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Re-Thinking the Service Plan

In light of today's announcement, I'm rethinking the service plan. I just bought the 4+4 plan, but the announcement strongly implies that there really won't be much need for service for at least the first couple of years, and now that a full menu of annual service isn't required to maintain warranty protection, the economics seem to favor wait and see (at least for those that don't put on obscene mileage). What do my far more brilliant fellow owners think?

tsx_5;
Elon/SpaceX has never launched a rocket with people on it, except for the Grasshopper test with the cowboy mannequin perched on the rocket walkway. He says the Dragon is capable of doing so right now, but hasn't actually tested that yet.

The original battery warranty did not cover lose of range over time. Has anybody heard that has changed?

A fairly strong case has been made for the 4+4 service plan, if nothing else for "unknown" protection. What about the extended warranty?

I've just cancelled my service plan. I've used my car for 2 1/2 months and have 6,000 miles. I would expect to hit 12,000 in 5 months. This means that even with the $475 I would be paying over $1,000/year in service. This is service that I hopefully won't need. I have client's who can do tire rotation and brake jobs. I obviously will need Tesla's specialized service. When there is a problem, I can pay for it, or get a "service" for $600. I think that once a year would be more than adequate. I may be wrong but that's what I did. I think I'm going to use the money I saved to buy the extended warranty for $2,500 which I was going to buy anyway.

I just paid for 4+4 service for $3800.00 to be sure of warranty protection. I drive about 30,000 miles per year, so for me that is $475 times 2.5 or $1188 per year. I am now thinking of trying to cancel the service plan, but would keep it if I could use the inspections once a year instead of having to use every 12,500 miles. I believe that once a year should be adequate and better than no service plan at all. In Pa, where I live,I need to get a state inspection every year for safety items, regardless of the miles driven. I wonder if Tesla would allow this?

I bought 4+4 and am sticking with it. I had my car in service last week for a fix for damage (another story). They fixed a number of service bulletin items under warrantee. I like that they are constantly learning the lessons of the fleet and applying that knowledge. Well worth the $' to me. Besides. does anyone doubt that they want to deliver value for the $'s?

I am glad to see the discussion in this thread veer back toward reality. This is a brand new factory, as well as a brand new car. Now the idea about the long mileage but getting a check once a year, that sounds fairly smart vs the 4 yr pkg cost. But the one point I have not seen yet: You are going to get warranty fix items during the annual check, and you are not going to get those updates otherwise. Sure, a major safety item will result in a recall, but all the little things they learn and make fixes for are kept on a secret list and you wont get them normally.

I went in for a warranty repair recently, and I did get a service patch applied. Thats nice but I did not get any notice about that patch and would not have received it if I had not showed up. This is also based on my experience with the Roadster. Mine is a very late model and yet when I went in for the $600 annual maintenance it took 8 hours and included a lot of work and even warranty parts replacements. For the first year or two at least, The maint seems like a really good idea.

This announcement is great news for high mileage drivers. Basically, nobody is forced to buy the service plan to maintain the warranty. Very nice.

Would it make sense for low mileage drivers, say 5-6,000 miles per year, to have a $600 inspection every other year?

jamestily,

I am totally with you... I am in exactly the same situation. Hopefully Tesla will clarify this point for us in the next couple of days.

Just bought the 4 year anywhere plan today, AFTER reading the announcement and talking to OE. I am ~ 130 mi from a service center, so the unlimited Ranger service is for peace of mind for a brand new design. $600 bucks a year for everything except tires is still less than what I typically pay for my other cars, and no Rangers.

I am, however, pissed about them cancelling the Tire & Wheel protection package. That was a great deal and not happy it was canceled without notice with no replacement planned. The Continentals on the 21s are $$$ not to mention replacing a wheel (although I don't think curbing was covered anyway ...)

@solarpowered: The plan says every year or 12K miles; I imagine with this new announcement that means you can easily go every 2 years without a problem. Be careful though, I've heard a lot of people on here say they drive their MS more than they've ever driven before because it's so much fun:D

Very smart improvement to the service - here is why...
(a) Tesla as a company is evolving
(b) listen to customers ( e.g. reading the boards )
(c) too few service centers ( valet takes the customer burden away )
(d) service overwhelmed and long wait for spare parts ( MS loaners takes the pressure off the service centers - my only issue when my MS was in service for 21 days was to have to drive the old ICE rattle box - now that issue is gone. And Tesla has bought itself time to make its service more effective )
(e) battery warranty clarified

Tesla Bravo !

Service plans I think are a steal. Keeping mine.

For Don Cheepo and Mr Tardy... picture Southwest Airlines discontinues all preventive maintenance and service on their planes so you could save $5 on an airplane ticket. Do you think that is a good deal and you would take advantage? Please have a professional look over your car at least once a year or don't share the road with me.

I think there may be a certain factor ignored here: there were several states where service plans were not allowed and this may be the fix. That being said, I don't get it from the press release, what exactly does it say? It seems to say I get all service, in my driveway, for anything, for the full warranty period with a loaner for free without a service plan and the right to keep the loaner (a fully loaded newish P85) in exchange for whatever I put in for service (even a basic 60). That's exactly what the words of the press release say, but what is the actual deal?

rd;
The T&W package turned out in practice to be a bad deal from a 3rd party supplier. TMC cut the problem at the roots before it turned into a real source of upset, IMO.

$475-600/yr to make sure a $70-100K car is in good condition, especially one that has plenty of new technology that has not been out in the real world very long. I think it is a no-bainer. I love the new announcement.

Also to guarantee the car and battery even without a service agreement, that is bold. Ay other manufacturer would clearly state somewhere in their fine print that the warranty may be invalid without proper/regular maintenance. Car companies are always afraid of being sued (ie, toyota with unintended acceleration, Ford explorer roll over), so for Elon to say they will take all the risk- very unconventional. That is one of the many reasons I am buying this car, a new business model:taking care of customers. Also doesnt hurt: awesome car, no emissions, no foreign oil, and supports jobs in the US. That is why I own TSLA stock too.

I had the T&W package - and asked for a refund. Even though Tesla was going to continue to support my purchase of the plan, it was still going through the 3rd party - and that's where they were having problems.

If they offer an improved T&W package, I'll reconsider. However, in talking with someone at Tesla, his advice was that it was more important for people with 21s to have the policy - because of the higher probability of damage to the T&W than with the 19s.

I ordered the 4+4 and extended warranty. Right now, I'm putting about 2000 miles per month on the car - so this isn't really for 8 years - but for 100K miles. I agree with Ven's point - this is a $100K car and spending $6300 for 100K miles of service for everything except for tire replacement - seems reasonable.

I'll probably just keep the 4+4, but for those interested, here's what my agreement says (Illinois version?)

J. Cancellation by Customer
To cancel this Agreement, You must mail it to Tesla, along with a notarized affidavit that states the mileage on Your Vehicle at the date of Your cancellation request. The right to cancel this Agreement is not transferrable by You and shall apply only to the original Agreement purchaser. The amount of Your refund is subject to the following:
(a) Within First 31 Days4 – Without Claim: You may cancel Your Agreement within the first 31 days4 of the Agreement Purchase Date and receive a full refund provided that You are the original Agreement purchaser and have not filed a claim.
(b) A ten percent penalty5 per month shall be added to any applicable refund that is not made within 466 days of return of the Agreement and notarized affidavit to Tesla.

yodasminion,

While the chart only uses the "or" language, a little further down it states this:

Tesla agrees to provide four regularly scheduled maintenance inspections at a Tesla Authorized Service Center or by a Tesla Ranger (subject to certain exceptions, including, without limitation, that Tesla Ranger service
may not be immediately available in Your area) at the intervals (whichever occurs first) specified in the “Service” column of the Selection of Plan section of this Agreement.
(note the *whichever occurs first* statement)

So as I read it, it's not an "or" but "whichever occurs first" -- which isn't what I would like given the recent statement.

Brain_H,

Thanks for the correction... I was thinking about the space station docking the SpaceX accomplished back on the 3rd of March.

I applaud Tesla's service announcement but I'm sticking with my service plan. I do about 25 to 30K miles a year. Until my warranty expires, I won't consider having another garage service this car. That includes brakes, wheels and tires. Tesla is not the only one breaking new ground by manufacturing this car. Many of us have broken new ground by buying it. There is a risk curve with every groundbreaking product. MS is no exception.

So if the base case is you don't buy the service plan, you extend the warranty in 4yrs for 4yrs and just call them when things break and have them bring me a loaner (and I pay tires and maybe washer fluid/blades) why would I pay for a service plan? What is an example of you paying more all-in over 8yrs having the service plan vs not having the service plan in this example?

I called yesterday to cancell and it was no problem. I had just signed up on Thursday. No push back, just said it takes 10-15 days to process the cancelation.

@stevenmaifert, +1. I purchased the 4-yr plan and I am like you, a low mileage driver and unless they drop the every 12 months service requirement, I plan to cancel the contract. I still will bring in my MS to Tesla Service Center (where else can I go, local ICE garage shop?) but will not be every 12 months.

I would prefer it if the 4-year plan was changed to a 4-service plan, leaving it up to the owner schedule the service as they see fit.

I believe the other thing to consider is that the service plan also includes not only software updates but HARDware as well. So, the way I read that is if they come out with Blind Spot warnings and adaptive cruise control that will need some sensor installation that this would potentially be included under that contract. Do you all read thus the same way?

village33- in your case, I don't think you would get a loaner.

@josh, thanks, that's the confusing part in the release (which has a lot of words but says little). In the example I give above, I do tires and wipers and drive. If anything goes wrong it's warranty and they service for free. According to release if service, they valet for free. Also per release, if valet, loaner for free. It also doesn't say whether it applies in all states. Anyone have clarity on any of these items from the company?

The car is covered under a (4 yr/50k mi) warrantee. With todays announcement it seems that anything that breaks will be covered under warrantee even without maintenance. I purchased the 4 year maintenance program and am considering cancellation. The only maintenance I can see is tire rotation. Fluids are sealed and leakage is covered under warrantee; electronics that go bad are covered by warrantee; brakes may wear out but this is unlikely. The most likely "repair" is that the tires will wear out early. This is highly likely due to the extra wear and tear that regenerative braking puts on the tires; and tire replacement is not a warrantee item. So should I take back the $1900 and set that aside to help buy a new set of tires? I will wait for a week or so to see if any clarifications come out before making a decision.

My take on the message of yesterday was (obviously paraphrasing): "whichever way you, the model s owner, can have more peace of mind about your car, that's the way you should go and we'll support you still with the battery warranty. Save the money on service up front and pay as you go for inspection and repairs, very likely you will be ok. If you do purchase the Service Plan, Tesla take care of your Model S and will work with you to keep your car in top condition."

Something like this: "save the money with confidence, spend the money with confidence. Either way, your confidence is our goal."

Maybe that seems a little fuzzy, but it works for me. In fact I think it's brilliant. Has any other car company ever offered something like this?

As far as I am concerned, this is definitely an easy decision: I will purchase the Service Package. Its roughly 5% of the cost of purchase of the car at 600 dollars a year for 8 years (with ranger service, which is probably indispensable where I live). This is the equivalent of 50 dollars a month for living as worry-free as possible with this amazing car.

Why not? It's the same cost as one inspection in a year, (which I would do even without the plan, because in my experience, EVERY machine needs to be regularly inspected and maintained! For the same cost, but paying upfront, I get to be in the service loop for 100,000 miles, with Tesla helping me to keep my car in top condition. I will feel more confidence to call them over any issues, because usually, if I have to pay something more, I tend to put it off; whereas if I already paid, I get right on it! This way, too, I don't feel constrained to drive less. I want to drive more now!

A Service Plan that is transferable, and along with a maintained service schedule, will add to the resale value of any car.
In my experience it has always been a little shocking how quickly parts and labor costs can rise with any car I have owned. A car works great and is so reliable, until it doesn't, and it isn't. Specialized tools and technical training for emerging technologies, do not come cheap. So Tesla's service package seems like a fair price to me for a car of this value, and unique architecture.

I have never before considered paying even half of what I will pay for a Model S. A year ago I would have been appalled at the notion! But the reasons I find the proposition compelling have grown stronger over time. It took me months to arrive at the confidence to make a purchase like this. (Some neighbors and family members think I have gone insane.) But, after looking at the car and the company from all the angles I could, what I saw more and more was that Tesla is one of the most exciting companies, and the model S is, right now, in a class of its own, and is the most awesome car on the planet.

So, obviously, when I receive and begin life with my Model S, I will have invested something else in Tesla Motors: my trust.

I have never trusted any car company, principally because I have never really trusted any car dealer, and few mechanics, even if I liked the car.

How did Tesla win this level of trust from me? It started with the bold and incredibly clever engineering, with the thoughtfulness of every aspect of design that continued through production, performance, safety, the ability for continual upgrade, "user interface," and even "ownership experience;" And continued right on with the way Tesla has confidently changed the car buying experience. Immediately refreshing: talk directly to me, no dealer involved, no salesperson competing for commission. Over several months, everyone at Tesla answered my questions in a very matter-of-fact manner, and no one tried to sell me on anything. They did follow up and answer all my questions with detailed information. They guided me in choosing appropriate options without up-selling anything. And they didn't shy from clarity about current limitations with charging and what that means for the car in my area ("there may be times you will want to use a gasoline car until superchargers are more available"). And the price is the price. I don't have to go to kbb.com or somewhere, and try to determine dealer invoice and fair margin and comparative price, and whether certain options will be available in my area (often not) and generally get ready to get into the dealer negotiating game which I loathe!

Tesla has convinced me to take a huge leap because this level of intelligent consideration and detail is reflected in every aspect of Tesla's work on the model S inspires confidence. So why would I not extend that trust to include working with me to keep my car in the best condition possible? Certainly Tesla techs the only ones who can do real service work on my Model S anyway, so if and when, I will be paying them. The Service Package could be considered an option like the Tech Package, or Sound Studio, not necessary, but good to have -- only, for me, its a higher priority.

I don't like insurance, but I carry it, not only for unforeseen events, for accidents, or damage, but for the peace of mind to know that I will not be suddenly hit by what can become large and unforeseen expenses. I pay consistently to not have to pay suddenly. I think peace of mind, and consistency are good to have.

Seems to me that the service plan is offered as a way to help me protect my investment. I won't say no.


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