Is Model S Extended Warranty Worth It?

[SO16]

The same argument applies also for other insurance - home, flood, auto, major medical, long term care, ...

So far, we've been fortunate never to make a major claim to any of our insurance policies. So, we would have been better off in not purchasing those policies and putting the cost savings into a "rainy day fund" - which would by now be pretty significant.

But if we did have a major claim on any of those policies, it could cost us more than the rainy day fund.

The extended warranty, like any insurance, usually benefits less than half of the customers, who end up getting hit with his costs.

If you don't buy the extended warranty, there's likely a (slightly) better than 50% chance that you'll save $$$ by paying for the out-of-warranty repairs yourself. But there's also a (close to 50%?) chance that your out-of-warranty costs could be higher, and in some cases, much higher...

We purchased the extended warranty on our 2017 S and 2018 X and will likely keep each until we get close to 8 years or 100K miles.

Not exactly.

major medical could be unlimited high. House and flood is still worth it.
With a car, you know the limit. Worst case, scrap it.

 

[pabla]

Frankly, if it were not for the warranty, I would not have bother to pay to have the DRLs replaced.

This is also one thing to consider as well, is how you’d like to keep your cars condition. I personally try to keep my cars looking and working as brand new as possible, so the extended warranty was a no brainer cause it covered a lot of cosmetic issues I had too (similar to DRL). Extended warranty gives you the option to properly fix something, not put a band aid over it and hope it works just to get a cheaper solution

 

[jelloslug]

This is also one thing to consider as well, is how you’d like to keep your cars condition. I personally try to keep my cars looking and working as brand new as possible, so the extended warranty was a no brainer cause it covered a lot of cosmetic issues I had too (similar to DRL). Extended warranty gives you the option to properly fix something, not put a band aid over it and hope it works just to get a cheaper solution

The extended warranty will not cover cosmetic issues. The DRLs are not considered cosmetic but something like water in the tail lights would not be covered.

 

[pabla]

The extended warranty will not cover cosmetic issues. The DRLs are not considered cosmetic but something like water in the tail lights would not be covered.

For me fixing the bubbles in my MCU was a cosmetic fix at the time. Water in tail lights though may be controversial since it may fall under leaks which aren't covered, but one could argue condensation isn't the result of water leaking

 

[bob_p]

During the almost 100K miles we had our 2012 S P85, we had enough issues during the second 50K miles to justify the purchase of the extended warranty.

At that time, the extended warranty didn't cover roadside assistance after the first 4 years/50K miles. We had a failure of the frunk latch, that made the vehicle undrivable, in the middle of Kansas. We had to arrange for transport of the RV to the nearest service center in KC.

When we purchased our 2017 and 2018 extended warranties, they had added roadside assistance and towing to the nearest service center.

 

[2101Guy]

Should You Get an Extended Warranty for Your Car? - Consumer Reports

Should you buy an extended warranty for your car? Consumer Reports consults experts and provides advice.

www.consumerreports.org

An extended car warranty: Is it worth it?

An extended car warranty can give you peace of mind and help with auto repairs, but it can cost thousands. Learn what to consider before you buy one.

www.creditkarma.com

Do I Need an Extended Car Warranty? - NerdWallet

To decide whether it's right for you, you'll have to weigh the peace of mind from extended coverage versus the extra cost.

www.nerdwallet.com

Column: Are extended car warranties worth it?

Extended car warranties often contain lots of exclusions. And beware of official-looking coverage warnings from companies you've never heard of.

www.latimes.com

 

[2101Guy]

trying to find ONE article in favor of extended warranty value, but coming up short

 

[pabla]

trying to find ONE article in favor of extended warranty value, but coming up short

Fair enough but in my experience with Tesla’s extended warranty it was well worth it. A lot of these articles are from an outsiders POV not from someone who’s actually dealt with the car and is extended warranty.

 

[Sunshine Speed]

After reading this thread, the overall summary I'm seeing is :
2012 to 2014 model : These cars have problems, extended warranty was worth it.
2015 and newer : Cars are much more reliable and $4500 worth of stuff taking into account $200 deductibles wouldn't be worth it.

 

[pabla]

After reading this thread, the overall summary I'm seeing is :
2012 to 2014 model : These cars have problems, extended warranty was worth it.
2015 and newer : Cars are much more reliable and $4500 worth of stuff taking into account $200 deductibles wouldn't be worth it.

I thought the same thing too, but the thing is the 2012-2014 usually have higher KMs than the 2015+and the 2015+ cars have yet to reach those high KM numbers . Also 2015+ cars are still mostly under warranty so not many users are posting here about their issues, they are just directly booking an appointment and getting it fixed at the SC. I say this bc my 2021 LR+ already needs quite a few things fixed, just havent posted about it since I am booking an appt to get them fixed.

 

[gigawatt1010]

I have it on my 2016 refreshed Model S. I have used it several times to replace headlights with bad DRLs. Frankly, if it were not for the warranty, I would not have bother to pay to have the DRLs replaced.

I have a 2016 Refreshed MS too. Fortunately for me, both DRLs started browning 3k miles before the original warranty expired. Got them replaced both under the original warranty and didn't feel the need to extend it. Another fortunate thing was the replacement DRLs came with a 1 year warranty for defects and they started browning again on the 11th month, so they replaced them once again. FYI, complete headlight assemblies are $1,400+ each, so it'll be over $3k (including labor) to replace them both. So far, I have over 120k miles and I'm passed any warranty for my MS but everything is somewhat ok still. (hopefully I just didn't jinxed it).

I think moral of the story, refreshed MS's are pretty solidly built. The retracting door handles are much more reliable than years prior.

My 2019 MX on the other hand, I'm definitely extending the warranty on that one. After seeing how much those falcon wing doors and reclining middle row seats cost to fix/replace, it will be worth it I'm sure.

 

[2101Guy]

for those opting to get an extended warranty, I'd strongly suggesting making SURE you read the contract CAREFULLY, especially exclusion terms and conditions.

Remember: extended warranty companies make profit for NOT paying out on claims...

 

[jelloslug]

I have a 2016 Refreshed MS too. Fortunately for me, both DRLs started browning 3k miles before the original warranty expired. Got them replaced both under the original warranty and didn't feel the need to extend it. Another fortunate thing was the replacement DRLs came with a 1 year warranty for defects and they started browning again on the 11th month, so they replaced them once again. FYI, complete headlight assemblies are $1,400+ each, so it'll be over $3k (including labor) to replace them both. So far, I have over 120k miles and I'm passed any warranty for my MS but everything is somewhat ok still. (hopefully I just didn't jinxed it).

I think moral of the story, refreshed MS's are pretty solidly built. The retracting door handles are much more reliable than years prior.

My 2019 MX on the other hand, I'm definitely extending the warranty on that one. After seeing how much those falcon wing doors and reclining middle row seats cost to fix/replace, it will be worth it I'm sure.

I have never had a door handle issue either and mine seems to be the sweet spot between when the bubbling screens stopped and the yellowing screens started.

 

[bob_p]

We did read the T&C's of the extended warranty on our 2012 S P85 (which we traded near 100K miles) and our 2017 S and 2018 X.

Musk stated Tesla's original goal for service was to be cash neutral - not following the ICE service model where service provides dealers high profit margins. So while Tesla may make some money from the extended warranties, it's not clear Tesla has priced the plans to make a large amount of profit.

We had several claims on our 2012 S P85 after 50K miles - and didn't have any issues with Tesla getting the problems addressed. And in the instance when we had the most disruptive failure (front trunk latch failure in the middle of Kansas on a road trip), they ended up replacing more parts than we probably would have done if we had been paying ourselves - which they did to ensure the latch didn't fail again - while we were driving.

There are some expensive components in Tesla vehicles. While the battery and motor have separate warranties, replacing the MCU, display, FSD computer, ... - can be expensive - and having the extended warranty limits the future exposure for those failures.

However... When we purchased each of our Tesla vehicles, we planned to keep them for close to 8 years or 100K miles. If owners don't plan to keep their vehicles that long, then the extended warranty will have less value.

And... For many customers, electing not to purchase the extended warranty is essentially deciding to "self insure", and the odds are pretty good that there will be a long term savings. Though there will also be some customers that will find the long term repair costs are much higher than the cost of the extended warranty - and that they'll end up losing $$$.

With Tesla (not the ICE dealerships), it's more likely buying the extended warranty is closer to a coin toss...