Extended Warranty check

My porsche dealer is selling me an extended warranty..."X series from CNA National warranty corporation". He wants $4100 for 3 year/36000 miles. I own a 2002 C4s with 14, 500 miles on it currently. He says that if I perform the work at the dealership, he can direct bill these guys so that I don't have to go through any claims process. I need advice. What do y'all think?? Worth it with RMS issues etc for the next 3 years?? DD

Price sounds high, I got a 4yr/75,000 mile warranty for an 2002 last year with $0 deductible for $4,500 from www.warrantydirect.com check them out.

Warranty's are a marked up item thru dealerships so you may be able to get a lower price if you try. You will normally get more help with the dealerships service dept as they work with the warranty company for you a little better when they sell the product- FWIW

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My 4/48,000 was only $2500. It was the highest coverage level - or what they called Bumper-to-Bumper, exclusions only. Meaning they paid everything except for what was explicitly written in the exclusions section. I even had my passenger seat motor replaced under warranty -td

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Warranties are big profit centers for dealers, which means it is ofter less expensive to look elsewhere. But there is another consideration. I just bought a warranty not from the dealer and when I mentioned what I was considering buying to the service advisor, he assured me that no dealer would accept the coverage. In essence unless I bought the plan the dealer was pitching (at much greater cost), if I wanted to use the dealer, I would need to pay for the repairs and then get reimbursed by the warranty company. I guess it also means I would end up getting things approved for repair. My attitude is that it is the dealer's loss if I go elsewhere. I suspect that I will find an independent wiling to work with the warranty company.

Your 2002 only has 14k miles on it, did you ever have any major issues with the car? I would personally take that $4000 and put it in a CD, I think extended warranties are really not worth it.

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Seriously +1. At that price, it just makes no economic sense at all, even based on the most dire probabilities. Either you think a lot is going to go wrong (in which case don't buy the car, it's a lemon) or the difference between four grand and the cost of a new engine, say, is more than you can bear (in which case don't buy the car, you can't afford it). I got the extended warranty pitch when my Rover's factory warranty ran out. $3200, they wanted, about the cost of a head gasket. Said no. Since then the only warrantyable things that have gone: a throttle plenum heater and a pinion seal, each about $150. Extended warranties, to me, are very poor value for money.

No issues yet except for my fuel gauge issue which is still not fixed after multiple recalibrations and a new sending unit . I suspect it is the cluster($1500 approx) The only advantage of buying it from the dealer is that they direct bill the warranty company and I dont have to go through the hassle of filing a claim.

Warrant direct does not cover the 2002 911 anymore.

The economic justification is similar to purchasing full coverage car insurance when the law only requires minimal coverage . It's the just in case factor. I disagree with this assessment. First, most (if not all) of the mechanical parts in a car will eventually fail - and this is no reflection of the car being a lemon. Rather, it's just a matter of time. Everything breaks, and everything dies. The question is, when it happens who will be paying for it. $4000 is steep, but peace of mind is even more expensive. Especially after something breaks. Again, just because you CAN pay for the repair, doesn't mean you should. It's insurance - so that you don't HAVE TO pay. It is not a reflection of your ability to do so. And being unable (or unwilling) to pay for a catastophic failure (i.e., whole engine) is a reason TO GET the warranty, not to avoid a car. Also, contrary to the counterexamples, I have used my extended warranty for a number of little things, and the total has added up to more than the purchase price. Keep in mind, that fixing anything on a P-car is automatically more expensive. For example, just replacing my seat motor was around $1500. When I bought the warranty, I contepmlated the things that might need to be replaced (e.g., alternator, starter, sunroof motor, window motor, etc) and the dreaded RMS. I've already recouped the cost of my warranty - and I haven't had to replace any of the parts I thought would go out. (knock on wood). The reason for this is that my warranty covers LOTS of things. Not just plenums and pinion seals. Lastly, my warranty was priced on car mileage - and NOT car year. A warranty for my 2000 was available in 2006 - so a 2002 should be available in 2008. -td

Appreciate your perspective, but to me it's pretty simple: You're choosing the certainty of paying something now over the possibility of paying more later. With life or liability insurance, this makes more sense because the worst case 'later' scenario is many, many times more expensive than the premium. With extended car warranties, much less so. You're paying the premium either because you believe more will go wrong during the warranty period, or because you fear the cost. Notwithstanding your experience, if extended warranties paid for themselves for car owners, warranty companies wouldn't sell them. It's casino economics. Meanwhile, over a typical 3 year warranty extension, the opportunity cost of that $4000 at current rates of return in the stock market is pretty close to another grand. Steep. Now, if you're paying for the warranty because, subjectively, you sleep better and that improved sleep is worth $5,000, then it's certainly not for me to judge. Objectively, I believe they are poor value for most people. Subjectively, it's none of my damn business.

Virtually everyone fears that something will go wrong that isn't covered under their warranty (new car or aftermarket) or that there will be a cost to them. I seriously doubt anyone buys a car and thinks, "I have so much money I don't care if I have to pay myself." As for the warranty itself, the cost must be commensurate with the peril. Implying that all warranties are in the "bad" category (or objectively bad as you refer to it), is a slight exaggeration. A $4000 3-year warranty is substantially different than a $2500 4-year. It is possible to check the "true cost to own" for any car, and from that you can readily determine what amount you can expect to pay in the next X years. That should serve as a sufficient baseline to make an informed decision. I don't believe that a buyer should walk blindly into a warranty, but I disagree with the assessment that they should (similarly) blindly walk away. Sure, they're not for everyone. But for those buying 6 year old cars, they may, in fact, be a "better" prospect... -td

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Well, actually, I do buy cars like that. Within reason, anyway. For me, a car I can easily afford to own as well as buy is more fun. That's just me. In any case, all of life is a risk, and all warranties are profitably sold on the assumption that most customers won't need them. That doesn't see debatable as far as I can see. That said, if a) I was already stretching to afford my car, and b) A respectable warranty really was only $2500, I could be tempted, sure. Sleeping is worth something. I just stick to my guns on the notion that buying a warranty is an emotional decision, not a practical one, since probabilities favour never getting your money back. Not meant to be a blanket condemnation. Just another perspective.

I am an independent that does work with customers with extended warranties. My customers do not handle the claim, the repair shop does and that is at the request of the warranty company. (All that I have ever dealt with). And the warranty company pays the balance owed by credit card after the customer has paid the deductible and any additional amount not covered by the policy. The only extended warranty that must be taken care of by a Porsche dealership is their own CPO program. I have seen customer never use thier policy and others have received considerable compensation for reman motors and transmissions. It's like an insurance policy to help out with expenses.

I'd be leery of driving an ultra low mileage 996 Carrera without a warranty. This thing's been sitting around for most of its life and if it is the original engine, I'd be even more anxious about a future RMS bill. Sure, people here are going to say these cars are so reliable this and that and RMS is no real issue... BS. It doesn't give me peace of mind knowing how common the RMS story is on this very board (do a search). I'd have no issues buying the warranty through a reputable Porsche dealer local to you. This is what I did and I paid $3500 for 3 yr/48K in Seattle (Barrier Porsche). It's worth the peace of mind (for me).

Bruh... anybody who tosses and turns over an $800 RMS replacement hasn't done their homework about what routine maintenance and consumables are going to cost on this whip. I can see sleeping better because you're worried about an engine failure, but if $800 one time scares you, wait until you confront the reality of rear tire life... Never saw you as the nervous type.

Notwithstanding the argument for or against getting one, the price you are quoting is not a good one. I had 10k miles on my 2003 911 C2, 3 months out of original warranty, when I got a 5 year, 50k mile exclusion extended warranty for $3880, in California, where the only option is to buy the warranty from the dealer. If you decide you want one, keep looking or negotiate harder. On the pro/con, I bought the warranty to offset the potential catastrophic engine failure, which I am not prepared to cover with the interest on my $3880 certificate of deposit.

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Then you shouldn't admonish or discourage those that say "I have so much money I want to buy an aftermarket warranty." Besides, the odds that a 6+ yr old used car will have problems by the time it reaches 10 is almost a given. If the price of the warranty is commensurate with the estimated repairs for a given car, then there is no issue. IMO, and in my experience, a $2500 4/48,000 is a deal on a 6 year old Porsche. And that's with a $50 dedcutible. For example, 3 main considerations I had were: starter ($600), alternator ($1400), oil pump ($600). With labor, that is way over $2500. These things are all covered, amid the myriac of other items [including all A/C components, fuel delivery, virtually every electric motor in the (windows, locks, seats, spoiler, etc), all steering, non-consumable brake items, ignition, etc. etc.] It's a nice feeling to have anything and everything replaced/repaired right when it breaks. No DIY on my part, no "I'll buy the part myself", no shopping around to get the best price on the fix, etc. Just drop the car off at the dealer, and pick it up when it's fixed. Perhaps I did buy on emotion. But I've already recouped my entry fee, and I haven't even had to replace any major items or encountered the dreaded RMS (knock on wood). IMO, that was $2500 well spent. -td

If the price is right,it's worth the peace of mind.

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Not everybody who goes to Vegas comes home empty handed, either. I'm glad it worked out for you.

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Absolutely true statement, given that the "right" price is totally subjective, and everybody's threshold for "peace of mind" is unique. The only thing I just can't agree with is that this is rationally good value. It's just not. Warranty companies make money precisely because it's not. Insurance makes sense when the consequences of something going wrong are more frightening than the odds against it are reassuring. As I've said, I can see that with personal liability insurance, I can see it with house insurance, I can see it with life insurance for a person with a family. I just wouldn't let a car put me in that position.

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Playa, it's not tossing and turning, it's just the sanctity of the 911 driving experience that's at stake here. Sure you throw $800 + your time into scheduling it with dealer, being without your car, picking it back up, etc... and knowing that who the hell knows if it's going to happen again since it's a bit of a toss up whether your $800 finally solved the problem. This is just one issue... there are other "failures" that may occur where you just may need a replacement engine. Again, $3500 is worth the peace of mind. And believe me, rolling 315/25/19 PS2s is my reality so check yourself before you wreck yourself with your budget tires, pimpin'.

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Rationally, the 911 is NOT a good value (I would argue).

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True. In fact, it can get silly talking about 'rationality' in any context at all, when the topic is Porsches. Yeah, maybe my tires are too skinny...

but your brain is PHAT LOL - respect for you bruce batman p

werd.

For me the warranty made sense. I went through a company that the dealership has been going through for 10+ years. Cost $2000 for 5 years/150,000 miles!! The piece of mind alone on a car that I will be driving EVERY day to work is worth it. Even if I never collect one penny on the thing, I will be ahead. Peace of mind when driving the car how I want to drive it is worth something to me. Certainly the $40 or so per month the thing will cost. Coming off of 4 years of Ferrari ownership, I am looking forward to not worrying every time I give it a little extra...

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People put Full coverage on their 70,000 dollar cars so if they crash they get a check for 70,000 instead of sucking on the end of a shotgun. Not to mention if you have a lein on the car its required by the loan contract to have full coverage. 1500 for a 100 dollar motor is not what owning a P car is about. 100 bucks and a couple hours and its done. Not to mentions warranties are a bit of a gamble on if they will actually cover stuff or if they will consider it a wear item or damage from abuse.

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At that price, even I'd do it.