Need help deciding on extended service agreement. - 986 Forum - The Community for Porsche Boxster & Cayman Owners

agnyc1 · 02-20-2007, 03:04 PM

Hello there!

My name is Anthony, and I am the proud new owner of 2003 Seal Grey Metallic Boxster S.

I need help from you pros and veterans to decide whether or not an extended service agreement is worth while.

My 4 year 48K miles warranty is up in 1 week!

Porsche of Beverly Hills offers a 4 year extended for a little over 4K.

My other option is to find the best independent Porsche service garage in the area, and take my chances.

I do not have money to burn -- the Boxster was a big investment for me.

This is pretty new territory.

Can anyone give me sound advice, based on their experiences?

Just how reliable is the car in general?

Is a service agreement absolutely worth while? The smart way to go?

I know repairs on Porsche's can be very costly.

The service agreement would probably pay for itself with one or two big jobs, should something go terribly wrong. It would offer some peace of mind.

On the other hand, if the 2003 Boxster is know to be pretty bullet proof, I may be willing to take my chances and save the 4K.

Help me Oh Wise Ones.

I'm really on the fence here and need good advice.

I'm currently researching all about extended service agreements on Edmunds, etc., and plan to talk to both the dealer and an independent garage to let them try to convince me either way, and weigh the pros and cons.

But I'd live to hear from some of you -- the real owners!

THANK YOU in advance!

-Anthony G
2003 Boxster S
39K miles (in excellent condition)
Los Angeles, CA

porsche986spyder · 02-20-2007, 03:26 PM

If you want another company for a good extended warranty, check out warranty direct. They have very decent deals and will cover all of the usual stuff that breaks on our cars. Good prices too.
http://www.warrantydirect.com/

racer_d · 02-20-2007, 03:34 PM

Do you have to pay $4k in cash for the warranty or is there a payment plan. If no plan, then invest $4k on your own and be well on your way to being "self warrantied"

TriGem2k · 02-20-2007, 03:43 PM

I agree with Racer D. If they offer a payment plan that works for you then you should think about it. However, if its a one shot deal then its best you save your $4k now and maybe save another $100 a month and basically warranty the car yourself.

z12358 · 02-20-2007, 04:55 PM

Few things to consider:

If you pay the $4k to the dealer and then sell the car or move before the 4 yrs expire, then what happens to the agreement?

Ask around (phone/online) and try to figure out where the market is pricing this warranty (insurance). Don't just depend on a single quote.

People with no "money to burn" are actually the best candidates for insurance/warranty as they'd be hurt the most (catastrophically) should an unfortunate event hit them. If you don't already have one, build a liquid $ stash for unpredictable emergencies of all sorts -- car and non-car related. Always a good thing.

Z.

shaman1204 · 02-20-2007, 06:34 PM

Try AAAuto warranty. They have really good prices and their customer service if top notch. They offered me a three year 36,000k mi bumper/bumper with wear and tear and emissions covered on a 2002 with 49k miles for just under $2000.

agnyc1 · 02-20-2007, 10:43 PM

Good points all.

I agree that I need to carefully examine the terms of the agreement.

I also plan to ask about transferability, payment plans, level of coverage, etc.

But it seems there is a recent law in California, as I am finding out, that says you can only get an extended warranty through from the dealer through which the car was purchased.

So my options may be limited.

-Anthony G

z12358 · 02-21-2007, 03:48 AM

Quote:

Originally Posted by agnyc1

But it seems there is a recent law in California, as I am finding out, that says you can only get an extended warranty through from the dealer through which the car was purchased.

That sounds pretty weird for a law. Seems like everyone loses and no one wins. I see the warranty as a business contract between two consenting parties. Your mechanically inclined neighbor should be able to offer you such a service agreement if he wanted to. Just like lawn maintenance/service. I see no reason for a law to limit these contracts in such a way, but I may be missing something.

Z.

porsche986spyder · 02-21-2007, 06:21 AM

Quote:

Originally Posted by agnyc1

Good points all.

I agree that I need to carefully examine the terms of the agreement.

I also plan to ask about transferability, payment plans, level of coverage, etc.

But it seems there is a recent law in California, as I am finding out, that says you can only get an extended warranty through from the dealer through which the car was purchased.

So my options may be limited.

-Anthony G

That doesn't sound right at all.

Perfectlap · 02-21-2007, 06:39 AM

Warranty Direct will charge you at least $1000 per year for bumper to bumper coverage. I would be inclined to continue doing business with your dealer.
If your actual mileage is over 40,000 then I would definitely consider it to be worth while. The 2003-2004 Boxsters have had some complaints of intermediate drive shaft failure, that could be a very costly repair if it rears its ugly head.
Find out who exactly is writing the coverage for the dealer extended warranty and google them.
Tell them you are deciding between warranty direct and see if they can lower the price AND extend your payments (interest free of course) over a year or something.

And get a full top to bottom inspection before your coverage runs out. Takes about a day in the shop. Well worth it.

agnyc1 · 02-21-2007, 12:22 PM

The extended service plan Porsche of Beverly Hills offers is through the independent company CNA National Warranty. I googled them, and they are well established, have an A rating through AM Best, and apparently only offer contracts through dealers. I have the brochure, and the coverage looks pretty thorough -- if typical.

It is tranferable, and pro-ratable, should I sell the car.

It's the V Series Preferred Care -- the best they offer. They don't offer lesser packages.

Seems pricey though:

4yr/48K = $4451
3yr/38K = $3478
2yr/24K = $3011

It is due in one lump sum.

The California law I spoke of seems weird to me too, but every time I go online to to get quotes from various independent companies, some of which you guys suggested, they refuse me, saying they're not allowed to deal in California.

I'll keep trying and see what I find.

Thanks for the feedback so far.

Please keep the comments coming, if you have something to ad.

I'm finding this very helpful.

-Anthony G

agnyc1 · 02-21-2007, 12:28 PM

We have temporarily discontinued sales of our Mechanical Breakdown Insurance (MBI) program in California due to some technical changes in the program. Upon completion we will be back offering MBI policies to California residents.

Thank you for your interest in Warranty Direct.

Perfectlap · 02-21-2007, 12:37 PM

do a search on Rennlist in the 996 forum. There are other companies some of the 911 guys have had success with. I would do at least one year of coverage so that your car is never in an "out of warranty" situation which will make getting coverage more expensive. Look for a new warranty before it lapses but it is better to do a multi-year warranty in one go.

that pricing is not competitive at all, I guess your dealer is milking his lack of competition with inflexible payment terms.
p.s.
How much do you drive your car per year?
my car is not a daily driver but I do drive at least 12K miles a year (mostly highway) so I was skeptical about committing to a three year $3,000 warranty given my stellar experience with this car. Better to put $3K in a CD or something and cross my fingers. If I were driving the car every day I would definitely have gone for the coverage, expensive when you add in maintenance but it is a Porsche afterall.

p.s.
Have you arranged for a *full* (the whole day) inspection of the car yet? Don't pass that up, if they find an engine problem before your coverage lapses in a few days it could save you thousands of dollars.

agnyc1 · 02-21-2007, 12:54 PM

The rep said their financials are under review in California, and they expect to offer coverage again within a few weeks.

Sounds a little sketchy. Like they ran into some trouble. But it may just be routine.

So now I'm suck -- I typed in Arizona as my state just to see what they would offer, and I really liked what I saw. Bumper to bumper coverage for 4 years for about 3K!

Problem is, by the time they get up and running in California again, my factory warranty will have expired, and I won't be eligible for that deal.

So does anyone know of other good companies that offer great rates for bumper to bumper?

AAAuto only offers basic major breakdown in CA.

Thanks guys! -Anthony

agnyc1 · 02-21-2007, 01:07 PM

The warranty actually expires on Monday the 26th.

But I did just have the car in to replace a weak battery.

I asked for a fast inspection and a test drive, but I did not get a FULL DAY inspection. they said nothing was wrong, but they didn't REALLY go over it with a fine tooth comb.

I suppose i could take it in over the next couple of days for a full inspection. Probably set me back a couple hundred bucks, but like you said, it's probably a smart move.

The car has been over-serviced -- I have seen the records at the dealer. It had the main seals replaced a while ago, and the coolant tank fixed -- both of which I have heard are glitchy on this car. But other than that, it seems to be in perfect running condition.

Warranty direct offers their bumper to bumper "Secure Care" coverage of 4yr/48K for $3500! That's a thousand less than what the dealer is offering, and I think the coverage is more comprehensive. AND they offer a payment plan. So if I can find something like that from a reputable company who offers coverage in California, I would probably do it.

racer_d · 02-21-2007, 01:42 PM

Quote:

Originally Posted by agnyc1

It's the V Series Preferred Care -- the best they offer. They don't offer lesser packages.

Seems pricey though:

4yr/48K = $4451
3yr/38K = $3478
2yr/24K = $3011

It is due in one lump sum.
-Anthony G

1) "the best plan they offer" yet, they don't offer lesser plans

2) How long do you plan on keeping the car? Would you max out mileage or time first?

3) Do you have the $3-5K to pay right now?

4) Have you had problems with the car yet? I don't believe that the car will self destruct at warranties end, especially if you haven't had problems already that could be indicative of future failure

5) What happened to living life and taking risks? Why must everything have a warranty?

In case you haven't guessed, I am not a fan of aftermarket warranties. Do you get your money back if you never use it? Nothing like sending large chunks of after-tax dollars to someone else to earn interest on. They now that they will have to pay out some claims but they wouldn't be in business if they were losing money.

If you have the 3-5K already, I say invest it and use it as a fund for future car maintenance/upkeep.

agnyc1 · 02-21-2007, 03:36 PM

Your point is well taken.

I guess I'm a little paranoid (since I've never own a Porsche, or a car this nice/expensive before), that it's going to be some kind of money pit and have all kinds of problems.

So I'm just trying to do the smart thing.

If average costs of repairs over the next 3 or 4 years of the cars life, is more than 3K, it seems like a 4yr/48K bumper to bumper might be a wise investment, particularly on a high performance sports car that may not be built particularly for reliability. And I'm guessing Porsche repair tabs can run up past that really fast.

But of course, that's why I'm here, asking you guys for your input, based on your experiences.

I do intend on making it my daily driver, and I do MOST of my driving around town on busy crowded LA city street. Lot's of stop and go traffic. Hard on the car. If this makes any difference in your opinion.

And to clarify, the "V-series preferred" is the best of several that CNA offers to dealers, but the Porsche Beverly Hills DEALERSHIP only offers that one plan to it's customers. Clearer?

The car is exactly 4 years old next week, and has 38K on it.

I would like to keep it another 3 or 4 years or 36/48K miles.

The problems that the car has had during it life while driven by the previous owner, are the rear main seals have been replaced, the coolant tank had a defect (both of which I hear are common on these), and there was a probelm with a suspension joint. Nothing else major.

The car is having no trouble currently, but Murphy's law does tend to kick in within months after you let a warranty lapse.