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An Initial product warranty and an Extended warranty
are two totally different things. I don't buy extended warranties either. But I do expect a warranty against product failure for a reasonable term after I buy a new product.
The last remanufactured engine I bought had to be replaced at ~1600 miles because it smoked worse than the one it replaced. It was replaced at no charge because the company that remanufactured the long block provided a written warranty. The warranty covered the engine swap labor charges. So I had assurance that I'd only pay parts and labor once and be good for a year.
I have no problem with the installation requirement, though your geograpic location is not favorable to the largest concentration of P-car owners.
(Will you do clutch replacements as part of the installation since that often makes sense to do while the engine is dropped?)
With no written and contractually enforceable warranty, the engine could fail 2 weeks after installation, after normal road driving, and the buyer would have no legal recourse.
Now if someone had been producing essentially the same engine for several years, had a track record of many on the road for many miles with testimonials from many people who had been "treated right" and a legally enforceable warranty of the same length, I'd feel differently about the value proposition between a Porsche crate engine and a same-priced improved alternative.
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