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Model 3 Extended Warranty?
- Thread starter bigroccrek
- Start date
Yes they do offer extended warranty on S and X but not on the 3. Why, I have no idea. That’s partly why I traded my 3 for an X and I just bought the extended warranty. You have to go to the Service Center to buy it.
Extended Service Agreement
Extended Service Agreement
Tesla never offered it for Model 3 and still do have it for Model S and X. The only thing “dropped” is you can’t sign up for it online. Otherwise nothing has changed.
Knightshade
Well-Known Member
AFAIK the only place to get one is here:
X-Care - Xcelerate Auto
You can use code MJC4JI9375 to get $100 off
X-Care - Xcelerate Auto
You can use code MJC4JI9375 to get $100 off
Brando
Active Member
Knightshade
Well-Known Member
You probably need one for the X way more than a 3. The X has way more junk that can go wrong with it.
That "junk" is why I swapped the Model 3 for a Model X. I wouldn't want to own any Tesla without being under some coverage.
jkoya
NA2 NSX
My intent was to keep the Model 3 until the warranty was just about to expire, but I'm intrigued by X-Care service contract....
99% of aftermarket extended warranties are priced in a way that they offer a solid double-digit margin to the insurer.... take that for what it is - but "self insured" is nearly always cheaper.
Knightshade
Well-Known Member
I mean- virtually all insurance is priced in a way that offers a significant margin to the insurer. Otherwise they wouldn't sell the product.
Many folks still find paying that margin to be worthwhile for managing/locking down their own financial risk though.
true. it's worth calling out though that extended warranty policies are notoriously under-regulated and the devil is in the details re: coverage ...
with 8yrs on battery and engines and 4yrs bumper-bumper ... the need for extended warranties really only impacts folks who own their cars for a long time. between year 4-8 ... the costly repairs might be a new MCU or AC compressor... but that's all under $5k. very limited financial risk vs. paying $2k+ upfront or (worse) rolling into financing and paying interest on it as well.
joebruin77
Active Member
Another factor to consider when purchasing an extended warranty is the cost of missing out on the return on your investment principal. For example, if you buy an extended warranty for $3,500 at the time of car purchase, assuming a relatively conservative 6% percent annual return on your investment, 8 years later that $3,500 would be worth about $5,600. So the true cost of your extended warranty is the initial cost plus whatever returns you would have gotten if money if had been invested instead.
Thats if you didn't roll your warranty into the loan. I typically roll the warranty into the loan because my return on capital is higher than the interest I pay so I'd rather take a slightly larger note than put out any money upfront.
Which is why I find it interesting that Tesla is NOT offering an extended warranty for the 3. It should be a cash cow for them, so why not offer it? Are they losing money on the extended warranties for the S and X?
