Extended Warranty Price Increase

[shokunin]

I'm probably pulling the trigger for the ESA warranty plans. Another $5K into the Tesla coffers.

I have purchased the extended warranty on my last two ICE cars, both have had some issue would have cost me at least 3x the cost of the extended warranty.

Even if the Air Suspension is not covered, I'm concerned with both LCD screens on the instrument display and dash, the Core processing units that run and control the car, the PEM module, the single charging module (or twin if you have that option), and the door handles.

 

[AmpedRealtor]

I don't think Tesla is saying you have to buy the additional 4 years of service plan. They are saying you have to have annual maintenance. You could still pay as you go and comply with the extended warranty.

Tesla is sending mixed signals. Per Elon Musk's 4/26 blog post: "… we are comfortable making the annual checkup entirely optional. There is still value to having Tesla look at the car once a year for things like tire alignment, to address a few things here & there and perform any hardware upgrades – our goal is not just to fix things, but to make the car better than it was. However, even if you never bring in the car, your warranty is still valid."

Here is what it says in the ESA: "You must follow correct operations procedures and have Your Vehicle serviced as recommended by Tesla. If requested, proof of required service, including receipts showing date and mileage of the Vehicle at the time of service, must be presented before any repairs under this Vehicle ESA commence. Service within 1,000 miles and/or 30 days of Tesla’s recommended intervals shall be considered compliant with the terms of this Vehicle ESA."

The two seem to be in contradiction to one another. Elon says you never have to bring in the car and the warranty is still valid, ESA says your extended warranty is only valid if you service your vehicle within 1,000 miles or 30 days of Tesla's recommended interval, and that Tesla can you ask you for documentation that you serviced the car per Tesla's recommendations - which Elon said on 4/26 you don't have to do. So I am not quite sure what to think other than to defer to the actual written ESA language. At its face value, the ESA will require you to have annual checkups as recommended by Tesla. For those of us who were not planning on utilizing Tesla's annual service on a regular basis, the ESA will cost an additional $3800 if you get the 4+4 service plan or an additional $4,800 without service plan (no discount).

So for those of us who were not counting on spending the additional fee for annual service, the ESA is essentially going to cost a total of $6,300 in order to maintain its validity over 8 years, and that's if we pre-pay for service in advance and buy the ESA at the lower $2,500 price. There are owners who are going to want to rotate their own tires, change their own wiper blades, and not take the car for a full check-up each year. For those people - and we are out there - the ESA is going to cost a lot.

 

[SFOTurtle]

I don't think they're at odds. If there is a warning and Tesla recommends you to come in for servicing and you ignore the directive to come in and take care of it, you won't be covered years later if that part fails. That is not the same thing as annual maintenance. But I am going to call tomorrow and inquire further as I had bought a pre-paid service plan before Elon's announcement and now was thinking I didn't need this but do want to buy the extended warranty/ESA.

 

[markb1]

Tesla sucks at communication. Nothing new.

 

[jerry33]

So I am not quite sure what to think other than to defer to the actual written ESA language. At its face value, the ESA will require you to have annual checkups as recommended by Tesla.

Elon only made that post a few weeks ago. it will take the legal department months to agree on the correct wording. It's no surprise that the documentation is not up to date, and may never be changed to protect themselves from the abusers of the system. However, Tesla didn't have to give a grace period to purchase the ESA at the lower price and they didn't have to do a number of things that they did after folks complained. I have some faith that Tesla will do the right thing when the time comes.

 

[tdiggity]

Requiring service for the extended warranty to be valid doesn't make sense to me because they haven't said what they are doing at service for it to justify keeping warranty valid. For example, with air suspension, why do I need to have service done? What are they servicing on the air suspension? If they are actually doing something at the annual service, then that would make sense, but as is they rotate my tires, change fluids and brake pads if necessary...yes they do TSBs, but I can get those done for free by calling and making an appt. it makes a lot of sense for tire warranties to be valid only if you've done proper rotations. Engines warranties to be valid only if you change the oil, the gaskets, etc when they say so. So, if you can tell me what maintenance schedule the air suspension has, I'd be happy to do it, but a blanket statement saying that its going to cost me an additional $600/yr for 8years is not right.

The messaging stinks, no doubt.

 

[jerry33]

What are they servicing on the air suspension?

Presumably they check for bladder leaks or road hazard damage, check that the seals are intact, and check that the system actually adjusts to the proper height when selected.

 

[AmpedRealtor]

Per the service agreement, here is what is included:

Vehicle inspection;
Replacement or repair at the time of inspection of normal maintenance items and wear and tear parts, excluding the Battery and tires;
Wheel alignment; and
Tire rotation

So an annual vehicle inspection may be worth it on such new technology, as it may reveal wear and tear that may not be readily observable by owners. Tesla doesn't even fully know how this car is going to wear over time, so it can't heart to have the experts check your car out every year. Does anyone know what the "vehicle inspection" consists of?

 

[kendallpb]

Hey guys, I'm new here and my P85 went into production on Friday. Very excited!

Congrats! :-D

So the actual cost of the ESA isn't $2,500 - it's actually $6,300 once you add in the 4+4 service contract in order to maintain compliance with the wording of the ESA.

...or, for those of us who were getting the 4+4 anyway, it's actually $2500. ;-) But despite the lack of update to the ESA, you don't need the 4+4 anyway. Yes, yes, what we sign, etc., you're right, of course, but even if I weren't getting the 4+4, I wouldn't be concerned.

 

[ddruz]

Reporting back with Tesla's response to my query whether air suspension is covered under the ESA:

There are multiple components to the active air suspension, including an air compressor, piping and valves to maintain pressure, air bags in each wheel well and a computer system to manage everything. The extended service agreement (ESA) would cover these items, however the shocks within the suspension are considered wear and tear items and not covered under the ESA.

I then emailed asking if, being wear and tear items, shocks are covered under the annual service plans. The reply was:

Shocks would not be covered under the annual service.

Both these replies from Tesla came from Walter Franck, senior Ownership Experience Advocate.

 

[brianman]

Walter Franck, senior Ownership Experience Advocate.

I don't know if that's a promotion but if it is it's definitely well deserved. Crisp, quick responses and good general follow-through and manner.

 

[ckessel]

however the shocks within the suspension are considered wear and tear items and not covered under the ESA. [/I]

I then emailed asking if, being wear and tear items, shocks are covered under the annual service plans. The reply was:

Shocks would not be covered under the annual service.

Both these replies from Tesla came from Walter Franck, senior Ownership Experience Advocate.

I'm not sure why they aren't covered under the annual service. The service agreement says:

The regularly scheduled maintenance inspections shall include the following (subject to change by Tesla at any time
and without notice, in its sole discretion):
• Vehicle inspection;
• Replacement or repair at the time of inspection of normal maintenance items and wear and tear
parts, excluding the Battery and tires;
• Wheel alignment*; and
• Tire rotation*.

 

[dave]

I just buckled and bought the ESA for $2500.

I wasn't going to buy ANY of the prepaid services, but the price increase on the ESA made me think that maybe it was a good deal after all. I guess time will tell. I'm still not paying $600 a pop for alignment and wiper blades. I'm hoping that won't be a problem in 7 years when I need something major replaced.

 

[bhuwan]

So - last day to buy it - still concerned as to whether it's worth it.

 

[Lump]

I bought the extended warranty last night & so far don't plan on getting any of the service plans.

 

[swegman]

ddruz, the reply you got is similar to what HQ told me, but for the last part. They told me everything related to the air suspension but for the shocks itself was covered by the ESA, while the shocks would be covered by the annual service plan. There is an inconsistency on Tesla's part with respect to the shocks itself.

 

[Zextraterrestrial]

Lot's of stuff not covered. + if you have ever used you car for route work/drag raced/ raced in any sort of fashion it is all void anyway!

potholes, rough road ...void

hauling (ass) .. void

seems pointless to me

 

[bhuwan]

Lot's of stuff not covered. + if you have ever used you car for route work/drag raced/ raced in any sort of fashion it is all void anyway!

potholes, rough road ...void

hauling (ass) .. void

seems pointless to me

Just read the entire agreement and it doesn't seem to cover anything. Exclude potholes ,WTF?

 

[Doug_G]

Those exclusions are to cover their asses in case of massive abuse. In reality they cannot deny coverage unless they can demonstrate that a particular activity resulted in specific damage to the car.

If they try to deny coverage just threaten to take them to small claims court and they will pay up. (They would lose in court anyway.)

 

[twinklejet]

Those exclusions are to cover their asses in case of massive abuse.

I agree. Lawyers will always ensure that the language used is suitable to "cover all possibilities". However, goodwill and for long-term customer loyalty purposes, companies will usually not strictly follow such disclaimers unless they determine that you are merely out to take advantage of them / abuse the system - then you get the disclaimers thrown at you.

Of course, insurance companies are an exception to this rule. You get the book thrown at your regardless of the size of your claim. They merely want to collect premiums and get no claims (profit maximization).