Buying Used Boxster - Warranty, PPI or Both

[mikefocke]

1. Is to know if you should buy it.
2. Is to know what you'd need to do to make it safe (if it isn't)
3. Is to have an idea of what you'll need to do in the future. How many miles to go on the tires, etc.

Unless the car is very low miles and you know the owner and have all the records, please do a PPI.

An extended warranty is only as good as the company behind the warranty. I bought an 01 2 years ago and had the chance to pick up the existing warranty or take a $3k lower price. I took the lower price. I've probably spent $500 that would have been covered by the warranty in 2 years. I'm ahead of the game. Understand that only about 20% of the $ you spend of an extended warranty for any item is planned by the insurer to go towards future repair costs, the rest is selling, administrative expense and profit. Now why go into a deal like that?

Of the warranty companies, Warranty Direct has a good reputation.

Might want to read some of these pages on buying a Boxster http://mike.focke.googlepages.com/mikesporscheboxsterwebpages

[z12358]

Originally Posted by mikefocke

Understand that only about 20% of the $ you spend of an extended warranty for any item is planned by the insurer to go towards future repair costs, the rest is selling, administrative expense and profit. Now why go into a deal like that?

Wow, 20% can't possibly be right. So in the above deal the company expects to pay $400 in repairs per Box over 5 years, on average? I also think 80% is just too much for administration and profit. Warranty companies would be mushrooming on every corner trying to get a slice of that pie.

We've discussed warranties before here and the conclusion is that it depends on the owner's financial situation and/or ability to take on risk (no warranty) for the expected better average payout (not giving the profit to the insurer). Alleviating risk, however, does not come free, and the mentioned deal in particular looks like a good one, indeed.

Z.

[Perfectlap]

does AAAutowarranty have any affiliation with AAA at all?
those rates seem very very low.

I considered a policy with warranty direct before the 06 calendar year was up and the higher rates kicked in. They wanted basically $3K for three years of coverage with the money to be paid within 10 months with 30% down. Seemed like a better deal for them than me because my car has had only one $350 repair in nearly 40K miles going into its 7th year.

[Chills]

I bought a warranty from the dealership where I bought my car. It was about $3k and I had it rolled into the financing. The warranty covers the entire car, bumper to bumper (except the fabric on the top), for 4 years or 26k miles (whichever comes first). I felt it was worth it because there's no deductible if I get the car worked on at the dealership.

Also, the warranty came with a PPI. So for the peace of mind I have I thought the money was well worth it.

[mikefocke]

I don't disagree that if the buyer can accept little risk and would rather fix his repair costs, even if it costs more, then a warranty from a reputable company is a good idea.

I don't like buying from companies who play games with their names implying an association with another company whose name is better known and respected. Note they don't have the AAA seal on their web site.

I don't like buying insurance from a company who cites affiliations with highly rated companies without naming the companies. I want to know who is backing the warranty with their financial strength.

I wouldn't buy from this company on a bet.

AAA does have a extended warranty plan (they call it MBP) and you'll see their well known seal on their web site. Warranty Direct has a good reputation too.

But you buy insurance trusting the company will be there when you need them and there are lots of games being played by companies that collect your money, pay themselves a big salary, and go out of business.

And the 20% is a commonly accepted actual repair costs figure often cited in general articles relating to extended warranties on various items.