Tesla recently sent out the email to all Model S and Roadster owners to sign up for pre-paid service and warranty plans.
The service has four options: 4-year and 8-year with or without ranger visits. Although the additional ranger service is not particularly costly, I can drive the car to a local service center and get the free rental car for the day. Even after they close the Menlo Park location, the two new service centers aren’t terribly far away. And the rangers cannot do tire rotation or wheel alignment, so that would have to be arranged separately. And the additional $100 per ranger visit option is still available if the service takes less than four hours. It could be tempting to pay $100 not to have to drive to a service center, arrange a ride back and forth or sit in the lobby for 3 1/2 hours. But that decision can be made on a case by case basis.
The four year lump purchases of the annual inspection are at first glance a simple $500 savings for each $600 annual service. But the math is not quite that simple. Both the first four years and the second four years are priced at $1,900.
If the service pricing remains the same and you have the money in investments currently, how much would you have to make in order to make up the $500 in savings over the four years?
For the first four years, you would need to earn 18% on your money, so the first four years are definitely a good deal.
For the next four years, you would need to earn 4.3% on your money, so the second four years are not a particularly interesting deal. Historical investment averages are above 4.3%.
I never thought dental insurance made a lot of sense and I don’t think tire and wheel insurance makes sense either. In both cases, the problems require routine maintenance and not most likely not any gigantic amount of money. I will pass on the Tire and Wheel Replacement Program.
The extended service agreement can be purchased within 30 days of the expiration date of your initial four year warranty. I see no reason to purchase this now.
I am only going to purchase the simple 4-year $1,900 service plan this year.