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Extended Warranty worth it?

D1MPE

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My Taycan 4s cross turismo is now 2 years in my possession. Bought it new 2 years ago, now it is running out of warranty. Porsche offers an extended warranty for 1, 2 or 3 years for 1577, 2653 and 3858 euro's.
What do you think? Is it wise to prolong the warranty period. Any suggestions?
Just extended £1100 for one year plus £175 for Porsche assist (guaranteed courtesy car) with OPC, prices are fixed at every OPC. They are very strict and need to see the car to validate the mileage and to ensure there are no modifications. Peace of mind as repairs out of warranty are very expensive, is it worth the risk ?
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whitex

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guaranteed courtesy car
Equivalent car, or any car? What's the guarantee backed by if they fail to provide you one? £175 refund or actual cost to rent a comparable Taycan from wherever you manage to find one, for however long it takes to get parts in and fix yours?
 

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I'm a bit confused. In the U.S. is the Porsche extended warranty covering anything that can go wrong with the car such as electrical system failure(s), power steering failing, heater failing, etc.?
The platinum plan extended warranty in the US covers nearly all the components that would be included with the new car warranty, although there will be some specific exceptions. I couldn't find the actual VSP documents during a quick search, but I noticed trim does not appear to be mentioned so squeaks or rattles would likely not be covered once your new car warranty expires.

I did buy a similar platinum plan for my Audi and felt like it was a good deal at about $1000 per year for 3 years additional protection. And then I fell in love with an electric Porsche ?
 

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The platinum plan extended warranty in the US covers nearly all the components that would be included with the new car warranty, although there will be some specific exceptions. I couldn't find the actual VSP documents during a quick search, but I noticed trim does not appear to be mentioned so squeaks or rattles would likely not be covered once your new car warranty expires.

I did buy a similar platinum plan for my Audi and felt like it was a good deal at about $1000 per year for 3 years additional protection. And then I fell in love with an electric Porsche ?
Thanks. That's very helpful. Looks like I'll have to contact the dealer about extending beyond 4 years with price to be determined (or at least not disclosed on the page you referenced). I'll dig deeper too. Much appreciated.
 

slothinker

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The platinum plan extended warranty in the US covers nearly all the components that would be included with the new car warranty, although there will be some specific exceptions. I couldn't find the actual VSP documents during a quick search, but I noticed trim does not appear to be mentioned so squeaks or rattles would likely not be covered once your new car warranty expires.

I did buy a similar platinum plan for my Audi and felt like it was a good deal at about $1000 per year for 3 years additional protection. And then I fell in love with an electric Porsche ?
Here's a bit more info I found:

https://www.marketwatch.com/guides/car-warranty/porsche-extended-warranty/
 


Tooney

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That link goes to one of many similar "review" pages online. It contains links to 3 other extended warranty products as well as a general description of Porsche-brand extended service plans.
At the top of the page:
Partner content: This content was created by a business partner of Dow Jones and researched and written independently of the MarketWatch newsroom. Links in this article may result in us earning a commission.
I believe the primary purpose of this page and the others like it is to advertise the 3 other warranty products.

Does anyone have a link or copy of the actual provisions and terms/conditions of the US Porsche Platinum Vehicle Service Protection Platinum Plan?
 

whitex

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The platinum plan extended warranty in the US covers nearly all the components that would be included with the new car warranty, although there will be some specific exceptions. I couldn't find the actual VSP documents during a quick search, but I noticed trim does not appear to be mentioned so squeaks or rattles would likely not be covered once your new car warranty expires.

I did buy a similar platinum plan for my Audi and felt like it was a good deal at about $1000 per year for 3 years additional protection. And then I fell in love with an electric Porsche ?
I've always been weary of fine print. At the above link for example I found the following exclusions:
  • Mechanical breakdowns caused by lack of recommended maintenance or preexisting conditions
...
  • Repair or replacement of hybrid batteries, electric batteries, and battery cables
with further footprint:
⁷ Additional exclusions may apply. Please see your Product Agreement for specific coverage details, including limitations and a complete list of exclusions.
The cynic in me thinks they can also reject claims if you don't have records of doing some $2,000 annual service, or if the failure has to do with the battery (the most expensive component to replace in a Taycan), or related components which qualify as "battery cables". They might not bother rejecting small claims, but drop the hammer on large repair bills, at which point they dive right into the fine print, which by the way, I'm sure includes maximum lifetime payout somewhere in the contract.

All that said, my mind always comes back to the simple argument that if they can make money on this at $1,000 a year, the Taycan repairs of covered by them components add up to much less per year on average. I'd be curious to hear back from folks who have had repairs covered by such a plan, what were they and how much were those repairs (i.e. how much did the plan pay out for those repairs)? Then we look at how common such breakages are.
 

D1MPE

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Equivalent car, or any car? What's the guarantee backed by if they fail to provide you one? £175 refund or actual cost to rent a comparable Taycan from wherever you manage to find one, for however long it takes to get parts in and fix yours?
below is what they say - i think the main thing is that they will loan you a replacement car (i thought it was guaranteed not subject to availability). Yes it is an expensive add on especially if you have other cars or breakdown cover already. Incidentally as I was leaving the OPC yesterday a Taycan was just being dropped off by the AA, lets hope it had it’s warranty extended as it was 2020 year.
  • Provide premium class compact saloon replacement vehicle for up to five days in the UK whilst your Porsche is repaired at a Porsche Centre (subject to availability)
 


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below is what they say - i think the main thing is that they will loan you a replacement car (i thought it was guaranteed not subject to availability). Yes it is an expensive add on especially if you have other cars or breakdown cover already. Incidentally as I was leaving the OPC yesterday a Taycan was just being dropped off by the AA, lets hope it had it’s warranty extended as it was 2020 year.
  • Provide premium class compact saloon replacement vehicle for up to five days in the UK whilst your Porsche is repaired at a Porsche Centre (subject to availability)
Here in Poland the rental car is provided by a 3rd party rental car company, not by the dealer. They give you a few options when they call to drop off the car, I had a small Mercedes sedan (A class). What’s not so cool is that it’s up to 5 working days only, which is way too short for some of these repairs.
 

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below is what they say - i think the main thing is that they will loan you a replacement car (i thought it was guaranteed not subject to availability). Yes it is an expensive add on especially if you have other cars or breakdown cover already. Incidentally as I was leaving the OPC yesterday a Taycan was just being dropped off by the AA, lets hope it had it’s warranty extended as it was 2020 year.
  • Provide premium class compact saloon replacement vehicle for up to five days in the UK whilst your Porsche is repaired at a Porsche Centre (subject to availability)
And there you have it, they will rent a compact class premium saloon for up to 5 days, and subject to availability. On this side of the pond that could mean a Model 3 rental which you can get for $250 a week, subject to availability of course. I suspect the 5 days might be cumulative, so if you use all 5 days on your first replacement vehicle, the rest of the repairs you get nothing. A heater replacement can take way longer than 5 days while waiting for parts by the way (in the US some people waited for months).

Sorry, I'm always skeptical of extended warranties, protection plans, etc. They are designed to make money for the issuer, which means they make money on them on average. As a rule I've always only purchased catastrophic insurance, i.e. insuring against claims I cannot afford or which would be a financial strain. Of course the level of "catastrophic" changed from the times I was a teenager to today, but over time I know I made money on this strategy, even though I did occasionally had to cover my own repairs of devices for which I could have purchased an extended warranty for. The money I saved covered the repairs many times over.

Just to add to that, car dealers are probably the best in selling such upsells. They keep coming up with new tricks all the time (I've been buying cars for over 3 decades, yet I still see new sales tricks almost every time I buy a car, some straight out lies, but some of them pretty clever by the way - almost makes me admire their ingenuity). When I was buying a car for one of my kids last year, I almost bought a pre-paid maintenance plan because it sounded like an amazing deal. I knew something was amiss, but I couldn't put my finger on it - 7 synthetic oil changes for $250, where each one typically costs ~$70-$90. I actually bought it as there was a 30 day money-back guarantee, because I couldn't see the catch while there and I wanted to (was driving Teslas for the last decade so a little rusty with dealers). I went over the fine print at home. Finally figured out the catch. The plan covered up to 7 fully synthetic oil changes as advertised, but the car came with 2 years of synthetic oils changes already included, and the plan only extended the time coverage by a year. So yes, I could have gotten 7 oil changes for $250, but that would be 7 oil changes during the 3rd year of ownership only - that was the catch. Who changes oil every 2 months?!? Side note, it took me over 2 months to get my money back, first they lost my request, then I finally got the $250 back, then after yet another request the ~$25 in sales tax refund - yet another trick by the dealer, they thought I wouldn't notice that they refunded pre-tax price only. :rolleyes:

PS> Sharing the latest trick I learned on my last car purchase. We agree on the price of the car, the fees, and the interest rate and residual for a lease. They provide me with an estimated monthly payment, which I told them seemed high, but they said it's just an estimate and I can still change my mind, so we moved on to the next stage of the process. Then I go to the finance guy's office, he tells me my monthly payment will be ~$100 less per month than the estimate, that he doesn't understand that, and that "the computer must be making a mistake but he has no choice but to honor it". Right after that he presents me with extended warranty and protection plans, when I decline his line is "you are saving $100 a month due to the computer error, why not treat yourself to the $50 a month protection plan?". I told him from the start that I don't want any upsells, but I also don't want to take advantage of any computer glitches, that even if some future financial audit wouldn't catch it (which it should), I would feel dishonest ripping them off, so I asked that he print out all the line items so I can help him calculate manually. After checking all the numbers, they were correct. It turns out their original estimate was $100 (exactly!) a month overestimated, so it seems it was to make the customer feel like they are getting lucky on a "computer glitch" and to make them more likely to spend on upsells instead. *sigh*
 

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Sorry, I'm always skeptical of extended warranties, protection plans, etc. They are designed to make money for the issuer, which means they make money on them on average. As a rule I've always only purchased catastrophic insurance, i.e. insuring against claims I cannot afford or which would be a financial strain.
I guess this is no different to the normal car insurance. The companies will always calculate to make a profit.

I am not sure if the extended warranty by Porsche in the US is different from here in Europe? But I did take out this twice by now and will renew in May again. Porsche France only gives 2 years warranty for new cars (very short Compared to many cars). And I am happy I did take this since the whole design and drive train is completely new to Porsche. My fee last year was 1100 Euros and I think the latest Battery Control Unit repair plus ll the repatriation costs mounted to at least 3000 - 4000 Euros. That is excluding the repair of the battery modules, which would be covered by the battery warranty. But that warrranty does not cover any of the control units, chargers, or voltage boosters etc etc.
 

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My Taycan 4s cross turismo is now 2 years in my possession. Bought it new 2 years ago, now it is running out of warranty. Porsche offers an extended warranty for 1, 2 or 3 years for 1577, 2653 and 3858 euro's.
What do you think? Is it wise to prolong the warranty period. Any suggestions?
If you intend to keep the car I would definitely extend the warranty, unless you are 100% certain nothing will go wrong with the car (but how could you ?). The yearly cost of the extended warranty is probably a lot less than paying to get any problem fixed on this high tech car. I agree that on average insurers and manufacturers make money on these extended warranties, but that does not mean it can not be a good product for the consumer. The cost calculation for Porsche is quite different than ours. Replacing the passenger screen for example might cost us 2000 Euro while the internal cost of this component to Porsche is only 300 Euro. One thing to keep in mind ( at least in Europe) is that the extended warranty stays with the car if you sell it to a private person, not if you sell it to a company...
 

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Side note, it took me over 2 months to get my money back, first they lost my request, then I finally got the $250 back, then after yet another request the ~$25 in sales tax refund - yet another trick by the dealer, they thought I wouldn't notice that they refunded pre-tax price only. :rolleyes:
You are the kind of troublesome, actually following up on the 30-day-money-back-guarantee type of customer that causes higher prices for the rest of us. ;)

"Uh oh, I see @whitex on the lot, time to get a smoke in the break room above the parts office."
 

whitex

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You are the kind of troublesome, actually following up on the 30-day-money-back-guarantee type of customer that causes higher prices for the rest of us. ;)

"Uh oh, I see @whitex on the lot, time to get a smoke in the break room above the parts office."
Sorry I caused your unlimited Taycan engine oil, filter, and spark plugs replacement plan price to go up. ;)
 
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I have a 2020 4S that I bought new 4 years ago. I love the car and don't want to ditch it just because the factory warranty expired. I researched on porsche.com about extended warranty. In the US they offer 2 plans, I chose the platinum plan for max coverage. I noticed it recommended get the ext. warranty before the factory one expires. I was a week away from expiration and contacted my dealer over the phone to purchase the platinum plan. The plan was for 60 months with $250 deductible, paying in 1 upfront payment was $4083. Initially the dealer made a mistake about date of purchase to calculate cost of out of warranty vs still under factory warranty. The out of warranty cost was $5343. That is a significant enough difference to make the decision and purchase before the factory coverage expires.

As to is it worth it to buy a warranty, I have owned cars where under the warranty it never broke down and it gave me peace of mind. I've had other cars that were pieces of crap and broke down many times under the ext warranty and I was glad I had the coverage. Just like when you pay your car insurance, no accidents will be profitable for the company. If you do crash your car you are making them pay you, so they are losing money at your gain.

I also consider the price invested in the Taycan. For me having $140,000 invested to purchase the car a $4083 cost to protect that investment is reasonable, it's 2.9% of the cost.
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