Extended Warranty Price Increase

[ckessel]

Sadly, this says to me that Telsa thinks the reliability of the cars in years 5-8 isn't going to be remotely close to what they'd anticipated.

 

[NigelM]

That's fairlu crappy given in washington state, we were never even given the chance to buy the extended warranty at a lower price.

Ditto for Florida. Tesla is going to have to do some jumping through hoops for existing customers as on two separate occasions I was promised that they would figure out a retroactive solution for the 12k service I had to pay full price for. tesla have always kept their word to me so I'm not worried, but they still need to do a quick review for everyone on this.

 

[Andrew]

I just sent this email to Ownership:

Hi,

I just noticed the sudden and unannounced price increase for the extended warranty option. We had been considering buying it at $2,500 -- but now at $4,000, I don't think we'll be purchasing it.

I'm disappointed that Tesla didn't let us know the price would be increasing so suddenly and dramatically. Had I known, we might have bought the warranty during a grace period before the increase.

Any chance you'd still offer it to existing owners at $2,500?

Best,
Andrew
#6151

 

[ckessel]

What's the typical extended warranty cost on an ICE? I thought it was usually quite a bit less than what Tesla is charging, which seems contrary to Tesla's claims of lower long term repairs for EVs.

 

[Merrill]

Andrew, thanks for sending that e-mail, they should have at least given a time line to buy at the original price. Some kind of warning would have been appropriate. I think everyone should complain, Tesla needs to know that these kind of things are unacceptable!!

 

[tomanik]

For a low maintenance car, it just keeps get more and more expensive. I think the hardest part of this is it was done without any communication, again. I understand it is in their right but show some respect... I've email ownership with my opinions.

 

[Andrew]

What's the typical extended warranty cost on an ICE? I thought it was usually quite a bit less than what Tesla is charging, which seems contrary to Tesla's claims of lower long term repairs for EVs.

I think $2,500 was in line with what I've paid in the past -- though that was for a 1998 GMC Jimmy and a 2008 Prius. (I think I may have talked them down to $2k on the Prius...)

 

[Lou Olsen]

Great strategy Akikiki. This actually makes sense. I bought the extended warranty early on, but probably would have been better off following your lead :wink:

 

[brianstorms]

For a low maintenance car, it just keeps get more and more expensive. I think the hardest part of this is it was done without any communication, again. I understand it is in their right but show some respect... I've email ownership with my opinions.

This latest news gives new meaning to Elon's recent statement that after the 6/20 battery swap announcement, Tesla would "go quiet" for a while.

 

[tdiggity]

What's the typical extended warranty cost on an ICE? I thought it was usually quite a bit less than what Tesla is charging, which seems contrary to Tesla's claims of lower long term repairs for EVs.

My BMW 3 series extended warranty (platinum for those keeping track) was $3400. It was for 3 more years and 30k more miles. So Teslas price is not out of the ordinary. Just feels bad because we saw it at $2400.

 

[Akikiki]

Lou, thanks for the positive re-inforcement.

 

[gmtom1]

Just wondering, why are so many people interested in getting the extended warranty? TM keeps reiterating how the MS is such a low maintenance car, no fluids to change, brakes have much less wear, etc. Are people primarily worried about the battery pack?

I'm probably not going to keep my MS beyond 3 years, but I'm just wondering what you're really buying protection for when you get the warranty.

The one time I did keep a car > 3 years was my M3, and I did get the extended warranty, but only because it included scheduled maintenance and the 2nd inspection on BMWs generally costs more than the warranty/maintenance contract price, so it usually makes sense to get it.

 

[youlikeadajuice]

Not sure if I'm missing something, but I just logged into "My Tesla" and I still have the option to buy the extended warranty for $2500. Is it based on when you received your car? Or have they already backed out of the price increase?

 

[mitch672]

Elon just tweeted back to someone that he was "going to take action, will be a 7 day grace period. Price needs to go up as it's negative margin currently", copied a screenshot of his recent tweets below:

 

[youlikeadajuice]

Elon just tweeted back to someone that he was "going to take action, will be a 7 day grace period. Price needs to go up as it's negative margin currently"

Ok, just checked the service plan section of the website...now says it will go up on July 3rd:

Tesla Service | Tesla Motors

 

[markb1]

Excellent. This was the right way for them to handle it.

 

[mitch672]

Ok, just checked the service plan section of the website...now says it will go up on July 3rd:

Tesla Service | Tesla Motors

The man is a genius, looks like they are going to get a bunch of extended warranties sold, for anyone who was on the fence (why not, you save $1,500) This will help the 2nd quarter revenue (at least the ones sold through June 30th)

 

[Volker.Berlin]

Just wondering, why are so many people interested in getting the extended warranty? TM keeps reiterating how the MS is such a low maintenance car, no fluids to change, brakes have much less wear, etc. Are people primarily worried about the battery pack?

I'm probably not going to keep my MS beyond 3 years, but I'm just wondering what you're really buying protection for when you get the warranty.

Elon just tweeted "[...] Price needs to go up as it's negative margin currently"

If there's nothing that can to wrong then I wonder where does the negative margin come from? Doesn't seem like particularity good advertising to me...

 

[mitch672]

If there's nothing that can to wrong then I wonder where does the negative margin come from? Doesn't seem like particularity good advertising to me...

I actually read the agreement, and here is where reading it helps... You can transfer it to a new owner for a $200 fee, so even if you don't intend to keep the Model S more than 4-5 years, for $200 plus the $2,500 now, the new owner is getting an extended warranty for years 4 through 8. I would think that a Model S with the extended warranty coverage is more valuable than one without it (higher resale value, in other words)

 

[twinklejet]

If there's nothing that can to wrong then I wonder where does the negative margin come from? Doesn't seem like particularity good advertising to me...

Just read ALL the posts about owners claiming warranty for everything... It's horrifying (from a business standpoint) to imagine how much they are bleeding just from the "reported" posts on TMC... And I'm talking about all those cosmetic, mundane stuff when there's nothing structurally wrong with the car!

Like I said earlier, it's clear from the get-go that they're losing money based on all the "reports"..

As an example: I paid for the car, and i deserve glass vanity mirrors. Brought car in to get service to change the plastic mirrors to glass ones. Oh the horror (to the accountant... especially looking at the amount expended for labour costs for what is a less than $5 part cost)