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Originally Posted by mikefocke
everyone's risk tolerance is different. And perhaps the Porsche is the exception that would argue for a warranty. But if statistically that were true, wouldn't that be priced into the cost of the warranty as the warranty company has other costs they have to recover besides actual repair costs, have statistics on what it is costing them for Porsche repairs, and isn't in business to lose money. So I have to believe that they are pricing to make money on their Boxster warranties.
While I recognize that you may have made money on your warranty, I declined mine and am $2400 ahead at what would be the end of the warranty period. And neither your or my experience is really statistically significant (to me) in determining the wisdom of a warranty... way too small a sample.
The argument for a warranty that is compelling is the one that says "to me, it is the only way I'd be able to own a P-car and sleep at night" and that is an emotional response that is specific to the individual. And as valid a reason as any...because everyone has a different risk tolerance.
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I don't dissagree with you, I should probably add that my opinion is based on ownership of an older model, as mine is a 2001. The older the car the higher the likelihood that something will break down, thus the higher premium that is charged for the older models. Yes the insurance companies have done their homework and studied the statistical analysis on a much broader sample base than just a couple of people. Since RMS and engine failure is more common in older Pcars like mine, I thought the added security of warranty was a good option.
I guess I have been fortunate, if you want to call it that, that I purchased the warranty. Again a warranty is insurance to protect yourself from substantial financial loss. I didn't buy a warranty to make money but to protect my money. Of my cars that I own, the Porsche and the Mercedes have extended warranties, this last month alone those warranties have saved me over $6,500 in repair bills. I do not have warranties on the Hummer, Suburban, 2 Honda Accords or the Jeep. Why, because they do not break down as much and the cost of repair is much lower. It's all about assessing risk