Thinking about pulling the trigger on a warranty extension Now that Tesla offers one

[vickh]

The piece of absolute dog *sugar* 2023 Model X that I paid for seems to have electrical gremlins. But don't use my garbage vehicle example as proof an extended warranty makes sense to purchase to protect a MCU or any other warranty work during the thin window of time these extended warranties are in effect.

I hear ya. I dodged a bullet by refusing delivery of a CPO 16' X, eg the wings failed at delivery! The service guy said i should just flip/sell it after warranty expired but that was only 1 year with no extended service option so I passed.

 

[jjrandorin]

My M3 warranty ends within months. I just had my control arms fail. Has anyone paid for this issue out of warranty?

If it had failed in a few months I'd be paying... It might make sense for 2018-2020 M3 owners to buy the warranty if your control arms are the early version.

In this thread, the OP in that thread called out the cost was roughly $750

Tesla denied warranty for Upper control arms because of Aftermarket Suspension

Tesla is refusing my repair for upper control arms because I am sitting on eibach springs and have aftermarket swap bars. The upper control arm issue is a very well known and common issue. They even came out to apply their black silicone crap to prevent the creaking just long enough to get out...

teslamotorsclub.com

Tesla replaced mine under warranty (FUCA) as they started making noise right before the end of my 4 year warranty. If this was a charge someone was looking to try to break even on for the warranty, they still need about 1k more of stuff in addition to this during the extended warranty period, for it to be a break even situation.

 

[dhrivnak]

Maybe my English is a bit off but please explain $1500 for the good. You paid $300 for the job? or $1500?

$300. My understanding he warranty is $1800 so I am $1500 to the good.

 

[bhsf]

how can you tell? I have '19 SR (are the batteries lighter?)

Usually there is a noticable squeaking noise.

 

[brkaus]

Self-funded warranties are objectively a bet against yourself.

But you're also the house... so It's also a bet for yourself.

 

[mswlogo]

The guy was comparing cell phone warranties versus an expensive car. NO eqivalency

They are exactly the same.

It’s called insurance.

House will win statistically.

If you can afford to buy the car (or phone) you can afford to fix it.

It’s optional.

Even the proprietary diagnostics is true on both.

So it’s just peace of mind or a bet that you hope to win.

Getting the extended warranty won’t change parts availability.

 

[Lindenwood]

But you're also the house... so It's also a bet for yourself.

Unfortunately, the warranty owner is the “house.” The purchaser is just sitting at the table.

They are looking at objective data to determine a price that is easily a few times higher than you’d likely have to pay out of pocket over the same period. Some of that surplus indeed goes into an actual “repair fund” to cover your $200 wiper motor or even some poor soul’s rare $5,000 drive unit replacement, but otherwise most of it is pure profit.

It is like looking Tesla in the eye and saying “I bet you $X,xxx that the car I am already buying from you is unreliable!” Given Tesla sets that price, they are obviously going to set one favorable to them—or add so many caveats that no realistic repairs are actually eligible.

 

[vickh]

Unfortunately, the warranty owner is the “house.” The purchaser is just sitting at the table.

It is like looking Tesla in the eye and saying “I bet you $X,xxx that the car I am already buying from you is unreliable!” Given Tesla sets that price, they are obviously going to set one favorable to them—or add so many caveats that no realistic repairs are actually eligible.

Good expected return points.

There are some games where you do have a better expected return, like blackjack with fewer decks etc (house still has an advantage).I think the X or older S would be in that category. I would also do the same for say Jeep CDJR brands. I'm not sure if '19 3 would be though? They have been great with all repairs under warranty and I truly believe ELon when he says service is not a profit center

We do have some collective knowledge here on the forums, but it would help to some reliability info. I don't trust CR given their anti-TSLA views lately

 

[mjwojtukiewicz]

quoting from above comments:

"Ok so here's the challenge of extended warranties.
First, remember they prey on fear.
Second, remember that people who actually buy these warranties need to rationalize their behaviors as a smart decision."

nuff said

This is not based upon fear. Tesla is a vertically integrated company. They sell you a car on an app, they make you request repairs on the app, they refuse to talk to ANYONE on ANY issue. They are the only ones who can fix the car. So basically they can charge you whatever you want.
In addition the warranty company I went with lets you cancel and give you your money back for the balance of the time not used. OR, if you sell privately they will continue the warranty with the new owner for a $50 fee. Therefore you could theoretically command a higher used price on the car.

 

[tangible1]

This is not based upon fear. Tesla is a vertically integrated company. They sell you a car on an app, they make you request repairs on the app, they refuse to talk to ANYONE on ANY issue. They are the only ones who can fix the car. So basically they can charge you whatever you want.
In addition the warranty company I went with lets you cancel and give you your money back for the balance of the time not used. OR, if you sell privately they will continue the warranty with the new owner for a $50 fee. Therefore you could theoretically command a higher used price on the car.

whatever you wish to rationalize is fine
doesn't matter

 

[mjwojtukiewicz]

whatever you wish to rationalize is fine
doesn't matter

Why do you use the word rationalize? I made an informed decision and went with it. I can cancel ANY time. IF Elon comes out with new M3 LR with new hardware I'll probably order one next year as will have to do my first RMD withdrawal from my IRA so then I'll have a tax liability so I can use the credit and the unused warranty refund towards the new car.

 

[tangible1]

Why do you use the word rationalize? I made an informed decision and went with it. I can cancel ANY time. IF Elon comes out with new M3 LR with new hardware I'll probably order one next year as will have to do my first RMD withdrawal from my IRA so then I'll have a tax liability so I can use the credit and the unused warranty refund towards the new car.

then why the need to justify it so hard here

 

[vickh]

i think the resale value is also relevant, to a private buyer. Similar to home warranties in real estate. I will sell my '19 SR when battery warranty is over so this ESA might be worth $X to a private buyer

 

[bhsf]

i think the resale value is also relevant, to a private buyer. Similar to home warranties in real estate. I will sell my '19 SR when battery warranty is over so this ESA might be worth $X to a private buyer

Sorry but buyers aren't looking for that stuff and will discount it. They look at miles, model year, trim, condition. Extras like warranty, ppf, FSD, get discounted heavily.

 

[mjwojtukiewicz]

then why the need to justify it so hard here

I dunno. I like to have discussions with people. You on the other hand pretty much insinuated I was a fool. Have fun with your car,

 

[vickh]

This is not based upon fear. Tesla is a vertically integrated company. They sell you a car on an app, they make you request repairs on the app, they refuse to talk to ANYONE on ANY issue. They are the only ones who can fix the car. So basically they can charge you whatever you want.
In addition the warranty company I went with lets you cancel and give you your money back for the balance of the time not used. OR, if you sell privately they will continue the warranty with the new owner for a $50 fee. Therefore you could theoretically command a higher used price on the car.

Which warranty company?

 

[vickh]

Why do you use the word rationalize? I made an informed decision and went with it. I can cancel ANY time. IF Elon comes out with new M3 LR with new hardware I'll probably order one next year as will have to do my first RMD withdrawal from my IRA so then I'll have a tax liability so I can use the credit and the unused warranty refund towards the new car.

Good use of RMD income tax. I have very few credits besides the standard deduction too.

 

[mjwojtukiewicz]

Which warranty company?

XCare EV Protection

electric vehicle extended warranty

www.xcelerateauto.com

 

[ColoradoMike]

Personally we would not pay on any vehicle for an "extended" warranty. Just simply put what you would pay aside.

 

[plunk99]

Well, I've got about a month before my 4yr 50k bumper to bumper warranty ends, so if I want an ESA, I have to pull the trigger soon. I thought a discussion of pros and cons and people's feeling on the subject in general was in order. I might as well say up front, that a lot of people, myself included at times, firmly believe that all extended warranties are a sucker bet, otherwise they would not be offered. Looked at as raw statistics, it's undoubtedly true, but we all nonetheless buy various kinds of insurance because we all have differing levels of acceptable risk.

My biggest concern is the on-board charger, which a lot of 2018 model year owners (I've got a 2019) have reported having failures of here. The cost of that repair is pretty close to the $1800 price tag of the ESA, so by itself isn't a good enough reason to pull the trigger. Add to that the fact that the most expensive items, the battery and motors already have extended coverage and it's far from an easy choice. I do find it interesting that Tesla waited until all the 2018 model year cars were safely out of warranty before offering this, suggesting that Tesla either knew they were problematic, or Tesla could have just been slow to this party.

Up to about a year ago, I was convinced I'd buy in a heartbeat if/when Tesla offered one. Now I'm balanced right on the fence. How about the rest of you?

So, did you get an ESA or not?