I would love to see the ROI calculation for this, comparing keeping old car with extended warranty and possibly paying for some not covered repairs, vs. upgrade to new Taycan.
Haha fair point. It was a costly way to “fix” my situation but at the time, the equation made sense to me.
$BECAUSE_I_WANT_TO can be a very large constant used in personal ROI calculations. Without this convenient constant, most of us would never be able to justify a Taycan in the first place.
In your case from the frying pan into the fire, but that is probably a low probability outcome.
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Couldn’t have said it better myself. One of my neighbors is super frugal and can’t believe I’m leasing , “all that money spent and you will have nothing to show for it” except I get to smile every day while driving it.
Life is short. You never know what tomorrow brings. Live life to the fullest.
Nobody needs a Porsche for daily driving, it's a choice to exchange your money for enjoyment. We all make such choices. The distinction to be made is that different people value different enjoyment differently. You might be surprised to find out saving money gives your neighbor as much enjoyment as you driving the Taycan. One of my best friends spends tons on money on audio and video equipment, I couldn't care less, and I've experienced his top of the line home theater. I buy a custom Taycan Turbo CT, he drove it, doesn't see anywhere close to the price value in it (wouldn't buy a new Taycan Turbo at 50% discount) - he buys fairly basic cars and drives them to death, he's not even in an EV yet (he does have plug-in hybrid, but it actually made him dislike EVs because of how little range his car gets in EV-only mode and how there is always a line for chargers at his work, my argument that he wouldn't need a charger at work at all if he had any modern EV is countered with how he couldn't drive it 14 hours straight to see his kids with only 2 or 3 five minute refueling stops - not that he's ever done that, but he values the fact that he could).Couldn’t have said it better myself. One of my neighbors is super frugal and can’t believe I’m leasing , “all that money spent and you will have nothing to show for it” except I get to smile every day while driving it.
Imagine you run a fleet of 100 Taycans and self-insure. Over the whole fleet you'll get some which cost nothing and some which cost a huge amount. This is what the insurance companies do and, overall, come out on top.As some have cleverly implied, Porsche ownership is not so much about "ROI" or "affordability." Rather, I view extended warranty "products" as simply what they are -- a financial instrument, priced according to risk evaluation. Insurance company "X" calculates they can profit from any Taycan owner's payment stream (including X's investment profits from said payment stream). As wiser folks than I have long observed, "insurance" is simply a "peace of mind" purchase. The math I've seen so far says aftermarket insurance products (like extended warranties) are among their more profitable lines of insurance. Hence, one of the WORST values for us consumers. Guess I'll just self-insure the risk, and continue taking good care of my assets, both in my garage, and in the bank
It's not quite as you describe. It's not about averaging for just the Taycans happen you own concurrently (a fleet in your example). The average calculation you should be doing over all insurance/warranty products you purchase over your lifetime, so including every single car you ever own, every single phone/tablet/computer or other electronic device you bought extra protection on - that can be quite a large "fleet" in your lifetime. Given that on average insurance products make money, you can take a similar bet yourself. One approach, which I am partial to, is to always buy only "catastrophic insurance", i.e. against something that if you had to cover the costs it would significantly hurt you financially, or you couldn't afford it at all. Everything else that you can cover if needed (whether the cost o repair/replacement, or even a higher deductible) vs. cost of insurance/warranty will average likely to your advantage over your lifetime. Is that a 100.00000% guaranteed win? Of course not, neither are insurance products for the insurance company, but chances of it being a loss are very low.
WhiteX, your math and approach are exactly correct. That "catastrophic level" will be a number unique to each reader. Speaking as a friend to you all, find "your number" and live happily ever after
I did exactly this. Purchased the highest deductible insurance I could find, with a 5 year duration. And that "highest deductible"? $800. A pittance.
Agreed! Even with the experience of the "Red Circle of Death" it has been an outstanding machine. Once minor issues were ironed out, it has been a perfectly daily driver summer/winter without a glitch 2 years in a row. I gave her a RedShift recently for her BDay and she is a happy girl. I'm a happy boy!
Not sure if this is exactly on thread, but for the record, I am soon approaching five years of ownership of my from new MY21 4S. Beyond the recalls, which my dealership promptly addressed for me, my only problem during that time was a single instance of a dead 12 volt. That WAS a problem, as I park in a hard-to-tow-out-of commercial garage. That was about 3 years ago. I frequently check this forum and have found many substantive, helpful posts. I purchased a 7 year extended warranty last year, betting the HV battery would get me that far. If more independent service shops open up—see “Out of Spec Renew” on YT, and if replacement batteries or modules thereof become available, I forsee a long period of ownership. On a sad note, after 20+ years of ownership and care, I just sold my beautiful 308 QVS; there was no depreciation, but maintenance was a more than adequate expense.
It’s now in what I hope is a good home.
