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Model S extended warranty decision time!

Model S extended warranty decision time!

I just finally drove my September, 2014 Model S 85 over the 50,000 miles new car warranty.
There is a one month or 1,000 miles grace period to decide about purchasing an extended warranty
2 and 4 year periods are offered.
Since I did not purchase the extended warranty at the outset, a 4-year 'Extended Service Agreement' is $4,750
I hear that they now insist that regular servicing occurs (was not true for the new car warranty but I bought the service plan anyway)
So another 4 -year plan would be ... (475 + 725 + 475 + 850 = 2525) $2,525
The total would be then $7,275
That's a very big chunk of change. Also there is a $200 deductible per 'issue' (not visit).
The car has been fairly reliable so far. After some initial minor 'teething trouble ' issues the only major things that needed fixing were the pano roof 'cartridge' and a motor replacement.
I have a rear-wheel drive model (dual motor was not out then) and this was in the first batch of cars released with the auto-pilot hardware. It has the smart suspension.

I am interested in hearing the thoughts and experiences of people who've had to make this same decision. How did it turn out? (whatever you decided).
Are there significant holes in this 'Extended Service Agreement' ?

Thanks Much
-- Mike Berrow

tes-s | April 24, 2018

No warranty. I had a single $400 repair during the warranty period (50k to 100k miles). YMMV.

rcheng | April 24, 2018

@pberrow, I’m in the same situation September 2014 model s85 still on the fence, had a few issues, drive unit replaced after year one, Tesla proactively replaced it after diagnosing a problem with the unit. Battery changed to 90kw due to moisture which caused it to shut down this happened 18 months ago had to wait for a year to get the new pack.
So far everything is working well still have a few months to decide

jordanrichard | April 24, 2018

The warranty is now up to $4750!!!! Ya, don't get it. Even it was still at $4K. Also, unless they changed it back, the deductible is per warranty visit.

Here is the very simple reason for not getting the warranty. $4,750, despite what people think, does not cover ANYTHING until you have surpassed $4,750, plus deductibles, worth of repairs. The cost of ANY warranty on any item is you paying for that much worth of repairs, in advance.

As tes-s pointed, he only had $400 of post warranty costs. I personally have had a lot more than that, but, when factoring in the required deductibles, I would have loss money on my initial warranty cost, had I bought it.

Made in CA | April 24, 2018

@jordanrichard - You make a great point! You really don't get any coverage until you get have at least $4,950 in problems. I will be facing this question in a year. I need to keep this perspective in mind.

dr_gko | April 24, 2018

I didn't get the extended warranty on my 2013 S85. I was told it was not available for purchase in WA state when I reached 50K miles. My total expense for out-of-warranty repairs (including tax) is approximately $4500. A broken scroll wheel, charger under the rear seat had to be replaced, water ingress/fogging requiring replacement of one taillight and the chrome strip in the back, DC-DC converter failing. Oh, my screen also has bubbles now for a few years with a small amount of leakage of the adhesive that stopped. Waiting for the new MCU to be available for replacement.

dr_gko | April 24, 2018

Still love the car. Have over 100K miles on it. Plan to keep it for another 3-5 years, depending on how soon Model Y comes out. We are waiting for our Model 3.

jordanrichard | April 24, 2018

Dr_gko, the reason or possible reason it wasn’t available to you is that in some states, extended warranties are considered insurance and if the company is not licensed to sell insurance in the state.........

Sam_S | April 24, 2018

Same here with a September 2014 AP close to 50K miles. Very nervous about not having the warranty renewed as repairs can be costly.

carlk | April 24, 2018

I did not buy it when mine expired a few months ago. You take your chances but on average you'll lose money for purchasing any kind of warranty or insurance.

sbeggs | April 24, 2018

We did not buy it when our 4 years was up March 12. Will pay as we go.

barrykmd | April 24, 2018

For the second time, ever, I agree with carlk.

Are you one to buy travel insurance before you go on a trip? If so, then you may want to buy it. However, insurance has a negative expected value for the purchaser, as the insurer needs to make a profit from offering it. They have calculated the average loss, and added a premium to that to determine what they charge you. If you are willing and able to accept the variance (i.e., future repair costs), don't buy the insurance/extended warranty.

Anthony J. Parisio | April 25, 2018

Put the money aside and self insure.

Rocky_H | April 25, 2018

I just got through my initial 4 year 50K miles a couple months ago and had already decided not to get the extended. It is like pre-paying for $5,000 worth of repairs that may or may not even come up. I can pay for my own repairs, so I'd rather just hold off and see if I get to keep some of that money in my pocket in the next four years.

jfemd.va.us | April 25, 2018

Great advice. My P85Dl turns 4 in December. Only issue I have had is a replaced charge port. I will forgo the extended warranty, place the money in an account and see what is left in four years. The only time I purchased a vehicle extended warranty was for a 1999 M-B ML320....it paid for itself three times.

SUN 2 DRV | April 25, 2018

I have 110k miles on 2013 MS. Did not get extended service. Had about $400 of repair costs (12 V battery and steering shims)

I have had several drive units replaced, but of course they're under a separate 8 year unlimited milage warranty so they were all done at no cost. Last one was for a Hum at 70 mph and they first replaced the wheel bearings that were quoted to cost $1,000, but that didn't solve the problem so they changed the drive unit at no cost and so didn't charge for the new wheel bearings.

I agree with Rocky. I'd put the money aside and self insure yourself.

Uncle Paul | April 25, 2018

Is the OP saying he went 4 years and 50,000 without service of any kind?

Is this normal for Tesla's?

ST70 | April 25, 2018

@jfemd.va.us- nice! how many miles do you have and curious what your battery range says at 100% now

Mark K | April 25, 2018

Self insure, pay as you go.

Current deal does not pencil out.

One thing I think Tesla should offer is a diffferent warranty product - major event coverage.

The idea would be similar to catastrophic loss health coverage.

Priced less, at say, 1,500.

You pay for all repairs, unless and until they exceed 5,000 iober 48 months. Then you pay 20% of any cost over 5K.

This would provide the stop-loss that most people desire, but at an affordable price.

A more useful product than current offering.

Mark K | April 25, 2018

iober = over

jfemd.va.us | April 26, 2018

@ST70.....about 38K miles; 100% range now 250 miles (257 when new)

pberrow | April 28, 2018

OP here. No, I bought the initial 4-year service plan. I have had the car serviced every 12,500 miles as thry recommend. I was just noting the the new car warranty did not *require* me to do that. Not having them service it does not void the initial new car warranty. That flexibility does not apply to the extended plan.

pberrow | April 28, 2018

I like the ‘major event coverage’ idea. That would be a good option to have.

cmweisbrod | November 1, 2018

I too thought I did not need an extended warranty. Wrong! My June 2014 Model S 35,000 miles has had significant repair issues--two door handle assemblies replaced during warranty. Charging cable/plug shorted and required $400 electrician work plus new charging cable and plug just after warranty expired. Now, 4 months post warranty expiration, something called a "Master Charger" failed. The repair estimate is $3100. I've talked them into allowing me to buy the extended warranty.for $4750. I thought my Tesla would be a low maintenance expense vehicle. I was wrong. I'll bet replacement of the other 2 door assemblies should they fail as the previous ones did, is also expensive. To make matters worse, Tesla does not have the Master Charger in stock and there is no ETA. That happened also with the charger plug that connects to the charging cable, i.e. out of stock and no ETA. Ended up taking over one month (no exaggeration) to obtain the new plug, during which time the only way to charge my car was at a supercharger. One thing to keep in mind is that when something breaks, you are completely at Tesla's mercy--no such thing as an independent mechanic; if there were, Tesla would not sell him parts anyway, as I learned when I had my longtime body shop repair some dings and scrapes. Just sayin'. More power to Tesla true believers who have so far dodged the bullet. May your Teslas continue to operate flawlessly. I kept my last car--a BMW--for 14 years before Tesla captured my imagination and I bought a new car. Never had an expensive repair after my very reasonably priced aftermarket extended warranty expired. It appears there is no way my Model S will have nearly that longevity.

rxlawdude | November 1, 2018

Wow, shorty is really nervous.

And pay $4750 instead of $3100. That makes sense.

Qwiksilver | November 1, 2018

2013 85S 64,000miles

Got the extended warranty. Glad I did. It’s just about paid for itself. Likely more issues will arise before the warranty expires.

jordanrichard | November 1, 2018

Qwiksilver, so you had $8,000 worth of repairs?

Mathew98 | November 1, 2018

Could've been $2500, depending when he bought it. Early bird gets the worm...

OTOH, I might cancel the extened warranty and get the prorated balance back and buy some shares instead.

E.Sugar | November 26, 2018

I'm torn, lease up on loaded P85D (mint 25k miles, buyout $70k), not sure to get extended warranty? Tesla trying to sell me on all options on Tesla 3, for the same price as the buy out on the P85D. Tesla 3 has new technology, more range, and another 4 years of warranty. I feel the MS is the flagship, such a nicer car.
Any opinions would be appreciated. Thanks

jordanrichard | November 26, 2018

E.Sugar, it is subjective. They are two different cars. One is more of a highway cruiser/hatchback that can hold a lot more cargo and the other a standard sedan that one foot smaller and is more nimble around turns.

SO | November 26, 2018

Anything 2015 and older, probably worth getting the extended warranty. I don’t plan on it for my 2017.

patrick40363 | November 26, 2018

I have a 2015 and will not buy the extended warranty.

P100DL Dude | December 3, 2018

I have a 2015 85D which will be out of warranty in 4 months. I do not intend to buy the extended warranty due to the cost and what it doesn't cover. I'll take the gamble.

flight505 | January 10, 2019

I'm near the end of my warranty. The main issue is I am over 300 miles from the nearest service center. Getting my Model S to a repair center will be expensive.

NKYTA | January 11, 2019

@P100DL, that’s bold for a 2015.

Boonedocks | January 11, 2019

I am certainly glad I pre-purchased the extended warranty when I bought my 2017 MS100D. At 62,500 miles now and in the last 3 weeks have had to have the drivers side repeater replaced, the passenger side headlight assembly replaced, and just yesterday the passenger door handle and the MCU went completely dead and was swapped out. I am fairly certain that in just a few months after my 50k mile warranty expired that my extended warranty has already paid for itself plus some.....

jordanrichard | January 11, 2019

Boonedocks, unless the motor failed on your passenger door handle, the handle could have been repaired versus an outright replacement. Because it was covered by your extended warranty, it was much simpler/faster to just replace the hold handle.

A couple months ago my front passenger handle motor kept running, despite the fact that the handle was still in. Since I am out of warranty, the mobile tech simply fixed the problem which was a broken gear. He even made the point to say that if it were a warranty item, he would have simply swapped out the handle. Instead he went with what would be the cheaper option for me and that was a $234 repair.

What is a "driver's side repeater"?

What was wring with your headlight?

I did not buy the extended warranty, and I have looked at what I had spent on repairs between 50,000 and 100,000 miles and had I bought the warranty, I would have lost money.

When you spend $4,000 on a warranty, until the repair cost reaches $4,001, you haven't made out.

stevenmaifert | January 11, 2019

My MS is a 2012. At the time I took delivery, Tesla was a new car company (from a manufacturing perspective) selling a new model car with no established track record for reliability. The ESA, erroneously referred to as an extended warranty, was $2500 back then. Ordinarily I wouldn't go for an ESA, but for the reasons stated, I thought it would be a prudent thing to purchase. I am now 2 years out of the new car warranty and have had the touch screen (MCU) replaced twice (first bubbles then the yellow stripe) along with a door handle. The first MCU replacement cost me the $200 deductible, the second replacement was free per the ESA. It has paid for itself. Purchasing the ESA at today's price is a matter of how much out of warranty risk you want to assume.

Boonedocks | January 11, 2019

Well @jordanrichard. You missed or conveniently left our the MCU which had to be replaced so that’s the biggest of the parts. $$$$

The repeater is the blinker in the fender

The head light had 1/2 of that daytime LED’s burn out.

b8schris | January 11, 2019

I bought my used tesla with 58,000 miles and got the 2 year/ 100,000 miles I haven't had to use it at all yet. but my friend recently got a new motor on his warranty. I think that my car has had just about everything replaced already :) Most of the things that Telsa covers are very inexpensive. the big things like motor and battery are covered on the other warranty. so, suspension parts a new cpu would be the other big expenses. But then, would they cost more than 7k. maybe maybe not

jordanrichard | January 12, 2019

Boondocks, no I didn’t “confidently” leave out your MCU. My point is that everyone is under the illusion that XYZ is “covered” by an extended warranty. Meaning that the company is paying for the repair, when that is not true UNTIL the cost of repairs minus any deductible, exceeds the cost of the extended warranty. This applies to any product and associated extended warranty. I am not saying that in your case you didn’t come out ahead and that Tesla didn’t actually cover, meaning pay for, the repairs. In my case, I would have lost money if I had bought the extended warranty.

tes-s | January 12, 2019

Deciding if the extended warranty is worth it is an extremely simple calculation.

If the repairs during the warrany period total more than the cost of the warranty plus deductibles, then it is worth it and you should buy it.

SO | January 12, 2019

Plus don’t you have to do annual maintenance in order to qualify for the extended warranty? I only do maintenance every other year.

rxlawdude | January 12, 2019

2015 S70D, 93,000 miles, the last 43,000 going "bare" as far as warranty.

Assuming nothing untoward in the next 7,000 miles, I saved $4,000.

stevenmaifert | January 12, 2019

@SO - Yes. The ESA is a contract, not an extended warranty, and it requires the purchaser to have the car serviced at the Tesla recommended intervals.

Yodrak. | January 12, 2019

"The ESA is a contract, not an extended warranty, and it requires the purchaser to have the car serviced at the Tesla recommended intervals."

Worth repeating, since so many posters keep calling it a warranty. It's a service agreement, and it does require that the car has been serviced.

rxlawdude | January 12, 2019

The service costs, of course, add to the total cost of the ESA. So it's closer to $5,500 at minimum.

Beanagee | January 14, 2019

My 2015 85D has 35k KMs or about 22k miles. I have not had any major issues, but a few minor issues with that being: brake calipers replaced, and sun roof seal replaced in my two years of ownership. Given the low mileage, and the car not being a lemon, I am planning to not get any additional warranty coverage. Thoughts?

52eleven | January 26, 2019

@Beanagee I'm toying with the same decision and it ultimately comes down to how much risk you want to assume. Based on the responses above we likely have a 50/50 shot at coming out ahead.

For me, piece of mind is worth it. It's also a bonus that you can get a refund for the unused portion less the value of repairs made during the term. Suggest reading this piece by David Noland.

https://www.greencarreports.com/news/1111921_life-with-tesla-model-s-bew...