Warranty/Service/Maintenance - Totally Confused (so is Tesla).

[jdell408]

(tldr: The service, maintenance, and warranty plans and wording are so poor that it caused multiple confusions between buyer, seller, multiple service centers and the Tesla call center. Cost: Thousands and many man-hours).

I purchased a 2012 P85 with ~66,000 miles on it. The (private) seller was very clear and upfront with some issues with the car, the most important being that there was currently no sound in the car at all, but that it was scheduled to have the MCU replaced (under warranty) at the service center local to him. He mentioned that the car was under an Extended Service Agreement that was purchased by the previous owner and that both the ESA and drivetrain/battery warranties would transfer to me as part of the sale. He said I could wait (up to 2 weeks) for the repair to be completed, but I asked that we get the deal done now and that I would simply have the sound issue addressed at my local SC. He agreed and I flew to his city to complete the purchase. Before completing the purchase, I called Tesla to confirm the car did, in fact, have an ESA. I also confirmed it would be transferred to me as the new (third) buyer. The person I spoke with confirmed without a doubt exactly what the seller was telling me, that there was, in fact, an ESA that would transfer to me and that this covered "bumper-to-bumper" issues until 2021 or 100K miles. I met with the seller and the purchase went fast and easy and the 600 mi drive was great. My first super-charing experience was great, including trying to figure out how to open the charge door.

Yesterday I took the car into the SC to address the sound issue. The assistant manager started helping me and he was fantastic. However, the first thing he mentioned was that there was no warranty on the car. Obviously, this was a pretty big shock, but I figured it was just due to the transfer of ownership process happening on the back end. I also had with me about 10 previous work orders, 2 for this year showing that a few things had been repaired "under warranty" that were not battery or drivetrain related. Additionally, I had the seller send me screenshots of his Tesla.com account that showed he had purchased an Extended Service Agreement (1st image). If you've made it this far and checked the image, this is where you are likely face-palming. If you are not, then I've proven my point. I gave all of this info to the manager at the Service Center who seemed to genuinely understand the confusion and was very patient. He took my car and surprisingly gave me a Model X loaner which has been fun.

As a new buyer who spent hours trying to figure out the warranty system for what would be the biggest purchase in my life to date, this screenshot, as well as the phone call with Tesla and paperwork I had in my possession, convinced me 100% that I did, in fact, have an ESA. However, after 28 hours eagerly awaiting a call from the SC, the manager called me (an hour after their scheduled work hours) and explained to me that the "4-year Anywhere Plan + 4-year Extension" has nothing to do with "service" (as in Extended SERVICE Agreement). It is simply a maintenance plan, the details of which I am still having trouble confirming because A) They no longer offer this plan to anyone and B) It is was MORE expensive than an ESA which is very hard to understand. As a new owner, I have never seen this page in anyone else's account so I have no frame of reference, but it seems EXTREMELY probable that this is 4 year Extended Service Agreement. I mean, the box itself is titled "Maintenance Plan and Extended Service Agreement", with bright green letters that say "purchased" underneath.

Currently, my vehicle is at the SC while this is getting sorted out and it does seem like the MCU needs to be replaced. It's hard for me to believe that the entire MCU needs to be replaced for a sound issue that is likely a firmware issue (probably caused by Christmas Easter Egg), but that is another post for another forum. And yes, I've tried every possible reset known (so did the SC). I have been quoted ~$2700 for a new MCU. During this attempt at clarification, the manager at my SC said he was able to see the previously scheduled work order to replace the MCU at the seller's SC and that it was, in fact, going to be done under "warranty". How is that possible if there is no ESA? How is it possible that I have multiple work orders showing work done this year under "warranty"? Why would a Tesla call center employee 100% confirm that this is a "bumper-to-bumper" warranty that would transfer to me if I bought the car?

The only reasonable explanation I can come up with is that the call center AND previous service center were simply confused as to what this plan actually is. The work orders I have show thousands of dollars of work done "under warranty" (although some are titled as "Goodwill - Service"), all with a cost of $0.00. Are they just extremely generous there? There's no doubt in my mind that the seller was confused as well as I clearly have multiple communications from him stating that the car has an ESA that covers bumper to bumper until 2021 or 100K mi and that it would all be transferred to me, allowing me to complete the repair at my local SC. He would have to be extremely brazen and unafraid of any type of legal recourse if he knowingly sold me something he knew did not exist.

Thanks for reading (or skimming). Suggestions, recommendations, opinions, and beratement are encouraged.

 

[Tam]

This is how it should look today: Maintenence Plan on the left and Extended Service Agreements on the right:

The prior seller showed you only 1 box out of 2 boxes: The box on the Left--the Maintenance Plan above was called "Service Plan" and NOT Extended Service Agreements one.

In the old days, it's important to understand which kind of "service". If it's an "agreement" then it's a warranty. If it doesn't have the word "agreement" then it's a maintenance work.

In your case, 4-Year Anywhere Plan is a Ranger Service/Mobile Service. The word "extension" there is an extension to the first 4 years for a total of 8 years of Ranger Service/Mobile Service.

8 years of Ranger Service/Mobile Service is the first 2 lines.

8 years of maintenance is the 3rd line.

There have been times Tesla does not charge early adopters when they are clearly supposed to. One example is no charge for towing a dead battery car to a supercharger when the owner's manual clearly says that owners need to pay.

Tesla was not allowed to use the word "warranty" as in "extended warranty" because some states require an insurance broker to sell "extended warranty." Tesla uses the word "agreement" instead. Although we treat them as the same, legally they are not: The word "agreement" is not as strong as the word "warranty." Consumers have automatic rights in an extended "warranty" but in an agreement, Tesla does not have to put in those required rights.

It's unfortunate that there's a misunderstanding in your purchase.

Sorry that I am of no help at all to resolve the situation.

 

[jdell408]

Thanks for this response. I've got a few more questions now (LOL). Thanks for the screenshot that gives me a frame of reference, but does bring up more questions:

1) Mine looks nothing like yours. There is no 2nd box and the only box there states that what is contained therein is my Extended Service Agreement. Its confusing, is it not?

2) "8 years of Ranger Service/Mobile Service is the first 2 lines." Are the first 2 lines of what? My box? My box says nothing about "Ranger Sevice" although perhaps the "Anywhere" plan is the same thing? Why wouldn't mine just say Ranger Service/Mobile plan? It's pretty confusing. Additionally, it's hard to understand what exactly Ranger service is and why it would cost $4800 to have it? Are you paying for the right to have someone drive out to your location (but still have to pay full price to have the car fixed)?

3) "In the old days, it's important to understand which kind of "service". If it's an "agreement" then it's a warranty. If it doesn't have the word "agreement" then it's a maintenance work." - While I don't doubt you on this, is this just common knowledge among people who have been around for a long time? Or is there something official where I can read up on this nomenclature/colloquial use of these words?

My main concern is that this issue happens to center around one of the most expensive repairs required and this is AFTER triple confirming that it would be covered under some agreement between me (owner) and Tesla. I get that the diagnostic fee is waived sometimes, or an emergency tow for a stranded driver, but we are talking about 3 work orders and probably $5K+ worth of parts and labor that were all performed or scheduled as "under warranty" by the previous SC. They have to be confused as to what is actually happening here, just as I am.

 

[Tam]

...box...

My title says:

Your Maintenance Plan and Extended Service Agreements

Your title says:

Your Maintenance Plan and Extended Service Agreements

Both your first title and my first title says the exact words.

Those words tell you to look for 2 boxes below.

1) "Service Plan" in the old days or "Maintenance Plan" for today

and

2) Extended Service Agreement

Under my title line, I have 2 boxes with the word "Purchased" while you have 1 box with that word "Purchased".

...My box says nothing about "Ranger Sevice" although perhaps the "Anywhere" plan is the same thing?...

Your box says:

Line #1 "4-Year Anywhere Plan + 4-Year"
Line #2 "Extension"
Line #3 "Tesla Service for eight years"

Those 3 lines are equivalent to Ranger Service/Mobile Service to come to you anywhere for "Service" Plan or maintenance.

I don't know whether Ranger Service/Mobile Service is free today but prior to Model 3, you could pay by miles like $3/mile (I live 200 miles away so it's 400 miles round trip or $1,200) for Tesla to come to you or you can pre-pay 1 sum in advance first and don't worry about paying miles each time.

If my High Power Wall Connector is broken, I can't drive the wall to Tesla, your first 2 lines above would bring Tesla to me for 8 years without me paying an additional $3/mile.

...$4800...

$3,800 covers old "Service Plan" or today's "Maintenance Plan"

For an additional $1,000 on top of that or:

$4,800 covers 8 years for:

1) Tesla comes to you
2) old "Service Plan" or today's "Maintenance Plan"

Old "Service Plan" or today's "Maintenance Plan" is an annual inspection plan, not meant to covers broken things.

Broken things are covered by:

1) Warranty
2) ESA
3) Cash if you run out of Warranty or you don't have ESA.

...nomenclature/colloquial use of these words?...

You can still retrieve old time titled "Service Plan" without the word "Agreement" on the title.

Service Plan is different from Service Agreement:

Now, it's called "MAINTENANCE PLAN" which shares no common words with "Extended Service Agreement."

 

[jdell408]

Well, some major developments here:

The previous owner went to his Service Center (in another state) and had the manager call the manager at my service center. The manager at my service center stated that he had been told by the other manager that the car does, in fact, have an ESA that is in the process of being transferred over to my account, it simply isn't reflected on the account yet. The manager at my service center then said they will replace the MCU at no charge and said he'll simply take it on good faith that there is an ESA based on the phone call he received. They started working on the car and, just as I suspected, there was a simple loose cable that was re-attached and the entire MCU did not have to be replaced.

I got a text about 4 hours later stating that the car was repaired but that it was not able to be picked up because it still needed to be cleaned. The text also stated that the car was not under warranty and I would have to pay $300 for the labor required to diagnose and re-attach the cable.

I went to the Service Center and the service manager again intervened and corrected the charges so I paid nothing out of pocket.

While the managers have been extremely helpful throughout this process, I am still concerned about the conflicting information. A simple phone call and a good-faith acceptance were all it took for this repair to go from $3000+ to zero. That type of variance is the exact reason for having an ESA in the first place and was the exact reason I would have never purchased this vehicle without one. While I am very happy it got resolved at no charge, there is still a lot of confusion that needs to be sorted out.

I did receive an email confirmation from my service manager confirming that he was informed (by a service manager from a different location) that the car does have an ESA that is in the process of being added to the account, but I am still extremely skeptical. They should all have the same information at hand. Two different service centers with polar opposite conclusions as to the existence of an ESA is alarming.

 

[Tam]

...car does have an ESA...

Fingers crossed.

Congratulations!