Poll: Extended Service Agreement Poll- good idea?

[ddjohns1]

I'm trying to decide whether to purchase the extend service agreement for my 2017 Model S R75 which has 32k miles. If you have a Model S or X and it's over 4 years old, please respond. The current cost of the ESA is $2,600 for 2yrs/25K, and $4,750 for 4yrs/50k. Any comments on the value proposition of the ESA are welcome!

Thanks,
Dave

 

[ucmndd]

I have a very late 2016 S75 with 120,000 miles. I did not buy the ESA but my out of pocket repair costs that would have been covered by it have totaled less than $500.

Vehicle config plays a bit of a role in the decision making I think - do you have a sunroof or air suspension? My car has neither and I'm thankful for that from a maintenance/repair perspective.

 

[Tam]

I'm trying to decide whether to purchase the extend service agreement for my 2017 Model S R75 which has 32k miles. If you have a Model S or X and it's over 4 years old, please respond. The current cost of the ESA is $2,600 for 2yrs/25K, and $4,750 for 4yrs/50k. Any comments on the value proposition of the ESA are welcome!

Thanks,
Dave

Warranty, insurance, gambling, the lottery is a matter of statistics: The house always wins.

Yes, it's true that we can see in the news that there's another lottery winner and the lottery has to pay out millions of dollars but again, the house always wins because that's how the statistics work.

That's the same principle for ESA. Statistically, most cars would be fine but some cars might need repairs.

It's the same with home insurance: Most will not burn up in flames so why people still buy home insurance?

I bought EAS for peace of mind. If mine won't need repairs, I already know how much I already paid for no repairs. If mine will need repair in the future, I already know my expected cost: Zero additional dollars plus $200 each visit.

 

[Jlwine]

I debated this a lot last year. I bought the four year plan, have since had two door handles replaced--and replaced with the updated version. Both headlights replaced because part of the LED strips went out--again it was an updated part number. The LED ring where you plug the charger into, some of the lights had went out, and the charge port door--because the guy told me it needed replaced, I still don't know for sure what was wrong with it Lastly, and most recently both the left and right front half shafts--this too was a updated part. The last item was completed at the service center, the reminder of the items in two different visits from the Ranger service. It is worth noting I had to also pay $200 per visit so a total of $600 above the cost of the ESA itself. But worth it, because the car is still "Like new" If I didn't have the ESA, I would have probably only paid for the door handles and left everything else go--and thus the car would start down the slow path of "death"

 

[airborne spoon]

my warranty expired a little over 2 years ago, since then my repairs from tesla have cost me about $1000 that was for parts and diag to repair my louvers at home and for them to repair my charge port door sensor. I did 2 door handle repairs in my driveway with the kits from ev tuning which are $180 each
I did the MCU2 upgrade for $1500 but that wouldn't fall under a ESA plan which is why i don't include it in the amount I've paid.

I know there are risks in not having a warranty but this is literally the first car out of the 7 I've owned through the years that had a warranty. I prefer to fix things myself, that way i know it was done properly, and its a hell of a lot cheaper to DIY repairs. With the Tesla its a little harder to DIY repairs because Tesla is like John Deere and actively fighting AGAINST right to repair because they are a bunch of assholes. So some parts i cant just buy and fix like the door sensor they wouldn't sell me and i had to pay $120 in labor to install a $80 part which is clearly bullshit.

 

[ddjohns1]

Vehicle config plays a bit of a role in the decision making I think - do you have a sunroof or air suspension? My car has neither and I'm thankful for that from a maintenance/repair perspective.

That is a great point. I have a very basic model- no sunroof, no air suspsension, rear wheel drive only, no premium package. The only option I purchased was leather seats. Overall, fewer things to break.

 

[ucmndd]

That is a great point. I have a very basic model- no sunroof, no air suspsension, rear wheel drive only, no premium package. The only option I purchased was leather seats. Overall, fewer things to break.

That’s been my experience. Like I said, the only thing that actually broke between 50k and 100k miles on my car was the lift gate actuator. It was about $350 to repair.

 

[Flyguy]

I bought the 4 year ESA for my October 2017 MS 75RWD when I bought the car new. Under the new car warranty, I’ve had both headlights (DRL’s) and one door handle replaced. I also just completed the MCU2/radio upgrade which comes with its own two-year warranty. I do have air suspension , but I’m at a point where I think there is a low chance the ESA will pay for itself. I’m now thinking about canceling the ESA and getting my money back.

 

[David_Cary]

I have 93k on a 6 year old car. I have done 3 door handles and Tesla did the battery heater. I am working on the horn this weekend and I have a Door latch to change out.
Overall $1200 but that was DIY.
Door handles done by Tesla are like $300 which makes the $200 deductible really annoying..(not for me obviously).

 

[Darmie]

Other thing to keep in mind is there is a $200.00 charge each time you take the car in for extended warranty work.
If I still owned the S I'm not sure if it's worth the gamble but with the X, I did purchase the extended warranty. Last week had an issue with the passenger restraint system. Also made mention the shudder(CV half shafts) and that the Christmas mode did not work(door sensor). All repaired under extended warranty + $200.00

 

[2101Guy]

Should You Get an Extended Warranty for Your Car? - Consumer Reports

Should you buy an extended warranty for your car? Consumer Reports consults experts and provides advice.

www.consumerreports.org

"..car owners typically paid more for the coverage than they got back in direct benefits. This isn’t surprising, because extended warranties make a lot of money for those who sell them."

"..The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says a money expert and radio talk show host, Dave Ramsey. “I don’t recommend buying extended warranties, ever. If you can’t afford to repair your car, then you can’t afford the car.”

 

[David29]

I bought the ESA on the day when I bought my car to the service center with what at the moment appeared to be a failure of the MCU. The SC was telling me to expect to need to replace it. That was the last day on which I could purchase the ESA (30 days past end of warranty). At the time, the MCU replacement was something like $2500. It turned out that I did not need the MCU that day, but I did need one (because of the eMMc memory issue) a few months later. At the time, the fix was replacement of the MCU with a rebuilt unit, including the screen itself. So I felt like I had avoided paying the fee for that (which I think was then $1500). Of course, not long after that, an even cheaper fix was developed. And not long after that, the MCU issue became the subject of a recall with the prospect of a free replacement of the memory. so my initial decision to buy the EAS might have been driven by the fear of a large expense that I did not actually incur. In the meantime, I had a failure of my parking brake caliper. The SC replaced both. They told me the retail cost, which would have been north of $1000, so again I felt as though the ESA had helped me dodge a big cost. Since then, I have had one door handle repair plus replacement of the windshield washer pump. In the last two cases, the $200 "copay" was probably about half of what the repair might have cost at retail.
So, in the 18 months since I bought the EAS, have I saved any money? Not literally, I suppose. Leaving aside the MCU replacement, the covered repairs would have cost something over $1500, so I have a long way to go to recover my cost.
I can cancel the EAS at any time and receive a prorated refund of the unused portion. Or I can keep it for the peace of mind.
Every week, I read about Model S problems that I have not yet experienced, so the potential is there for more failures. But as others have said, it is absolutely a question of odds -- No one can know what will or won't break until it happens (with the possible exception of door handles, I suppose).

 

[Darmie]

” says a money expert and radio talk show host, Dave Ramsey. “I don’t recommend buying extended warranties, ever. If you can’t afford to repair your car, then you can’t afford the car.”

Dave is a smart man and I will agree with you, extended warranties are always in favor of the seller. Some owners make an extended warranty purchase to be provided with peace of mind. This has to be worth something.

 

[fuelsman]

Buy it! For my 2013 Model S P85 my last service (June 2021) had an estimate of $2200 - replacing 12V battery, water in tail light, metal clanking sound from rear axle, stuck side view mirror. My cost $200. Since having the extended warranty I've saved over $8000 which included a drive unit. Having the extended warranty means that any non-wear problems can be fixed for only the deductible. Also if necessary you get a free loaner. I will definitely get anything that requires fixing before it expires. Tesla service prices are similar to any high luxury car brands.