Official: Model S Service Plans

[ModelS1079]

TWO POINTS about the service agreement - feedback, please:

Transfer of the Service Agreement on Sale of Vehicle: $100 fee and only with private sale.

I. Transfer of this Agreement
Contact Tesla and submit the following:
1. A letter requesting that Tesla transfer this Agreement to the new owner.
2. $100 transfer fee.
3. This Agreement.
4. Written evidence verifying all maintenance requirements have been met.
5. A copy of documentation evidencing change of ownership and mileage at date of sale.
6. Documents verifying transference of the Agreement, if applicable.
Conditions:
1. This Agreement cannot be transferred to another vehicle. It can only be transferred to a different
private owner of the same Vehicle.
2. The Vehicle is subject to inspection.
3. Transfer must take place within 30 days of change of ownership.
4. You may not transfer this Agreement to a vehicle dealer or to the customer of a vehicle dealer. (read: no trade in! Transferred with private sale only?)
5. All remaining underlying warranties also must be transferred to the new owner.


What is covered, and not covered:

This is purely an annual service agreement - it adds no additional warranty for the car. It includes no additional coverage of any malfunction. Please correct me if I am wrong (could an owner-lawyer chime in please, after looking at the agreement? We won't hold you to it except as a plebeian opinion.). Another words, the only benefit in purchasing this service plan ahead of time is the decreased cost, which otherwise would be $600 annually (or at 12.5 K miles, whichever comes first). The key point then is that it provides no additional protection for the first 50K miles, and, at 50,000 miles, the factory warranty runs out and the additional "extended" service plan only covers the annual service and does not warranty the car any further than 50K miles - it does not cover any vehicle malfunction after the warranty runs out at 50K miles:

D. Exclusions (What Is Not Covered Under This Agreement)
This Agreement is only for the maintenance services specified in this Agreement and does not cover certain parts, including the Battery and tires, or any Vehicle damage or malfunction included or excluded from the New Vehicle Limited Warranty for Your Vehicle. In addition, any damage or malfunction directly or indirectly caused by, due to or resulting from any maintenance not performed as required pursuant to the scheduled intervals specified in the owners documentation for Your Vehicle will not be covered under this Agreement.


In summary, this service plan provides only an annual inspection, software update, replacement of wipers and...?
With this in mind - if I have it right, is it of great benefit to pre-purchase? Although my inclination is to do so, I do not believe this service agreement covers anything more than the warranty does, except the annual inspection, and the warranty still expires at 50K miles even if one purchases the extended service plan. Help and feedback appreciated.



Ok, I get it - there is an 8-year Service plan, which covers only annual service, for $3,800. For $2,500, additional to or instead of the Service Plan, the Extended Service Plan (which I think should be called an extended Warranty Plan because the plan above is clearly the extended service plan), covers material defects and malfunction. Looking it over, it is a powertrain warranty as it excludes most other items.

These are excluded in the Extended Service Plan:
Maintenance/Parts, including but not limited to the following:
o Parts and normal or expendable maintenance items and procedures such as annual service and diagnostics checks, brake pads/linings, brake rotor, suspension alignment, wheel balancing, hoses, air conditioning lines, hoses or connections, Battery testing, fluid changes, appearance care (such as cleaning and polishing), filters and wiper blades/inserts; and
o Other maintenance services and parts described in Tesla’s maintenance schedule for the covered Vehicle;
• Other Parts not covered:
o Bright metal, sheet metal, bumpers, ornamentation moldings, carpet, upholstery, paint, shock
absorbers, battery, battery cables, lenses, light bulbs, sealed beams, glass (e.g., windshield),
wheels, interior trim, body seals and gaskets (e.g., weather stripping); and
o Removable soft tops, removable hard tops, glass, plastic, framing, cables, or seals;

Could someone more, well, more apt to understand this than I please read both the Combined 8-year service agreement and also the separate 4-year extended service agreement. I think it is very confusing that there is essentially an 8 year ANNUAL service plan, and a separate Extended Service Plan that does not cover annual service but is meant to cover defects that become apparent after the first 4 years/50K miles. If the Extended Service Plan was termed an Extended Warranty Plan that would make a lot more sense. One plan ($3,800) for 8 years/!00K miles of annual service, a separate plan ($2,500) to extend warranty coverage from 4 year/50K miles to 8 year/100K miles. And, in closing, I find it disappointing that even with both these - $6,300 all PREPAID - most items in the car are still not covered after 4 years/50K miles - it is essentially a drivetrain extended warranty as far as I can understand.

 

[ModelS1079]

TWO POINTS about the service agreement - feedback, please:

Transfer of the Service Agreement on Sale of Vehicle: $100 fee and only with private sale.

I. Transfer of this Agreement
Contact Tesla and submit the following:
1. A letter requesting that Tesla transfer this Agreement to the new owner.
2. $100 transfer fee.
3. This Agreement.
4. Written evidence verifying all maintenance requirements have been met.
5. A copy of documentation evidencing change of ownership and mileage at date of sale.
6. Documents verifying transference of the Agreement, if applicable.
Conditions:
1. This Agreement cannot be transferred to another vehicle. It can only be transferred to a different
private owner of the same Vehicle.
2. The Vehicle is subject to inspection.
3. Transfer must take place within 30 days of change of ownership.
4. You may not transfer this Agreement to a vehicle dealer or to the customer of a vehicle dealer. (read: no trade in! Transferred with private sale only?)
5. All remaining underlying warranties also must be transferred to the new owner.


What is covered, and not covered:

This is purely an annual service agreement - it adds no additional warranty for the car. It includes no additional coverage of any malfunction. Please correct me if I am wrong (could an owner-lawyer chime in please, after looking at the agreement? We won't hold you to it except as a plebeian opinion.). Another words, the only benefit in purchasing this service plan ahead of time is the decreased cost, which otherwise would be $600 annually (or at 12.5 K miles, whichever comes first). The key point then is that it provides no additional protection for the first 50K miles, and, at 50,000 miles, the factory warranty runs out and the additional "extended" service plan only covers the annual service and does not warranty the car any further than 50K miles - it does not cover any vehicle malfunction after the warranty runs out at 50K miles:

D. Exclusions (What Is Not Covered Under This Agreement)
This Agreement is only for the maintenance services specified in this Agreement and does not cover certain parts, including the Battery and tires, or any Vehicle damage or malfunction included or excluded from the New Vehicle Limited Warranty for Your Vehicle. In addition, any damage or malfunction directly or indirectly caused by, due to or resulting from any maintenance not performed as required pursuant to the scheduled intervals specified in the owners documentation for Your Vehicle will not be covered under this Agreement.


In summary, this service plan provides only an annual inspection, software update, replacement of wipers and...?
With this in mind - if I have it right, is it of great benefit to pre-purchase? Although my inclination is to do so, I do not believe this service agreement covers anything more than the warranty does, except the annual inspection, and the warranty still expires at 50K miles even if one purchases the extended service plan. Help and feedback appreciated.

Ok, I get it - there is an 8-year Service plan, which covers only annual service, for $3,800. For $2,500, additional to or instead of the Service Plan, the Extended Service Plan (which I think should be called an extended Warranty Plan because the plan above is clearly the extended service plan), covers material defects and malfunction. Looking it over, it is a powertrain warranty as it excludes most other items.

These are excluded in the Extended Service Plan:
Maintenance/Parts, including but not limited to the following:
o Parts and normal or expendable maintenance items and procedures such as annual service and diagnostics checks, brake pads/linings, brake rotor, suspension alignment, wheel balancing, hoses, air conditioning lines, hoses or connections, Battery testing, fluid changes, appearance care (such as cleaning and polishing), filters and wiper blades/inserts; and
o Other maintenance services and parts described in Tesla’s maintenance schedule for the covered Vehicle;
• Other Parts not covered:
o Bright metal, sheet metal, bumpers, ornamentation moldings, carpet, upholstery, paint, shock
absorbers, battery, battery cables, lenses, light bulbs, sealed beams, glass (e.g., windshield),
wheels, interior trim, body seals and gaskets (e.g., weather stripping); and
o Removable soft tops, removable hard tops, glass, plastic, framing, cables, or seals;

Could someone more, well, more apt to understand this than I please read both the Combined 8-year service agreement and also the separate 4-year extended service agreement. I think it is very confusing that there is essentially an 8 year ANNUAL service plan, and a separate Extended Service Plan that does not cover annual service but is meant to cover defects that become apparent after the first 4 years/50K miles. If the Extended Service Plan was termed an Extended Warranty Plan that would make a lot more sense. One plan ($3,800) for 8 years/!00K miles of annual service, a separate plan ($2,500) to extend warranty coverage from 4 year/50K miles to 8 year/100K miles. And, in closing, I find it disappointing that even with both these - $6,300 all PREPAID - most items in the car are still not covered after 4 years/50K miles - it is essentially a drivetrain extended warranty as far as I can understand.

 

[scriptacus]

The metal, hose, etc... exclusions are likely about protecting Tesla from covering things like salt corrosion. Big ticket items are still covered; dead touchscreen, failed air suspension, failed AC compressor, failed window/seat electronics, charging port hardware, etc... In my mind those are the costs that would be very expensive to repair/replace out of pocket. I intend to keep my car for a long time and, for peace of mind regarding big ticket items like those listed above, I am getting the extended maintenance agreement. Which also means getting the prepaid 4+4 since the maintenance is void without annual services.

 

[Doug_G]

Thankfully, when typing in my AmEx number after selecting the Visa/MC choice, it accepted, processed, and emailed confirmation.

I don't blame them for not promoting Amex; like many companies we simply refuse to deal with them. Amex merchant discount rates are double those of other credit cards - often 6% or 7% compared to a more typical 3%. So they basically take a huge chunk of the merchant's profits for themselves.

 

[ModelS1079]

The metal, hose, etc... exclusions are likely about protecting Tesla from covering things like salt corrosion. Big ticket items are still covered; dead touchscreen, failed air suspension, failed AC compressor, failed window/seat electronics, charging port hardware, etc... In my mind those are the costs that would be very expensive to repair/replace out of pocket. I intend to keep my car for a long time and, for peace of mind regarding big ticket items like those listed above, I am getting the extended maintenance agreement. Which also means getting the prepaid 4+4 since the maintenance is void without annual services.

Hey this is very helpful - a better perspective, perhaps - more feedback on my comments above from others, please. Do I see the coverage correctly?

 

[Plug Me In]

I have the same concerns MS1079. I interpret the wording of the agreement the same as you. The website, however, defines "Tesla Service" as "includes replacement parts like brake pads and windshield wipers". Mixed signals.

 

[teslasguy]

George B stated in a post quite a while ago that the service agreement would cover all wear/tear parts that are not covered under the standard warranty, with the exception of tires and battery. Battery is covered under a separate warranty. So, stuff like brake pads, wipers, etc.


P1117 Sent from my iPhone using Tapatalk

 

[ModelS1079]

John I recall that well. but does the agreement as it is now defined state the same?

 

[vfx]

When I asked Tesla about extended warranty for the Roadster, they said they could not call it a warranty. Some states have very specific laws about warranties.

 

[ddruz]

The metal, hose, etc... exclusions are likely about protecting Tesla from covering things like salt corrosion. Big ticket items are still covered; dead touchscreen, failed air suspension, failed AC compressor, failed window/seat electronics, charging port hardware, etc... In my mind those are the costs that would be very expensive to repair/replace out of pocket. I intend to keep my car for a long time and, for peace of mind regarding big ticket items like those listed above, I am getting the extended maintenance agreement. Which also means getting the prepaid 4+4 since the maintenance is void without annual services.

I think we need to be very careful about assuming all big ticket items listed here are covered by the ESA regardless of how the part fails. Reading the ESA closely indicates that failure due to normal wear and tear is not covered. ESA covers items that fail due to manufacturing defects. Also many items are specifically excluded such as shock absorbers.

Because of this I do not have an comfort that an air suspension that fails due to parts normally wearing out, for example, will be covered. In fact, most of the things that have failed on my previous cars after 4 years have been things that just wore out, not because of manufacturing defects. Such things are not covered by the ESA.

 

[gg_got_a_tesla]

ddruz is onto something. A lot of grey areas here. As part of an extended warranty (going from years 4 to 7) for my Acura, malfunctioning side-mirrors - the motors got hiccuppy when adjusting or auto-tilting - were replaced, twice, with a $50 deductible each time. Now, Acura could very well have blamed something like that on wear and tear but, they didn't.

Where would Tesla draw the line? So far, barring some isolated incidents, Tesla service hasn't acted like a "cheapskate" at all - replacing entire UMCs for cosmetic defects and other things on these lines - so, the early signs are good.

 

[bbmertz]

The Extended Service Agreement does seem to offer valuable protection in order to avoid potential high-cost repairs after the standard warranty expires, however is there any reason to buy the ESA now? The Tesla website states that it can be bought up to 30 days prior to the expiration of the standard warranty, so why would anyone buy it now?

On the other hand, I can see why someone might consider buying the 8-year Service Plan, since the website indicates that the second 4 years of this service plan may or may not be available for purchase (at the same or higher price) after the initial 4-year Service Plan expires. I'm leaning towards just buying the 4-year Service Plan, since worst case it will only cost about $100 more per year to buy annual service after the initial 4-year plan expires.

 

[znino]

I'm surprised at how many plan to keep this car for so long. I'm planning on selling mine maybe in 3 years and upgrading to a potentially newer version with all the features that will probably be added by then (as discussed in various threads about features missing from the current version). I would never plan to keep my current cell phone for 8 years as it will be hopelessly out of date by then. The Model S has a similar imperative to me, so I plan to pay as I go for service for a few years and start again with the latest and greatest when the next one comes.

Are you all sure you want to commit to the current generation of technology for 8 years? That's an eternity in the world of high tech.

I agree with you. I never keep my cars more than 3 years (usually leased) and I think the Model S in 3 years will be a different beast with new things added. Having said that, I think that for the extra money on the 4 year plan over 2-3 guaranteed service visits the delta is small enough that it makes sense. I think that being able to offer the next owner in 3 years a bumper to bumper comprehensive plan for another 1-2 years will have value on the resale market.

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As long as Tesla provides upgrades, there's no reason why the Model S shouldn't last, and be reasonably current, for 20 years.

They are not going to be able to offer every feature upgrade with a software update, c'mon! Proximity sensors, forward looking cameras, lane deviation assist, adaptive cruise, blind spot monitors, rear center consoles etc plus whatever new styling they will inevitably introduce. No car stays identical for even 5 years!

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Aside from the debate about going yearly for the maintenance plan or buying the 4 years upfront, I am wondering about the following:

When they mention that it includes wear and tear replacement parts like brake pads and windshield wipers, is there an exhaustive list of replacement parts covered or is it any wear and tear on parts excluding tires? For example, are the rotors covered?

With respect to replacement of worn parts is there a limit to the number of times this can be used (for example replacement of worn or defective brake pads no more than X times etc)?

Perhaps someone who has already purchased and has the fine print can answer this....

 

[ModelS1079]

"The Extended Service Agreement ... is there any reason to buy the ESA now? The Tesla website states that it can be bought up to 30 days prior to the expiration of the standard warranty, so why would anyone buy it now?

... leaning towards just buying the 4-year Service Plan, since worst case it will only cost about $100 more per year to buy annual service after the initial 4-year plan expires."

Not sure either of these statements is accurate.

 

[scriptacus]

I think we need to be very careful about assuming all big ticket items listed here are covered by the ESA regardless of how the part fails. Reading the ESA closely indicates that failure due to normal wear and tear is not covered. ESA covers items that fail due to manufacturing defects. Also many items are specifically excluded such as shock absorbers.

Because of this I do not have an comfort that an air suspension that fails due to parts normally wearing out, for example, will be covered. In fact, most of the things that have failed on my previous cars after 4 years have been things that just wore out, not because of manufacturing defects. Such things are not covered by the ESA.

I don't believe complete failure to function falls under "wear and tear", but maybe I'm reading it wrong.

“Failure” means the complete failure or inability of any covered part to perform the function(s) for which it was designed due to defects in material or workmanship of any parts manufactured or supplied by Tesla that occur under normal use. Failure does not include the gradual reduction in operating performance due to normal wear and tear.

Here are examples of what I would consider wear and tear vs. failure.

After 6 years:
Touchscreen has some dead pixels, or a yellowish hue - normal wear and tear
Touchscreen is blank or no longer responds to touches in lower left quadrant - failure

Air suspension is loose or no longer raises as high as it used to - wear and tear
Air suspension no longer raises or lowers at all, displaying error on console - failure

Seat adjustment motors are sluggish - wear and tear
Seat adjustment motor for driver no longer able to move the lumbar support up - failure

AC no longer cools the car as well as it used to - wear and tear
AC compressor no longer functions - failure

TLDR: I would expect any major mechanical or electronic part in the car that no longer functions in at least some minimal capacity to be repaired under warranty.

 

[yobigd20]

$700 (or $900) for tire road hazard warranty? Doh, that's absurd. I sort of feel like they are taking advantage of "those who don't know any better". If any of you have bought tires elsewhere and seen the typical road hazard warranties offered, they are usually around $10-25 per tire. That's $40-$100, not $700-$900. Sheeeesh. IMO don't get conned into Telsa's road hazard plan! If you want one, just wait until you need new tires (or you hit a road hazard and need new tires, lol), then go somewhere else and put some Michelin's on, and get their road hazard warranty. Much better than the Goodyear's that Tesla is using anyway. It's cheaper, and safer for you! (they hold MUCH better to the road in rainy weather). A double win!

fyi http://www.edmunds.com/auto-warranty/understanding-tire-warranties.html "Road hazard warranty prices vary, based on the tire and the vendor, but on average, they range from $10-$20 per tire."

 

[dsm363]

It's expensive but doesn't the warranty cover rims too?

 

[yobigd20]

It's expensive but doesn't the warranty cover rims too?

right, forgot about that part...

 

[bbmertz]

"The Extended Service Agreement ... is there any reason to buy the ESA now? The Tesla website states that it can be bought up to 30 days prior to the expiration of the standard warranty, so why would anyone buy it now?

Not sure either of these statements is accurate.

Here's a quote from the Tesla MS website regarding when you can purchase the ESA:

EXTENDED SERVICE AGREEMENT
Tesla’s extended service program covers the repair or replacement of Model S parts due to defects in materials or workmanship provided by Tesla. Coverage lasts for four years or 50,000 miles (whichever comes first) and begins on the date your warranty expires, as long as you purchase this service within 30 days of your warranty’s expiration.

 

[ModelS1079]

Okay, so obvious but had to be spoon fed to me for me to believe it. So we can wait on the extended service agreement - but the price seems likely to increase...