Tesla brings its extended warranty program to Canada

Tesla has officially launched its extended warranty program in Canada for owners of the Model S, Model 3, Model X, and Model Y. This new extended warranty program was first launched in the US in March, but it has now expanded north of the border.

According to the details of the program found in the mobile app, the Extended Service Agreement (ESA) takes effect after your Basic Vehicle Limited Warranty expires (4 years or 80,000 km) and  covers you for 2 years, or 40,000km. Once the ESA kicks in it won’t cover basic maintenance items like brake pad replacement and other wear and tear items, but will cover the “repair or replacement to correct defect in the materials or workmanship of most parts manufactured or supplied by Tesla during the coverage period.” (h/t: @Asfour360)

It is important to note that that you can only purchase the ESA when your vehicle is still covered by the original warranty. If your car is more than 4 years old, or you have driven more than 80,000km, you are unfortunately not eligible to purchase the ESA.

Another important exclusion are the two big ticket items, the battery and drive unit. These are not covered by the ESA since these items have their own warranty, which is 8 years or a mileage limit that varies depending on your Tesla vehicle but can be as much as 240,000km for the Model S/X.

The cost for the ESA also varies by vehicle, ranging from a low of $2,400 for the Model 3 up to $4,700 for the Model X. There is also a deductible of $135 per visit for all models.

Agreement Period Vehicle Model Purchase Price (CAD)
2 year or 40,000km
(whichever comes first)
Model S (2012-2020) $4,100
Model X (2015-2020) $4,700
Model 3 $2,400
Model Y $2,700

To purchase the ESA simply open up your mobile app and go to the ‘Upgrades’ tab and select the ‘Extended Service Agreement’ option. Follow the prompts through to the purchase and your ESA will be added to your account.

After reading all of this you are probably wondering if should you purchase the ESA. This comes down to personal preference and if you prefer the safety net of additional insurance that an extended warranty offers. If your vehicle has had several issues during its basic warranty, then it might be a good idea to purchase the ESA. Just two or three issues could cover the cost.

There is also a third-party extended warranty option for owners in Ontario, Quebec, New Brunswick and Nova Scotia, through CBI & FinanceTheir program has varying term options up to 60 months (5 years), but even with the longer term it is still comparable in cost to Tesla’s ESA. You can learn more about this option here.

You can read the full terms and conditions of Tesla’s ESA below, and read more on Tesla’s website. Will you be buying it, or going with the third party option through CBI & Finance? Let us know in the comments section.

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