Out of warranty concerns about Tesla

[lagann]

I just looked into PayMyRepair and you are right in that they have Tesla as a selection criteria but what disturbs me when digging further is that they are not a warranty company. They seem to be a front that takes your information and gives it to warranty companies. Not that there is anything wrong with that per se but you are going to end up most likely dealing with a company you may not have heard before and I've ready articles about these companies that pop up, sign up people for warranty coverage and then disappear. I highly recommend that you only consider a company that is well known and has been around for a while for warranty coverage.

I've looked around and have not found any warranty companies that I thought I could trust. I think the Tesla extended warranty market is better addressed by Tesla themselves and with a few changes they can offer Tesla customers a more reasonable and compelling extended warranty coverage option.

If you do come across a more viable Tesla warranty option for full coverage with a $0 deductible, please let us know...

I was using Best Extended Auto Warranty Companies for 2015 - ConsumerAffairs to look at them. I won't need the third party warranty for quite a while, though, so I am not really active about it. I was really more just curious what they would quote for it.

 

[cwerdna]

You mean "TM", not "TMC".

Err.. TM or TMI. After all, it is Tesla Motors, Inc.

Side note: The reference to TM or TMC has always irked me a little. TM is the stock symbol for Toyota Motor (TM: Summary for Toyota Motor Corp- Yahoo! Finance). And, TMC before (and after) Tesla Motors has referred to Toyota Motor Corporation. Toyota uses TMC all over the place (Google for tmc site:toyota.co.jp.)

 

[breser]

Bad. TSB's no longer applied out of warranty so I can't get my defective windshield replaced. They quoted me around $1200. I declined.

Not sure if you'll be interested but I had my windshield replaced last week. Only cost me $624 + tax. Part prices have come down.

 

[yobigd20]

Not sure if you'll be interested but I had my windshield replaced last week. Only cost me $624 + tax. Part prices have come down.

Ooh that's friggin great!!! Thanks!!

 

[scaesare]

That's true, except where you need the Tesla software to do anything. I haven't seen the service manuals, but I've heard they are pretty useless as they so frequently reference the Tesla software.

I was going to mention similar.

For instance it's suggested that once anything in the coolant loop is removed/replaced (with the possible exception of hte pack with it's quick-connectors), that you have to bleed the system, and this is accomplished via the software commanding the individual valves and pumps to operate.

In the thread about LTE upgrades, folks have posted that the parts are only $200 or so, but the labor raises the total to $500 from the quotes they are getting. If you had the time/patience to attempt this yourself (it requires removing part of the dash & center console), would you be able to activate the new module without the Tesla service software?

 

[AEdennis]

Just reached 47,000 miles a few days ago (in under 2 years of ownership,) and that's led me to read this thread (thanks for all the discussion BTW) and I'm torn on what to do about warranties.

IMG_20150804_205315 by Dennis Pascual, on Flickr

I think I'll do as others have advised and done and see what my service and work would have cost for items replaced and repaired under warranty during the past 47,000 miles. (and that's a lot of gaskets and seals and stuff. And one cellular modem.)

 

[russman]

I've been concerned about this for a while. I usually purchase extended warranties and have for my last 4 cars and I have used them all. But none of them cost nearly as much as the Tesla one, and none of them had deductibles. Most were around $2500 and some even went to 120k miles.

At my current driving patterns, I will be out of warranty in under 3 years, which means the extended warranty would only last maybe to 5 years... again with the deductible it's a cost concern.

I've also had my share of issues since the start of ownership, including 3 door handles, creaking, TPMS, leaking, etc... I guess for me it's a waiting game, but I doubt I'll buy the warranty and my gut says I'll regret it, but at the cost I'm not sure it's worth it.

 

[MsElectric]

I've been concerned about this for a while. I usually purchase extended warranties and have for my last 4 cars and I have used them all. But none of them cost nearly as much as the Tesla one, and none of them had deductibles. Most were around $2500 and some even went to 120k miles.

At my current driving patterns, I will be out of warranty in under 3 years, which means the extended warranty would only last maybe to 5 years... again with the deductible it's a cost concern.

I've also had my share of issues since the start of ownership, including 3 door handles, creaking, TPMS, leaking, etc... I guess for me it's a waiting game, but I doubt I'll buy the warranty and my gut says I'll regret it, but at the cost I'm not sure it's worth it.

What kills the Extended Warranty (ESA) is the $200 deductible per each issue. So if you go in for two door handles and two TPMS that one service visit is going to cost you $800 after paying $4,000 for the warranty. Several visits like that and you could easily pay more in deductibles than what you paid for the warranty... No other car manufacturer I know of has such an exorbitant deductible structure for warranty repairs. The ones I know of that have a deductible it is "only" about $50-85 and that is per VISIT and not per ISSUE. Many actually offer a zero deductible.

 

[AmpedRealtor]

What kills the Extended Warranty (ESA) is the $200 deductible per each issue. So if you go in for two door handles and two TPMS that one service visit is going to cost you $800 after paying $4,000 for the warranty. Several visits like that and you could easily pay more in deductibles than what you paid for the warranty... No other car manufacturer I know of has such an exorbitant deductible structure for warranty repairs. The ones I know of that have a deductible it is "only" about $50-85 and that is per VISIT and not per ISSUE. Many actually offer a zero deductible.

I read either here or at TM Forums where an owner received no-deductible service under the ESA. That person was told that as a matter of policy, Tesla is not charging the deductible. However, others have reported being charged the deductible. Sounds like more communication issues and inconsistent policies from one service center to another. It would be great if Tesla didn't charge.

 

[MsElectric]

I read either here or at TM Forums where an owner received no-deductible service under the ESA. That person was told that as a matter of policy, Tesla is not charging the deductible. However, others have reported being charged the deductible. Sounds like more communication issues and inconsistent policies from one service center to another. It would be great if Tesla didn't charge.

If they got rid of the $200 deductible per each issue that would be HUGE. That would make the Extended Warranty reasonable and competitive with the competition. I'd take back almost everything I've said about the Tesla Extended Warranty being horrible if the $200 deductible is struck down.

Maybe someone should publish a list of Service Centers where they don't charge a deductible and where the 4 prepaid service visits are allowed regardless of mileage or time period and we can all go to those service centers. Perhaps add to that mix Service Centers that don't void the Extended Warranty if you service the car only every 2 years or 25,000 miles when the fluid changes are due...

 

[rxlawdude]

I read either here or at TM Forums where an owner received no-deductible service under the ESA. That person was told that as a matter of policy, Tesla is not charging the deductible. However, others have reported being charged the deductible. Sounds like more communication issues and inconsistent policies from one service center to another. It would be great if Tesla didn't charge.

From their cash bleed, expect more enforcement of terms like the deductibles.

 

[AnOutsider]

I may have missed it, but do we have any aftermarket alternatives right now?

 

[markb1]

I read either here or at TM Forums where an owner received no-deductible service under the ESA. That person was told that as a matter of policy, Tesla is not charging the deductible. However, others have reported being charged the deductible. Sounds like more communication issues and inconsistent policies from one service center to another. It would be great if Tesla didn't charge.

Telsa is certainly consistent in their bad communication. It's shocking that they haven't improved this, by now.

 

[AmpedRealtor]

If they got rid of the $200 deductible per each issue that would be HUGE. That would make the Extended Warranty reasonable and competitive with the competition. I'd take back almost everything I've said about the Tesla Extended Warranty being horrible if the $200 deductible is struck down.

Maybe someone should publish a list of Service Centers where they don't charge a deductible and where the 4 prepaid service visits are allowed regardless of mileage or time period and we can all go to those service centers

I wish I could remember the thread/topic so I could post a link. Sorry.

 

[MsElectric]

From their cash bleed, expect more enforcement of terms like the deductibles.

I'm sure they'll get their economic house in order when the Model X ships. But still this is why they need to have written policies and in cases where they alter their policies they need to alter the corresponding written contract as well. Or at the least have a blog post so we have something in writing...

If they are not going to enforce something, why have it on the contract? That $200 deductible per item is a very big deal and it could end up easily costing you more than the $4,000 that you paid for the warranty if your car starts having multiple issues. W

Whoever that came up with the Extended Warranty program really has no clue why people buy Extended Warranties. They buy them when they plan to own the same car for 5-8 years as many people do these days and they want to pay a bunch of money and have complete peace of mind that anything that goes wrong will be fixed at no cost. Charging $200 a piece for every single little thing that could go wrong, as the current contract states, offers neither peace of mind nor the reasonable expectation that defects will be covered under the warranty at no cost to you.

When you buy a Model S would they accept a contract from you that says you will pay 80% of the asking price of the car and you'll pay the other 20% if you feel like it? IMHO contracts shouldn't be written so that they can arbitrary charge whatever they want for repairs when you've already paid for a warranty... Not even car dealers do that :crying:

 

[Ingineer]

Well written. Have you also sent this to Tesla?

 

[Max*]

The $200 deductible for each repair, lasts the life of the ESA. So if you pay $200 to fix your right rear door handle on day 1 of your ESA, and then on the last day of the ESA (almost 4 years later) the same handle breaks, there is no deducible.

(sorry if this was mentioned)

 

[gizmoboy]

What kills the Extended Warranty (ESA) is the $200 deductible per each issue. So if you go in for two door handles and two TPMS that one service visit is going to cost you $800 after paying $4,000 for the warranty. Several visits like that and you could easily pay more in deductibles than what you paid for the warranty... No other car manufacturer I know of has such an exorbitant deductible structure for warranty repairs. The ones I know of that have a deductible it is "only" about $50-85 and that is per VISIT and not per ISSUE. Many actually offer a zero deductible.

Would it be $400 if you had 2 TPMS sensors go out (right front TPMS failure, left rear TPMS failure), or just one (TPMS failure)? If the former, you're then subject to how they whimsically decide to define or partition "issues", which is further FUD.

 

[MsElectric]

Would it be $400 if you had 2 TPMS sensors go out (right front TPMS failure, left rear TPMS failure), or just one (TPMS failure)? If the former, you're then subject to how they whimsically decide to define or partition "issues", which is further FUD.

Same goes for door handles. If one stops working and you paid $200 to fix that does that then cover all door handles that malfunction in the future or just that particular door handle? If they replace all 4 door handles is that $800 in deductibles?

And how about wipers... Is that $200 each for each of the wiper arms or does the $200 cover both wiper arms? :scared: If one wiper arm stopped working and you paid $200 to fix that and the other wiper arm stopped working is that another $200? I am somewhat jesting here but still it does make the point that the Tesla ESA is likely the most complicated and expensive Extended Warranty ever offered for a mainstream car as the warranty is currently written. None of their competitors make you pay for an Extended warranty and then charge you for every single issue that needs fixing.

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Well written. Have you also sent this to Tesla?

Not sure if you are referring to me but I'm hoping Tesla monitors the threads here and see the warranty situation as something they need to address to be clear, fair and reasonable for their customers and competitive with what the competition offers...

 

[Max*]

Not sure if you are referring to me but I'm hoping Tesla monitors the threads here and see the warranty situation as something they need to address to be clear, fair and reasonable for their customers and competitive with what the competition offers...

Tesla does monitor these threads. But the more people who actually complain/inquire, the more likely it is that something MAY change.