EXTENDED WARRANTIES

[jerseygirl18]

just noticed these came online ..wondering which looks like smarter route....prolly plan to keep car 6 yrs. i have with most of my others,,,maybe even longer with Tesla MX if it is as magical as i expect...would like to be sensible on the warranty. Don't want to sink a major amount in the concept ..$6-10,000 seems HIGH.. wondering what right option is based of past experiences on present owners of the MX..thans in advance appreciate the info ( sorry for the less than perfect images)

 

[SaniDel]

My only comment about extended warranties is that they usually take effect only after the original warranty has expired, i.e., after four years or 48,000 miles ... typically. So, wait for three years and eleven months or 47,000 miles before buying an extended warranty, but no more ... they must be in effect before the original warranty expires. In other words ... don't pay more than you should ... or sooner than you should!

 

[Cirrus MS100D]

Wait... did these just come back online? They had recently disappeared from everybody’s Tesla account with the word on the street that they could only be purchased in-person from a Service Center.

 

[jerseygirl18]

My only comment about extended warranties is that they usually take effect only after the original warranty has expired, i.e., after four years or 48,000 miles ... typically. So, wait for three years and eleven months or 47,000 miles before buying an extended warranty, but no more ... they must be in effect before the original warranty expires. In other words ... don't pay more than you should ... or sooner than you should!

only issue i see with that...is who knows if they will be available then!!
also i was asking maintenance & warranty or just one of them is actually correct to do??

 

[jerseygirl18]

Wait... did these just come back online? They had recently disappeared from everybody’s Tesla account with the word on the street that they could only be purchased in-person from a Service Center.

that's where i saw it online and then it was not there...so who knows but that is why i captured a screen shot. Suppose to take delivery on Fri so i wanted hard proof...somehow despite not dealing with tesla for a long time...i get the impression hard evidence might not matter

 

[Merrill]

just noticed these came online ..wondering which looks like smarter route....prolly plan to keep car 6 yrs. i have with most of my others,,,maybe even longer with Tesla MX if it is as magical as i expect...would like to be sensible on the warranty. Don't want to sink a major amount in the concept ..$6-10,000 seems HIGH.. wondering what right option is based of past experiences on present owners of the MX..thans in advance appreciate the info ( sorry for the less than perfect images)View attachment 453290View attachment 453290

I went on to mytesla and there is nothing on extended warranties, where did you find this.

 

[IanMcL]

My 2016 S has 47000+ miles , so the 50k approaches.

I was going to ask what happens and for best advice but discovered this thread.

50001 miles and I grind to a halt on a Motorway.
I contact service centre. What's the deal? "Tough luck mate", "no problem, that will be a million pounds", "you need extra warranty" etc

Just want best value route forward.
Cheers

 

[ewoodrick]

You do know that on average the consumer loses on extended warranties.
Like a lease, someone else is making money.

 

[Tam]

My only comment about extended warranties is that they usually take effect only after the original warranty has expired, i.e., after four years or 48,000 miles ... typically. So, wait for three years and eleven months or 47,000 miles before buying an extended warranty, but no more ... they must be in effect before the original warranty expires. In other words ... don't pay more than you should ... or sooner than you should!

Except Tesla has a history of price increases for its ESA and never a sales.

I bought my 4-year ESA for my 2012 Model S for $2,400 on 2/15/2013. That price has gradually increased to $4,250 as of last year.

I bought my 4-year ESA for my 2017 Model X for $4,800 on 3/30/2017. The price on this thread shows that price seemed to increase to $5,300 as of today. However, I think it's just a $500 penalty for not buying it timely within 180 days of the new car.

 

[jerseygirl18]

ESA/ extended serv agreement?

 

[Tam]

You do know that on average the consumer loses on extended warranties.
Like a lease, someone else is making money.

True. Very true statements.

However, ESA is based on risk pooling principle.

Rep. John Shimkus (R-Ill.) also wondered why men had to pay an insurance premium to cover maternity services because men cannot get pregnant!

I've been paying insurance for my home but it has never been through flood, fire, tornado... but I am certainly glad to continue to do that even if others can benefit from it.

I am just glad that I can buy it either home insurance or ESA...

On the other hand, there have been plenty of stories that owners who didn't pay ESA and can't understand why Tesla wouldn't pay for the repairs post-warranty:

Outrageous $5000 repair bill after warranty expire!

 

[Tam]

ESA/ extended serv agreement?

Yes. ESA is Extended Service Agreement which is equivalent to layperson term Extended Warranty.

Legally, it is not a "warranty" because some states don't allow Tesla to sell an Extended Warranty without an Insurance License.

Also, an "Agreement" has less protection for consumer's rights than a Warranty has. Tesla can write whatever it wants and you can either agree to buy or not.

Warranty is a law so whether Tesla wants it or not, consumers are covered.

 

[jerseygirl18]

True. Very true statements.

However, ESA is based on risk pooling principle.

Rep. John Shimkus (R-Ill.) also wondered why men had to pay an insurance premium to cover maternity services because men cannot get pregnant!

I've been paying insurance for my home but it has never been through flood, fire, tornado... but I am certainly glad to continue to do that even if others can benefit from it.

I am just glad that I can buy it either home insurance or ESA...

On the other hand, there have been plenty of stories that owners didn't pay ESA and can't understand why Tesla would pay for the repairs post-warranty:

Outrageous $5000 repair bill after warranty expire!

my hubs CEO of a Fortune 500 ins comp....some ins is necessary some a luxury..all good to have..i take my chances on my iPhone, but not my car/house

 

[SaniDel]

my hubs CEO of a Fortune 500 ins comp....some ins is necessary some a luxury..all good to have..i take my chances on my iPhone, but not my car/house

Well-said! Would anyone cancel their fire insurance because their house hasn't burned ... yet?

Extending the warranty on an automobile beyond the manufacturer's warranty is a negotiable purchase, i.e., unlike the purchase of the vehicle they will readily discount the purchase of an extended warranty. Why? Because it is subsidized by the other owners who don't buy an extended warranty!

Vehicle repairs out-of-warranty are lucrative, which is why most manufacturers have four-year/50 thousand mile caps. All vehicles eventually require repair and the profits from most who are not warranted offset the cost for the few who are warranted. Those three, four or five years after the original warranty expires are 'gravy' ... if you were prescient to buy an extended warranty before the original warranty expired!

 

[SaniDel]

Except Tesla has a history of price increases for its ESA and never a sales.

I bought my 4-year ESA for my 2012 Model S for $2,400 on 2/15/2013. That price has gradually increased to $4,250 as of last year.

I bought my 4-year ESA for my 2017 Model X for $4,800 on 3/30/2017. The price on this thread shows that price seemed to increase to $5,300 as of today. However, I think it's just a $500 penalty for not buying it timely within 180 days of the new car.

You may be right, but why pay for something you can't use ... much less need for years and tens of thousands of miles into the future?

Much can happen in the meantime ... you may sell the car, it could get wrecked, stolen or scrapped and you may relegate it to occasional use so that repairs aren't so critical. In other words ... you can't know that you need an extended warranty that far into the future!

The last extended warranty I purchased at "the last month or the last thousand miles" was listed for $3,200, was available from an out-of-state dealer for $2,400 ... our local dealer agreed to $2,700. Best of all ... at anytime during the next three years I can cancel the warranty and receive a refund of the pro-rated amount ... you don't get that consideration from the original warranty!

 

[Tam]

...sell the car, it could get wrecked, stolen or scrapped...

You can get the unused portion of the ESA. For example: bought 4 years of ESA and sold/wrecked/stolen/scrapped the car after 1 year of ownership, you get the full refund.

If it's in the 5th year of ownership, you got a prorated refund of the rest of 3 years of ESA.

...All vehicles eventually require repair and the profits from most who are not warranted offset the cost for the few who are warranted...

...You may be right, but why pay for something you can't use ... much less need for years and tens of thousands of miles into the future?...

It's the principle of risk pooling.

The house always wins so why participating in an insurance system like whether health, house, or ESA?

For me, it's the price to pay for the predictability. I know that once I pre-pay for something that may or may not happen, I am covered.

That's perfectly fine for those who don't believe in a risk-pooling system but please don't come back here and complain that Tesla wouldn't cover the repairs because the ESA was not paid.

 

[SaniDel]

Amen!

 

[animorph]

I can't imagine the prepaid maintenance agreement is worth it anymore since Tesla is now recommending very little regular service. I bought it to save the $50 or so per service, but I'll probably cash in the remainder now.

The ESA is up to you. I bought it in early 2017 for my X as insurance against a relatively new and complex car running into multiple big problems. And to extend Tesla roadside assistance for road trips. So far I have seen no evidence of widespread durability issues, except maybe MCU1 flash memory wearing out, so maybe it was just a donation to Tesla. And as others have pointed out Tesla is unlikely to be losing money when averaged across all customers. If you like extended warranties or don't want a sudden large bill after the warranty runs out then the cost seems OK to me.

 

[EV-lutioin]

Wait, the extended warranty is gone? My Model X has 48,000 miles and I was planning to buy in this month. What happened?

 

[Tam]

Wait, the extended warranty is gone? My Model X has 48,000 miles and I was planning to buy in this month. What happened?

You used to be able to see it on your Tesla Account page and the ESA page used to say:

"See your Tesla Account for availability."

But now they took that phrase away and put in the question/answer:

"Where can I purchase the Extended Service Agreement?
The Extended Service Agreement can be directly purchased at your nearest Tesla Service Center."

If you want predictability in Tesla, you need to pay up and seal in the deal. If not, there's no telling what will be all the changes.