While Electric Vehicles (EVs) have fewer maintenance needs than gas-powered cars, repairs involving the advanced technology of EVs can be costly once your New Vehicle Basic Limited Warranty expires. Planning for post-warranty Tesla ownership is an important step you can take to protect yourself from unexpected repair bills and breakdowns.
This article will cover your options for post-warranty vehicle ownership and help you determine if an extended warranty is a good fit for you.
What Happens When My New Vehicle Warranty Expires?
When your New Vehicle Basic Limited Warranty expires, repair and maintenance costs add up quickly. To avoid this, you have a few options:
- Buy a new EV. An exciting option, but also a significant financial decision. Purchasing a new EV means enjoying the latest features and technology, but it also involves the highest upfront cost and exposes you to immediate steep vehicle depreciation. CNBC notes that often, vehicles lose 50% of their value within the first three years.
- Pay for repairs out-of-pocket. Continuing to drive your electric vehicle beyond its warranty period is feasible. However, you'll need to budget for potential repairs and maintenance costs out-of-pocket. While this option offers flexibility, it requires diligent management of your vehicle's upkeep to avoid major repairs and/or expensive maintenance visits.
- Secure an extended protection plan. An aftermarket extended protection plan can provide security once your warranty expires. These plans offer coverage for unexpected repairs, giving you peace of mind and protecting you from unforeseen expenses. While there's a cost associated with these plans, they can ultimately save you money by mitigating repair expenses.
How Do I Know Which Option is Best for Me?
There are several important considerations to make when deciding what route to take once your New Vehicle Basic Limited Warranty expires:
How long do you plan to own your vehicle?
If you like to trade-in your vehicle frequently to get the latest and greatest tech, an extended warranty probably isn’t the best option for you. Your EV will still be under the manufacturer's bumper-to-bumper warranty for defects, so you’ll have peace of mind in case of any issues.
However, if you plan to own your vehicle for four or more years, an extended warranty can help protect you against expensive repair bills. An extended warranty can cover replacement of a degraded High Voltage battery, repairs to the drive unit, and replacements of high-tech components like the charging system and touchscreen, which can each cost upwards of a thousand dollars if repair is needed.
What are your driving habits?
Do you rack up vehicle mileage quickly, or drive occasionally around town? The more you drive, the higher the chance of your vehicle needing repairs. High mileage drivers may benefit more from an extended warranty.
How much risk are you comfortable with?
Are large, unexpected expenses something you budget for and can handle comfortably if needed? Or would a huge repair bill put you in a financial bind? If the latter, an extended warranty may be worthwhile for the coverage and budgeting assurance.
Common expenses for an aging Tesla may include:
- The battery pack, motors, and charging equipment. Battery replacements alone can cost $10,000 to $20,000.
- The entertainment and safety systems (including touchscreens, cameras, and sensors) which can cost $2,000 to $5,000 to repair.
- Suspension components including control arms, fore and aft links, and compliance links, which can cost more than $2,000.
- Regular service items like brake pads, tires, cabin filters, etc. which will require replacement at regular service intervals.
Pros & Cons of an Extended Warranty
Extended warranty products can offer essential benefits to Tesla owners, but they have drawbacks as well. Look at the chart below for a quick guide to the pros and cons of purchasing an extended warranty:
What is the AmberCare Difference?
AmberCare is an EV protection plan like no other. It offers you the flexibility and choice to customize your vehicle’s protection and keep your EV on the road for many more miles without the drawbacks of a traditional extended warranty product.
With AmberCare, you can enjoy:
- No Upfront Cost: AmberCare has no large upfront cost or investment. Our annual subscription program starts at $65 per month and may vary based on your car's configuration and registered state.
- Tailored Coverage Options: Our AmberCare suite allows you to select the coverage level that best fits your needs.
- Amber Concierge: If your vehicle is giving you any issues, get in touch with Amber's concierge service. We can troubleshoot over the phone, through chat, or by email and perform a Remote Diagnostic to identify the problem at hand.
For a detailed look at AmberCare versus other available coverage options, check out our comparison article!
How Do I Sign Up for AmberCare?
To begin your AmberCare application process, click here.
We look forward to providing you exceptional service and peace of mind for your Tesla. If you want to follow us on our journey to change the landscape of EV repair, check out our social media:
