Tesla Wants To Bundle Insurance And Maintenance Into Car Payments - Would That Work For You?

I seriously doubt they could come close to what I now pay for insurance. I'd rather keep that as my responsibility.

It depends on what firm(s) is providing auto insurance to Tesla. Otherwise it sounds like a reasonable way to purchase your car - with insurance & maintenance all included. If the customer doesn't have to worry about out-of-pocket regular/annual maintenance costs & the vehicle is definitely fully insured during ownership, then why not?

And this model isn't too far from the CarMax transaction model as well - although used cars. Pay the price as listed & select the level of warranty - basic to almost everything.

Call me crazy...but Tesla might just be angling for extra cash (selling future maintenance and future insurance) to stave off the inevitable!

You're crazy. They are primarily selling insurance to make sure regular insurance companies are properly adjusting their rates downward for Tesla drivers based on the reduced risk compared to other cars. One insurance company has already done so and this will force others to do the same if they enter the US market like they have in other countries.

Depending on cost sure. Some auto analysts believe all car manufacturers will eventually form an insurance pool to cover autonomously driven cars. They will charge buyers a fee at time of sale, assume all liability and pool the funds across the entire industry to cover crash liability. Concept has some merit.

As long as I can see the details as line items, and compare the details of the insurance, and make sure that I have a reputable insurer, then I see no problem with that.

And if you're going to get routine maintenance done at a dealer anyway, and they offer you a great deal to commit to it over the life of your lease or financing, then why not? One downside is if you become disenchanted with dealer service (not just one specific dealer, but the brands dealers over-all), then you've committed to sticking with them and you don't have an out.

Something just occurred to me: If I buy a car and finance it, then I am liable to the value I financed, even if $2,000 pertains to Tesla maintenance, and $3,000 to an extended warranty, etc. I'm on the hook for that debt.

If something should happen to my car company -- Oh, I don't know... say I bought a Tesla, financed the maintenance and extended warranty, and say that Tesla goes bankrupt -- then I still owe that debt to whomever is holding the loan. If it was Tesla directly, then they would sell it to a financial firm as part of bankruptcy.

So in essence, I'd still be on the hook for paying for a car that might no longer have a viable or relevant support network, plus prepaying (and financing) routine maintenance and an extended warranty (more debt on my part), and the company with whom I made the agreement is no longer around to honor their part of the commitment. Ooooh, suddenly it's a very bad deal for me :-(

Just something to consider for a Tesla buyer, in addition to the other risks that Tesla might not be around to honor even the basic warranty, or support your car if they go Chapter 11.

There are still lots of people who maintain their own cars - and I see nothing that special about a Tesla that would require a dealership mechanic. This is something that borders on the illegal IF it is not OPTIONAL. THe Magnussen/Moss act says that you cannot require service to be provided by a particular provider UNLESS it is free - and Bundling the service as part of the sale is not Kosher.

On the Insurance side - I have never found a dealership that has competitive rates on insurance - and/or is willing to negotiate. This is against the free market - and again - would still have to be OPTIONAL as well.

Note - just like the direct selling - this is another example of Tesla trying to eliminate choices - but at least in this case - he cannot REQUIRE this. As the set price policy is - a monopoly on service/parts/mechanical repair/computer codes and resetting the computers/ and lots of other areas - Tesla is trying to monopolize their business. This will not work in two ways as I have already said - 1 - Eventually there will be major competition for all his vehicles and it is unlikely any major manufacturer will follow Tesla down the direct mandated pricing alley and 2 - THose other cars will have FAR MORE service centers available - parts availability - and choices that Tesla seems intent on not offering - which consumers will find more appealing.

WHen Tesla was paying the tow - you did not get many complaints about mechanical failures requiring an Across the state tow to the only repair center. WHen the warranties end - the consumers will not find that prospect too inviting.

Steve:
Several weeks ago, I was in complete disagreement with you over "subject du jour"
Today, you are hittin' out of the ballpark,,,Cheers

Seems like this could be a good option for Tesla to realize more revenue and be in control of repairs, so to be assured that vehicle receive correct maintenance and repairs (collision and other). They can manage the transport, loaner vehicle and repair time. Owner has less to manage and prices should be competitive. Maybe in the future you never need to purchase/own the vehicle, just pay for use.

That depends on whether a separate extended warranty provider covers the repairs or it Tesla itself does so. Being the ONLY service provider is not a way to allow competition and control repair costs. ANd getting the price up front means you are paying for repairs ahead of time - or even repairs you never need.

THere is a major difference between the Luxury segment of the Teslas available up to now - and the Mass market segment where people do not generally return to dealers for repairs - and shop around for the best price - if you have NO choices you cannot. Right now - no one has access to the Tesla computers - it has to return to the dealer if a code is set - if nothing else to delete the code. Tesla has already denied resetting the computer when repairs were not done according to its wants - example - a auto body shop that bought used panels for the repair - Tesla did not accept that as proper. THey have also rejected repairs from shops that they did not authorize - which is against the law in my state.

It is against the law in my state as well not to provide service info to third party repair shops. Further, on the insurance side, that is all regulated by state authorities; ergo individual state issues about Tesla offering insurance would arise just like the franchise battles Tesla has had to wage. Finally, bundling home owners and umbrella liability insurance with car insurance is often financially attractive, so Tesla would have to have a way to combat that.

No conflict of interest there.

The finance department of all dealerships will try to get the customer to tack on a maintenance agreement ($$$) and finance the cost of it (more $$$).

Idiot customers do just that.

Tesla buyers being the idiots that they are, this makes perfect sense.

Never had a Toyota or Honda dealer try to sell a maintenance agreement, just free included oil changes. Extended warranty maybe. For hybrid or EV it just might be what the mainstream buyer needs to get over repair anxiety. Of course the cost has to be reasonable.