How much is warranty worth?

[Hiline]

I’m trying to work out the math for how much I’m willing to pay for a used Model 3 vs new. For me personally, this comes down to the value of the warranty. If I buy a 2019 Model 3 with 1+1 years of warranty, how much lower should I pay compared to the price of a new Model 3, to break even? Ignore all the resale value and mileage - these would warrant a different set of numbers and I’d like to keep things simple.

In other words, how expensive is annual maintenance without warranty?

 

[Cutch26]

Pretty much nothing.. haven’t paid for any maintenance ever on my 3

 

[jjrandorin]

Im not quite sure how you can say "ignore all resale value and mileage" since a 2019 Model 3 probably costs as much right now as a new one (resale value).

"annual maintenance" is virtually zero. "Out of warranty repairs" is not necessarily zero.

 

[Hiline]

Pretty much nothing.. haven’t paid for any maintenance ever on my 3

Im not quite sure how you can say "ignore all resale value and mileage" since a 2019 Model 3 probably costs as much right now as a new one (resale value).

"annual maintenance" is virtually zero. "Out of warranty repairs" is not necessarily zero.

Thank you both for your quick responses! Someone else in another topic said they'd take a new 2022 SR over a 2019 LR with 50k miles and FSD at the same price level primarily due to the additional warranty, so that really got me thinking about the value of warranty... If post-warranty maintenance costs like a few hundred bucks a year, I couldn't care less.

 

[jjrandorin]

Thank you both for your quick responses! Someone else in another topic said they'd take a new 2022 SR over a 2019 LR with 50k miles and FSD at the same price level primarily due to the additional warranty, so that really got me thinking about the value of warranty... If post-warranty maintenance costs like a few hundred bucks a year, I couldn't care less.

I think part of the disconnect I might be having, is the term "maintenance". This is likely because I came from years of BMW ownership prior to my tesla, but "Maintenance" is stuff you do to keep things running. Oil changes, transmission flush, etc... = "Maintenance".

These cars have very little "Maintenance".

REPAIRS are things you do to fix something that is no longer working. Repairs are things typically covered by warranty (and in general, MAINTENANCE things are typically NOT warranty items).

So, your question appears to me to be "what do post warranty REPAIRS, that are not covered by the warranty, look like?". The answer to that is, it depends on what happens. Could be things like charge port having issues, computer issues, etc. Not Zero, but those things are covered by the warranty until it expires. They can be expensive to fix if they happen and you have to pay. New computer is a couple grand ish, for example.

"Maintenance", however, there isnt much of that, no oil changes, no transmission flush, just tire rotations, cabin air filters etc. REPAIRS, while I think these cars are in general fairly solid, repairs can be expensive out of warranty.

 

[Hiline]

I think part of the disconnect I might be having, is the term "maintenance". This is likely because I came from years of BMW ownership prior to my tesla, but "Maintenance" is stuff you do to keep things running. Oil changes, transmission flush, etc... = "Maintenance".

These cars have very little "Maintenance".

REPAIRS are things you do to fix something that is no longer working. Repairs are things typically covered by warranty (and in general, MAINTENANCE things are typically NOT warranty items).

So, your question appears to me to be "what do post warranty REPAIRS, that are not covered by the warranty, look like?". The answer to that is, it depends on what happens. Could be things like charge port having issues, computer issues, etc. Not Zero, but those things are covered by the warranty until it expires. They can be expensive to fix if they happen and you have to pay. New computer is a couple grand ish, for example.

"Maintenance", however, there isnt much of that, no oil changes, no transmission flush, just tire rotations, cabin air filters etc. REPAIRS, while I think these cars are in general fairly solid, repairs can be expensive out of warranty.

Yes, you hit the nail on the head. I was indeed referring to 'repairs' which warranty would normally cover. Since I'm trying to determine the value of extra warranty, I'd love to hear from owners what they have experienced with repairs. I know parts are expensive but have low chances of failing, so I don't know what they even out to be...

 

[Tam]

Yes, you hit the nail on the head. I was indeed referring to 'repairs' which warranty would normally cover. Since I'm trying to determine the value of extra warranty, I'd love to hear from owners what they have experienced with repairs. I know parts are expensive but have low chances of failing, so I don't know what they even out to be...

You should be fine for a while with 8 year/120,000 or 100,000(RWD version) mile main battery and drive unit warranty.

However, once the 4-year/ 50,000 miles ran out, it might be expensive if something breaks.

HVAC alone costs thousands.

M3, 56k miles, failing PCS= $1800 estimate.

Might be rare but a warranty is there for a purpose: To protect you from expensive repair costs.

 

[NMystic]

When I started thinking about buying a Model 3 back in January I first scoped out used ones in hopes of finding one nearby for a test drive (the nearest Tesla Center is 110 miles away). When I saw the prices on used Teslas I took a look at configuring a new one. I was surprised to discover that the price for a new Model 3 LR back in January (before the recent $3500 price increase) was less than used Model 3s a couple years old with 20k miles. So, I ordered a new one and of course got the 4 year bumper to bumper warranty. When prices for used and new are close I always think it is worth paying a little extra for the full warranty on a car that is very expensive to repair.

 

[byeLT4]

How long are you planning on keeping the car? My warranty has been worth several thousand on my used '17 S. Rear hatch motor replaced, rear door handle and water intrusion in rear tail light. I was lucky enough to buy one of the last 4 year/ 50k mile warranty cars on Tesla's used listings. Repair items can add up quick, this is in less than two years time as well. They also replaced both headlights as the Model S is notorious for DRL burning out. Good luck!

 

[Hiline]

You should be fine for a while with 8 year/120,000 or 100,000(RWD version) mile main battery and drive unit warranty.

However, once the 4-year/ 50,000 miles ran out, it might be expensive if something breaks.

HVAC alone costs thousands.

M3, 56k miles, failing PCS= $1800 estimate.

Might be rare but a warranty is there for a purpose: To protect you from expensive repair costs.

Right. If I buy a 2019 model I'll have just 2 years of warranty left. I may sell the car or buy extended warranty once the warranty runs out. There are definitely expensive components as you said, just like in any other 'luxury' car. Wonder if the price of these parts will go down once the model reaches critical mass which will make after-market replacement parts available.

When I started thinking about buying a Model 3 back in January I first scoped out used ones in hopes of finding one nearby for a test drive (the nearest Tesla Center is 110 miles away). When I saw the prices on used Teslas I took a look at configuring a new one. I was surprised to discover that the price for a new Model 3 LR back in January (before the recent $3500 price increase) was less than used Model 3s a couple years old with 20k miles. So, I ordered a new one and of course got the 4 year bumper to bumper warranty. When prices for used and new are close I always think it is worth paying a little extra for the full warranty on a car that is very expensive to repair.

I agree with you completely. I would only go for a used car that's significantly cheaper, or has LR for the same total price as a new SR.

How long are you planning on keeping the car? My warranty has been worth several thousand on my used '17 S. Rear hatch motor replaced, rear door handle and water intrusion in rear tail light. I was lucky enough to buy one of the last 4 year/ 50k mile warranty cars on Tesla's used listings. Repair items can add up quick, this is in less than two years time as well. They also replaced both headlights as the Model S is notorious for DRL burning out. Good luck!

That is a good question. I'm not sure yet, as this is going to be my first electric or high-end car ownership experience. The most likely scenario is I'm going to keep it for 2-3 years, after which I'll likely upgrade to a larger car, possibly non-Tesla if the competitors come out with compelling products. You repair items definitely sound not cheap! How common do you think the repairs you experienced are? I live in Southern California, where there is not much rain or freezing temperatures.

 

[jjrandorin]

Right. If I buy a 2019 model I'll have just 2 years of warranty left.

Just as a FYI, tesla itself does not offer an extended warranty on model 3 or Y. You will need to look at a third party one if you want to do that.

 

[byeLT4]

From what I have read they are common in the Model S (door handles, headlights), but since I don't have a 3 yet I'm not too sure. I want to add one to our stable so I have done a little research on them and they seem less prone to part failures but it might be because they are still all relatively new. I would definitely get one with a few years of warranty so that you can own it without having to worry about repairs. My plan on my S is to time my warranty expiring with me paying the car off so that if there are any repairs after I'm not still making a car payment as well.

 

[Gumball]

There is no way you can compare a S to a 3 regarding repairs, we own both, and the 3 is after 2 years still troublefree, the S had 2 door handles and a 12 volt battery replaced in the same time.

 

[PNWLeccy]

When I was under warranty I was pretty vigilant about having any issue I read about or identified fixed since I knew it would be covered. However, if I had to pay out of pocket for the repairs, I would pass on many of the repairs I had done. Ultimately, none of the issues I had prevented me from driving the vehicle but a lot of them decreased my enjoyment of the vehicle.

I had a 2018 LR RWD and the repairs done under warranty that I can remember included:

• Replaced front headlights due to moisture
• Replace taillights due to moisture
• Resealed trunk lid when it filled with water after a rainstorm
• Replaced glovebox after it would open randomly while driving
• Front upper control arms squeaking while driving - replace 3X times!
• Replace charge port door due to getting stuck
• Frunk latch replaced due to not working correctly (required multiple attempts to close)
• Replaced both front door check hinges for clicking when opening door
• Replaced side mirror triangles due to them sticking out causing lots of wind noise
• Replaced temperature sensors that caused heat to not work effectively
• Many, many, many rattles and creaks (front dash, seatbelt adjusters, rear seat, rear deck, wheel wells)

Again, I spent a lot of time at the service center getting these annoying issues fixed but it was an early model and none of these things caused me to be stranded.

On my 2022 Model Y, I have one small rattle from the rear that I need to fix but it feels WAY more solid and I don't feel compelled to take it into the SC.

If you care about having a perfect car, warranty coverage might be really important. If you're less particular than me then maybe it won't matter very much unless you have an expensive HVAC or CPU repair that are more critical to your use of the vehicle.

 

[father_of_6]

There are definitely expensive components as you said, just like in any other 'luxury' car.

I think it's less about "luxury" than it is about "battery". Batteries don't last forever. Most of them will last a decade or more, but some of them will fail after just a few years.

That failure isn't even the problem... it's the replacement cost. Replacing the battery can cost 1/3 of the vehicle (like $15k).

Finally, "used" means there's battery wear that you weren't a part of. So... was the car well taken care of for those 50k miles? Or was it supercharged daily to 100%? What's the degradation look like?

Just my 2 cents.

 

[Hiline]

Just as a FYI, tesla itself does not offer an extended warranty on model 3 or Y. You will need to look at a third party one if you want to do that.

Ooh that's super helpful - thank you. I assumed I could just get extended warranty from Tesla. Will have to do some research on third party warranty.

From what I have read they are common in the Model S (door handles, headlights), but since I don't have a 3 yet I'm not too sure. I want to add one to our stable so I have done a little research on them and they seem less prone to part failures but it might be because they are still all relatively new. I would definitely get one with a few years of warranty so that you can own it without having to worry about repairs. My plan on my S is to time my warranty expiring with me paying the car off so that if there are any repairs after I'm not still making a car payment as well.

Gotcha. Yeah you're right - Model 3 repair needs are still relatively unknown. Better play it safe for at least a few years.

There is no way you can compare a S to a 3 regarding repairs, we own both, and the 3 is after 2 years still troublefree, the S had 2 door handles and a 12 volt battery replaced in the same time.

I did not know the S was so prone to problems haha. I guess it is the dinosaur of Tesla cars after all!

When I was under warranty I was pretty vigilant about having any issue I read about or identified fixed since I knew it would be covered. However, if I had to pay out of pocket for the repairs, I would pass on many of the repairs I had done. Ultimately, none of the issues I had prevented me from driving the vehicle but a lot of them decreased my enjoyment of the vehicle.

I had a 2018 LR RWD and the repairs done under warranty that I can remember included:

• Replaced front headlights due to moisture
• Replace taillights due to moisture
• Resealed trunk lid when it filled with water after a rainstorm
• Replaced glovebox after it would open randomly while driving
• Front upper control arms squeaking while driving - replace 3X times!
• Replace charge port door due to getting stuck
• Frunk latch replaced due to not working correctly (required multiple attempts to close)
• Replaced both front door check hinges for clicking when opening door
• Replaced side mirror triangles due to them sticking out causing lots of wind noise
• Replaced temperature sensors that caused heat to not work effectively
• Many, many, many rattles and creaks (front dash, seatbelt adjusters, rear seat, rear deck, wheel wells)

Again, I spent a lot of time at the service center getting these annoying issues fixed but it was an early model and none of these things caused me to be stranded.

On my 2022 Model Y, I have one small rattle from the rear that I need to fix but it feels WAY more solid and I don't feel compelled to take it into the SC.

If you care about having a perfect car, warranty coverage might be really important. If you're less particular than me then maybe it won't matter very much unless you have an expensive HVAC or CPU repair that are more critical to your use of the vehicle.

This is fantastic information - thank you for sharing. If I spend this much money on a car I'd like it to be near flawless. Even my current 15 years old car has been well taken care of - most people who have taken a ride in my car had no idea it was that old. I put a lot of value on comfort - things that cause noise would annoy me.

I think it's less about "luxury" than it is about "battery". Batteries don't last forever. Most of them will last a decade or more, but some of them will fail after just a few years.

That failure isn't even the problem... it's the replacement cost. Replacing the battery can cost 1/3 of the vehicle (like $15k).

Finally, "used" means there's battery wear that you weren't a part of. So... was the car well taken care of for those 50k miles? Or was it supercharged daily to 100%? What's the degradation look like?

Just my 2 cents.

I am less concerned about batteries because Tesla has good reputation on batteries and because their battery warranty covers 8 years, so even a 3-year old vehicle would still have 5 years of battery warranty left. And perhaps in 5 years' time battery technology will have advanced to the point where battery replacement won't cost nearly as much. I also assume degradation is something you can check before buying, though apart from that, to your point, there's no way of knowing how the previous owner(s) took care of the car.