Is the extended warranty worth it?

[rpavlicek]

I'm coming up on my 4 year anniversary of my purchase and debating if its worth paying $4,000 for the ESA (assuming I keep the car for another 3+ years). NOTE: I already have the maintenance package for 8 years (from new).

Cons:

• $200 deductible
• Drivetrain and battery (big $$$ items) are still covered by the original warranty.
• Doesn't cover creaks/leaks/rattles ...which is something that recurs for me (rattles) and is annoying.
• And from the agreement itself:
  • Other Parts not covered: o Bright metal, sheet metal, bumpers, ornamentation moldings, carpet, upholstery, paint, shock absorbers, 12V battery, battery cables, lenses, light bulbs, sealed beams, glass (e.g., windshield), wheels, interior trim, body seals and gaskets (e.g., weather stripping); and o Removable soft tops, removable hard tops, glass, plastic, framing, cables, or seals;

Pros: ???

I can't think of anything during my last 4 years of maintenance/service that wasn't a battery/drivetrain or just covered by the maintenance package. Perhaps the 17" display could go bad -- does anyone know the cost of replacing without warranty?

$4000 + $200 per visit seems like a lot to cover little. I'm hoping someone can enlighten me

 

[Btrflyl8e]

I've heard replacing the 17" screen is about $6,000, not sure how accurate that info is as I didn't hear it directly from Tesla.

I chose not to purchase the warranty for my first S, as it had been trouble-free since 2013. I sold it, and the new owners are still enjoying it without issues.

I decided it was worth a gamble. I never purchase extended warranty anytime I buy a new car, but I don't usually keep then very long, either.

I don't plan to buy it on my new S.

 

[davidc18]

We will have to make the same decision soon.

 

[pilotSteve]

We will have to make the same decision soon.

My sig was delivered 12/2012 so I'm right at 4 years of ownership. I didn't buy the extended warranty (wasn't available in WA) but I worked thru this exact questions myself.

I decided to order a S90D and trade in my sig85 to Tesla. Running the numbers I decided that to sell private party I'd need to buy the extended warranty (now available in WA) for $4k, pay $4k extra in sales tax, hence $58k private party sale to get the same value as Tesla's trade offer of $50,500. So the math worked well enough for me to trade to Tesla and take their offer.

In short, I gambled and 'won' by not buying the $4k extended warranty. YMMV.

BTW, Tesla took exceptional care of my car during its warranty (replaced main battery, drive unit, three 12V batteries, replaced all brakes and rotors with upgraded parts, performed at least 6 TSB upgrades at no charge, etc. The service center in Tigard Oregon has been exceptional over the past 4 years.

I look forward to my new AP2/FSD 90D Model S to have in the garage this Christmas, just like I did four years ago.

 

[davidc18]

Great move! Enjoy the new car.

 

[juice15e]

Running the numbers I decided that to sell private party I'd need to buy the extended warranty (now available in WA) for $4k, pay $4k extra in sales tax, hence $58k private party sale to get the same value as Tesla's trade offer of $50,500.

I'm confused... why would you as the seller need to buy a warranty or pay sales tax when selling a car?

 

[pilotSteve]

I'm confused... why would you as the seller need to buy a warranty or pay sales tax when selling a car?

I put myself in my buyer's position: my car is at the end of its 4-year warranty and a CPO would come with extended warranty. Also Tesla, as a "dealership" can produce sales paperwork deducting trade in value against the sales tax obligation on the new vehicle. So I added those to the tesla trade offer to determine what a private party sale price would be. Decided to just trade.

 

[Manzacoty]

I just had my screen replaced out of warranty. They split the screen and the MCU up so you no longer have to replace everything. The cost of the screen is $950 and about an hour of labor. My total with tax came to about $1,200.

My Model S has 85k miles so no option for an extended warranty. Even if I had the choice, I would pass. I'm in the insurance business so I know how these things are priced. They wouldn't offer it if they thought their costs would be more than what your paying. Sure, it's paid off for some, but more people are not recouping than are. I'm a self insured guy when it comes to stuff like this.

 

[tliving]

I blew through 50K a while back. At 74K now. Had a drive unit go bad around 70K and they replaced it for free under the unlimited mile/8 year warranty. Other than that nothing wrong with my car and I would have already used 50% of the 50K mile extended warranty... It's a bet, but once you get back the initial post-delivery noise the car settles in really well.

 

[hingisfan]

I drive too much to make it worth it in my opinion. I would be over the mileage in 2.5 years. Plus the deductibles. Maybe if it was all encompassing, no deductibles, and I drove less. Or if it was half the price.

 

[jwtseng]

Got it for my Sig P85 and blew through the 100k miles within 4 yrs. I bought the extended warranty before they came out and warranteed the battery and drive unit for a flat 8yrs unlimited miles. I figured a 1.0 product would warrant extra coverage since I knew I would exhaust the original 50k miles warranty within 2 yrs and I planned to own the car longer.

The reality is that early on I had my battery replaced once, 12v battery twice, and my drive unit replaced twice and my windshield twice under warranty. This is all significant for a brand new car from a brand new company if you ask me, but these events all happened within the first 50k miles and since then the car has been trouble free. My thought is that if something's going to go wrong as far as manufacturing defects or design defects, it'll happen early on in ownership, and I think my experience as a 1.0 owner (Vin 855) bears that out.

Now that Tesla has manufacturered over 150k cars on the Model S sled (including Model X), I am confident that mechanical and design quality has become much more reliable. For my next Tesla, I do not plan on purchasing either the extended warranty or service plan.

 

[azred]

I know some Tesla kool aid drinkers buy Tesla's claim that they don't intend to make a profit from maintenance, but they would be the first car maker in history that didn't make money off extended warranties/maintenance contracts. That's why they sell them and even if Tesla doesn't intend to make a profit, they also cannot plan to lose money. These "insurance" contracts may keep them from losing money in their shops, but that's their problem. Is it a gamble to decline? Of course, but the odds are in your favor if you decline.

 

[gghahram]

I just had my screen replaced out of warranty. They split the screen and the MCU up so you no longer have to replace everything. The cost of the screen is $950 and about an hour of labor. My total with tax came to about $1,200.

My Model S has 85k miles so no option for an extended warranty. Even if I had the choice, I would pass. I'm in the insurance business so I know how these things are priced. They wouldn't offer it if they thought their costs would be more than what your paying. Sure, it's paid off for some, but more people are not recouping than are. I'm a self insured guy when it comes to stuff like this.

Although this is an expensive repair, I thought it would have been more. I was thinking about the warranty for my new S but the more I read the less I'm inclined to do so.

I have been contemplating the maintenance package......there is also a split on that front as well. I have about 40 days left to decide.

 

[jwtseng]

The maintenance plan is even less value. I brought my car in religiously for the included service every 12500 miles and all they did was a tire rotation and alignment, change the wiper blades, and change the batteries in the key fob. The rest of the stuff like applying service bulletins (like window clips, seat belt replacements, pano roof sealant, etc) would be included gratis whether you paid for service or not. The cost for each "service" I understand is in the $600 range. Tire rotation and balancing and wheel alignment I'm willing to give a $100 value to. Wiper blades and a couple batteries I'm willing to bet are less than $500.

 

[FlatSix911]

The maintenance plan is even less value. I brought my car in religiously for the included service every 12500 miles and all they did was a tire rotation and alignment, change the wiper blades, and change the batteries in the key fob. The rest of the stuff like applying service bulletins (like window clips, seat belt replacements, pano roof sealant, etc) would be included gratis whether you paid for service or not. The cost for each "service" I understand is in the $600 range. Tire rotation and balancing and wheel alignment I'm willing to give a $100 value to. Wiper blades and a couple batteries I'm willing to bet are less than $500.

The prepaid maintenance package should include the following items according to Tesla

 

[Newscutter]

I just had my screen replaced out of warranty. They split the screen and the MCU up so you no longer have to replace everything. The cost of the screen is $950 and about an hour of labor. My total with tax came to about $1,200.

That's pretty reasonable, compared to some of the noise I've been reading re: replacement of the entire unit (there's another thread dedicated to that, with regards to a flash memory design flaw that kills the unit). I would be encouraged to hear if Tesla has found an equally economical way to replace the the other half-- the MCU-- without it costing more than the extended warranty... but thus far I've only heard the opposite.

 

[youlikeadajuice]

I'm at 4 years and 75K. Post 50K I've had the charge port and side mirrors replaced for corrosion, windshield wiper motors replaced, louvre replaced, battery coolant heater replaced and 12v battery replaced. I struggled with whether or not to get the extended warranty, not sure it's paid for itself yet, but at this point I'm glad I got it.

 

[Lump]

How critical is battery fluid replacement? I am at 47k miles & I guess I need to have the battery & brake fluids flushed, I didn't purchase the maintenance plan but did buy the extended warranty for $2500 prior to the price hike.

 

[Manzacoty]

How critical is battery fluid replacement? I am at 47k miles & I guess I need to have the battery & brake fluids flushed, I didn't purchase the maintenance plan but did buy the extended warranty for $2500 prior to the price hike.

Great question and I'm interested to hear what it costs out of pocket. I don't know if it's ever been done before on my car so I'll probably go ahead and have it done.

 

[Sco3putt]

Looking at how little is done at those annual service appointments it's hard to believe they are not very profitable. I was going to pre purchase the plan just because it's a very expensive vehicle not to be looked at by a professional. Lucky me I got the first two years free after a late delivery!!