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We like to buy and keep a car for about 6-7 years to amortize the depreciation over a longer period so the extended warranty matter is critically important to us and perhaps to others as well. There's no way we'll own a Model S out of warranty. If there ends up being a lack of extended warranty options for cars that hit 50,000 miles and few buyers want to risk owning a car that is hugely expensive to fix and only Tesla can fix, then there will be quite a high cost of depreciation for cars that reach their end of warranty period.
To some extent the delay in us purchasing a Model S has to do with the awful ESA provisions and just plain inability to even buy an ESA for a CPO car even if it is a 2015 MY CPO car.
I think they need to look at their ESA product and do the right and reasonable thing to make it work better for their customers as it is a convoluted and complicated mess at the moment with too many caveats.
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I feel if this matter is raised enough times with Tesla they will do the right thing. Remember when they decided to discontinue the 19" wheels for the P85D and there was a huge outcry on the Tesla Corporate forum and they fixed it? Tesla is a great company and they are open to customer feedback and listening to customer concerns and though they might not always get it at the beginning they can make things right in short order. With many Model S cars set to go out of warranty, this is the time for them to come out with a reasonable ESA policy. Here's what I suggest.
+ The ability for any Model S that is under the 50,000 mile 4 year factory warranty to qualify for and purchase the Extended warranty.
-- This would then cover CPO cars
-- This would cover original owners
-- This would cover private party purchases
-- It makes the process straightforward and simple. An owner can purchase an extended warranty for a 2012 model year car so why not offer the same option for a 2015 model year CPO car.
-- If they want to exclude car dealers, as they do now that is perfectly fine
+ Straightforward process for transferring an ESA
-- Before a car is sold private party there has to be a way to take the car for some type of an "inspection" where Tesla agrees that the ESA is valid and transferable.
-- It is astoundingly ridiculous that after going through a private party purchase tesla may refuse to honor the ESA due to some provision in the ESA terms opening the seller to liability
+ Clear mention on what service is required to keep ESA valid
-- Right now even if you drive 6,000 miles a year if you miss the scheduled service by 2 months, according to the ESA contract they can invalidate the extended warranty
-- This will avoid hugely bad publicity in situations where an ESA claim is denied after paying $4,000 for a warranty.
-- Clarification of this is especially essentially given the past statement from Tesla that servicing a car is "optional" and will not affect the "warranty" but this statement didn't specifically exclude the ESA which many will consider to be an extended warranty for the car.
I don't think any of these requests are unreasonable.
Can any owner whose Tesla's warranty has expired share what the typical major repair job's nature and costs are? I'm definitely getting extended warranty on the Model 3 but if repairs costs are exorbitant, I will have to factor a low residual value when selling it in the open market on it's 8th year while still under warranty.
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glhs272
Unnamed plug faced villian
Here is my anecdotal data point:
I am a high annual mileage driver. I opted not to get the extended warranty on my mid-2013 Model S60. I currently have about 74K miles on the car.
I had an issue with the GPS getting intermittent, then outright quit. This happened around 53K miles, so right after warranty expiry. Turned out to be a faulty antenna harness at the back lift gate. The harness itself wasn't very expensive, however it required removing the rear glass to replace, which then therefore also required new rear brake light (it's glued to the glass). The total repair cost $808.65 ($380.13 parts +$420 labor). Service hourly rate is $150 per hour.
I also had a light clunking over certain bumps. This happened more recently. This ended up being the RH sway bar link. Its a simple part I could have replaced myself, but I was too lazy to (there about $45ea). Also, I had Tesla replace both LH and RH even though only RH was clunky. Total repair cost $182.22 to replace both.
So after about 24K out of warranty miles, I am at about $990.87 for repairs. I still have another year or 26K miles to go before I hit 100K when the extended warranty would have expired, so my comparison between getting or not getting extended warranty is not done yet. But I am already under the conclusion that the extended warranty is a waste of money for people like me.
I worry about this sort of stuff:
Ouch! First huge repair bill.
So I probably won't own a Tesla out of warranty
Ouch! First huge repair bill.
So I probably won't own a Tesla out of warranty
bkp_duke
Well-Known Member
Breaks are breaks, you don't have to have them done at the dealer (i.e. rip-off). Sure, that would have been an expensive repair, but not THAT expensive at a reputable 3rd-party shop.
glhs272
Unnamed plug faced villian
Good question. Most definitely. However because the drive unit is still under warranty (as is the battery) I didn't find any value to extended warranty for those potential issues. Anyway, the drive units:
The original drive unit that came with the car (Rev. A I assume) lasted about a year (or 21K miles) before I started to get the "milling" noise. It didn't fail but was replaced due to noise when I had taken the car in for it's annual service. They replaced it with another Rev A drive unit (re-manufactured however).
I drove the car for another year without issue or any service. Then when it came time for it's next annual (by now we are talking May 2015), I noticed I was starting to get the "milling" noise again. Like the prior year, about the same number of miles (24K). Like last time, no outright failure just noise. This time they replaced the drive unit with a re-manufactured Rev. M drive unit.
As of today I am still running the Rev M drive unit. Coincidentally, i got it exactly a year ago (5-20-15). I now have 28K on this drive unit. Thus far, drive unit works perfectly. No milling noises, no excessive clunk or play.
bkp_duke
Well-Known Member
anthony
Member
I'm at about 70k miles on my 2013, and purchased the extended warranty. In my situation, it likely makes sense, even though I don't believe a warranty will ever pay for itself. When you're presented with a bill for $2,500 for non critical parts (battery cooling louvers and coolant pumps), makes the 4k seem like its going to be necessary.
With the air suspension, and basically the first of a generation, for a company that just started making cars. I expect it to be covered.
I was told by the service center that they can't sell me certain parts. "They would need to talk to the regional manager"
That might have been just to get me to purchase the extended warranty, none the less a concern.
With the air suspension, and basically the first of a generation, for a company that just started making cars. I expect it to be covered.
I was told by the service center that they can't sell me certain parts. "They would need to talk to the regional manager"
That might have been just to get me to purchase the extended warranty, none the less a concern.
4k to replace all four first generation door handles. They all begin to have issues of not presenting at times, and not allowing me to open the door.
rxlawdude
Active Member
"4k to replace all four first generation door handles."
You know, legal liability for a defective design doesn't necessarily end with the express warranty.
You know, legal liability for a defective design doesn't necessarily end with the express warranty.
Hi guys I'm new here. I've been talking to Tesla about the potential purchase of a 99k 2013 P85, serviced and loved by Tesla since new. They will crawl over the car and bring it up to mechanical and cosmetic specifications as if it would be a CPO car, give me the remaining battery warranty. However, they will not issue a CPO warranty nor will they sell me one. So two questions for you - 1) do you know of any 3rd party warrant companies that would cover a Tesla? In a quick search to Warranty Direct they don't even list Tesla as a vehicle for which to get an estimate. 2) how crazy would I'm be to get such a used vehicle from Tesla? The car lived it's life in California and now somehow is in New York area inventory. Thanks!
rxlawdude
Active Member
I'd be a bit wary about going "bare," but if they truly go through it with a fine tooth comb and correcting anything before delivering it to you, it might be a good deal. I'm guessing this is priced no higher than $50K.
Everyone who is considering extended warranty... First remember why extended warranty is available the first place. First and foremost, it is there to make more money from you; it is an insurance policy.
That said, only reason insurance policy exists is... the house is more than likely to win. Any car you buy at this price point will come with a big repair bill when bad luck strike.. and for those, they are more than likely to post on the forum. But for everyone of those.. will be hundreds of driver without claims and got extended warranty.
That said, only reason insurance policy exists is... the house is more than likely to win. Any car you buy at this price point will come with a big repair bill when bad luck strike.. and for those, they are more than likely to post on the forum. But for everyone of those.. will be hundreds of driver without claims and got extended warranty.
Sure, bust just like with insurance it sucks when it turns out you are the unlucky one who got hit with the big repair bill. People want certainty and with the "warranty" they get that, although some things are not covered so it's not that simple.
