[denverpete]

It ain't over yet. Keep fighting for more. You ought to be able to get at least 50%. Overall cost is also going to be a function of how new the engine is. No reason why a slightly used (under 30k miles) motor wouldn't be acceptable. Perhaps this will put your financial outlay into something more reasonable.

As to the 45K service - I suppose they are essentially saying that P-car engines catastrophically fail when they don't get serviced within 5,000 miles? What a bunch a hooey.

Not that I'd recommend this route (although I sure would love someone to have the cajones to do it) - tell them that you think you are better off taking the $10,000 and starting a class action lawsuit on behalf of all Porsche owners under the Implied Warranty of Merchantability and Fitness of Purpose.