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Model 3 Extended Warranty?
- Thread starter bigroccrek
- Start date
I was talking more generally but other dealerships allow you to roll even a 3rd party extended warranty into the loan. I had one on my other car and Honda Financial financed the 3rd party warranty too.
Knightshade
Well-Known Member
Tesla doesn't have dealerships.
Or their own financing company. When you get a "tesla" loan it's from some other bank.
Well my 3 has had about $8K in warranty work so perhaps they expect many things to have issues down the road. They don't even cover rattles day 1 so that says something about their confidence in the build. I have three severe rattles after 8K mile so that's not exactly good. One however I think is a lost nut from when they replaced my dash,
I understand that. The original post was simply talking about missing out on the return on your investment principal if you pay upfront. I was just saying that if you can roll in the extended warranty into the loan, its better.
I would hold off on purchasing an extended warranty on a Model 3 right now. There is only one company currently offering coverage so there is no competition to keep prices reasonable. And we don’t have any long term reliability date on the car because they have only been in production since 2017.
As we get closer to the end of the manufacturer’s warranty it will be more practical to make a decision whether to extend coverage. By then there may be more options on the market to choose from. And more history from the one company that is offering coverage on how they are doing in handling claims.
As we get closer to the end of the manufacturer’s warranty it will be more practical to make a decision whether to extend coverage. By then there may be more options on the market to choose from. And more history from the one company that is offering coverage on how they are doing in handling claims.
A Tesla doesn't have an internal combustion engine, therefore there's nothing to fail, so those repairs and issues are a figment of your imagination.
Oh, sorry I did not know EVs never have issues particularly Teslas, I guess I missed that after owning many of them for more than 20 years. Thanks fo the heads up I learn something every day.
Knightshade
Well-Known Member
joebruin77
Active Member
If we take an example, let's say you purchase an extended warranty at the time you buy the car and the cost is $3,500. I could be wrong, but I believe you have to pay sales tax on the warranty. And then you are paying interest on the loaned amount. So say you have a 60-month loan on $3,500 at 3.49%. That means over the course of the 60-month loan, it would cost you about $4,065 (principal and interest) to have your extended warranty. Some of this cost would be offset if you invest the money in an investment that pays more than 3.49%. Then again, if you don't take out the loan, then the return on your investment would be 3.49% higher. But then you would not have the extended warranty. So your net cost for this extended warranty would depend on a lot of factors.
I think it comes down to personal preference. Some people like having the peace of mind that they will not have any unexpected huge expenses and are willing to pay for the extended warranty. Others, like myself, prefer to self insure. When making this decision, it is important to look at all the costs involved.
ElectricIAC
Good-Natured Rascal
The Model 3 is one of the first cars I’ve had in my possession without some kind of extended warranty in a long time and due its simplicity compared to the legacy models I expect it to be just fine.
That being said: we’re in the market for an X and frankly I’m more than just a bit iffy about owning it outside of some kind of warranty. At the very least I’d like to get a really great deal as to offset any major repairs and or a warranty inception cost.
I agree with you. But I’m sure you probably made waaay more than 3.5% on your personal investments in the last 60 months so if you made 12% YoY, you’d have $5.3k. Of course returns won’t be this high always but they’re almost always better than 3.5%. Of course some hate debt and will pay off everything quickly.
no extended warranty will cover rattles or cosmetic issues either. They make money by not paying out...
Most car makers fix these issues and I would not expect any extended warranty fo cover rattles however to have a brand new car that has a bad rattle and have to pay out of pocket to fix it is just a joke. Tesla excludes rattles now because of poor fit and finish and they have may customers with these issues, this is a fact you can validate at any high-volume service center. I never have had cars in the past with rattle issues at or shortly after delivery and I have owned many cars in my life. Many M3 rattles are just from poor panel designs and fastening. My S doors buzzed and rattled and were repaired under warranty and Tesla admitted this issue and had a fix but this is not high tech engineering just poor design from lack of experience or cutting corners. I found many things taping and hanging on the roof of my S and they do not take the proper steps other auto makers take to reduce noise and vibration done on economy cars. I can tap parts of my 3 headliner and it buzzes things inside. I expect many 3 owners to have far more issues like this than other cars on the market. My brand new passenger seat is already making noises and it is a replacement which shows how cheaply the seats are made inside. Tesla can build car seats but they should have had an experienced 3rd party design them.
Brando
Active Member
Model 3 July 2017 < 2,000 delivered
Model 3 2018 <150,000 delivered
+ 8 years => 2026
100,000 miles @ 12,000/year => 8.3 years => ~2026 again
So who wants to buy an extended warranty exactly? and when?
side note: collecting actual data on existing cars helps for pricing
Tesla Model 3 - Wikipedia
Vehicle Warranty
https://www.tesla.com/sites/default/files/downloads/tesla-new-vehicle-limited-warranty-en-us.pdf
I guess I dont understand your response. What does 2026 mean? Are you suggesting they don't have enough cars built yet to price an extended warranty or know if it will be a money maker or loser? That may be true, although they do have their history of other models to estimate repair costs. I am guessing they are getting killed on the extended warranties for the S and X.
As far as who might want to buy an extended warranty: anyone who wants the bumper to bumper style coverage through the full battery warranty period and prefers to pay up front might choose to do that.
That is why I bought an extended warranty for my 3.
