement
Model:
Model S, Roadster
Vehicle System:
00 - Inspection & Service
Tesla Motors, Inc.Service CustomerDocument
Region:
United States
Vehicle Extended Service Terms And Conditions, United States
These Tesla Motors, Inc.1 (“Tesla”) Vehicle Extended Service Terms and Conditions (“Vehicle ESA”) cover the repair orreplacement necessary to correct defects in the materials or workmanship of any parts manufactured or supplied by Teslaof the subject Vehicle that occur under normal use in the event of a Failure for the selected period of time or mileage(whichever occurs first), with coverage becoming available on and retroactive to the date that Your New Vehicle LimitedWarranty expires (the “Effective Date”), provided that You are the initial purchaser of the Vehicle directly from Tesla andpurchase this Vehicle ESA no later than 30 days after such expiration date. This Vehicle ESA is subject to the followingterms, conditions, limitations, extensions, exceptions and definitions and does not cover, among other specified items,Your Vehicle’s Battery and Drive Unit; for Battery extended coverage for Roadster vehicles, please ask a Teslarepresentative about Tesla’s Battery Extended Service Agreement. No person has the authority to change this VehicleESA or to waive any of its provisions. This Vehicle ESA is for the sole benefit of the purchaser and applies only to thevehicle for which it is purchased.
Agreement Period
(whichever occurs first)ROADSTER:
1 year or 12,000 miles2 years or 24,000 miles3 years or 36,000 milesMODEL S:
4 year or 50,000 miles
Purchase Price2
$3,000.00$4,000.00$5,000.00
$4,000.00
The obligations of Tesla under this Vehicle ESA are backed by the full faith and credit of Tesla and are notguaranteed under a service contract reimbursement policy.3
Definitions:
The following capitalized terms shall have the meanings set forth below:
- “Battery” means the Vehicle’s high voltage lithium-ion battery.
- “Deductible” means the portion that You must pay for each Visit. The Deductible under this Vehicle ESA is $200 per
Visit.
- “Effective Date” means the date that Your New Vehicle Limited Warranty expires. Once Your application has been
accepted by Tesla, Your coverage will be retroactive to this date.
1 Florida, Nevada, New York and Texas ONLY: All references shall be to Tesla Motors FL, Inc., Tesla Motors NV, Inc.,Tesla Motors New York LLC and Tesla Motors TX, Inc., respectively.
2 Florida ONLY: The rate charged for this Vehicle ESA is not subject to regulation by the Florida Office of InsuranceRegulation.
3 Except in Washington.
- “Failure” means the complete failure or inability of any covered part to perform the function(s) for which it was designeddue to defects in material or workmanship of any parts manufactured or supplied by Tesla that occur under normal use.Failure does not include the gradual reduction in operating performance due to normal wear and tear.
- “Tesla Authorized Service Center” means any Service Center that is authorized by Tesla, including any Tesla Store,Tesla Service Center and any Tesla-authorized third party service provider. A list of Tesla Authorized Service Centersis provided at Tesla Motors | Premium Electric Vehicles or You may dial 1-877-798-3752 for the nearest location.
- “Tesla” means the obligor, Tesla Motors, Inc., 3500 Deer Creek Road, Palo Alto, California 94304, Attention: VehicleService, phone number 1-877-798-3752, unless otherwise indicated.
- “Vehicle” means the Vehicle for which this Vehicle ESA is purchased.
- “Vehicle ESA” means these Vehicle Extended Service Terms and Conditions between You and Tesla.
- “Vehicle ESA Purchase Date” means the date of acceptance of this Vehicle ESA.
- “Visit” means a visit to a Tesla Service Center for service under this Vehicle ESA or receipt of Tesla service under this
Vehicle ESA.
- “You,” “Your” means the eligible purchaser of this Vehicle ESA, as applicable.
A. Deductible
You are responsible for the Deductible of $200 per Visit.
Tesla agrees to repair or replace any covered part as required due to a Failure.For additional information see Section H. Limits of Liability.
C. Your Responsibilities
The Owner’s Manual includes specific recommendations regarding the use, operations, and maintenance of the Vehicle.To maintain the validity of this Vehicle ESA, You must follow correct operations procedures and have Your Vehicleserviced as recommended by Tesla during the Agreement Period of this Vehicle ESA. If requested, proof of requiredservice, including receipts showing date and mileage of the Vehicle at the time of service, must be presented before anyrepairs under this Vehicle ESA commence. Service within 1,000 miles and/or 30 days of Tesla’s recommended intervalsshall be considered compliant with the terms of this Vehicle ESA. Upon customary and reasonable notice of theoccurrence of a Failure, You shall protect the Vehicle from further damage, regardless of whether or not such Failure iscovered under this Vehicle ESA. Any operation of the Vehicle that results in further damage shall be considered Yourfailure to protect the Vehicle and shall not be covered under this Vehicle ESA. You are responsible to ensure that thewarning lights are functioning before driving the Vehicle. You are required to safely pull Your Vehicle off the road and turnit off immediately when any warning light indicates a problem.
You must give Your authorization to the Tesla Authorized Service Center for teardown, access to Vehicle data and thecosts for these services in order to diagnose a problem. You may be required to supply Tesla with all maintenancerecords for service performed on the Vehicle.
D. Obtaining Vehicle ESA Service
In the event of Failure, You may take Your Vehicle to any Tesla Authorized Service Center. Please have Your mileageand date of Failure ready for Tesla, and make Tesla aware of the existence of this Vehicle ESA before repairs areperformed.
- Cease operating the Vehicle if necessary to prevent further damage. Failure to do so will cause any additional repair
cost to be borne by You.
- Take Your Vehicle to any Tesla Authorized Service Center, or call any Tesla Authorized Service Center for instruction.
- Provide proof of maintenance if requested.
- Permit inspection before performance of any repairs.
- Cooperate in investigation of the Failure.
In the event of the need for emergency repairs outside of business hours:
- Dial 1-877-798-3752 to arrange for roadside assistance that is available 24 hours a day, 7 days a week.
- If necessary, Your Vehicle will be transported to the nearest Tesla Authorized Service Center by roadside assistance.
The cost of transporting Your Vehicle is not included in this Vehicle ESA and You are solely responsible for thecost of transporting Your Vehicle to the Tesla Authorized Service Center.
E. Exclusions (What Is Not Covered)
This Vehicle ESA does not cover certain parts or any Vehicle damage or malfunction directly or indirectly caused by, dueto or resulting from normal wear or deterioration, abuse, misuse, negligence, accident, lack of or improper maintenance,operation, storage or transport, including, but not limited to, any of the following:
- The Battery;
- Repairs, modifications or alterations, or the installation or use of fluids, parts or accessories, performed by any serviceprovider other than a Tesla Authorized Service Center without prior authorization from Tesla;
- Failure to take the Vehicle to a Tesla Authorized Service Center upon discovery of a defect covered by this VehicleESA;
- Negligence, misuse or abuse, such as carrying passengers and cargo exceeding specified load limits or otherwiseoverloading the Vehicle or using the Vehicle as a stationary power source, or a lack of or improper repair ormaintenance, including not performing all vehicle maintenance and service requirements during the Agreement Periodof this Vehicle ESA, including those indicated by the vehicle’s systems, observing scheduled inspections or making allservices and repairs, non-compliance with any recall advisories, or use of fluids, parts or accessories other than thosespecified in your owner documentation (see maintenance requirements in Section C. Your Responsibilities);
- Accidents, collision, objects striking the Vehicle, theft, vandalism, riots, or acts of God, including, but not limited to,exposure to sunlight, airborne chemicals, tree sap, animal or insect droppings, road debris (including stone chips),industry fallout, rail dust, salt, hail, floods, acid rain, fire, explosion, earthquake, windstorm, water, contamination,lightning and other environmental conditions;
- Tires and wheels;
- Vehicles used for commercial purposes, which includes but is not limited to government purposes, pick-up, and
delivery service, company pool use, or for service or repair calls, route work, or hauling;
- Racing on or off road, competition, speed contests or autocross or for any other purposes for which the Vehicle is not
designed or driving the Vehicle off-road, over uneven, rough, damaged or hazardous surfaces, including but not
limited to, curbs, potholes, unfinished roads, debris, or other obstacles;
- Vehicles used for towing;
- Where the odometer is inaccurate, inoperative or altered so that the Vehicle’s true mileage cannot be ascertained or
verified;
- Vehicles that have had the VIN defaced or altered so that it is difficult to determine the VIN number or actual mileage;
- Vehicles that have been labeled or branded as dismantled, fire-damaged, flood-damaged, junk, rebuilt, salvage,
reconstructed, irreparable or a total loss;
- Vehicles that have been determined to be a total loss by an insurance company;
- Towing the Vehicle or improper winch procedures;
- Continued operation and failure to protect the Vehicle from further damage caused by lack of necessary coolants or
lubricants, sludge or lubricant contamination, rust or corrosion;
- Corrosion or paint defects including, but not limited to, the following:
o Surface or cosmetic corrosion causing perforation in body panels or the chassis from the outside in, such asstone chips or scratches; and
o Corrosion and paint defects caused by, due to or resulting from accidents, paint matching, abuse, neglect,improper maintenance or operation of the vehicle, installation of an accessory, exposure to chemical substances,or damages resulting from an act of God or nature, fire, or improper storage;
- Tampering with the Vehicle and its systems, including installation of non-Tesla accessories or parts or theirinstallation, or any damage directly or indirectly caused by, due to or resulting from the installation or use of non-Teslaparts or accessories;
- Damage to a covered part that is damaged by a non-covered part;
- Damage that occurs prior to this Vehicle ESA’s Purchase Date or is reported after this Vehicle ESA’s expiration;
- Any and all indirect, incidental, special and consequential damages arising out of or relating to Your Vehicle,
including, but not limited to, those specified in Section H. Limits of Liability;
- Storage and freight charges;
- The cost of teardown, disassembly or assembly if coverage cannot be applied;
- Adjustments necessary to correct squeaks, rattles, water leaks or wind noise;
- Maintenance/Parts, including but not limited to the following:
o Other maintenance services and parts described in Tesla’s maintenance schedule for the covered Vehicle;SC-15-00-009 Page 3 of 7
• Other Parts not covered:
o Bright metal, sheet metal, bumpers, ornamentation moldings, carpet, upholstery, paint, shock absorbers, battery,
battery cables, lenses, light bulbs, sealed beams, glass (e.g., windshield), wheels, interior trim, body seals and
gaskets (e.g., weather stripping); and
o Removable soft tops, removable hard tops, glass, plastic, framing, cables, or seals;
- Additional loss or damage due to failure to use reasonable precautions to protect the Vehicle from any further loss ordamage after a Failure has occurred; and
- Any costs if verifiable receipts as required in Section C. Your Responsibilities are not furnished on request.
This document is an application for coverage under a Vehicle ESA. Upon acceptance by Tesla, this application becomesthe Vehicle ESA, and the coverage is retroactive to the Effective Date, provided that You are eligible and purchase thisVehicle ESA no later than 30 days after the Effective Date. The Agreement Period commences on the Effective Date andremains in effect pursuant to the applicable extended service option selected herein. In the event Your application is notaccepted, You will receive a refund of the Vehicle ESA purchase price from Tesla. Nothing herein guarantees acceptanceof this application. This Vehicle ESA may not be renewed by You. Sections C through L shall survive any termination orexpiration of this Vehicle ESA.
G. Eligible Purchaser and Territory
This Vehicle ESA applies to a Vehicle sold by Tesla directly to You in the Tesla North America Service Region. Forpurposes of this Vehicle ESA, the Tesla North America Service Region is defined as all 50 states of the United States ofAmerica, the District of Columbia, and all 13 provinces and territories of Canada, provided that You are the originalpurchaser who purchased the Vehicle directly from Tesla and that You return to the North America Service Region inorder to receive service pursuant to this Vehicle ESA.
H. Limits of Liability
Implied and express warranties and conditions arising under applicable state laws or federal statute or otherwise in law orin equity, if any, including, but not limited to, implied warranties and conditions of merchantability or merchantable quality,fitness for a particular purpose, durability, or those arising by a course of dealing or usage of trade, are disclaimed to thefullest extent allowable by law, or limited in duration to the Agreement Period of this Vehicle ESA. The performance ofnecessary repairs and parts replacement is the exclusive remedy under this Vehicle ESA or any implied warranties.Liability is limited to the reasonable price for repair or replacement of any covered part, not to exceed the manufacturer’ssuggested retail price for that part. Replacement may be made with parts of like kind and quality, including non-originalmanufacturer’s parts or remanufactured parts, as necessary.
In no event shall liability for a Failure under this Vehicle ESA exceed the fair market value of the Vehicle at the timeimmediately preceding the Failure. In addition, the sum of all benefits payable under this Vehicle ESA shall not exceed theretail price You paid Tesla for Your Vehicle.
Tesla does not authorize any person or entity to create for it any other obligations or liability in connection with this VehicleESA. The decision of whether to repair or replace a part or to use a new or remanufactured part will be made by Tesla, inits sole discretion.
Tesla will not pay for or reimburse You for services that are performed by any party other than a Tesla Authorized ServiceCenter or Tesla Ranger. Tesla hereby disclaims any and all indirect, incidental, special and consequential damagesarising out of or relating to Your Vehicle, including, but not limited to, transportation to and from a Tesla AuthorizedService Center, loss of Vehicle value, loss of time, loss of income, loss of use, loss of personal or commercial property,inconvenience or aggravation, emotional distress or harm, commercial loss (including but not limited to lost profits orearnings), towing charges, bus fares, vehicle rental, service call charges, gasoline expenses, lodging expenses, damageto tow vehicle, and incidental charges such as telephone calls, facsimile transmissions, and mailing expenses.
The above limitations and exclusions shall apply whether Your claim is in contract, tort (including negligence and grossnegligence), breach of warranty or condition, misrepresentation (whether negligent or otherwise) or otherwise at law or inequity, even if Tesla is advised of the possibility of such damages or such damages are reasonably foreseeable.
I. Dispute Resolution and Arbitration Agreement
- To the fullest extent allowable by the law of Your jurisdiction, Tesla requires that You first provide Tesla, during theapplicable period specified in this Vehicle ESA, with notification of any Failure You have experienced within areasonable time to allow Tesla an opportunity to respond, before You submit to our dispute settlement program.
Should You elect to submit to our dispute settlement program, please send Your written notification to:
Tesla Motors, Inc.
3500 Deer Creek RoadPalo Alto, California 94304Attention: Vehicle Service
Please include the following information:
- Vehicle ESA and Effective Date;
- Your name and contact information;
- Vehicle Identification Number;
- Name and location of the Tesla Store and/or Tesla Authorized Service Center nearest You;
- Vehicle delivery date;
- Current mileage;
- Description of the concern; and
- History of the attempts You have made with a Tesla Authorized Service Center or authorized Tesla representativeto resolve the concern, or of any repairs or services that were not performed by a Tesla Authorized ServiceCenter or Tesla Ranger.
In the event any disputes, differences or controversies arise between You and Tesla related to this Vehicle ESA,Tesla will explore all possibilities for an amicable settlement. In case an amicable settlement is not reached, Teslaoffers a dispute settlement program through:
NATIONAL CENTER FOR DISPUTE SETTLEMENT (“NCDS”)P.O. Box 526
Mt. Clemens, MI 48046
1-866-629-3204
- Vehicle ESA and Effective Date;
- Tesla requires that You submit Your dispute to our dispute settlement program and wait for a decision to be issuedprior to pursuing any remedy under federal or state laws (including 15 U.S.C. Section 2310 or California Civil CodeSection 1793.22(b)), although You may be entitled to pursue a remedy without submitting under certain state laws orif You pursue any rights or remedies not created by these laws. This dispute settlement program administered byNCDS is free of charge to You and is conducted by local NCDS professionals who are trained and experienced inmediation and arbitration.
NCDS resolves disputes involving this Vehicle ESA which arise during the applicable extended service periodspecified in this Vehicle ESA. You must file a request for arbitration with NCDS within 60 days (or 6 months in certainjurisdictions) of the expiration of the applicable extended service period, provided you sent written notice to Tesla, asspecified above, of the alleged defect during the applicable extended service period.
To initiate arbitration, You must contact NCDS at 1-866-629-3204 or P.O. Box 526, Mt. Clemens, MI 48046, andcomplete an NCDS customer claim form and mail it to NCDS. Please also provide a copy of Your written notificationsent to Tesla and/or all information required in such notification specified above, Your desired resolution, and allreceipts if requesting reimbursement. Upon receipt of Your request, NCDS will contact You regarding the status ofYour case and provide You with additional details about the program.
When NCDS receives Your request, it will be forwarded to Tesla for response. After analyzing all informationpertaining to Your case, NCDS will schedule a technical evaluation if applicable. If You request it, an oral hearing willbe held prior to a decision being rendered. At this hearing, all evidence is admissible. After considering all testimonyand documents, the arbitrator will review the applicable legal standards and render a decision. A settlementsatisfactory to all parties may be negotiated at any time, including prior to or after the arbitrator’s decision.
NCDS’s decision is binding on Tesla and You. Tesla will comply with the decision in a reasonable time not to exceed30 days after Tesla receives notice of the decision. Remedies include but are not limited to repairs; reimbursement forrepairs and incidental expenses, such as transporting costs; and repurchase of this Vehicle ESA. NCDS decisions donot include attorney fees or punitive, multiple, or consequential damages, except incidental damages as required by
applicable law. NCDS findings and decisions are admissible as evidence in any legal proceedings concerning YourVehicle.
The description provided above is only a brief summary of the dispute settlement program administered by NCDS.The dispute settlement program may be changed at any time without prior notice. Contact NCDS at the above listedaddress or phone number for the most current information concerning the dispute settlement program.
Wyoming ONLY: At the time of any disagreement between You and Tesla, in a separate written agreement the partiesmay voluntarily agree to submit their differences to arbitration. Any arbitration proceeding shall be conducted within thestate of Wyoming.
Oregon ONLY: This section replaces subsection 2 of Section I. Dispute Resolution and Arbitration Vehicle ESA. You andTesla may mutually agree to arbitrate any disputes not amicably settled between You and Tesla related to this VehicleESA through our dispute settlement program and wait for a decision to be issued prior to pursuing any remedy underfederal or state laws. In the event You and Tesla agree to do so, subsection 2 will apply. You and Tesla may alsomutually agree to arbitrate in any location, including the county where You reside. In the event you do not receivesatisfaction under this contract, you may contact the Oregon Department of Consumer and Business Services at 350Winter Street NE, PO Box 14480, Salem, OR 97309-0405 or (888) 877-4894 (toll free in Oregon) or (503) 947-7984(calling from outside Oregon).
J. Cancellation by Customer
To cancel this Vehicle ESA, You must mail by certified mail, return receipt requested your written cancellation request toTesla prior to any sale of the Vehicle, along with a notarized affidavit that states the mileage on Your Vehicle at the date ofYour cancellation request. The right to cancel this Vehicle ESA is not transferrable by You. The amount of Your refund issubject to the following:
- (a) Within First 60 Days – Without Claim: You may cancel Your Vehicle ESA within the first 60 days of the VehicleESA Purchase Date and receive a full refund provided that You are the original Vehicle ESA purchaser and havenot filed a claim.
- (b) Within First 60 Days – With Claim: If You cancel Your Vehicle ESA within the first 60 days of the Vehicle ESAPurchase Date but have submitted a claim pursuant to this Vehicle ESA where service has been provided, Yourcancellation refund will be calculated on a pro-rata basis, and You will receive the lesser of the unused portion ofthe days or mileage that this Vehicle ESA has been in effect, compared to the term or mileage of the selectedService Plan, less the amount of any claims paid under the Vehicle ESA4.
- (c) After 60 days – With or Without Claim: If You cancel Your Vehicle ESA on or after the 60th day following theVehicle ESA Purchase Date, Your cancellation refund will be calculated on a pro-rata basis, and You will receivethe lesser of the unused portion of the days or mileage that this Vehicle ESA has been in effect, compared to theterm or mileage of the selected Service Plan, and, if applicable, less the amount of any claims paid under theVehicle ESA5.
- (d) Tesla will add a ten percent penalty to any applicable refund6 per month that is not made within 30 days of returnof the Vehicle ESA and notarized affidavit to Tesla.
This Vehicle ESA cannot be cancelled by Tesla except for a sale of Your Vehicle, fraud or material misrepresentation onYour part or for Your failure to pay for this Vehicle ESA. If Tesla cancels this Vehicle ESA due to a sale of Your Vehicle,fraud or material misrepresentation, You will receive a refund calculated on a pro-rata basis equal to the lesser of theunused portion of the days or mileage that this Vehicle ESA has been in effect, compared to the term or mileage of the
4 Except for Nevada, which shall not deduct the amount of any claims paid or services provided but will deduct anyoutstanding balance on Your account from the amount of the purchase price that is unearned by Tesla when calculatingthe amount of the refund.
5 Except for Nevada, which shall not deduct the amount of any claims paid or services provided but will deduct areasonable cancellation fee, at Tesla’s discretion, and any outstanding balance on Your account from the amount of thepurchase price that is unearned by Tesla when calculating the amount of the refund.
6 Except for Nevada, which shall be ten percent of the purchase price per month.
selected Service Plan, less the amount of any claims paid under this Vehicle ESA. This Vehicle ESA is not being sold inany jurisdiction in which the sale or performance of this Vehicle ESA is not permitted pursuant to applicable law at thetime of purchase. Any such sale is void ab initio and of no force and effect and will not be deemed a cancellation. You willreceive a full refund provided no services have been provided by Tesla.
Minnesota ONLY: Tesla will provide five days’ written notice if the reason for cancellation by Tesla is nonpayment of thefee for this Vehicle ESA by You.
Missouri ONLY: This Vehicle ESA is not an insurance contract.
Nevada ONLY: A cancellation of the Vehicle ESA by Tesla will become effective 15 days after notice of cancellation ismailed to You. The cost of claims paid or services provided will not be deducted from any refund issued pursuant to thisVehicle ESA.
Washington State ONLY: The implied warranty of merchantability on the Vehicle is not waived if this Vehicle ESA hasbeen purchased within 90 days of the purchase date of the Vehicle from Tesla.
Wyoming ONLY: Tesla will mail a written notice to You at Your last known address contained in the records of Tesla atleast 10 days prior to cancellation by Tesla. Prior notice is not required if the reason for cancellation is nonpayment of thePurchase Price, a material misrepresentation by You to Tesla or a substantial breach of duties by You relating to theVehicle or its use.
L. Entire Agreement; Severability; Waiver; Governing Law.
This Vehicle ESA and any work orders executed at the time of service constitute the entire agreement between You andTesla with respect to the subject matter hereof and supersede all prior agreements, statements, promises, understandingsand negotiations, whether written or oral, regarding the subject matter hereof, and any terms and conditions included onTesla’s work orders, whenever delivered. This Vehicle ESA and any work order cannot be amended unless in writing andsigned by duly authorized representatives of each party.
In the event that any provision of this Vehicle ESA or any work order is held by a court of competent jurisdiction to beunenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remainingprovisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if theVehicle ESA or such work order did not contain the particular provisions held to be unenforceable, and the unenforceableprovisions shall be replaced by mutually acceptable provisions which, being valid, legal and enforceable, come closest tothe intention of the parties underlying the invalid or unenforceable provision.
The waiver of any of the terms or provisions of this Vehicle ESA in any one or more instances shall not be deemed apermanent waiver of this entire Vehicle ESA. No waiver shall be effective unless in writing and signed by authorizedrepresentatives of both parties.
This Vehicle ESA shall be governed by the laws of the State of California without regard to its conflict of law principles,except as otherwise required by applicable law. The state or federal courts in Santa Clara County, California shall haveexclusive venue for disputes relating to the interpretation or enforcement of this Vehicle ESA, except as otherwiserequired by applicable law.7
New Hampshire ONLY: In the event you do not receive satisfaction under this contract, you may contact the NewHampshire Insurance Department at 21 South Fruit Street, Suite 14, Concord, NH 03301; 603-271-2261 or 1-800-852-3416.
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There is no way to spin this this other than it being an absolutely horrible policy for Tesla owners (by needlessly diminishing the values of their cars) as well as prospective owners (by giving them pause on acquiring a slightly used Tesla due to lack of extended warranty coverage).
For all the talk of being different and more reasonable than traditional car dealers, the horrible provisions and just plain unavailability of an Extended Warranty for CPO cars represents Tesla falling way short of what is offered by car dealers and traditional automakers.
Tesla has stated their reliability issues have been worked out. With this being the case why go so out of their way to deny extended warranty coverage when even Jaguar who builds some of the most unreliable vehicles offer comprehensive extended warranty options for both new and CPO cars with the warranty being fully transferrable and with a zero deductible. The Jaguar CPO warranty is actually 6 years 100K miles from the in-service date.
http://www.jaguarusa.com/quality-section/certified-preowned/index.html
Tesla has had a nice run with low depreciation compared to other premium car makers and I just don't understand why they'd want to ruin that now.
This policy will affect the purchase rate of used cars and how much Tesla owners can expect to sell their cars for in he private market. It seems they want to lock owners into having little choice but to trade in the Vehicles to Tesla at whatever price Tesla wants to pay as high repair bills will dissuade a large segment of buyers from considering a private party purchase.
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I'm sure the invisible love is there...
It's a matter of how much is that invisible love going to cost you :scared:
For all the talk of being different and more reasonable than traditional car dealers, the horrible provisions and just plain unavailability of an Extended Warranty for CPO cars represents Tesla falling way short of what is offered by car dealers and traditional automakers.
Tesla has stated their reliability issues have been worked out. With this being the case why go so out of their way to deny extended warranty coverage when even Jaguar who builds some of the most unreliable vehicles offer comprehensive extended warranty options for both new and CPO cars with the warranty being fully transferrable and with a zero deductible. The Jaguar CPO warranty is actually 6 years 100K miles from the in-service date.
http://www.jaguarusa.com/quality-section/certified-preowned/index.html
Tesla has had a nice run with low depreciation compared to other premium car makers and I just don't understand why they'd want to ruin that now.
This policy will affect the purchase rate of used cars and how much Tesla owners can expect to sell their cars for in he private market. It seems they want to lock owners into having little choice but to trade in the Vehicles to Tesla at whatever price Tesla wants to pay as high repair bills will dissuade a large segment of buyers from considering a private party purchase.
- - - Updated - - -
I'm sure the invisible love is there...
It's a matter of how much is that invisible love going to cost you :scared:
Xpress
Member
There is no way to spin this this other than it being an absolutely horrible policy for Tesla owners (by needlessly diminishing the values of their cars) as well as prospective owners (by giving them pause on acquiring a slightly used Tesla due to lack of extended warranty coverage).
For all the talk of being different and more reasonable than traditional car dealers, the horrible provisions and just plain unavailability of an Extended Warranty for CPO cars represents Tesla falling way short of what is offered by car dealers and traditional automakers.
Tesla has stated their reliability issues have been worked out. With this being the case why go so out of their way to deny extended warranty coverage when even Jaguar who builds some of the most unreliable vehicles offer comprehensive extended warranty options for both new and CPO cars with the warranty being fully transferrable and with a zero deductible. The Jaguar CPO warranty is actually 6 years 100K miles from the in-service date.
http://www.jaguarusa.com/quality-section/certified-preowned/index.html
Tesla has had a nice run with low depreciation compared to other premium car makers and I just don't understand why they'd want to ruin that now.
This policy will affect the purchase rate of used cars and how much Tesla owners can expect to sell their cars for in he private market. It seems they want to lock owners into having little choice but to trade in the Vehicles to Tesla at whatever price Tesla wants to pay as high repair bills will dissuade a large segment of buyers from considering a private party purchase.
- - - Updated - - -
I'm sure the invisible love is there...
It's a matter of how much is that invisible love going to cost you
I agree with everything you say except the depreciation part. A three year old Model S seems to have depreciated almost $15K per year ($45K total) which is in line with most higher end luxury models.
I do exhaustive research before buying a car. With car ownership the number one expense is depreciation so I've been very closely tracking Model S depreciation values for a couple of years. Just for comparison on how Tesla depreciation is less consider that you can purchase a $110K 2015 Model Year Mercedes S Class as a CPO car just one year later for an asking price of $79K, which means you can likely purchase that car for around $75K. So that is about $30K in depreciation in one year.
https://www.cars.com/vehicledetail/detail/653688459/overview/
Tesla depreciation has always been less than that for the Mercedes S Class and other comparable cars. I feel this is partly due to faith people have had in Tesla to be more reliable and the expectation that a Tesla would require less maintenance and not be as expensive to repair compared to a more complicated ICE car. Some of these assumptions are now turning out to be not true.
A tesla does not cost any less to maintain (I'd actually say it costs more), based on Consumer Reports offers less than average reliability, the repair bills are quite high, and most concerning of all is no one else can repair or obtain parts for a Tesla so you have to pay whatever Tesla asks to pay for a repair. Tesla ownership after warranty is like writing then a blank check to Tesla for any repair as what else are you going to do? I personally can't imagine owning a Tesla out of warranty without the security of an Extended Warranty.
My point is with this horrible policy of denying the availability of an Extended Warranty fewer used Model S buyers will have confidence in the reliability or cost of repairing a Tesla out of warranty and this will cause depreciation for a Model S to go down to or even be worse than that for a Mercedes S Class. It's not there now but if this policy is not changed I feel that's where we are going.
The biggest issue giving us pause is acquiring a Tesla at the moment is the lack of an Extended Warranty option for CPO or private party purchase. We keep our cars about 6-8 years and with what I know now there is no way I'd want to own a Model S out of warranty. If we end up having to pay thousands for out of warranty door handle replacements and other repairs we'll feel completely ripped off and it will ruin the ownership experience.
Anyone who owns a Tesla, whether they actually care about the ESA warranty or not, should be quite concerned about this warranty policy change as it will make it harder for you to sell your car and you will get less value for your car because of it.
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