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One big advantage of electric cars is reduced maintenance.
With no internal combustion engine, there is no oil to change, no exhaust system, no transmission, no myriad of moving parts to break or wear out, and no air or fuel filters to clog up. With regenerative braking, brake pads last virtually forever.
So it was a shock to learn that Tesla will charge $600 a year for a routine service on my 2012 Model S, which I specced out in September and am due to receive in December.
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I currently own a 2011 Chevrolet Volt. Containing not only an engine but an electric motor and a battery thermal-management system, the Volt is among the most complex cars on the road today--far more complicated than the Tesla.
Yet its maintenance requirements are minimal: an annual systems check ($49 at my local dealer), and a $35 oil change every two years, which includes the annual inspection. (The Volt's engine runs so rarely--in my case, about 20 percent of the time--that oil change intervals are based on time, not mileage.)
Over a two-year period, my total Volt service cost will amount to $84. Over the same period, Tesla Motors [NSDQ:TSLA] will charge me $1,200 for service on my "low-maintenance" engine-less electric Model S.
So what's going on here?
According to the Tesla website, the $600 annual fee includes an inspection, replacement parts like brake pads and windshield wipers, 24-hour roadside assistance, system monitoring, remote diagnostics, and software updates.
Parsing Tesla's $600 fee, let's allocate $100 for the wiper blades, roadside assistance, monitoring, and software update features. (That's being generous; my OnStar-equipped Volt comes with roadside assistance and software updates for free.)
That leaves $500 for the annual inspection. At typical luxury-car shop rates, call it four hours of labor. So what the heck does a Tesla mechanic do during those four hours?
Tesla doesn't seem to want to talk about it. When I contacted the company's public relations department, I got no response for almost a week. A follow-up e-mail elicited a couple of questions about my question. Two weeks later, I'm still waiting.
So I tried Plan B: a personal e-mail to Tesla CEO Elon Musk (a tactic that has worked well for me in the past).
Sure enough, Musk replied four hours later.
"We are matching service cost to be less than a Mercedes of comparable purchase price," Musk wrote.
"Some manufacturers incorporate more of the service cost in the purchase price of the car and/or have extra items that aren't covered by the manufacturer's warranty."
If Tesla is targeting Mercedes-Benz, they seem to be aiming too high. My local Mercedes dealer quotes $220 for the 10,000-mile service on an S Class full-size luxury sedan.
"This basically amounts to $50/month and covers all software upgrades as well as concierge level service," Musk went on to say, "whereas other manufacturers make few to zero vehicle system upgrades post-purchase, and service is less than great."
This seems to imply that Tesla owners who opt out of the maintenance program won't receive software upgrades. Is that indeed the case?
I e-mailed Musk back with this question. Uncharacteristically, he has remained silent on the matter.
But in a recent blog post on the Tesla Motor Club forum, Tesla vice president George Blankenship made it perfectly clear: Failure to fork over $600 for an annual inspection will void your warranty. Period.
Moreover, any visit to a non-Tesla shop--even for something as simple as tire rotation--will also void the warranty. Period.
Have an opinion?
Massachusetts has a "right to repair" law on the books. I don't know the details, but certainly the spirit of the law is to allow the consumer to take their vehicle to a shop of their choosing.
Tesla's behavior seems particularly egregious if they insist on the dealer rotating the tires (which I do myself). This is particularly troubling because tire rotation may be needed every 5000 miles and Tesla dealers will be few and far between.
If Tesla fail in explaining or justifying the $600 adequately, then I can imagine critics like Top Gear will have a feast.
Magunsson-Moss is clear on this - a manufacturer can't force a consumer to perform service at any specific location as a condition of the warranty. All they can do is specify the exact type of service that must be performed.
Once again, Tesla shows a lack of automotive knowledge and experience. It's mind boggling that such a smart company could make so many mistakes...
I have no argument with Tesla charging money, but be honest about it. Tell owners the car comes with a mandatory $50 month service fee.
Are you allowed to put extra air in your own tyres?
And I can rotate my own tyres and even change my own wiper blades. Which I will do because they usually rot from one rain to the next in Israel.
More "pay to play" fees will keep Tesla from success.
About a week ago, Tesla tried charging every Model S owner with a 60 kWh model or above an extra $1,000-2,000 for "access" to the supercharger network even though the hardware is included in the price.
About 2-3 days later, I got an email waving the fees.
The $600/year service plan is optional. You will NOT void your warranty by not purchasing it. The only thing the warranty requires is that you get the car inspected at a Tesla service facility every 12-months or 12,500 miles (whichever occurs first). This inspection is done to insure the integrity of the battery pack is not compromised by a defective cell or two. Letting such a problem linger for a long period could cause further damage. The inspection is also done to check wear on parts like brake pads, replacing them (for free) before they damage the rotors.
But the optional $600/year plan is worth considering.
"You will forfeit your warranty if you do not do Annual or 12,500 mile Inspections, when due. You will forfeit your warranty if you take your Model S to an independent shop for vehicle service and/or repairs. Your car needs to be serviced by a current, Tesla Certified mechanic to make sure it is working properly and to maintain the warranty on your car.
I don't see how you can be any more clear than that.
Between this issue and Tesla's attempt to skirt dealer franchise laws, it's pretty clear to me that they think they're smarter than everyone else.
If you buy a Tesla, beware.
Many manufacturers require a yearly inspection.. its a good idea.
We own an Audi and Mercedes Benz and this does not feel that out of line with them (yes the 10k was less but when I average in the massive 60k and beyond things even out).
Clearly I am in the minority here though, but I am not buying the Model S to save money on gas/service but to drive the cars of the future today and to help that future get built. $600 a year on a $70k car seems reasonable to me.
Having said that I expect the costs come down for Gen3.
http://www.teslamotorsclub.com/showthread.php/10150-Warranty-Servicing-official-Tesla-responses-%28incl-GeorgeB%29/page3?p=187010&viewfull=1#post187010
To maintain the warranty, you simply have to bring your Model S to a Tesla service facility every 12 months or 12,500 miles for an annual inspection.
That car is at least three years away. GenIII
“What I will forfeit if I do NOT buy a service plan?”
"You do not have to buy a pre-paid service plan. The pre-paid plans were designed for those who want to reduce their costs by pre-paying, or get unlimited Ranger visits… but you do not have to buy a pre-paid plan at all."
And Tesla communications staff is not returning Noland's repeated queries.
Until this apparent contradiction is resolved definitively, I see no reason to take down the article. The author and I will happily update it as needed once Tesla responds directly to his questions.
http://www.teslamotors.com/blog/transforming-automotive-service
(scroll about half way down the page until you see GBLANKENSHIP 12:39am | Sep 17, 2012 )
As you will see, it's the same post.
I believe the Model S has attracted a lot of buyers who have never owned a car in this price category. If they had, they would understand that $600/year is not a bad deal. A complete brake pad and rotor replacement on an Audi can set you back $1,200 and it's not covered by Audi's warranty. Tesla's plan also includes their ranger service, which is particularly nice if you don't live near a Tesla service center. They'll come to you.
If you DO purchase the service contract you get the annual/12,500 mile inspections and the other benefits for $1,900 for four years ($475/year).
There is a service contract available which costs $600/year which might account for your confusion, but that contract includes unlimited Ranger service, which otherwise costs $100/visit.
It would be nice if the article actually discussed the service plan as it exists instead of blending multiple price points and service levels (and gripes) together.
The issue is not in fact the service plan (which has real value at $600/year) but the exorbitant fee if you don't purchase a service plan.
The headline is correct. Here's the direct quote from the Tesla website:
"In North America, a one-year (or 12,500-mile) service plan costs $600. This price covers your annual inspection and all wear and tear parts, excluding tires. This plan is paid for at the time of your annual (or 12,500-mile) inspection."
As I've said before, how much clearer can you get?
Just to help out Tesla I am going to post this article on this Green Car site…. Somebody call the TeslaPR dept and wake them up its Monday!
other than that; any maintenance required to maintain a warranty can be done by any certified mechanic. i guess the real question would be how easily this Tesla certification can be had?
But I think, in France, an obligatory visit to a control center to keep your warranty valid is illegal, for cars, as in some US states...
We don't have prices indication for european market but as there is only ONE Tesla Store in France (in Paris) and one in Monaco, the anual visit will be complex to organise for the whole country, don't you think ? Tesla rangers will have to travel A LOT (some miles per year uh ?) ;-)
The almost no cost maintenance for an electric car is a crucial argument, so ruin it with that unnecessary visit is very disapointing to me.
But Tesla forgot that one of the reason that people "justify" EV cost is b/c of its low annual maintainence cost....
This looks like a LIE, and for a firm like Tesla who wants a very "special" relation with their cutomers (which they achieved until now), you don't do that kind of things.
I still want my car, but I don't want it to cost me another obligatory 600$/year !
Better communication and clarification is needed from Tesla, particularly as they scale their customer base.
Tesla also will void the warranty if you drive the car into Mexico, or even have it trucked through Mexico.
If you parse that, it means SC is paying for the charging, and selling back more than it uses. TM is not even in the loop (though it could be 'on paper' while SC is actually paying the bills).
http://www.teslamotors.com/blog/transforming-automotive-service
(scroll about half way down the page until you see GBLANKENSHIP 12:39am | Sep 17, 2012 )
Besides detailed inspection all they had to do is change two filters: Batt vent filer and AC filter. That is all folks
Next service is 40K miles. However, having seen my filters I think i will pop in in 20K miles and change them.
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