Anyone NOT buying the extended warranty?

[Brass Guy]

I am not getting it. I made my decision when they modified the drive unit and battery warranty. (I was elated!)
I drive about 24k miles/year. Not worth it for 2 years IMO. Like ThosEM said, 50k-100k miles are likely to be the most reliable.
I have not been to the service center in quite a while now, and I'm very confident in the car at this time. (39k miles)
No air + no pano = less worries.

Agreed, there are a lot of expensive parts in the car. But you'd have to have several parts replaced (not just repaired) to make up that $4000 + deductible. Let's imagine 1 door handle replacement, a 12V battery and say a ball joint. With the agreement and deductible, you've now spent $4600 on those 3 repairs.

Also I prefer to work on my own vehicles. The only cases I've read about that Tesla wouldn't sell parts were for salvage vehicles. I am confident they'll sell me a ball joint or tie rod, even a door handle mechanism. (Lucky for me, I can check out the manuals if I get stuck; being in MA.) I expect to be able to change the 12V battery myself for less than the cost of the deductible.
I fully expect to need suspension bushings, CV joints - the usual stuff - hopefully well after 100k miles though.
I have thought about what AR mentioned, what's considered part of the drive unit or battery? My guess is axle shafts/CVs no, contactors yes. (I hope so anyway, those things open and close every time I open a door and don't get in.) Motor mounts - that's a tough one, but I doubt it'd be covered.

Finally, I've always felt that purchasing an extended warranty is like gambling against the product. It doesn't seem right to choose a product then gamble against it. I'm in it for the long haul, not just 100k miles.

 

[Frankrb]

I turned 50k last week, and will probably spring for the extended. Plan to keep the MS until we get the X in two years.

 

[brucet999]

If I didn't have the sig red I would not get the extended warranty.

I finally saw a Sig red last week at the Costa Mesa service center. That is the richest, most beautiful red color I've ever seen! Multi Coat Red pales by comparison.

 

[CHG-ON]

I struggle with this too. I think I will go for it. If I had bought the car when the ESA was only 2,500, it would have been a no-brainer. I have actually had good luck with ESAs that I have selectively bought. I bought one of the first Acura RDX's, and even though it was a Honda, I figured as a new car, there would be issues. The ESA cost me 1,250. My Nav went out, which would have cost 2,000. So I lucked out there. I had a few other minor issues too. I always buy ESAs on my Macbook Pros, and every one has paid off in spades. Even Consumer Reports recommended them for laptops. So I have been lucky.

The challenge for me right now is that I am between jobs, so I have no idea what my commute will be. My mileage could be anywhere from 30k/yr down to 10K. So I am glad that I have time before buying it. 30K/yr=no. 10K/yr=yes. I think! But in general, being such a new company and new tech, I would expect that there will be more than the average number of issues. The real tough thing is that the car is so new, that we have no reliable data about long term, age related issues.

I especially appreciated the comment made by Ride Long and AmpedRealtor. Two very logical points from opposite sides of the coin.

 

[shady]

I decided not to get the extended. At 50,009 miles, I got a warning saying tire pressure system is offline, contact service!!!!!

 

[russman]

Let us know what happens shady!

I'm in the undecided position. Historically, I always purchased warranties for my cars and they have all paid off, but they were all around $2.5k and none of them required a deductible. Also the mileage for most of them were for 120k miles. So 8 years 120k miles for $2500 no deductible.

Tesla's 4k cost + $200 deductible makes it close to unbearable considering that I drive about 20k miles, so I'll need it in 2.5 years instead of 4 years.

I'll be curious to see how much charges are for out of warranty items in the coming years for others.... but again $4k + deductible is darn expensive.

 

[Canuck]

There is no right answer. Rather, the issue is whether you have the resources to pay for a repair costing more than $4,200 without causing significant financial concern. An extended warranty is, in essence, an insurance plan. So if a major repair is not something you can comfortably afford, but you can afford $4,200, then you might want to consider this insurance. Otherwise, like all insurance plans, the insurer takes in more than it pays out.

 

[green1]

Otherwise, like all insurance plans, the insurer takes in more than it pays out.

That would directly contradict Musk's statement that service is not a profit centre...

 

[kuttakamina]

That would directly contradict Musk's statement that service is not a profit centre...

that quote is a lie. Don't tell me Tesla isn't overcharging $600 for wiper blade replacement.

 

[Rockster]

Depending upon one's method of accounting, "profit" or "not profit" can be a very vague concept. For example, if one takes into account overhead for labor, health insurance, worker's comp, etc., not to mention facility and equipment purchase and rental, it's not a very big stretch to see a wiper replacement costing $600. No, they haven't profited from the wiper replacement, but by the time you factor in all of Tesla's expenses to staff and run a service center, that wiper repair costs way more than going to the auto parts store and buying the components yourself.

Like some Hollywood insider said to an up and coming actor, "Never sign a contract for a percentage of profits, kid. A good accountant can make it look like Gone With the Wind lost money." I'm not saying that Tesla would ever be dishonest, only that recouping their associated service center costs, while still being zero net profit, will increase the charge to us.

I truly believe that the Tesla service experience will continue to be superior because it will be free from pressure tactics to sell unneeded services, shady practices like used parts being sold as new (or not really being replaced at all), or the additional X% profit on top of what a traditional stealership would need to charge just to break even.

 

[Canuck]

That would directly contradict Musk's statement that service is not a profit centre...

That's mixing apples and oranges. Find me a quote where he says the extended warranty is not a profit centre and I will agree with you. My guess is that Tesla uses the same actuaries as other auto makers in calculating the cost of the extended warranty.

 

[rdrcrmatt]

I brought up a thread like this a few months ago. I'm not the kinda person who can just throw $4k at a warranty without it hurting a bit. I usually work on my own cars, engine swaps, rebuilds, transmissions replacements, all easy stuff imo.

I purchased the extended warranty.

 

[kuttakamina]

I brought up a thread like this a few months ago. I'm not the kinda person who can just throw $4k at a warranty without it hurting a bit. I usually work on my own cars, engine swaps, rebuilds, transmissions replacements, all easy stuff imo.

I purchased the extended warranty.

Thats the thread - Out of warranty concerns about Tesla

Its a hard decision!

 

[SuperOmega]

Keep in mind this is a niche news Website (but it's very well researched), but check out item #2 here in this story from Aug. 4, 2016.

 

[Lex]

Unless you can easily afford (and won't suffer a brain hemorrhage dealing with) any eventuality, "insurance" of any sort is always a painful decision... when not legally (or otherwise) required that is

 

[mmccord]

I've decided not to get the extended warranty. I drive >40k miles/year, so $4k for 15 months of coverage doesn't seem like a good deal.

I'll follow-up in 2018 when I have 120k on her and let you know how it worked out for me.

 

[ChadS]

My 2009 Roadster ran out of warranty in 2012. An extended warranty, if I had bought one, would have run out in 2015. It would have been a waste of money. (Obviously that's not true in all cases, but it was in mine).

Our 2012 Model S has been out of warranty since 2014. We do have the extended warranty on that one...but yeah, so far that has been a waste of money too.

Like most types of insurance, most people lose money by buying it (though typically not huge amounts). But it can give you peace of mind, and the ones it really pays out for are extremely relieved to have it. Unless you are in a case where you absolutely can not afford repairs (yet can afford the warranty), it's really a personal decision and there's no way to predict the future well enough to say if it is "worth it".

 

[eddiemac]

Another way to look at it: I have multiple cars, multiple houses, multiple tv's, appliances, etc.
On homeowners, I get the high deductible ($10k), same for my health insurance, and I never buy extended warranties.
If you 'self insure' over a large number of items, it reduces the risk that you will incur a loss. Same model that insurance companies use.
The savings for these high deductible plans and extended warranties EASILY pay for any unexpected losses.
If you can't afford a $4000 bill for an unexpected repair on something then buy the insurance.
(Or maybe you should not have bought a Tesla in the first place.....)

 

[Patrick W]

I'm hoping a new Model 3 will have replaced my 2015 S by then and I'll be on the 3's original warranty.

 

[Lex]

(Or maybe you should not have bought a Tesla in the first place.....)

Model 3 of course changes everything (so sorry in advance for quoting your parenthesized text hehe)

In most markets I'm pretty certain there will be a healthy rebuild / repair market for the "modules" that can put a Tesla back on the road (I've said this earlier maybe even in this 'ol thread). Model S wrecks are already creating an aftermarket for parts, but S and X are low volume.

When the 3's are being mass produced, then it's that moment plus the end of the powertrain warranty before the mass rebuild market opens.