Model S

Service Agreement - To buy or not to buy?

Looking for thoughts or experience on purchasing an extended service agreement for 4 years, and $4750. My care is 27 months old, with 28 K miles on it. I own my car, and usually keep cars for 8-10 years. Would I be wise to buy this extended service agreement? Once the SA starts to be used, all visits have a $200 deductible. All thoughts appreciated, and curious how many owners have purchased this agreement?

Comments

  • I've always been against ESAs on any product. Occasionally they make sense, but with your car, the most expensive components - the battery and motors still covered without the ESA. You would need a lot of problems to cover that $4750 cost. Put that $4750 in the bank and use it to pay for anything that you might need over the 4 years.

    Another aspect is if your car were to be sold or totaled, you don't get the unused part of the ESA back. It' a sunk cost.
  • Don't.

    Any extended warranty is you, in this case, paying $4,750 worth of repairs in advance. Until the total repairs exceeds $4,750, you have gained nothing. Between 50K miles and 100K miles, I spent less that the at the time $4,000 cost of the warranty. So I would have been seriously upside down on the "investment". Keep in mind, at I believe it was 59,000 miles, I had to pay for a new onboard charge. Also as you pointed out, there is that $200 per warranty visit deductible. So, let's say you have 5 warranty visits. Now, that warranty cost you $5,750.

    My favorite line I hear when it comes to someone getting their car fixed under an extended warranty is, "...I don't care, it's covered" Of course it's "covered", you already paid for it when you bought the warranty.
  • I didn't pay for mine. I had them threw it in when I got the car do to so many problems with the car when I first picked it up. It's been a win win for me.
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