Tesla Service Plans Get Pricier, Transferability Is No Longer An Option: What You Need To Know

Tesla recommends that its customers opt for an Annual Service Inspection or an equivalent of 12,500 miles in order to keep their cars in their best performance standards.

The company, however, increased the pre-purchasing costs of its annual servicing.

The prepaid service comes in 3-year, 4-year and 8-year options with prices indicated at $1,325, $2,100 and $4,000 respectively. Each prepaid service plan would include a single inspection for every year or 12,500 miles, whichever comes first.

"Your Tesla vehicle is protected by a 4 year, 50,000 miles (whichever comes first) new vehicle limited warranty and 8 year, unlimited mile battery and drive unit warranty," says Tesla. "Advance payment of Annual Service Inspections via a Service Plan is the most economical means of maintaining your Model S."

Some of the details that are covered under the annual inspection which would have no extra cost include bumper to bumper; roof to wheel inspection which can include the removal of the wheels and tire rotation; testing of all systems for operation wherein logs would have to be pulled and examined; inspection of the drive unit assemblies as well as the temperature management system; brakes inspection; windshield wipers replacement if it is necessary; and tread wear inspection.

In the past, the prepaid annual servicing would require a Tesla owner to spend $1,900 for 4 years, while the 8-year plan had a cost of $3,800.

The increase may be as minimal as $200, but the services remain identical for the 4-year and 8-year annual servicing options.

Tesla has also removed the free wheel alignments service in the annual maintenance of the cars.

"During your annual inspection, our expert Tesla Service team will take your Model S through a bumper to bumper, roof to wheel inspection," said Tesla. "The wheels will be removed and tires will be rotated if necessary. If wheel alignment is determined necessary, this service can be performed for an additional charge."

One notable change is the company's ban on transferability, which means that a Tesla owner can no longer transfer their car's extended warranty and prepaid service plans to a new owner as part of a reselling deal. According to Tesla, plan owners will be allowed to cancel a plan and get a pro-rated reimbursement in case of a car resale. However, they will not be allowed to transfer a plan when they decide to sell their car.

Tesla had previously allowed the transfer of extended warranty and service plans to the car's new owner for $100.

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