Extended warranty, again? Or just see what happens?

[Tooney]

My vote is for you to: just see what happens

(and let us know, too.)

Sponsored

 

[Tooney]

@Dee what did you decide? extended warranty, or no?

 

[Dee]

@Dee what did you decide? extended warranty, or no?

Still undecided.
Warranty ends in December.

 

[ChronoMax]

Fear sells insurance. The theories remain that:

1. everything most likely and/or known to fail has already failed and/or been repaired or replaced under warranty already; and

2. the business of selling extended warranties is not a charity. In fact, its run by quants and actuaries who set the purchase premium above the cost of the expected repairs.

 

[Jonathan S.]

^ Amen to #2 in particular! If a Taycan owner just doesn’t like the feeling of being presented with big repair bills, then sure, get an extended warranty. Ditto for the especially risk-averse. But self-insuring against repair bills ends up costing far less over an entire adult car-owning lifespan (unless hit with extraordinary bad luck). And if a Taycan owner can’t afford to self-insure against repairs, then owning a Taycan probably isn’t such a good idea.

 

[Murph7355]

Fear sells insurance. The theories remain that:

1. everything most likely and/or known to fail has already failed and/or been repaired or replaced under warranty already; and

2. the business of selling extended warranties is not a charity. In fact, its run by quants and actuaries who set the purchase premium above the cost of the expected repairs.

Both absolutely correct.

But it means little when you fall on the wrong side of statistics and get walloped with a 4-figure bill ?

I've never bothered to date with extended warranties on all sorts of cars... But am pretty sure I will be on the Taycan. The annual cost isn't horrendous, the downside could well be.

 

[Scandinavian]

Both absolutely correct.

But it means little when you fall on the wrong side of statistics and get walloped with a 4-figure bill ?

I've never bothered to date with extended warranties on all sorts of cars... But am pretty sure I will be on the Taycan. The annual cost isn't horrendous, the downside could well be.

I second that!
’I have certainly got my moneys worth from the extended warranty. I would not even dare to try to estimate the costs that would have run up for things outside of the battery warranty. I also signed up for an extended period before Porsche raised the prices.

 

[Caraholic]

^ Amen to #2 in particular! If a Taycan owner just doesn’t like the feeling of being presented with big repair bills, then sure, get an extended warranty. Ditto for the especially risk-averse. But self-insuring against repair bills ends up costing far less over an entire adult car-owning lifespan (unless hit with extraordinary bad luck). And if a Taycan owner can’t afford to self-insure against repairs, then owning a Taycan probably isn’t such a good idea.

While I will easily agree with this for any other car it doesn’t ring true for the Taycan in my experience. Have seen 8 years insurance policies for this car for 5-6k being talked about on this board. Pretty much any failure on the taycan will be more than this. The high voltage charger will almost certainly go out and that’s an easy 8k bill. Mine has been replaced four times now. One thing people forget is techs and Porsche do not have a full grasp on the repair for these vehicles. It’s mainly throwing parts at the problem to see if it fixes it. With a lot of times not actually fixing the root cause. That gets very expensive really quick if it’s out of your pocket. Then you have the fact that only Porsche can service the vehicle so you are stuck with extremely high labor and parts cost.

 

[Jonathan S.]

^ If so, then anyone in the market for a Taycan extended warranty better pony up ASAP before all those extended warranty companies start reading this forum and raise their prices!

 

[StevenB]

^ Amen to #2 in particular! If a Taycan owner just doesn’t like the feeling of being presented with big repair bills, then sure, get an extended warranty. Ditto for the especially risk-averse. But self-insuring against repair bills ends up costing far less over an entire adult car-owning lifespan (unless hit with extraordinary bad luck). And if a Taycan owner can’t afford to self-insure against repairs, then owning a Taycan probably isn’t such a good idea.

What you forget in #2 is that the math for Porsche/insurers is quite different than for the individual. Their risk calculation goes against their entire fleet and they can even afford a loss on the Taycan making it up with the more reliable models. Equally important, their cost structure is very different from the individual Taycan owner. Porsche will be able to replace an OBC at sourcing cost plus labor at cost while the Taycan owner will pay a hefty multiple of that. I have never seen a more clear cut case for buying an extended warranty than with the Taycan but if the OP is not convinced, I am very interested to see how the assumption of zero problems on this high tech car works out.

 

[Jonathan S.]

^ I'm not forgetting that at all -- that was my main point regarding risk.

 

[Dee]

Fear sells insurance. The theories remain that:

1. everything most likely and/or known to fail has already failed and/or been repaired or replaced under warranty already; and

2. the business of selling extended warranties is not a charity. In fact, its run by quants and actuaries who set the purchase premium above the cost of the expected repairs.

Fully agree.
That's the whole point of this topic.
Next two years I'll drive 8000 km at most.
Then a €3200 reassurance is quite expensive........(the €4300 for 12.000 km as well).
I can "earn" €4300 in three years, enough for an expensive repair...

You see my problem/doubt?

 

[chaoc]

My 2cents because I'm in the market of a CPO Taycan as well. I usually tell people to avoid any insurance on things they can afford to lose.

1) Because insurance is a form of risk of transfer with additional cost. Meaning that, you can not bear the consequence of something, so you pay someone to take that risk.
2) And since the insurer is usually in business of taking risk, they usually have way more data and expertise to make sure they not only mathematically losing money.
3) And if they do screw up their pricing consistently, they would be out of business soon and you will be left with no insurance anyway.

With that said. I'm not so sure that the same 2 and 3 stands for Taycan in particular. Because:

a)For 2): EV is still a relative new type of car, Taycan in particular is even newer, the earliest car is only 4 years old, just out of their factory warrant. So the insurer have 0 data just as rest of us. In fact, I would sometime argue that owner like us who constantly roaming this forum and research on the car has a better idea of the reliability of this particular vehicle then some corporate employee who needs to manage many different makes and model, have no direct knowledge of the car, have very little data to go with and have to make a pricing on a short deadline.

b)For 3) According to the statistic, Taycan seems to be almost like an outlier in terms of how unreliable it is. So although the insurer may lose money on Taycan contracts, but they should be well off with other cars especially on the sports ones. After all, Boxster and Cayman are statistically among the most reliable cars. So they would probably still honor the contract.

c)It stands that Taycan seems to be almost prohibitable expensive to repair because how integrated things are, how limited experience tech and the fact that all repair has to be done through Porsche authorized dealership. And I would argue that if the extended warranty is backed a Porsche affiliated org, they would have cost advantage over us inidviduals?

So in summary, I am leaning toward a extended warranty.

Now I also do have my own question, if you guys get extended warranty, do you just call Porsche to get it or do you seek some kind of third party insurance company? And is there an pricing advantage of getting it when you purchase the car because dealership make more money if you by the warranty and you can pressure them to a lower selling price?

 

[Tooney]

Now I also do have my own question, if you guys get extended warranty, do you just call Porsche to get it or do you seek some kind of third party insurance company? And is there an pricing advantage of getting it when you purchase the car because dealership make more money if you by the warranty and you can pressure them to a lower selling price?

If you forum search for 'extended warranty' in titles only, you will find lots of threads with info related to your question.

The so-called 'Porsche vehicle service plan' in USA is sold by dealers and prices vary by dealer. It is so-called because except for its name, and the dealers who sell it, it is a contract with a third-party company - not Porsche.

 

[Dee]

My 2cents because I'm in the market of a CPO Taycan as well. I usually tell people to avoid any insurance on things they can afford to lose.

1) Because insurance is a form of risk of transfer with additional cost. Meaning that, you can not bear the consequence of something, so you pay someone to take that risk.
2) And since the insurer is usually in business of taking risk, they usually have way more data and expertise to make sure they not only mathematically losing money.
3) And if they do screw up their pricing consistently, they would be out of business soon and you will be left with no insurance anyway.

With that said. I'm not so sure that the same 2 and 3 stands for Taycan in particular. Because:

a)For 2): EV is still a relative new type of car, Taycan in particular is even newer, the earliest car is only 4 years old, just out of their factory warrant. So the insurer have 0 data just as rest of us. In fact, I would sometime argue that owner like us who constantly roaming this forum and research on the car has a better idea of the reliability of this particular vehicle then some corporate employee who needs to manage many different makes and model, have no direct knowledge of the car, have very little data to go with and have to make a pricing on a short deadline.

b)For 3) According to the statistic, Taycan seems to be almost like an outlier in terms of how unreliable it is. So although the insurer may lose money on Taycan contracts, but they should be well off with other cars especially on the sports ones. After all, Boxster and Cayman are statistically among the most reliable cars. So they would probably still honor the contract.

c)It stands that Taycan seems to be almost prohibitable expensive to repair because how integrated things are, how limited experience tech and the fact that all repair has to be done through Porsche authorized dealership. And I would argue that if the extended warranty is backed a Porsche affiliated org, they would have cost advantage over us inidviduals?

Excellent points too and these points make it even harder to make a decision but thanks anyway. ???

I can afford a few 10K, that's not a problem (in fact, it's the reason I could afford a Taycan in the first place).
The issue is, if you do PAY for extended warranty you lose money you don't get back, EVER, period.
If you don't pay for extended warranty you'll "EARN" money for every year you don't have to pay for expensive repairs.
So at best, you'll "earn" €4300 and still have a chance you don't have to pay anything cuz the car is still good!
Remember, it's about the upcoming 8000 km (2 year)/12.000 km (3 year).
That sounds so tempting...
I just hate losing money.

Motto: it's better to regret losing than regret about never trying.

Sponsored