Go Back   986 Forum - for Porsche Boxster & Cayman Owners > Porsche Boxster & Cayman Forums > Boxster General Discussions

Reply
 
LinkBack Thread Tools Display Modes
Old 03-09-2011, 07:21 AM   #1
Registered User
 
Join Date: Mar 2011
Location: Aspen, CO
Posts: 131
Question Purchase Extended Warranty?

Should I get the Extended Warranty through the dealer for 2011 Boxster S?

7 years, 70,000 miles with $100 deductible. Cost now $2495.00

PhilNotHill is offline   Reply With Quote
Old 03-09-2011, 07:28 AM   #2
Registered User
 
tonycarreon's Avatar
 
Join Date: May 2009
Location: Frederick, MD
Posts: 1,396
1. how long do you plan to keep it?
2. porsche warranty or 3rd party?
3. 2011 are new, no one really knows what the problems will be.

that said, most people on the forum tend to walk away from warrantys that are 3rd party. the odds are that it will never be used, otherwise there's no money to be made from selling them.
__________________
"Speed has never killed anyone, suddenly becoming stationary... that's what gets you."
tonycarreon is offline   Reply With Quote
Old 03-09-2011, 07:54 AM   #3
Registered User
 
Join Date: Jun 2005
Location: Houston, Tx
Posts: 191
Since your original warranty is...

for four years and 50,000 miles, you are paying $2495 for three years and 20,000 miles. For me I would pass and invest the money in a good growth stock like Apple.
Norminhouston is offline   Reply With Quote
Old 03-09-2011, 08:54 AM   #4
Registered User
 
tonycarreon's Avatar
 
Join Date: May 2009
Location: Frederick, MD
Posts: 1,396
not to hijack the thread, but my AAPL stock has only given me 103% return, whereas the BAC stock has done 185% - purchased at the same time...
__________________
"Speed has never killed anyone, suddenly becoming stationary... that's what gets you."
tonycarreon is offline   Reply With Quote
Old 03-09-2011, 12:55 PM   #5
Registered User
 
Join Date: Aug 2005
Location: Sanford NC
Posts: 2,339
My thoughts

Are here .

Statistics say it is a bad bet. But the 2011s are not immune from serious problems.

Details would matter. What does the contract say? Who is behind the contract?

Last edited by mikefocke; 03-09-2011 at 12:56 PM. Reason: typo
mikefocke is offline   Reply With Quote
Old 03-09-2011, 02:37 PM   #6
Certified Boxster Addict
 
Join Date: Nov 2010
Location: Los Angeles
Posts: 7,516
Unfortunately, there isn't any good methodical way to calculate the value of an extended warranty because you'd have to know that likely failure modes and failure rates.

Of course, Porsche knows those numbers and that is how they came up with a price of $2495 for an add'l 3 yrs/20K miles. Generally, you can safely assume that Porshce believes that they will come out ahead on the deal.

With that being said, the question comes down to three things:

1. Can you afford to pay for repairs yourself once the standard warranty expires or are you cash-short most of the time?

2. Do you want "worst case" insurance to provide coverage if the engine or tranny goes?

3. Is it easier for you to roll the expected costs of repairs from years 4-7 into the price of the car and finance them over the life of the loan even if you might be over-paying a little?

I bought both of my BMW's with an extended warranty and they turned out to be about break even when compared with the extermely high list prices that the dealer quoted for repairs. At actual dealer cost for the repairs, BMW made decent money on the deal. But what I really wanted (and was willing to pay for) was worst case insurance for an engine or tranny failure (which never occurred but I slept better knowing that it was there).
__________________
1999 996 C2 - sold - bought back - sold for more
1997 Spec Boxster BSR #254
1979 911 SC
POC Licensed DE/TT Instructor

Last edited by thstone; 03-09-2011 at 02:40 PM.
thstone is offline   Reply With Quote
Old 03-09-2011, 04:02 PM   #7
Registered User
 
Join Date: Nov 2007
Location: Chicago, Illinois
Posts: 19
Extended Warranty

You will be better off waiting until your factory warranty is about to expire before buying an extended warranty. If you buy now it runs concurrent with the factory warranty. Check with the warranty company that you are interested in and see how much the warranty would cost if under a certain amount of miles then you will have a longer warranty for about the same price.
AreaOne is offline   Reply With Quote
Old 03-09-2011, 06:21 PM   #8
Registered User
 
Join Date: Aug 2005
Location: Sanford NC
Posts: 2,339
Well those who have done serious research

have calculated the payout as a percentage of the income of these companies. And it only stands to reason that if I sell something that has administrative costs and sales costs (salesperson, upseller, sales manager, GM, owner, etc all take their cut) and profits in it, the amount I have left that I expect to pay out in parts and labor expenses to fulfill the warranty terms will be less on average than the cost I will change.

Consumer Reports calculated a 30% payout as a percentage of cost several years ago. 70% went for things that, in the end, didn't benefit the buyer...on average. Sure we'll hear from some who won...just like at the casino. But casinos don't take 70% off the top on average in any game I'd play.

And financing a warranty only adds to the cost and decreases the efficiency of the purchase.

A 2011 isn't that new and we have the experiences with the last 2 years from a similar design to judge from.

Porsche provides the CPO as a way of selling on used models so the dealer can talk the potential trade-in owner into the high margin new car. Curiously, the CPO terms and costs are a US specific item. In the UK it seems you can buy a warranty from a OPC (dealer) and it will be backed by the Porsche distributor in the UK through about 10 years. No such luck here. The cost of a CPO warranty that is subsidized by another product's sales is not a good measure of the payout liability in a warranty.
mikefocke is offline   Reply With Quote
Old 03-09-2011, 06:44 PM   #9
Registered User
 
Join Date: Mar 2011
Location: Aspen, CO
Posts: 131
Quote:
Originally Posted by mikefocke
Are here .

Statistics say it is a bad bet. But the 2011s are not immune from serious problems.

Details would matter. What does the contract say? Who is behind the contract?
Zurich American Insurance Company, Overland Park, KS.

Only parts of the engine are covered.

I believe I will pass.

Thanks for the help.
PhilNotHill is offline   Reply With Quote
Old 03-09-2011, 06:55 PM   #10
Autobahn Glanz
 
WhipE350's Avatar
 
Join Date: Dec 2010
Location: Charlotte, NC
Posts: 1,282
Garage
Good choice Phil, you just took delivery on that car, who knows in 4 years and 20k miles later you might want a 2015 turbo 2.0 liter Boxster
WhipE350 is offline   Reply With Quote
Old 03-09-2011, 11:39 PM   #11
Registered User
 
Join Date: Mar 2011
Location: Aspen, CO
Posts: 131
Ruby

Quote:
Originally Posted by WhipE350
Good choice Phil, you just took delivery on that car, who knows in 4 years and 20k miles later you might want a 2015 turbo 2.0 liter Boxster
Indeed.

I do get attached to cars tho. Our 84 986 S was totaled after 4 years (some woman hit us at 50 mph while stopped at a light). We really loved that car.
Attached Images
 

PhilNotHill is offline   Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On




All times are GMT -8. The time now is 04:21 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Content Relevant URLs by vBSEO 3.6.0
Copyright 2018 Pelican Parts, LLC - Posts may be archived for display on the Pelican Parts Website -    DMCA Registered Agent Contact Page