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Extended service agreement price hike?

Extended service agreement price hike?

I could have sworn the price I saw last week was $2500 and when I just checked it, it was $4000? I just filled out my delivery survey. Could that have jacked the price or did I just have poor timing?

Update: This thread came to Elon's attention and Tesla Motors came through and gave us all a grace period to buy the ESA at the $2500 price.

cfOH | 26 June 2013

I think you're right, but I'm not 100% sure. I'm going to start keeping screen captures of everything given how fluid these things change and without warning.

Bighorn | 26 June 2013

Yep, the body of the contract still says $2500, but they're charging $4K. Doh.

mdemetri | 26 June 2013

Wow! I just checked my services sign up page and it now lists the extended warranty as $4000 instead of $2500. This is despite the main 'services' page still listing $2,500. I expected them to increase the price prior to expiration in 4 years of the primary warranty, but not so soon. I thought I had year to lock in the price. Frankly, I think Tesla should have given us some warning before raising the price. I did the 4+4 service plan and this pricing seems unchanged. I waited on the extended service agreement as we had 4 years; boy that looks like a mistake.

KendallPB | 27 June 2013

Woah, that does look like a mistake. I'm going to e-mail ownership to find out what's up. This page...

http://www.teslamotors.com/service#/service-plans

...still has the original price. I'm guessing it's an error.

KendallPB | 27 June 2013

I e-mailed ownership and included a screenshot of the public page ($2500), mentioned the PDF ($2500), and included a screenshot of the private sign-up page (now saying $4000). I asked for clarification via e-mail and/or here in this thread (included a link to this thread, too).

I'm not super-concerned--mistakes happen, and Tesla has a history already of giving advanced notice on price increases, e.g., the Model S increase...the whole world got a window of time to reserve, etc. So I'm guessing either it's a complete mistake (price isn't going up), or else current owners are supposed to get a window during which we could get the current price (before any increase takes effect).

J.T. | 27 June 2013

@KendallPB

I agree with your assessment.

What I'm wondering is what do they now know that prompted them to raise the price by 60%? Are they having experiences with the Roadster that they hadn't anticipated?

It would seem prudent to "buy-in" at the cheaper price if they do allow a grace period for owners of delivered vehicles, but I have to say that it would be terribly clever of them to wave the $4000.00 price tag in front of us and offer it to everyone at $2500.00 just to get the revenue.

Companies love selling extended warranties!!!

randyy | 27 June 2013

Looks like they have updated everything now to $4000. I'm not thrilled with this, as it happened right after I hit delivery... Sent them an email to ask if they are going to honor the advertised price.

cfOH | 27 June 2013

It would be great if we could establish a Google Drive folder to share screenshots. If Tesla is going to start changing prices on things without announcing it, I'd like to know when people catch these. I'm in that dangerous period after my order was confirmed but before I've purchased any of the service plans. I would hope Tesla would honor the prices they advertised when I placed my order, since raising them after I can't back out, and before I even have my car, seems inconsistent with Tesla's "customer-first" approach to things.

markapeterman | 27 June 2013

I'm very disappointed in this also. I emailed ownership.

David70 | 27 June 2013

The service agreement (4+4) shows $3800 on my My Tesla page and $4800 for 4+4+R. It's been that way for a number of weeks. Of course, those figures don't include sales tax.

J.T. | 27 June 2013

@David70 Scroll down to Extended Warranty. Used to $2500 now it's $4000.

Bighorn | 27 June 2013

Must be how a kicked dog feels. All these loyal, fawning owners promoting the brand, signing petitions, buying the stock and we get sucker punched with this jacked service plan. I'm anxious to hear corporate's response. There's no assurance that it's not going to be boosted several more times before it's time to make the purchase, since most people would typically wait to renew in four years. Is a letter writing campaign in order?

cfOH | 27 June 2013

I'm going to have my first chat with my newly assigned Delivery Experience specialist tomorrow and I'll see what he says.

portia | 27 June 2013

sonowit is more comparable with a roadster, but I am definitely disappointed that there had been no advance hint, warning of the increase.
so we should all email ownership experience and complain today!

riceuguy | 27 June 2013

Oh wow...I sure hope they didn't really do this with no advance notice!! I had every intention of buying the warranty, but at $2500; I just figured I at least had until they announced the price increase!! Let's hope this is not intentional...

cybrown | 27 June 2013

I'm in "delivery limbo" right now as well. I haven't purchased services yet. I'm pretty pissed about this sneaky price increase.

dsecrist | 27 June 2013

Here in WA state, we still don't even have the option of buying the extended warranty. We only have the service plans available for purchase. I had hoped to be able to buy it at the original price once it was offered. At this new price, I will have think about it more...

Geoff2013 | 27 June 2013

@dsecrist - Thanks for mentioning that we don't have the option in WA state. I didn't remember seeing anything about an extended warranty - now I know why.

AmpedRealtor | 27 June 2013

What concerns me about the rise in price is that it may reflect Tesla's internal feeling that the Model S is going to be more expensive to service after the warranty period than they had originally anticipated. I don't want my Model S to become a money pit after the warranty expires, that is my biggest fear.

David70 | 27 June 2013

@jtodtman@gmail.com,

OK. I don't see that. I guess the extended warranty isn't available in WA state.

cybrown | 27 June 2013

I agree with AmpedRealtor. The sudden, secret, sneaky price hike sends the message that they have less faith in the long-term maintenance of the vehicle. I am getting worried.

jchangyy | 27 June 2013

well, guess I'll be trading in my MS for a new one in 8 years.

cfOH | 27 June 2013

I just heard back from my Delivery Experience Specialist:

My email to him:
"I have a question for you: I had every intention of going full-bore into my P85+ ownership with 8 years of everything. Yesterday, however, I noticed that the price for the additional 4 years of warranty coverage (the Extended Service Agreement) has increased from $2,500 (what it was when I confirmed my order on Monday) to $4,000 -- a 60% increase. Why wasn't I given any notice that this was happening? Will Tesla still honor the price it was when I started this ordering process?"

His response:
Unfortunately I’ve been told that Tesla will not honor the previous service agreement pricing.

Fred O | 27 June 2013

The price at the Dutch site is still €2800. I sure hope they will not increase that too. €700 in yearly maintenance for a car that is supposed to be low cost is bad enough. €1000 would be a painful wake-up.

SCCRENDO | 27 June 2013

I was ready to sign up for $2500 but this causes a rethink. They have us where they want us because if something breaks after 50,000 we have to go back to them. Unfortunately I do more than 25000 miles a year so at best this warranty may only cover me 2 further years at best and then I'm on my own. Do I risk it and save $4000 hoping nothing that costs more than $4000 breaks in year 3 and 4.

sftesla | 27 June 2013

That's really disappointing that Tesla would just sneak in a price increase on the extended warranty. I was going to buy this when the first made it available, but I thought I would wait until my warranty was going to expire. Now I'm not sure it's going to be worth it. I'll have to see what kind of failures people are reporting around 3 years from now. Unfortunately, there aren't too many cars older than mine, so I may not have good data by then. It does seem like many other Model S owners are putting on many more miles than I am. Those owners might be the first ones to see wear and tear types of problems and report them to the rest of us.

stevenmaifert | 27 June 2013

@Bighorn - Tesla deserves to have you take this thread public. Reminiscent of the hose job the early 60 configurators got on the Supercharging option.

portia | 27 June 2013

This should be the hottest thread now on the forum, why not?

J.T. | 27 June 2013

@AmpedRealtor

Might be time for you to send an email to the big man.

alohasara | 27 June 2013

No warning, no grace period for those who already bought the car? How disappointing....

riceuguy | 27 June 2013

I have never complained about about the charge for supercharging on my 60, the deletion of the fog lights, etc., but this one really upsets me as I would have happily bought the warranty if there had been a warning of the increase! There may need to be a coordinated email campaign to George B.

J.T. | 27 June 2013

Should we start another White House petition?

TFMethane | 27 June 2013

Wow. I have to agree that this doesn't seem kosher.

Like most of you, I've sold a few MS's since taking delivery in March. The biggest question I get from people, (after range and charging) is "How's the warranty?"

I mention the terms, and people aren't very impressed. Honestly, Tesla's basic warranty is not up to the standards of other vehicles in it's class. However, I always tell people that Tesla is a benevolent company, and I have faith and confidence that they will do right by their loyal customers in the long run.

I feel like I lied to those people.

What do I tell them now?

portia | 27 June 2013

This does not match how Tesla had behaved in the past, what had changed?

portia | 27 June 2013

I believe George B's email is gblankenship@teslamotors.com please all send him an email today!

kback | 27 June 2013

Wow, this is disappointing. I live in CT, and we can't buy any service plans at all for now, no extended warranty, nothing. Right now we have to go with the $600/year, pay as you go service plan, with $100 per Ranger visit. Service plans and extended warranty don't even pop up on my screen.
I was hoping to buy the extended warranty when it eventually came available here. Now, I'm not sure what to do. Does this mean Tesla has decided that maintenance is going to be more expensive than they originally thought? Why did they do this so suddenly, without notice? Very upsetting, and not what I would expect. Eager to hear what the big man has to say.

portia | 27 June 2013

I Just sent him an unhappy email.

AmpedRealtor | 27 June 2013

I spoke with my Inside Sales Advisor at Tesla, she acknowledge the price increase to $4,000 and stated that it was simply due to the fact that Tesla determined they were losing money on service at $2,500 and needed to increase it to $4,000 to break even. She said it is not profiteering in any sense, but that is what they need to charge in order to cover their costs. She said that for anyone who previously ordered the $2,500 warranty, the old price will be honored. Her words were basically "service is costing a lot more than we had anticipated."

David Trushin | 27 June 2013

I think people should go back and review the plans that are offered. The 4+4 covers pretty much everything to keep the car running well, while the extended warranty which kicks in in year 4 only covers defects in materials or workmanship. If those don't surface in the first 4 years, they will probably never happen. When you buy a warranty that's what you are buying, protection from a low probability event. The price on the other plans have not changed. I'm not saying that those of you that wanted this extra shouldn't be upset. I'm just surprised that so many people wanted this plan. I never buy them myself, they are just a waste of money.

Velo1 | 27 June 2013

So when I bought the 4+4 plan in April, I paid $1900+1900 for $3,800. Does the $4,000 extended warranty price mean it's 4+4 for $4,000 (only a $200 increase over initial price in April)? I would certainly hope so, as an extra $1000 per year for years 5-8 seems out of line, especially if you go al a carte and pay $600 per year, but then the $600 might also increase dramatically. I hope someone can clarify what you get for $4,000, whether it's for all 8 years or just the 4 additional years above and beyond standard warranty.

portia | 27 June 2013

let's hear more arguments for/against getting it at any price! I don't usually buy the extended warranty when I buy electronics, etc, the only exception is Applecare, but I did buy the 4+4 service plan, so I am leaning toward not getting the extended warranty, still they should have announced it somewhere. @AmpedRealtor, I don't think your Sales Advisor knows what she is talking about, we are not talking about service, this is extended warranty. Did they raise the service plan too? I don't see it since I have already bought it.

JohnnyMac | 27 June 2013

I just emailed George. Not happy about this. Current owners deserve the decency of a heads up that this is coming and a period to opt in and buy. An extended warranty at his price point was part of my purchasing criteria. Sure, ultimately it is my fault for not taking action more quickly (all of 33 days) but would any of us thought they would increase this from $2,500 to $4,000 this quickly, really? I feel slimy auto industry tactics creeping in here. I hold Tesla to a higher standard and expect better! I'll sign a petition.

Bighorn | 27 June 2013

@Velo
The 4+4 service plan is separate and distinct from the Extended Service plan which is a warranty that extends the free 4 year/50,000 mile warranty to 8 years/100,000 miles. It can be purchased near the conclusion of the included warranty, so most people wouldn't pay for it until the end of 3 years. I don't know how Tesla can know what their warranty costs are going to amount to on the MS in the 4-8 year time frame since it is a new car. It is a cost that most would factor into their TCO if they were inclined to stay covered. The fine print shows that extended warranties have many jurisdictional footnotes by state and some states are not even eligible eg WA.

AmpedRealtor | 27 June 2013

@ portia, I specifically asked about the increase to the "extended warranty" and was told the cost of warranty repairs were much higher than expected, hence the increase to the cost of the extended warranty. It made perfect sense to me. If you are going to cover repairs after the standard warranty expires, and after having Model S in the wild for year and gathering data on service costs, hiking the price on the extended warranty represents Tesla's expected costs after the first four years.

AmpedRealtor | 27 June 2013

To add to my previous post, maybe Tesla knows something about the rate of manufacturing defects that we don't? Just speculating, of course.

ramtaz | 27 June 2013

With the one year anniversary of the first delivery of Model S , How could service be costing so much when all the cars are still under original warranty? The extended service plan must be purchased before the original warranty expires? The cost of labor at the service center is $200 an hour?
What am I missing?

David Trushin | 27 June 2013

The extended warranty is purchasable anytime in the first 4 years. They can raise prices at any time. What would you all propose as to what, as a prospective purchaser, think is a reasonable policy. They should honor the price as quoted when you declared your intent to buy, but otherwise, snooze you lose.

cfOH | 27 June 2013

What I think would be a reasonable approach:
1) For current owners (those who have received their cars), you are notified that there will be a forthcoming price increase (say, two weeks' notice) to $4,000. If you purchase before then, you get the $2,500 price.

2) For those (like me) currently going through the purchase process, you are able to purchase at the original price until the day you take delivery of your car or the above date, whichever is later. After that, you can purchase at the new price.

3) For those who do not yet have a confirmed reservation number, your purchase price is the new one.

riceuguy | 27 June 2013

Tesla called me in response to my email to say essentially they never intended to price it at $2500 and it was essentially mispriced. Kudos for the phone call, but a major, major let down on the lack of warning. Very disappointing.

pimp-boy | 27 June 2013

Since us "early adopters" take a risk on supporting Tesla, at least have the decency to give us an "expiration" period at this price just like when you decided to raise the price of the Tesla and itemize the 21" rims.

We took a risk buying a beta! All this bait and switch crap. Swapping headliners from alcantera to textile, removing fog lights, Michellin to Continental tires, swapping prices, etc...

What's next?????

Maybe you should pay us interest for all your DUE BILL items since we already paid for it!!!!

Sorry.. just venting. Just bull$hit.

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