should i buy the aftermarket warranty?
 

Hello,
I am picking up my new ( to me ) 2000 boxster tommorow from a local dealership. The vehicle has about 45k miles on it, and they are trying to sell me the extended warranty that warrants me for the next 36 months or 19k miles. I am debating if this is worth to purchase or not as it is about 2500.

Should I take the chance or should I buy it for the peace of mind. By the way, can some one please offer me some insights as to what are the comon problems on the 2000 boxster. Thanks.

If I were you I will get the warranty. $2,500 for 36 months or 19K miles sounds like a good money to spend.

Here's just some info for people out there wanting to buy a new Boxster. If your car insurance is through Geico you can get a 7 year 100,000 mile warranty for 100 bucks a year, but that is only on new cars and there is a deductible. Not bad once your warranty expires.

jangobox, that is very interesting. I would wonder what they cover and the deductible amount.

So many times I have heard the advice to take the money you'd spend on a warranty, and put it in an interest bearing account to be used towards future maintenance...and you'll come out ahead.

I don’t know if this holds true for an expensive-to-maintain car like a Porsche. But, that's what I am planning to do.

FYI, a lady I work with recently bought an aftermarket warranty for her car (domestic) and the company has gone belly-up within the past 2 months. Oouch!

Lastly, the price for the warranty is very-very negotiable!

I don't sell warranties so I think I am fairly unbiased. I do however, sell insurance in one of my other businesses.

A warranty is simply an insurance product. The first question to ask yourself is, how am I about accepting risk?

If you are risk adverse, normally you will be attracted to warranties.

If that is the case, shop very carefully. There are sites that devote themselves to educating you about warranties. Just Google and the world awaits.

If you are a risk seeker, don't bother. The upfront money will never seem worth it to you.

If you are in the middle, you are torn.

I have no advice for you guys in the middle.

:dance:

Good luck on your choice.

BTW-19K miles is not a lot for some folks.

For me the dedutible is 250 and it is a bumper to bumper warranty, even the top and the motor for the top. Worth checking out. The only catch is like a I said, it has to be a brand new car and this is for any type of car.

"So many times I have heard the advice to take the money you'd spend on a warranty, and put it in an interest bearing account to be used towards future maintenance...and you'll come out ahead.

I don’t know if this holds true for an expensive-to-maintain car like a Porsche. But, that's what I am planning to do."

This scenario works out fine if you are looking at say a sample size of 1000. That is the way insurance works, it is the SPREADING of the risk over a larger payer base.

However, on an individual basis, this "put the money in the bank approach" is not valid from an actuarial basis. If you are the ONE, you have just lost your shirt.

To wit,

say 1 out of 1000 folks will need a new engine and you are the one who needs it, the $2000 that you put in the bank will not cut it.

Let the good times (and dice) roll.

:cheers:

Richard, on a new Boxster, an extended warranty is more like $4,000. If you put that money aside, when the Porsche factory warranty ends, you'll have about $4,700 (assuming a 4% yield) for maintance repaires.

Like I prefaced in my post, I am not sure if this holds true for the more expensive than average P-car maintance.

You are right about the sample size. For example, if everyone on this forum sent you $2K for an extended warranty, that would be about $7,000,000. That would cover a lot of potential claims, including 3.5 blown engines (using your example of 1:1,000).