Tesla First Cancels Return Policy And Now Cuts Warranty Period

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Just last week Elon Musk surprised everyone by cutting the price of Tesla Model S twice in a week. If that’s not enough to surprise you, here is even more interesting development from Tesla.

The electric self-driven carmaker has decided to cut the warranty period of its used car from 2 to 4 years to just 1 year. But this is not the first blow for Tesla customers. The announcement of shortening the warranty period of the used car came after shortly after the cancellation of ‘no question asked 7-day return policy‘ which was widely appreciated by customers earlier. It was a big confidence booster as most of the first-time electric self-driven car buyers always are sceptic about the experience, and prefer to buy the used car until they gain confidence and upgrade to a new one.

The used Model S and Model X have been the centre of attraction for many excited shoppers as Tesla was winning the confidence of such buyers by offering 2-4 years of warranty.

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The company used to offer Used Vehicle Limited Warranty for 4 years or 50,000 miles, which ever comes first from the date of delivery, on the aforementioned models that were less than 4 years old.

On those cars that were more than 4 years but less than 6 years older, Tesla used to offer up to 2 years or 100,000 miles of extended warranty.

Now, the company has updated its policy on used Tesla Cars, which reads as

Tesla used vehicles are covered by the remainder of 4 years or 50,000 miles left on the Basic Vehicle Limited Warranty. After expiration, the Used Vehicle Limited Warranty provides additional coverage of 1 year or 10,000 miles. If the Basic Vehicle Limited Warranty has already expired, the Used Vehicle Limited Warranty will provide coverage of 1 year or 10,000 miles, starting from your delivery date.”

Undoubtedly, it’s a welcome move by all the buyers who are shopping Tesla Model S or Tesla X 2016 or later model as the used car warranty is over and above the original warranty offered by Tesla on new cars. But for those who are with a tight budget and exploring Tesla Model S and Model X models sold before 2016, the new warranty policy squeezes their cushion, comfort and confidence as they now get only 1 year or 10,000 miles warranty.

Crippling by both 7-day return policy and slashing warranty period by less than half all prospective buyers of used Tesla Cars are may have to deal with a big demotivating factor.

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Considering that Warranty on used cars equally important as new ones, how the new policy is going to impact the sales of used Tesla Cars, only time will tell. But the move also leads us to a question – Is Tesla not confident enough about the performance of its own cars as it used to be before, or it is a well calculative move to boost the sales of new Tesla models?

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