How is this even REMOTELY legal?

[lolachampcar]

I'll second another poster's comments and add that, in Florida, you must be a registered insurance provider to offer extended warranties for automobiles. The insurance industry is highly regulated in Florida (an older population subjected to untold numbers of scams) and the regulatory requirements for ESAs are significant when compared to those for a dealer's license.

I do not know about NM but I would go first to "can not do it because we are not registered as an insurance company" before I would think "NADA is blocking Tesla".

 

[tinm]

Sounds like you need to move to a Tesla-Friendly State? Not much else you can do..

I refuse to surrender to auto dealers, Koch brothers, and other enemies of Tesla and its customers. I choose to fight.

 

[tinm]

I'll second another poster's comments and add that, in Florida, you must be a registered insurance provider to offer extended warranties for automobiles. The insurance industry is highly regulated in Florida (an older population subjected to untold numbers of scams) and the regulatory requirements for ESAs are significant when compared to those for a dealer's license.

I do not know about NM but I would go first to "can not do it because we are not registered as an insurance company" before I would think "NADA is blocking Tesla".

I hear ya. This issue has nuance. But, still, there are forces at work behind the scenes who prefer Tesla and its customers remain screwed.

 

[David_Cary]

Could you simply have a friend who lives near a SC go in an buy it for you. Perhaps with a POA (limited - authorizing this transaction) and a cashier's check from you to Tesla?

 

[tinm]

No idea. I plan to buy the ESA when I'm house-hunting, er, attending a conference, in California later this year.

 

[dmckinstry]

The WA law changed last session, you can buy an extended warranty for the Model S at a service center.

I guess it's too late for me. I already have 67k+ miles on my S, but I have the ESA. I hope that's still valid.

 

[NigelM]

Two issues that have come up in various States:

1. ESA is 'insurance' and you can't buy across state lines. Provider has to have a local entity with a license to sell insurance. Existing auto companies got their licenses in place years ago. Tesla actually has to train and license specific staff, not impossible but a PITA.

2. ESA is advance payment for service or goods. Provider has to hold the money in a restricted and ring fenced escrow account. Again, not impossible but is a PITA.

Tesla can deal with these problems but has needed enough business in each State to justify the work and costs involved.

 

[S4WRXTTCS]

Oh, we have the same issue in WA.

Worst thing is - all other manufacturers are allowed to offer it, and you can buy one aftermarket from any 3rd party. But Tesla themselves can't offer it. Frustrating. I may have to sell my car in the next 6 months because of this.

Wait, what? I thought WA just got done changing the law to allow Tesla to sell an extended warranty.

 

[deonb]

Wait, what? I thought WA just got done changing the law to allow Tesla to sell an extended warranty.

Chad mentioned that above. I wasnt aware the law changed until now. Lucky timing for me.

 

[tinm]

Current effort is to try to find out what law in New Mexico prevents Tesla customers from buying an ESA in the state, forcing them to drive 9-10 hours to nearest Tesla service center in AZ or CO. I kind of expect to find out there actually isn't a law. Inquiry submitted to Office of Superintendent of Insurance and my local State Senator. Stay tuned.