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10 Year 125k Mile Extended Warranty - Worth It?

10 Year 125k Mile Extended Warranty - Worth It?

A company called Xcelerate is now offering extended warranties for Model 3. (My quote was $3,600 for a 10 year 125,000 mile warranty for one car and $3,400 for the other - apparently # miles has an impact.) Anyone have experience with these guys? Any thoughts on whether it is worth the money?

https://www.xcelerateauto.com
https://insideevs.com/news/368032/tesla-extended-warranty-xcelerate/

spuzzz123 | 2019年8月30日

I am skeptical of all 3rd party warranties. My experience has been that they cover everything except the most common problems which means they’ll deny 90% of all claims. I don’t know this company or their fine print but I would suggest a really close look with a critical eye on loopholes. Plus you’re kind hemming yourself in. What if you total it? What if you want to sell it?

TexasBob | 2019年8月30日

@spuzz123 I read the contract and the excluded items are pretty reasonable and expected (brakes, lights, alignment, failures due to collisions, and so forth). It is transferrable if you sell the car.

derotam | 2019年8月30日

If you have a used private party sold vehicle...maybe, but if it was bought from Tesla, I can't really see a use case since Tesla continues the Model 3's warranty.

vmulla | 2019年8月30日

I expect to be out of warranty by the end of this year. If I could get the same deal from Tesla I'd take it in a heart beat.

Tesla insurance + Tesla extended warranty = peaceful me

hokiegir1 | 2019年8月30日

@derotam - some of us are close to being out of warranty. I will likely be by the end of this year.

derotam | 2019年8月30日

Yeah, I just thought about that as far as mileage is concerned.

bjrosen | 2019年8月30日

Never ever get a third party warranty, they are designed so that you can never win. If Tesla offers an extended warranty then you might consider it but read the fine print first.

Mr. Spacely | 2019年8月30日

$3,600?! Don't do it. Think about it this way. What part(s) of the car are even worth $3,600?-- just the motor and batteries, and I bet they exclude batteries. Even a new AC would be closer to $1,500. Yes, some of the older Model 3s had problems but once you work through them in the beginning there isn't too much that will go wrong in the future. These cars have very few moving parts...

RayNLA | 2019年9月1日

Warranty the car yourself! Put $3600 in a savings account and let it sit for 10 years or 125k miles.
If something happens and you need to make a repair you don’t have to get approval from anyone but yourself!
Hope this helps.

PhillyBob | 2019年9月1日

Back in 2005 I had a 3rd party extended warranty on a new Subaru that would have lasted time frame you mentioned. Halfway through my manufacturers warranty that company closed its doors in bankruptcy. I got nothing as technically I did not have a claim yet.

Run away fast!!!!!! @RayNLA has it right.

SalisburySam | 2019年9月1日

Not familiar with Xcerlerate, but as others have hinted, I think the big question aside from covered work is the company’s longevity. Is there anything in the contract to protect you in that event? Ten years is a long time for a start-up, and if that’s the case here, they have to do a lot right to be sustainable. If the company is a private one, your chances could be even worse if the owner(s) decide to just bag it and sip piña coladas on a nude beach in the Maldives.

carlk | 2019年9月1日

Worth it to you only if they are in business to NOT make money.

Magic 8 Ball | 2019年9月1日

It is a gamble if an extended warranty will pay for itself; may as well take the cash to a casino and parlay it into a second Tesla.

FISHEV | 2019年9月1日

“What part(s) of the car are even worth $3,600?”@Mr.Spacely

Rear bumper and sensors. Front fender and cams. On the Tesla the question would be what parts are not SOLD FOR $3,600. We see insurance companies “totalling” Tesla’s due to fender benders knocking out the sensors so the expenses for private party are going to be huge.

That it’s transferable makes it likely necessity for selling a used Tesla.

Magic 8 Ball | 2019年9月1日

Extended warranties do not cover damage due to accidents. Bumpers and fenders are not prone to failure due to warrantied "wear and tear". Actual cost of a failed camera or other "sensor" or other wear and tear item that fails earlier than a normal distribution, on the whole for "warranty" insurance companies is small. They make huge profits banking on the statistics of it all.

tanya™ | 2019年9月2日

Who keeps cars for 10 years?

dmanincali | 2019年9月2日

Also, the battery & drivetrains are covered for 8 years & 100,000 miles under the Tesla warranty so not sure this extended warranty would ever pay for itself.

owlegrad2 | 2019年9月2日

I will pile on the "don't do it" train. You don't know that they will be in business in 10 years. You don't know that your claim will be covered. Rather than pay $7,000 for two cars you can just put that money in an index fund and in 10 years time you will have mostly likely came out way ahead.

ST70 | 2019年9月2日

No...don't do it!

@tanya- I still have my 1997 Dodge Dakota...driven it 4-5 times since the Teslas...getting rid of it soon!

ODWms | 2019年9月3日

As a rule, I never buy extended warranties on any purchases I make as they tend to be wastes of money. I'd imagine I've saved quite a mint due to that practice over the decades.

walnotr | 2019年9月3日

My wife bought an extended warranty on a new to her Audi and never used it. We bought a “service policy” with a Prius a few year back (that’s another story) and I made sure every oil change, inspection and tire rotation was done on time up until it expired when we hit the 75K mark. Fortunately, our Model 3 showed up about the same time and the Prius is no more. Also taking a car in for service every 5K mile is a thing of the past.

jordanrichard | 2019年9月3日

Don’t get too excited about this.

What people seem to not realize is that in this instance, the $3,600 you pay for this “warranty” is you paying $3,600 worth of repairs in advance. Not until the covered repairs exceeds $3,600 is this company actually paying for the repair out of their pocket, which clearly they can’t do or they would be out of money and business.

Also, since Tesla is where you would be taking your car to be fixed, you are assuming Tesla will accept a third party payer,

Is this 10 years/125,000 coverage over and above what the car comes with already? The big money is the battery pack and DU and those are already covered for 8 yrs/100,000 miles. So you are dropping $3,600 for 2 yrs/25,000 coverage........

ODWms | 2019年9月3日

Isn’t it 120,000 miles on the drive train?

Stinnett | 2019年9月3日

tanya:
I've had my Mazda6 for 13 years now ... previous car was 14 years, I think. I suppose I'll have my M3 until I die. Or, well, maybe not but for more than a decade, for sure.

TexasBob:
I will join the chorus for no extended warranty. The house always wins.

Life is good, but it's better in a Tesla.

FISHEV | 2019年9月3日

“The house always wins”@stinnet

Which is true on all insurance or they would not stay in business. If someone is going to be out of warranty in two years, the extended warranty for the Tesla makes a lot of sense. Getting ready to sell a 3-4 year old Tesla out of warranty, it makes a lot of sense.

tanya™ | 2019年9月3日

@ST70 and @stinnett That's great. However, cars on US roads average 11 years of age, while the average length of time drivers keep a new vehicle is around 6 years.

dmanincali | 2019年9月3日

@ODWms - my bad. For the long range battery it is 120,000 miles. For the other batteries it's 100,000 (https://www.tesla.com/support/vehicle-warranty)

gwolnik | 2019年9月3日

I recommend you put that money into a high interest savings account and then if you have a problem that Tesla won't cover, take it out of that account. This is a good time to remind everyone to push for Tesla to cover any problems that are not normal wear and tear, even after the warranty supposedly expires. Other manufactures have "hidden" extended coverage for defects, but you have to know to ask. Sometimes you just have to keep pushing, you might at least get a compromise deal if you make enough noise. Threaten to cancel (or not make) that Model Y deposit!

rsingh05 | 2019年9月3日

@tanya - I'm guessing the average ownership for people who buy is ~8 years, while those who is lease is ~3 years. Assuming a third of the people lease, the average comes out to the ~6 years you stated.

Given that the vast majority of Model 3s are bought (leasing is a recent option), most owners on this forum have bought their 3, which means they will keep it for an average of 8 years. Of this group, some will be lower (perhaps yourself) while some will be higher (~10 years).

tanya™ | 2019年9月4日

@rsingh05 We are still talking about worthiness of a 10-year warranty, right? $3600 is too expensive considering you are already covered for the most expensive part of the car for 8 years/120k miles.

jjgunn | 2019年9月4日

The Model X -- definitely extended thru Tesla.

If 1 falcon wing door has an issue, it'll pay for itself.