Extended warranty, again? Or just see what happens?

[chaoc]

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.

Well, if we talk about what might or might not happen this will never come to a conclusion. The only way to mathematically make sense is to talk about expected value.

In a grossly simplified example, say there is only one thing that can fail and it cost $N to repair. The chance of this happen is 1/M, The expected value of insurance is N/M. Then, if you can afford to pay the repair out of pocket(otherwise you always buy insurance), the math basically comes down to

If N/M > $4300, buy insurance
if N/M = $4300, doesn't matter
if N/M < $4300, don't buy insurance

My point is basically that in most of the case, the actuary professionals will always make sure N/M < $4300. However, for Taycan, due to the lack of data and understanding to this unique car, there is a high chance that N/M > $4300. So for once, the odds might not be on the house side.

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[Dee]

Well, if we talk about what might or might not happen this will never come to a conclusion. The only way to mathematically make sense is to talk about expected value.

In a grossly simplified example, say there is only one thing that can fail and it cost $N to repair. The chance of this happen is 1/M, The expected value of insurance is N/M. Then, if you can afford to pay the repair out of pocket(otherwise you always buy insurance), the math basically comes down to

If N/M > $4300, buy insurance
if N/M = $4300, doesn't matter
if N/M < $4300, don't buy insurance

My point is basically that in most of the case, the actuary professionals will always make sure N/M < $4300. However, for Taycan, due to the lack of data and understanding to this unique car, there is a high chance that N/M > $4300. So for once, the odds might not be on the house side.

It's about chances.
-If you buy insurance you loose money for something that may never happen (reassurance is a marketing strategy).
-If you don't buy insurance you have at least a chance you don't loose any money. ?

Still undecided though.
Good points folks.

 

[CaliPorsche]

It's about chances.
-If you buy insurance you loose money for something that may never happen (reassurance is a marketing strategy).
-If you don't buy insurance you have at least a chance you don't loose any money. ?

Still undecided though.
Good points folks.

I do not disagree with a lot of what is stated above - however I also think it is worthwhile to remember - an insurers business model are about three basic things :-

1 - aggregation and dilution of risk (which they can do across many markets/ sectors /models and makes of car/house/boat and often in many geo locations).
2 - offloading that aggregated risk upstream themselves with third parities or through financial instruments.
3 - trying to make a return while doing so.

Yes they apply "quants" and math to the problem of making a return ..... but assuming this is not a supply constrained market (where the math takes on predatory dimensions) - then having the worst performing car in a large pool of car warranty risk will mathematically benefit you when buying insurance - even if it does not seem that way (not saying Taycan is the worst performing - just to illustrate the point).

As the man famously said when tying his running shoe laces - "I do not need to outrun the bear - I just need to outrun you."

Not about car warranty ... but more about insurance markets - I am neck deep in this subject every day of the week at the moment - as I am dealing with some complex insurance matters in california right now for a non-profit - and I can tell you that being the best performer in a pool in terms of risk - risk pooling also works in the opposite direction. When the whole state is litigious and has been burning to the ground or flooding........................ despite your own performance you get to pay for everyone elses claims in your premium......... as in the end the insurance company wants a return.

 

[Fun TC Driving]

We buy fire (and many other kinds of) insurance and yet hope every penny we spend on its premiums is wasted, that we never have a claim.

 

[Jonathan S.]

We buy fire (and many other kinds of) insurance and yet hope every penny we spend on its premiums is wasted, that we never have a claim.

Yes, because we don’t want to self-insure against something like having to rebuild a burnt-down house.
Plus those markets are so big that we can reasonably sure that the premium is close to the concept “actuarially fair” insurance (i.e., probability-adjusted expected value of claims).
By contrast, even Taycan repairs are of a far lower magnitude.
And the premium pricing … hmm, would be interesting to obtain the pricing for different Porsche models, maybe include a 7 series and A8 too, then try to determine if the premiums do reflect what many here perceive to be the higher risk of future Taycan repairs. If not, then buy the insurance!
(For an example of premiums that are not carefully calculated, the insurance for my ski mountaineering race series seems to be based on some minimum administrative hassle cost plus a bit extra, with a vague hope that nobody ever files a claim against one of these races. And once that eventually does happen, the sport will probably be over, at least in the U.S. Another example is the insurance for our HOA officers.)

 

[Rik_CT4s]

Taking positive odds.

There are more flawless Taycans driving around than Taycans that are troubled (other than recalls which costs are all covered anyway). Insurers know that and still make money overall, otherwise premiums would have gone up significa tly again.

From an odds perspective.....see what happens and save yourself 4k€++. But it simply depends on your level of risk taking. Small repairs no issues.....having a bricked car would not be a fun event cost wise.

 

[Scandinavian]

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?

I can better understand your questions now, once you have mentioned the distance you might drive over the next 3 years. For some reason or other I had in my mind that you drove the car quite a lot (quite quickly also, if my memory is correct?????).

In my case I use the car for at least 3 long trips per annum and total distance is about 20-25000 km. I do not want another break down in a foreign country and not have the cover of repatriation of occupants and car!

 

[BigBob]

The finance geeks who assumed expected residual values of Taycans when they calculated finance rates etc are also no doubt very clever, at least they were until they started getting handed back a lot of sets of keys after 3 years.

Not certain that the actuaries aren't in the same place with a new model and EV costs generally. Historical data set isn't great for them to project from.

The one point mentioned earlier that rings very true, however, is that ultimately it can be a win-win situation given the huge disparity it repairing at cost (warranty work) and repairing as a consumer while paying about £275 ph for a guy just to look at the thing let alone supply parts.

I shall be buying one . I hope i never use it, and if i do i hope i don't have the same arguements about 'that's not covered sir' as i did with my panamera!

 

[JaseH84]

I'm in a similar situation with pondering over the extended warranty, however hearing from the previous owner regarding what has already been replaced under warranty, and some of the accounts on here, I am now almost certain that I will be buying an extended warranty for at least a year initially (£1250 for one year).

I guess my own concern is what is and is not covered. I would be pretty frustrated to find that a relatively serious problem wouldn't be covered, and subsequently having to have that challenging back and forth with the dealership.

Appreciate that general wear and tear would never be covered, but my thoughts are if the PCM decides to ping one day, or an electrical issue that shuts down the car, another heater, OBC etc., then these would hopefully be covered and the £1250 is a small price to pay for this reassurance. I have bought the car used and it's not leased/pcp so I am absolutely not prepared to be stung by a bill in the thousands.

 

[Fish Fingers]

I wonder what experiences members on here have had (if any) with Taycan extended warranty actual claims?

It would be really interesting to know the following:

1. Porsche or 3rd party warranty?

2. What was the fault?

3. How much was the claim?

4. Was it settled in full?

5. Cost of warranty?

6. Also, extended warranties with no claims made.

 

[Scandinavian]

I wonder what experiences members on here have had (if any) with Taycan extended warranty actual claims?

It would be really interesting to know the following:

1. Porsche or 3rd party warranty?

2. What was the fault?

3. How much was the claim?

4. Was it settled in full?

5. Cost of warranty?

6. Also, extended warranties with no claims made.

In my use case of using the Taycan nearly exclusively for long distance road tripping, the extended warranty has been invaluable and so worth it! I have suffered one major breakdown (red circle ) and two smaller warranty repairs, but with tow necessary, in countries thousands of miles from home

1. Porsche Extended warranty plus Porsche Assistance (invaluable in my case)

2. HV battery controller not covered by battery warranty. (plus battery modules covered by battery warranty). Cabin heater breakdown. Water ingress from ventilation system in front. LTE module. AC charger faulty. PCM replacement

3. I have not been shown the actual costs but guess that the HV Battery controller alone would have been some 8 to 10,000 thousands of Euros, since the battery needed taken out. Plus one Cabin heater incl tow.
’Also our Business Class Flight ticket, taxis and car repatriation by low loader from Sweden to the Riviera was covered.

The water ingress was expensive in labour since the front of the car had been taken apart to a larger extent than the garage ever had performed. Parts costs were peanuts according to the Service guy.

4. I never paid nything. All done through Porsche Assistance.

5. Warranty in France is only for two years and two extensions of total 3600 Euros have covered all warranty up to 2026.

 

[Tooney]

2. HV battery controller not covered by battery warranty. (plus battery modules covered by battery warranty). Cabin heater breakdown. Water ingress from ventilation system in front. LTE module. AC charger faulty. PCM replacement

Hey, you have had more than your fair share of Taycan faults.
Leave some for the rest of us.

 

[Scandinavian]

Hey, you have had more than your fair share of Taycan faults.
Leave some for the rest of us.

I wish I could share some of it.

But my car was one of the first Turbo here in France. Love driving the car, if and when it will be ok and willing to drive, but it starts to wear me out with the frequent visits to the workshop.

I just today received the recall for the Battery ARB6 as well. Booked in for early January, but of course no loaner available (only a clapped out Audi A1??)

According to the letter the battery must be monitored every 60 days and time taken will be 3 hours!

The necessary software will probably be available from the first quarter 2025?

The info about every 60 days visit to Porsche is a new one to me.

Is this in line with what has been communicated before?

When I was down at Porsche for their special sale on Black Friday, I was not pleased to see a few Taycan MY25 and also 2 Macan EV in the workshop fairly disassembled and hooked up. Certainly not a preparation for delivery??

 

[Tooney]

I just today received the recall for the Battery ARB6 as well. Booked in for early January, but of course no loaner available (only a clapped out Audi A1??)

According to the letter the battery must be monitored every 60 days and time taken will be 3 hours!

The necessary software will probably be available from the first quarter 2025?

The info about every 60 days visit to Porsche is a new one to me.

Is this in line with what has been communicated before?

ARB6 applies to Taycans for which Porsche does not have OTA battery data. Guidance issued by Porsche in US indicates that ARB6 vehicles need to be taken to dealer to pull a VAL to check battery health. If battery problem exists, then the vehicle will be added to recall ARB5 for module replacement. I have seen nothing from Porsche so far about battery reinspections for ARB6 if battery checks ok.

But Audi recall for same problem with no OTA monitoring indicates battery health check every 90 days. Audi battery health check for the recall is a full deep test of SoH, which lasts 72 hours - not just pulling a VAL.

 

[Dee]

I have not been shown the actual costs but guess that the HV Battery controller alone would have been some 8 to 10,000 thousands of Euros

On what is your guess based on?
A control module is always in the car, not in the HV-battery.
For the same reason, the ASG (Engine Control module) is in the rear of the car, not in the motor(s).
They're all connected to the CAN-bus network of the car.

Or is that estimated 8-10,000 euros a justification for the cost of the extended warranty to give you piece of mind? ?

I'm really curious about actual data/costs etc cuz only then we can see what and why extended warranty is legit.

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