Extended Warranty Worth it?

[P85Dave]

No way we would still hold on to our P85D if not for the extended warranty. If something goes wrong, it is never cheap to fix and only Tesla has the parts and can fix the car. A huge repair bill will ruin the ownership experience and we' much rather pay the ESA fee and not worry about it.

It also increases the resale value of the car. When we sell the car, thanks to the ESA we can be competitive with CPO cars.

 

[GlmnAlyAirCar]

I put a lot of miles on my car. I currently have about 95k on my 2015 70D. At the rate I accrue miles, I would have blown through my extended warranty in about 18 months. 4k for 18 months certainly didn't seem worth it, considering most of the high ticket items (at least the ones not covered by the drivetrain warranty) are likely time-limited as opposed to mileage-limited parts (MCU, etc.).

So instead, I stuck the 4k in a savings account. My only repair so far was replacement of a rear toe link for about $600. At this point, i am WAAAY ahead.

 

[P85Dave]

I put a lot of miles on my car. I currently have about 95k on my 2015 70D. At the rate I accrue miles, I would have blown through my extended warranty in about 18 months. 4k for 18 months certainly didn't seem worth it, considering most of the high ticket items (at least the ones not covered by the drivetrain warranty) are likely time-limited as opposed to mileage-limited parts (MCU, etc.).

So instead, I stuck the 4k in a savings account. My only repair so far was replacement of a rear toe link for about $600. At this point, i am WAAAY ahead.

You've been lucky All it takes is a couple of door handle repairs and it could add up.

While your usage scenario is different, different people have varying risk/pain thresholds. For me, I'd be really upset if I had to pay $600+ to fix a door handle when it is essentially a known issue due to a design fault. I'd rather pay them the ESA fee and not worry about it.

Also FWIW Tesla previously increased the cost of the ESA so that is an indicator that as these cars age, repairs are expensive.

 

[Tam]

...At this point, i am WAAAY ahead...

I've been paying insurance for my home but it has never experienced earthquake, flood, fire, thefts... so I am not ahead but I am happy to continue pay it.

It's up to your risk tolerance!

 

[GlmnAlyAirCar]

I've been paying insurance for my home but it has never experienced earthquake, flood, fire, thefts... so I am not ahead but I am happy to continue pay it.

It's up to your risk tolerance!

On the contrary. I think with how i use my car, there is only one rational decision. Peace of mind for 18 months is not worth 4k.

 

[johnster007]

Those are some seriously crazy prices. 4500 for a heater? I see an extended warranty in my future.

The only item I know the price of on here is the MCU which local service center quoted $2600, not $4000 as quoted above. I took the gamble on my first and second S. So far it’s paid off for me NOT to buy the extended warranty. I think Tesla knows the math better than we do and they wouldn’t offer it if it weren’t a profit center. That said if you’re a big believer in insurance for piece of mind, get it. Personally, I avoid insurance whenever possible.

 

[brkaus]

Prices quoted here are on the high side or have come down significantly. The screen itself is $1k, the entire unit is under $3k.

Door handles can be fixed, the paddle gear is $3. Pain in the butt to disassemble, so I expect labor to be high.

The extended warranty has a $200 "deductible" per item. So that adds up too.

I'd say it depends on how many miles.

 

[jim5359]

I am definitely going to purchase the extended warranty, but will wait and hope it doesn't go up tremendously in 4 years when my original warranty expires. I always get extended warranties on our cars and we have always used those warranties. I know when the 8 years is up, I'll be in the market for a new Tesla.

If you read the ESA details it states that the extended warranty is refundable if not used. Once the extended warranty kicks in (after the base warranty expires) then the refund would be pro-rated minus any repairs. But up until the base warranty expires it is fully refundable.

I double checked with Tesla and got it in writing. So I locked in the discounted price by buying the ESA within the first 6 months and don't have to worry about the price going up. If I sell to a 3rd party before the 4 years is up I can decide to either transfer the extended warranty to the new owner (and have them pay me for it) or cancel it and get a full refund.

Meanwhile my $4,250 is sitting in Tesla's bank account, but the discount I got more than covered any interest I would have received. And I don't have to worry about the price going up before my base warranty expires.

 

[CBPfromTN]

If you read the ESA details it states that the extended warranty is refundable if not used. Once the extended warranty kicks in (after the base warranty expires) then the refund would be pro-rated minus any repairs. But up until the base warranty expires it is fully refundable.

I double checked with Tesla and got it in writing. So I locked in the discounted price by buying the ESA within the first 6 months and don't have to worry about the price going up. If I sell to a 3rd party before the 4 years is up I can decide to either transfer the extended warranty to the new owner (and have them pay me for it) or cancel it and get a full refund.

Meanwhile my $4,250 is sitting in Tesla's bank account, but the discount I got more than covered any interest I would have received. And I don't have to worry about the price going up before my base warranty expires.

That's really great info, thank you! My thinking is you're right. I like the security of having that warranty, so (like every vehicle we purchase,) I will be getting it as well. The peace of mind is golden, to me. I have a little more time to think about it, even though I would like to be thinking about it while driving my Tesla. "My Tesla." Oh, how I love the sound of those two words . Thank you for your message!

 

[sandpiper]

Hey all,

New to the forum here and new Tesla owner. Just bought a CPO 2014 Model S and it is coming up on the end of its 4 year 50K mile warranty. I'm at a cross roads here where I have the option to buy an extended warranty to carry me another 4 years for ~$4700 (around there).

Is it worth it?

Thanks for the advice,

Alex

Just do it. The Tesla is an amazing car, but does have a bunch of niggling issues that can be costly. I see almost no chance that the warranty won’t pay off over 4 years. And it may pay off heavily.

 

[bmah]

Well this thread finally motivated me to get my act together and buy the extended warranty for my April 2015 S85D (43K miles). I'd intended to do this all along, but was waiting until it got "close" to 50K miles (miles, like years, tend to sneak up on me nowadays).

Why? Peace of mind and all that.

(Non-relevance: I bought the extended warranty for my 2005 Prius. At the time it seemed like a good idea since hybrid vehicles were relatively new, but I ended up not using it at all.)

Bruce.

 

[Ruffles]

What options do we have if you purchase a real live CPO from Tesla directly? I bought my CPO X last July and they reset the 4 year clock and 50k warranty but I want to have coverage beyond that. When I click on the service agreement page under my Tesla account, there is no option for me to buy one.

 

[thegooch49]

What options do we have if you purchase a real live CPO from Tesla directly? I bought my CPO X last July and they reset the 4 year clock and 50k warranty but I want to have coverage beyond that. When I click on the service agreement page under my Tesla account, there is no option for me to buy one.

Unfortunately the ESA is not available on CPO cars, which is a bummer.

 

[CBPfromTN]

Well this thread finally motivated me to get my act together and buy the extended warranty for my April 2015 S85D (43K miles). I'd intended to do this all along, but was waiting until it got "close" to 50K miles (miles, like years, tend to sneak up on me nowadays).

Why? Peace of mind and all that.

(Non-relevance: I bought the extended warranty for my 2005 Prius. At the time it seemed like a good idea since hybrid vehicles were relatively new, but I ended up not using it at all.)

Bruce.

You know, Bruce, I also purchased the extended warranty for my 2016 Avalon Limited Hybrid, I guess I was planning to keep it 8 years, but I probably wouldn't have needed it, since Toyota pretty much is the expert on hybrid technology in cars. It was a great car, I had it for 2 years and even though I only put less than 9000 miles on it, it would've gone 250,000 I am sure with few issues as long as I kept up the maintenance, which I would have done. Now, IMO, the Tesla is a different story...even though Tesla is the last word on electric vehicles, there are so many issues I hear about and of course, everything is extraordinarily expensive to repair so I will be purchasing the 4 year extended warranty. I may never use it but if I need it, I sure as heck want it! After it goes out of warranty, I may just sell it and get a new Tesla if I don't get one before that.

 

[Ruffles]

Unfortunately the ESA is not available on CPO cars, which is a bummer.

Does anyone have experience with a Non Tesla extended warranty on a Tesla? I've typically bought them for my other vehicles and gotten my money's worth.

 

[kyalami]

Unfortunately the ESA is not available on CPO cars, which is a bummer.

Just found out the same thing. My CPO lease is 60 days from expiration and the CPO warranty is expiring at the same time. Would love to buy the car at the end of the lease but without the ability to extend I am leaning towards getting a new lease on another newer CPO car. By not allowing CPO extensions Tesla in effect pushes you towards "buying" another car.

 

[MikeBur]

Prices quoted here are on the high side or have come down significantly. The screen itself is $1k, the entire unit is under $3k.

Door handles can be fixed, the paddle gear is $3. Pain in the butt to disassemble, so I expect labor to be high.

The extended warranty has a $200 "deductible" per item. So that adds up too.

I'd say it depends on how many miles.

My understanding is the $200 deductible is per visit, not per item. If you need to go in for one thing, go in with a list wherever possible. If someone has proof either way, it would be good to know.

 

[brkaus]

My understanding is the $200 deductible is per visit, not per item. If you need to go in for one thing, go in with a list wherever possible. If someone has proof either way, it would be good to know.

This now says per visit -
https://www.tesla.com/sites/default/files/service/vehicle_extended_service_agreement_en_us.pdf

Exclusions are also listed in this document.

Also just noticed that the price for the ESA now changes after 180 days of ownership... but $500.

2-Year Extended Service Agreement
2 years or 25,000 miles (40,000 km), whichever comes first

4-Year Extended Service Agreement
4 years or 50,000 miles (80,000 km), whichever comes first

Model S Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,100 $2,600
4-Year Extended Service Agreement $4,250 $4,750
Model X Purchased within 180 Days 1 Purchased after 180 Days 2
2-Year Extended Service Agreement $2,400 $2,900
4-Year Extended Service Agreement $4,800 $5,300
1 Purchase price if purchased within 180 days of the vehicle’s date of initial delivery by Tesla.
2 Purchase price if purchased after 180 days of the vehicle’s date of initial delivery by Tesla.

 

[Tforme]

And just to further confuse the issue: My Tesla site offered (and I bought) the two year extension for $2100 even though it was done just days before the 4year warrenty expired. Apparently they occasionally offer it “on sale” for the lower within 180 days price. Or at least that was the reason offered by a product specialist when asked.

 

[dcmetro]

And just to further confuse the issue: My Tesla site offered (and I bought) the two year extension for $2100 even though it was done just days before the 4year warrenty expired. Apparently they occasionally offer it “on sale” for the lower within 180 days price. Or at least that was the reason offered by a product specialist when asked.

Interesting...guess we'll just have to keep checking, haha