Should You Buy a Tesla Extended Warranty?

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After reaching a market cap of $86 billion dollars, Tesla made history by becoming the most valuable American car manufacturer in history. Is the Tesla extended warranty equally groundbreaking, or not worth the premium?

This article will describe the details of the Tesla extended warranty, looking at cost and coverage. We compare the Tesla warranty with the best extended car warranty companies to see how it stacks up.

If you purchase a Tesla extended warranty within 180 days of buying your vehicle, Tesla offers a lower price. You can’t finance your extended warranty with your vehicle—it is sold separately. You can cancel your contract at any time for a prorated refund.

These are average prices for extended service contracts. Though the terms are short, if you purchase an extended warranty for your Tesla vehicle, especially within the first 180 days, you will pay a competitive rate you aren’t likely to see elsewhere.

Tesla also offers extended limited warranties for used vehicles, which is rare for a manufacturer. However, most manufacturers offer certified pre-owned warranties that extend as long as the Tesla used vehicle limited warranty and Tesla used vehicle extended limited warranty combined.

The Tesla used vehicle extended limited warranty can be purchased for cars between four and six years old with between 50,000 and 100,000 miles. It includes similar coverage to the Tesla extended warranty, protecting most parts manufactured or supplied by Tesla with the exception of the battery and drive unit.

This coverage is only available for vehicles purchased from Tesla and provides 2 years or 100,000 miles of additional coverage

If you own or are considering purchasing a Tesla, you’re likely interested in protecting your expensive investment. Extended warranty coverage may be appealing, but is it worth it? There are a few factors to take into account whenever considering extended auto warranty coverage. Think about the warranty you already have, as well as the cost required to maintain your vehicle.

All new Teslas come with a new vehicle limited warranty that lasts 4 years or 50,000 miles. These warranties cover the repairs or replacements necessary to correct defects in the materials or workmanship of any parts manufactured or supplied by Tesla.

Factory warranties are fully transferable at no cost. So as long as your vehicle is under the 4-year/50,000-mile limitation, it should still be covered. The notable exception to the new vehicle limited warranty coverage is the Tesla battery and drive unit. This is covered under a separate warranty that is different for each model.

In addition to considering the coverage that you already have, you also want to factor in vehicle reliability when assessing the potential value of a Tesla extended warranty. Older cars and cars with more expensive repair issues tend to cost more to maintain, and thus their warranties provide more value.

Teslas are not especially reliable. Recently, Tesla ranked in the bottom third of the 30 auto brands rated by Consumer Reports in terms of reliability. Older Teslas may be subject to costly repairs, especially since Tesla vehicles use high-tech components that can be expensive to replace. You might expect to pay between $2,000 and $3,000 a year to maintain your Tesla, and costs could increase as the vehicle ages.

If you’ve decided that extended protection is important to you, you have two options for coverage: a Tesla extended warranty from the manufacturer or a vehicle service contract from a third-party provider.

There are both benefits and drawbacks to third-party extended warranty providers. Third-party contracts tend to be less expensive, offer more flexible coverage choices, and can be purchased at any time. One downside to a third-party contract is that it may not have as inclusive of coverage and may not pay as much for repairs. With a manufacturer extended warranty, you know your vehicle will be fully serviced by a Tesla specialist.

The chart below compares the Tesla extended warranty with coverage from popular third-party provider CarShield.

Tesla does not offer particularly long extended warranty terms, though coverage is inclusive. The price for an extended warranty on a Tesla is fairly competitive. You can’t split the cost up into monthly payments, but if you can afford a Tesla, you can probably afford the upfront cost of the Tesla extended warranty.

Because Teslas require specialized maintenance and expensive parts, a third-party contract may not be the best option. It depends how comfortable you are with having your Tesla serviced somewhere besides a Tesla service center.

If you decide to extend the warranty on your Tesla, the manufacturer extended warranty is a solid choice. Given that all cars experience a certain amount of wear and tear through use, it is probably worth purchasing the extra coverage, especially for a vehicle as potentially expensive to service as a Tesla.

If you’d like to compare plans from top warranty companies, here are our recommendations. Get a quote from each so you can look at coverage and cost side by side.

Q & A

Does Tesla offer an extended warranty?

Tesla offers an extended warranty for new and used Teslas. The Tesla extended warranty is only available for Model S and Model X vehicles. It extends the new vehicle limited warranty by 2 years/25,000 miles or 4 years/50,000 miles.

How much is a Tesla extended warranty?

How much you pay for a Tesla extended warranty depends on your model, term length, and when you purchase coverage. A 4-year, 50,000-mile Tesla extended warranty for a Model S would cost about $4,250 if purchased in the first 180 days of ownership or $4,750 thereafter.

What does the Tesla warranty cover?

The Tesla extended warranty covers most parts manufactured or installed by Tesla. It specifically excludes the lithium-ion battery, drive unit, filters, liquids, brake pads, batteries, suspension alignment, appearance care, shock absorbers, and upholstery.

How good is a Tesla warranty?

The value of a Tesla warranty depends on the frequency with which your Tesla needs covered repairs. Most Tesla parts are covered by the Tesla warranty, and Tesla guarantees that your vehicle will be serviced by a certified specialist.