Tesla No Longer Allows Extended Warranties/Service Plans To Be Transferred When Reselling (Update)
In a rather bold move and without an official announcement, Tesla Motors has eliminated transferability of extended warranties and prepaid service plans.
This move means that when a Model S/X owner sells their vehicle as used, the new buyer won’t be able to take advantage of either the extended warranty or prepaid service plan that the original buyer opted for at the time of purchase.
UPDATE: February 15th 6:00 Tesla says “Whoops”. Most likely as a response to owner outrage on the change, Tesla has publically made a statement that they accidently changed the wording in a recent site update. Here is Tesla’s statement….probably a smart move:
“A change to Tesla’s Extended Service Agreement was posted with an error. Tesla owners can indeed transfer the unused portion of their Extended Service Agreement with the sale of their Tesla. Our practice of refunding the unused portion of the Extended Service Agreement also continues. In addition, Tesla owners can transfer the unused value of their Extended Service Agreement towards an Extended Service Agreement for a new Tesla Model S or Model X.”
Additionally, The Verge points out that “Tesla has raised prices on its after-sales service options.”
According to The Verge:
“By far the biggest change, at least as far as the impact on Tesla buyers, is the ban on transferring Tesla’s extended warranty and prepaid service plans to a new owner when selling a used Tesla. Owners of those plans can cancel and get a pro-rated reimbursement when selling the car, but they can no longer transfer it when selling the car. Previously, transferring those warranty and service plans to a new owner cost $100.”
Service plan pricing increased by $200 across the board.
Of note is that if you purchased the extended warranty or service plan prior to Tesla eliminating transferability, then those plans can still be transferred when the car is sold to someone else.
Source: The Verge