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Discussion in 'Roadster' started by bonnie, Mar 16, 2013.
Tesla Service | Tesla Motors
Great! Glad they are finally able to release this information.
Pas de cheap! Worthwhile?
I'll need to decide at end of this year if I'm keeping the Roadster or not - to choose between the 1 year or 5 year plan. But I thought it looked worthwhile. I already have the battery replacement option, so it's really only the extended warranty for the rest of the car that I need to look at.
bonnie1194 Thank You very much for the information as I just put the question up last night CPO Roadsters on teslamotors.com - Page 2 about the warranty of the CPO cars.
Tom Saxton's Roadster Survey is the best source of data we have to estimate the value of the warranty:
Plug In America
Currently there are 109 cars in the survey, 17 of them needed PEM swaps and 17 battery swaps. The average age of the cars is 3.1 years for a mean failure rate of 5.5 PEMs and batteries per year, or 5.1% for each. The PEM is covered by the Extended Service Agreement and the battery is covered by the Battery Extended Service Agreement. If we assume $10K to replace the PEM and $40K to replace the battery (not sure how accurate these numbers are) then the fair value is:
Extended Service Agreement
1 year - $506
2 year - $986
3 year - $1,443
Battery Extended Service Agreement
1 year - $2,204
2 year - $3,947
3 year - $5,772
Of course the standard Extended Service Agreement covers more than the PEM, but that's probably the highest value component that's most likely to fail. Pas de cheap.
There is, of course, no way to factor in age. The Roadster Survey can only collect data where the oldest Roadster would be no more than 4+ years old, the majority are probably around 2 years old. What happens as a Roadster ages?
Having had my battery and PEM replaced, along with new suspension, a controller, and some other misc items, it looks like a great deal to me. Your perspective may vary.
So when and they going to officially contact owners with this information and give us a "must purchase by" date?
What are your options if your warranty has already expired?
One of you guys ought to contact them and ask.
My understanding, which could be wrong, is that the battery replacement option and the battery extended service agreement are different things.
The battery replacement option gets you a whole new battery after 7 years. Or 6 years if you want to put in another $2K, Or 5 years if you want to put in another $4K. Or 4 years if you want to put in another $6K. That's different than having your battery repaired in years 4-6.
At any rate, we're finding that maintaining a Tesla is an expensive proposition. Much more expensive than most ICE cars.
My car has 30K miles on it an is more than four years old. I would think that since it has gone this far without a problem, the chances of having a problem with the battery would be very slim, would you folks agree? And how much does a new PEM cost?
I heard from a service tech (which doesn't make it true) that a refurbished PEM is $7,500 after core credit. The contract won't give you a new PEM, it will be refurb. Does the extended service contract also have a $100 deductible? That would make the fair value as djp calculated it less than $1,000 for the 3-yr plan (PEM only). The high-voltage controller goes for ~$800 from Tesla or less (it's not proprietary). That's the most vulnerable part that I can think of after the PEM. That makes the 3-yr plan roughly 3 to 5 times more than it's worth (ignoring labor, value of predictable cash flow, and other things that change the value). Might still be worth it.
The battery warranty, on the other hand, looks like a better deal if a replacement is really 40k, which I doubt it will be for very long. The battery warranty does not cover loss of range (unless caused by some other problem in the ESS).
After 20 months of ownership, I'm sure I've used more than $5K worth of Tesla parts and labor ($175/hr in CA).
The battery I'm not so worried about - but maybe that's because I seem to have a good one (CAC over 158 after 19 months/19K miles).
I'll be reaching out to my tesla rep in a few days to find out. I'll let you know what I find.
The battery replacement option is looking like a pretty good deal, compared to that extended warranty. For $10,000 you get a "free" new battery, versus $7500 to make sure your old battery keeps working for three more years...
That's at least not obvious, and perhaps not correct:
For the BMW M5, Edmunds found maintenance + repair to be $4,700 per year average over the first 5 years (total of $23,531)
2010 BMW M5 5.0L V10 7-speed Automated Manual True Cost to Own
That's $3,000 per year. If you add the battery replacement option with ($10,000 / 7 years) for a total of 14 years (assuming it lasts at least another 7 years), you have a total of $3,714 per year. (Not sure if these numbers compare directly to the M5 numbers above, but still less).
The "Extended Service Agreement", using a 3 year contract, would be about $1,700 per year, plus battery replacement option, a total of $2,381 per year.
($5k / 3 years) + ($10k / 14 years) = $2,381 per year. Plus any maintenance costs, which for the Model S would be $600 per year, plus tires.
The Model S, however, appears to be less expensive: extended service is $625 per year, inspection and maintenance parts $600 per year (including ranger service), plus tires.
Not sure which costs would not be included with these calculations, but so far it seems much less than Edmund's BMW M5 costs.
And once you factor in the price of gasoline, TCO is well below a comparable ICE car.
Not sure of the logic of $40k for a battery. It would have to be appalling to have to replace the entire battery.
My battery swap was in the survey - actually nothing wrong with the battery sheets but just a fuse in the ESS needed replacing. Not $40k, but probably 2 days of labour plus a fuse.
Yes, and to mention that, Edmund's number for the M5, with 15,000 miles per year, is ($25,854 / 5 years) = $5,171 per year for gasoline, average.