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Extended Warranty Debate

Discussion in 'Model S' started by kev1n, Aug 29, 2018.

  1. kev1n

    kev1n Member

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    I'd like to bring up the topic of extended warranty cost, is it worth it?

    my P85D 4year/50k mile warranty is up in December (3 months left)
    will still have another 4year/unlimited miles on battery/drive unit
    i drive about 10k miles a year

    my background: DIY car enthusiast, i do pretty much anything and everything i can on my own cars. my car never sees the stealership unless it is something i cant do or cost prohibitive.

    the cost to purchase the extended warranty has nearly doubled in the past few years
    todays price, we are now looking at,
    2 years/25k miles for $2600
    4 years/50k miles for $4750
    also there is a $200 deductible per visit which makes it even worse value

    list of common replacement items ive seen so far/cost:
    MCU ~$2700 installed from Tesla
    MCU screen ~$1000 installed from Tesla
    Chargeport/door ~800 installed from Tesla
    4G LTE module ~500 installed from Tesla
    TPMS system ~600 installed from Tesla
    Door handles DIY solder or gear replacement $70

    if others have had other part replacement out of pocket, please comment below with details/cost.

    even if i were to have Tesla do the work, id have to break 2 MCU's within 4 years to make the warranty worth it which seems unlikely to happen.

    I have thought about it in detail and I'm leaning towards not purchasing. I'd like to hear what others have to say who have similar background knowledge of cars and fellow DIY'ers
     
  2. Rockster

    Rockster Active Member

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    Currently about 75k miles on our S.

    I’ve had three door handles fail out of warranty. Tesla fixed the first one as a courtesy and I fixed the other two with the $149 rebuild kits from EV Tuning Solutions.

    The MCU died out of warranty and Tesla fixed that as a courtesy. I don’t know how common it is that they do that, but I was grateful.
     
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  3. David_Cary

    David_Cary Member

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    I know I am a little early but I have 66k miles on a Apr 15 build. Zero out of warranty repairs except for a 12V battery which is $200 so it doesn't really matter.
     
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  4. glhs272

    glhs272 Unnamed plug faced villian

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    I currently have 128K miles on my 2013 Model S and no the extended warranty would not have been worth it. However, if Tesla had not made the drive unit warranty the same as the battery warranty, then I would think different. I only had about $400 worth of repairs that would have been done during the extended warranty period. So a waste of money. Instead of getting the warranty, I just banked the money for any future repairs that may have come up. That doesn't expire. I have also started doing more work on my own car. I have done all the brakes and rotors, front wheel bearings, and a door handle myself. With some basic tools, those repairs were pretty easy. Soon to be trying to replace my HID bulbs before they fail. So if your at all handy, a lot of repairs could easily be done DIY. I don't have a vehicle lift, so doing drive units and batteries looks like more of a challenge. There are always a few lemon cars out there where they could really take advantage of the extended warranty. However, not that common it seems.
     
  5. kev1n

    kev1n Member

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    yeah it doesnt seem like much work in terms of the door handle fix

    what did the $400 involve? im not going to worry about the battery/drive unit yet since there is still another 4 years on those.
     
  6. glhs272

    glhs272 Unnamed plug faced villian

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    Replacing the GPS antenna. The GPS got erratic, then would fail to acquire satellites. Turned out to the gps antenna harness in the rear hatch. That required removal of the rear window and replacement of the rear stop light as well (glued to the window). All in it was around $420, which seemed fair for the amount of work it took.
     
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  7. tpham07

    tpham07 Active Member

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    no it is not worth it
    Is it worth buying an extended car warranty? - Consumer Reports

     
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  8. sauce

    sauce :P

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    Take the money and go long TSLA. Only withdraw what you need to cover repair expenses. I bet you'll outlive your extended warranty.
     
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  9. Tam

    Tam Active Member

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  10. kev1n

    kev1n Member

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    because im still looking at it at a cost perspective, some things may cost more to repair than the warranty is to purchase. im not worried about the small ticket items. those are some valid cost heavy items. i was aware of the $2800 master charger. the 4k ac is new to me. anyways thats why i made this post. to get more information and hope it helps others decide as well.
     
  11. Tam

    Tam Active Member

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    #11 Tam, Aug 31, 2018
    Last edited: Aug 31, 2018
    This is my thinking: If I can self-insure, I wouldn't buy an insurance.

    The most expensive watches I've ever bought in my life have cost me $15.00. I can self-insure for that amount of $15 so I never bought insurance for it: I know how to replace its wristband and its battery and even if it's dead, I can easily buy another one for $15.

    Not so with my health. I've never gotten into any serious illness or surgery but I faithfully pay health insurance all my life. If I didn't pay it, I could have been very rich by now. I still do because if I get cancer or I'll be in an Intensive Care Unit, I could go bankrupt without insurance. I just can't self-insure for some illness that might cost hundreds of thousands of dollars or more!

    Back to Tesla. It's pretty much a monopoly right now and Tesla charges very high for repairs. I don't know how to do car repairs on my own so for the peace of mind, predictable expenses of extended warranty and its co-pays, I am fine to pay in advance.

    For my personal experience, I owned my 2012 Model up to this year for about 100,000 miles. It has been very reliable except for 2 post-warranty repairs which I think are quite common among other owners:

    My 17" screen got bubbles and the whole MCU was replace which could have costed me about $4,000 when brought it in for my 75,000 mile scheduled maintenance. It did not cost me any additional cost, not even the $200 deductible. (Whole MCU actually required me to reprogram my settings such as HomeLink and its IP address was changed too but cheaper screen replacement only without whole MCU replacement would retain all my previous settings.)

    Shortly before my scheduled 87,500 mile maintenance, my heater went cold which could have cost me $4,500 but I did not pay any additional expenses because I didn't bring it in right away (subject to $200 deductible) but I waited until the scheduled maintenance.
     
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  12. Flyguy

    Flyguy Member

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    The other thing to factor in, if you plan on keeping for more than four years, is the resale value. When I was looking at used Teslas I would not look at anything didn’t come under warranty, either original warranty or extended. I wound up buying a new tesla One year ago. I also bought an extended warranty. I’m still torn, I may wind up cashing it back in...
     
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  13. bishoppeak

    bishoppeak Member

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    When you buy an extended warranty, you are betting that repairs will cost more than you paid and Tesla is betting the other way. Who do you think is better at measuring the risk accurately?
     
  14. Tam

    Tam Active Member

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    It's the same idea that my home has never caught fire for all these decades but I still insure it. I know clearly statistically, the house always wins so why don't I stop paying the premium?

    If I can replace my home on my own when it's burned down completely, then, of course, I don't need insurance.

    As I learned from my past 2012 Model S, it's very reliable that only had 2 problems in its 100,000 miles but since Tesla repairs still cost an arm and a leg, I have no problem in paying the cost in advance even though I know that statistically, the chance to recoup the cost is minimal.
     
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  15. bishoppeak

    bishoppeak Member

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    Most of us can't afford to replace a home out of pocket. I'd bet any Model S owner can afford to pay for repairs.
     
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  16. Tam

    Tam Active Member

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    I agree that if an owner is able to pay for repairs then there's no need to waste money to pay in advance an extended warranty.
     
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  17. boonedocks

    boonedocks Active Member

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    t least it was just an arm and a leg and not a “tow” :D

    I did purchase the extended warranty as well. Just turned 50k miles this week on my 2017 S100D.
     
  18. BigTonyTones

    BigTonyTones Member

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    I have bought a few extended warranties in my life and they have all paid off. Cars, fridges, laptops.
    My first car (kept for 8 years) had so many issues after factory warranty. Had over 10k in problems. Extended paid off
    Macbook broke with $500 of damage, extended paid off
    Fridge broke a few months after factory warranty ended, extended paid off.

    I will be buying one for my Tesla. These cars just have so many issues. One little thing breaks and it will cost far too much to fix. The fact we cant get parts properly makes it worst. My MCU screen was just replaced under warranty due to a yellow border around the screen forming. I noticed brand new cars also had it forming. I suspect this will happen again to me after warranty is over. Its not something I want to pay for
     
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  19. Modeler

    Modeler Member

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    For me it’s more about a peace of mind. Sure, I can afford a $3k or $4k repair, but I prefer to know that my liability is limited to the $2k warranty premium (plus possible deductible) over years 5 and 6 of the car life. If I didn’t have this assurance, I would probably sell the car, but I know that I would pay way more in sales tax plus the annual property tax (Virginia), let alone the depreciation. So the extended warranty is what’s keeping me from buying a new car and spending $20,000 over the same 2-year period. $2k vs. $20k is pretty simple math.
     
    • Like x 1
  20. FlatSix911

    FlatSix911 918 Hybrid

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    One MCU screen replacement will cover the warranty cost... :cool:
     

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