What to do about remaining maintenance plans?

What to do about remaining maintenance plans?

We purchased 4 year maintenance plans with our 2017 S and 2018 X, and have not received any notification from Tesla about the status of those plans.

Since Tesla is no longer recommending some of the service included in those plans, the recommended maintenance should now cost less that the cost of those plans.

Contacted Tesla yesterday, and they recommended cancelling the plans and requesting a refund of the unused portion of both plans.

However, a better strategy for Tesla would be to convert the remaining plans into a service credit, removing the 50K mile/4 year limits, and then use that credit for service visits until the credit is exhausted.

With Tesla's cash flow concerns, wouldn't it be better for Tesla to avoid refunding all of the maintenance plans now?

p.c.mcavoy | May 18, 2019

@bp - When Tesla recommended cancelling the plans, did they detail how the refund would be calculated? If it's per the terms in the agreement, then it appears will be quite unfavorable to me.

I think it is highly unlikely they would turn it into a service credit. I think in many cases that will actually cost them more than if they just did refunds per the terms of the agreement.

I do agree that one easy act of good faith for them would be to remove the mileage limitations and allow owners to use the annual services based solely on time.

inconel | May 18, 2019

I believe the refund will be prorated based on mileage

p.c.mcavoy | May 18, 2019

@inconel - The language in my agreement says it will be prorated based on the lesser the portion of the days or mileage. It also says less the amount of any claims paid under the Agreement. I think that says that for anyone past probably the second year service you're likely not going to get much back it they do it by the letter of the agreement. Here's the exact terms, assuming it's been more than 60 days since you purchased it (there is a separate language if you cancel within 60 days).

"After 60 days–With or Without Claim: I fYou cance lYour Agreement on or after the 60th day following the Agreement Purchase Date, Your cancellation refund will be calculated on a pro-rata basis, and You will receive the lesser of the unused portion of the days or mileage that this Agreement has been in effect, compared to the term or mileage of the selected Service Plan, and, if applicable, less the amount of any claims paid under the Agreement."

bp | May 19, 2019

What I'll try to do is to ask them to provide the exact amount of the refunds for our two maintenance plans, before I send in the cancellation forms.

We could also request that they perform the annual recommended maintenance that was in place at the time we purchased those plans - since that's what we paid for - if the amount of the refund is unreasonably low.

bp | May 19, 2019

Just reviewed the maintenance plan agreement for our 2017 S and 2018 X, and this is what it states:

"After 60 days – With or Without Service Inspections: If You cancel Your Agreement on or after the 60th day following the Agreement Purchase Date, Your cancellation refund will be calculated based upon the balance of the remaining unused annual service inspections for the purchased Maintenance Plan option, excluding any and all used and/or forfeited annual service inspections. Each annual service inspection is not equal in price due to the actual services performed and will be deducted based upon the price of the specific annual service inspections used or forfeited prior to cancellation (subject to change in Tesla’s discretion)."

According to this, our 2018 X plan should be eligible for a 100% refund, since we haven't done any maintenance on it yet - and our 2017 S should get refund minus the cost of the 12.5K and 25K mile maintenance.

There isn't anything in those agreements about pro rata based on mileage or time - those terms are in the extended warranty (Tesla calls the Extended Service Agreement), which isn't impacted by the change in the recommended maintenance.

p.c.mcavoy | May 19, 2019

@bp - I discussed with my service advisor what work they would perform and he indicated they would only do what is in the current schedule, including check but not immediately replace brake fluid. He made no offer to do the work on the schedule that was effective approximately 3 years ago when I purchased by maintenance agreement. You may have have different results as clearly there is variation in policies between locations, service advisors, and also with how they treat different owners.

My car is older and only one service left on my plan so in my case I've decided the best course of action is to go ahead, have the perform the 4 yr maintenance under the prepaid plan. I had them give me rough pricing on what the 4 yr service would cost me if I went a' la carte and I come out ahead just keeping the plan.

I will say I've noticed a clear shift in approach over the past 6 months. I actually have an issue at the moment where the roof appliqué between top of windshield and front of the pano roof is slightly loose on one side. I had a mobile service tech actually notice it and tell me I should have the service center replace it, but the service center has declined to perform that repair under warranty as it is not in their opinion a functional failure. 6-12 months ago I do not believe there would have been any question and it would have been replaced.

Good luck.

lilbean | May 19, 2019

I called to schedule annual service and was told that it isn't recommended anymore. I said, "but I already paid for it" and was told, "ok, we'll do it then".

vgnewsom | May 20, 2019

When I want in to the Service Center and asked what was going to happen with service plan. After some back and forth it ended up I would get 4 services over a span of 8 years.
The service manager said he put it in me info, sure hope so.

sabuson | May 20, 2019

2017 Jan MS. Got refund of $525 after 2 services completed and ~40,000 miles.

inconel | May 20, 2019

I also went to inquire at Service Center this past weekend and was told I am grandfathered in and they would honor whatever services were listed when I purchased the maintenance plan. Not sure if it was just BS to keep me happy...

stevenmaifert | May 20, 2019

I purchased a 4+4 years service plan on 3/27/2013 for my 2012 MS. There is no provision for a prorated refund upon cancellation. In fact it says "This Agreement may not be cancelled by You or Tesla and no return of the purchase price or any other fees or taxes will be provided by Tesla to You." Apparently times have changed but I'm stuck. The 6th year annual service was performed in January and they did do everything the service plan calls for. i'm hoping Tesla will honor the plan contract and do what's called for in years 7 and 8 too.

bp | May 21, 2019

I've asked Tesla to provide us an estimate of the refund for the maintenance plans on our 2017 S and 2018 X.

If the refund amounts are reasonable, then we'll ask for the refunds and shift to pay-as-we-go for maintenance.

However, if the refund amounts are too low, the alternative will be to work with the local Service Center (and then go up the management chain) to get Tesla to provide the recommended maintenance services that were in place at the time we purchased the plan.

Assuming sabuson was on a 4 year plan, there should have been a larger refund than $525. If only 2 services were done after 40K miles, one of the "annual" service visits was skipped and would be forfeited. What should have remained was the last service visit, which should be worth more than $525 (for a 4 year plan). If sabuson was on a 3 year plan, then $525 would likely be a reasonable refund.

perez_jl | February 6, 2020

@sabuson, how did you manage to get your refund? I've sent my cancellation form, per the contract, and I've been ignored. Absolutely no response.