[roadracer311]

MikeFocke nailed it.

The money for the repairs comes from somewhere. On average the cost of buying an extended warranty is a lot more than the cost of just paying to fix your car. If this were not true, the warranty companies wouldn't be able to pay their rent, their sales people, or the admin people who have to pay out when it's time to pay.

The only exception I can think of would be if some warranty company made a systematic error and was writing warranty policies on Boxsters that cost the same as a warranty policy on a less expensive car like a Tercel for example. In this case, the folks buying warranties would be getting subsidized by the folks who bought all of the Tercel warranties.

So, for those who believe that on average it's more cost effective to buy a warranty... (that on average, a driver would pay for example $2k and get more than $2k covered) where does the extra money come from? Do you think the Boxsters are being subsidized by the more reliable cars?

I'm not trying to be argumentative, but just trying to figure out how it would be possible to buy something that on average pays out more than it costs.