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Has your after market warranty paid for itself?

  • Yes

    Votes: 3 4.8%
  • No

    Votes: 11 17.5%
  • I didn't buy one

    Votes: 49 77.8%

  • Total voters
    63
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Discussion Starter #1
This was bought up in my other thread regarding buying a used 987 but I thought it is interesting/helpful to other enough to warrant a separate topic.

After purchasing your used 987. I'm wondering how many of you decided to go for an after market warranty and how has things played out? I thought it would be useful to everyone facing the decision. It would also be interesting to see how much it costed as I think these prices varies quite a bit.




====================================personal opinion that could be totally wrong========================================

Personally, I feel that in order for the warranty/insurance provider to stay as a viable business model, they have to make money. So the probability of a warranty to pay for itself has to be lower than 50%. Therefore it usually wouldn't make economic sense (not counting immeasurable incentive like peace of mind) to purchase of of these. Unless:

1. I could not bear the huge lose in an unlikely event. For example, an auto insurance as I could be liable for a million to someone I hit. In this case, I'm willing to pay a premium to transfer this risk.
2. The provider has more information then me. For example, a CPO car, where the dealer has much more professional experience on inspecting the car and CPO is more of a way to guarantee this car is good rather than an insurance.

So in a used 987 case, if I could bear the total cost I paid for the car and the warranty provider has no more information then me (I think they usually just sell an insurance without looking at the car?). It would make more sense to self insure or in other word, don't buy one. But this is a general mind game. So please let me know if there is something more specific in the boxster word that I should know about that could change the assumptions :)
 

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I absolutely agree with everything you said. I too believe insurance companies are smart enough to make money. A few years ago I ran across a table giving the percentage of premiums paid out on claims for a variety of types of insurance - at the top was life insurance with (I think) around 90%. At the other end were small appliance extended warranties paying out something like 10%. Auto warranties were somewhere in the middle. If you can self insure - do it. My two exceptions are if you can't afford the loss or if for some reason you know something about your intended use that would sway the equation your way. I've never come up with an example of the later, so currently only carry auto & medical insurance; both are mandatory and also make sense.
 

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times have changed. These days the quote you get on phone is contingent upon inspection by one of the warranty company inspectors that will come out and take pics and inspect your car. (reputed companies like EZ care, GWC..). Rule of thumb about $3k to $3.5k for 5 to 7 years/100k miles. Don't compare with getting a warranty on a honda/toyota. Porsche's typically have low miles and are driven less since they are typically not daily drivers and hence many don't really use much warranty service. Most warranty uses may be non engine like power windows, rattling/squeaking in cabin and so on..The engine post model year 2008 is pretty reliable. If you can afford it then get it. (warranty). Worth it for piece of mind alone..
 

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I guess it depends on what gives you peace of mind - mine comes from not playing losing games likes lotteries and extended warranties, and now having way more money in the bank than if I had bought an extended warranty on the many cars (or other products) I've owned. Of course I could afford a warranty, but it is not for me. :)
 

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... The engine post model year 2008 is pretty reliable. ...
Interesting. I understand this comes from the fact that the IMS was eliminated in 2009. But I would like to hear of any instance of a 2008 having the IMS issue -- I could not find one.
BTW, I have a 2008 base.

No disrespect intended.

Anyway, I bought my warranty just in case of the IMS failure. But I'm starting to wonder if it was actually money well spent. Warranty is like one of those things where you kind of wish something would go wrong so you could make your money back -- but then again, you just might get what you wish for. It's such a gamble.

Dennis
 
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Interesting. I understand this comes from the fact that the IMS was eliminated in 2009. But I would like to hear of any instance of a 2008 having the IMS issue -- I could not find one.
BTW, I have a 2008 base.
Lots and lots of threads from people worried about the IMS, but I am also unable to find instances of actual failure. I don't doubt there have been some, but I don't think it is worth worrying about (I have a 2007 Base).
 

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I guess it depends on what gives you peace of mind - mine comes from not playing losing games likes lotteries and extended warranties, and now having way more money in the bank than if I had bought an extended warranty on the many cars (or other products) I've owned. Of course I could afford a warranty, but it is not for me. :)
Extended warranties are for the average non dyi person like me. We are not talking about your average home appliance or car's that easily go 200k miles without any major issues like an Accord or Camry. Instead of lottery a better comparison is insurance. Yes, I could have peace of mind with more $ in the bank instead of getting the required insurance that will cover me when my basement gets flooded. My basement has never flooded in 10 years since the power has always come back in couple of nerve wracking hours :). Battery backup will last another few hours. Instead of getting the insurance iam contemplating getting a natural gas powered generac generator system. In the same way I would save more $ and rather get a CPO that is still under mfr warranty if possible..or just buy the 5 year bumper to bumper ext warr and enjoy the car worry free.
 

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Extended warranties are for the average non dyi person like me. We are not talking about your average home appliance or car's that easily go 200k miles without any major issues like an Accord or Camry. Instead of lottery a better comparison is insurance. Yes, I could have peace of mind with more $ in the bank instead of getting the required insurance that will cover me when my basement gets flooded. My basement has never flooded in 10 years since the power has always come back in couple of nerve wracking hours :). Battery backup will last another few hours. Instead of getting the insurance iam contemplating getting a natural gas powered generac generator system. In the same way I would save more $ and rather get a CPO that is still under mfr warranty if possible..or just buy the 5 year bumper to bumper ext warr and enjoy the car worry free.
Completely off topic but with respect to basement flooding, my sump pump runs A LOT, so I spend a lot of time worrying about it and praising it (just in case that works). I had a battery back up system for several years, but the batteries are expensive and don't last long, plus the output from the ones available at big-box stores are pretty anemic. Then someone mentioned water-powered back up systems. These run off city water and you can get very high output ones (not good for someone on a well). I installed mine about 10 years ago, test it a few times a year, and now sleep like a baby (well, not really, but I do worry less). (And getting even further off topic, since my sump pump runs so often, last year I installed an irrigation pump to suck water out of my sump pit and drive my drip-irrigation system. Being a retired engineer lets me work on silly things like that, which I find strangely rewarding. :))
 

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Insurance like these warranties are like a bet, the insurance company will double or qua triple there money on the average, for some it is peace of mind, there will always be stories like it saved me 15,000 on a new motor, but I would have bought a warranties for every purchase like tv's, furnace, and all that other stuff, I probably could not afford a Porsche.
 

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We buy warranties. They are pretty crappy about excluded parts (often, much of the exhaust system,) but with a CS and an M3, I don't want to face the cost of a major engine problem. At about $125/month/car, I buy the warranties. I believe they are transferable which could help resale, but that was never in my mental equation.
 

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As a general rule I buy warranties on a vehicle with known common and expensive issues. When I bought a used Subaru Forester years back I got an extended warranty because I knew Subaru likes to make head gaskets out of cardboard. And sure enough right about 100k miles the head gaskets started leaking. That warranty also had a $1200 sunroof repair and replaced valve cover gaskets, all in all I paid about $1500 for the warranty that covered about $3500 of repairs.

But... That's only because I knew about the head gasket issue and I got lucky with a few other things.

I did not buy a warranty on my boxster, because it seemed like the 2.9 engine was pretty solid and not prone to any of the expensive issues the previous cars had. Had I bought a 987.1 I would have seriously considered it, but at $3500 - $4000 it was cheaper to just pay a bit more for a 2009 model.
 

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I bought one for my 2008 987.1 for around $3500 for two years/20K miles. I have piece of mind and drive the car like it should be driven. Once the warranty expires I will probably upgrade my Cayman for a newer model.
 

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My problem with extended warrentys is just what is actually covered. When you take the time to read the fine/micro wording of coverage limitations most people would walk away with money in their pockets!
 

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I took a calculated risk. Two years in, my only failure has been a battery. I am willing to absorb the co$t if something expensive breaks. I wont be happy about it but I will deal with what the car needs.
 

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I'm buying a 2013 Boxster S(981) via CarMax. Their extended warranty is via Continental Service Plan, Inc.. I saw some very unfavorable reviews and comments about them, fundamentally denying claims.

There contract certainly gives them some interesting outs, such as Clutches aren't covered, and if an uncovered part fails causing damage to a covered part then they deny the claim, PDK?

Exhausts and Cats aren't covered, as well as all maintenance items. I see another weasel opportunity, if a hose(uncovered) leaks causing a failure of an engine, then no coverage.

Also you must provide all maintenance records and it must be by the manufactures recommendations. In this case , the car has 47k miles, with no written proof of service, other than CarFax.

So for $3k, for 75k miles/or 60 months, is it worthwhile. I guess it would protect from a electronic failure, i.e. GPS, Chrono, top mechanism...I don't see how they could avoid coverage?

Thanks

Tim in Capitola
 

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I have bought from carmax before like 5 years back and it was their own extended warranty called maxcare. Have they outsourced now to others like continental or whatever ? Anyway the verbiage you quoted is pretty normal and standard no matter what warranty you get except new car and cpo .. i mean verbiage like "Clutches aren't covered, and if an uncovered part fails causing damage to a covered part etc" Scroll to the bottom of this page for what is not covered typically. Here is what I did when I got my BMW with carmax. Took their maxcare and noted they have a cancel maxcare for a full refund within one week or something. Then went to my local credit union and took a loan just to qualify for credit union backed extended warranties that are far superior to maxcare (EZ care, AUL , GWC..premium top brands). They quoted also like $800 less than maxcare. Took that and cancelled maxcare. Then paid of the loan. If that helps you no need to thank me . Just donate whatever $ to a charity of your choice :)
 

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Own what you can not only afford to service, maintain and repair..but also replace...(and not just purchase)... and you will never ever find yourself in a bind.. doesnt just apply to cars..

That said.. companies like Carmax offer "affordable" piece of mind warranties for those new to Porsches or those going out of their comfort zone (financially)..

Is carmax (or anyone else) going to buy you a $18,500-$22,000 Porsche engine on your $29,000 used cayman? THINK AGAIN..

I dont know of any warranty company (and that includes expensive INclusionary coverage warranties) that will pay a claim that is equal or higher than a car's street value.. and trust me, 2-3 yrs down the road, if the Engine goes kaboom on your pre-own Cayman.. they will figure a way to appraise your car right below the Engine cost..

Good luck
 

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Prior to buying my Cayman I reasearched about 5 different “Service contracts” from different companies.

One clause I found in them was that they pay for engine parts that are internally lubricated. As I understand it, the IMS bearing is not internally lubricated and would not be covered by many of these “service contracts.”
 

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I actually take the extended warranty option when I buy my Cars. I have GEICO and I include it in the coverage. It is 7 years, 100,000 mile with $250 deductible. It is $5 and change a month. So after 4 years when the company warranty is up, I have only paid $240........I do the same thing with my wife's cars.
 
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