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Discussion Starter · #1 ·
We are conditioned by experience to say no to sales add-ons. I don't want nitrogen in my tires, or window dressing, or some other profit center added to my vehicle. The lack of such sales gimmicks is one of the advantages of buying from a luxury brand like Porsche.

But over time, I've come to realize that these official extended warranty plans can actually be a great deal if it fits your needs. If the dealer offers to sell you a third-party extended warranty, say no, and make sure you ask who the provider of the warranty is and read the description of covered items.

Now, dealers love to sell you an extended warranty because I've learned that often the markup on these is 100% to 500%. It's an insane profit margin. If any Porsche insiders have more info on the true margin of the Porsche warranty, please share.

The key point here is you can absolutely negotiate the price of the warranty. It is not uncommon for dealers to say yes to a 50% reduction in the asking price on the extended warranty because there is so much profit in these plans for the dealers. If the dealer isn't aggressive enough with discounting, just call all the dealers in your area, or even call a dealer in another state. The warranty can be sold by any dealer -- doesn't have to be your selling dealer. Typically you can add these warranties for a limited period after driving the car off the lot -- anyone know the exact number of days for Porsche?

Now the standard warranty is 4 yrs / 50k miles with an 8 year / 100k mile battery warranty. So we don't have to worry about the battery. But the management electronics, cooling system, onboard charging system, etc are all big-ticket items with truly unknown reliability. I wouldn't be surprised to receive a $20,000 service bill if one of those fails out of the 4 year warranty. These are not simple mechanical parts like a control arm or something -- these are complicated, precise electronics with supercharged prices thanks to comparatively low-volume production and an inability for aftermarket manufacturers to produce a similar part. Many of these parts are patent protected with high licensing fees.

What I'm concerned about is ensuring the language of the official Porsche Vehicle Service Protection Plan (Porsche's name for the official extended warranty) is sufficiently detailed to include all of these new parts and systems on the Taycan. I don't want the dealer to come back to me later and say something is excluded because it's not in the terms...because those terms were so ICE focused and never updated from Porsche's legacy ICE business.

Here is the official brochure. Notice how there is a chart that doesn't say very much about electric vehicle components.


Anyone know if Porsche has anything updated for Taycan buyers?

Taycan Extended Warranty Official


If you're not going to keep the Taycan for long, then there is no point. But if you'd like to take the depreciation hit once, are pleased with the specification and options for your vehicle, and don't need anything faster than 350 kW fast charging...then it's prudent to review the extended warranty option. I pretty strongly believe that one repair out of warranty is going to pay for this extended warranty. The Taycan is going to be significantly more expensive to repair if something goes wrong with a component.
 

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When you're dealing with a brand new model in it's first year like the Taycan, the extended warranty is definitely worth it for me. There are so many things that can go right or completely wrong that it's worth it for the added peace of mind. Don't get me wrong, I'm not questioning Porsche's quality control, it's top notch, but you never know what could happen.
 

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Discussion Starter · #3 ·
Jalopnik published an article this past week detailing the repair costs of a Tesla Model X that traveled more than 400,000 miles. The repairs over that period totaled ~$29,000 including many instances of Tesla not charging for some repairs.


The example of this Tesla illustrates that while a BEV's overall lower complexity should result in lower maintenance costs, there may be enough out-of-warranty costs to consider an extended warranty on a Taycan.

An interesting data point is that replacement of the electric-driven high voltage air conditioning compressor may be more related to run-time than mileage. So even if you don't drive 400,000 miles, you may expect a compressor replacement under 100,000 miles if you live in a climate where you are frequently using the climate system. The Model X in this example required an AC compressor replacement at 72k and again at 115k. Anyone know if the AC compressor in a Model X is a part developed in house by Tesla, or if that's a part supplied by a typical auto supplier that could also be in a Taycan?
 

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Discussion Starter · #5 ·
I'm reassured that Porsche is building objectively reliable cars these days, but does that extend to electric powertrains? I imagine most of that data is based on their internal combustion cars. And even then, everything wears out with time. The discussion of an extended warranty is not about initial quality and initial satisfaction, but rather this is about making a prediction of long-term reliability, and deciding whether the expected costs of long-term repairs are either greater or less than the cost of an extended warranty. The question is, are you comfortable trading some risk that you might pay too much (for a warranty you don't need) in exchange for limiting your total risk of repair costs? With the right warranty, you'll never have a $29,000 repair bill. But you might overpay an extra $2,000 over the repair costs you would have incurred without the warranty. Or you might come out way ahead.

I think it's going to be very interesting in 5 years to see whether the Taycan earns a reputation for bulletproof reliability and durability, or if everyone is going to say that it was Porsche's first-gen EV and to not buy one without extended warranty coverage. If that comes to pass, I imagine warranties then won't be cheap to add...
 
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