Carmax sells Porsche warrantee

[mikefocke]

Ask to read the contract. Read it 3 times. Not the sales literature, the contract. If they won't give it to you ....

A warranty does you no good if it doesn't cover the things that can cost big money on your car.

And research the financial strength of the company that is behind the warranty. Does you no good if you find the company went out of business (they often do). Oregon has a list of who is behind what warranty sellers policies at http://insurance.oregon.gov/insurer/financial_regulation/obligors.pdf

Third party warranties (aka service contracts) have interesting reputations with the insurance commissioners of the various states. Consumer Reports says they pay out very little compared to what you pay in.


Something that sounds too good to be true probably is. And $2,200 for 6 years coverage on a car whose engine can cost what our does just doesn't pass my smell test. Becasue I've priced these things from companies and they would only go 3 years and for a lot more. There may be something we don't understand, some exclusion, some deductible, etc. Because the sales guy has to get paid out of that, the sales manager, the dealer, the insurer, the people who administer the policy, etc. Leaves very little for parts and labor does it? What is the limit on the labor rate per hour? What book do they use to define the number of hours covered for a specific repair? Does your mechanic work with that company? Are they slow pay or slow approval? Some shops insist you pay and then you have to negotiate with the insurance company which makes it impossible because they want to approve before the work is done...and you may have to wait for an inspection.

Bumper to bumper like a new car with every part covered? So what is the difference?

Extended warranties are like a casino:

* some who play will win
* a very very few will win very big
* most by far will lose
* the casino will make a lot of money.

Only the casino odds are so much better...there the percent returned to the person who places the bet is generally more than 80% as opposed to the extended warranty where it approaches 20-30%. Like a casino, you hear the stories of the people who win big and that persuades you to play. You mostly don't hear about all the many, many more people who lose.

[baxster]

Originally Posted by mikefocke

Extended warranties are like a casino:

* some who play will win
* a very very few will win very big
* most by far will lose
* the casino will make a lot of money.

This would have to be true for the warrantee company or casino to stay in business. I've dropped a few bucks at casinos never expecting to get anything back except for entertainment. Maybe I could say that the warrantee could buy me piece of mind to enjoy the entertainment of my car more. My main concern is that an engine failure would be covered.

Otherwise, you make some good points. I'm going to check out the salesman's claims and the other details of the warrantee that you suggest. I'll get back to this thread when I find out more.

[baxster]

I talked to the sales guy again. This time he said that Porsche would honor the Maxcare warrantee. he's going to fax me the terms.

So the question is, would a Maxcare warrantee cover a engine failure due to an IMS failure?

[mikefocke]

http://www.carmax.com/enus/maxcare/default.html

Claims that all parts are covered except those listed. Then goes on to give an elaborate list of what is covered. Which is it? IMS not listed.

Claims non-covered parts covered if the result of covered part failure. No claim of covered part covered as the result of non-covered part failing (as in IMS taking out engine if IMS not covered).

At the bottom reveals Porsche and CarMax aren't behind the warranty, it is just a warranty from one of several third parties. Research those companies.

Read the contract...not the sales literature.

If it is as you hope, the price and length make it a great deal. It is those little details that always worry me and I hear from my lawyer friends about.

[jditom]

I bought my Boxster from Carmax in Salt Lake and I got the extended warranty. It covers all major components including engine failure. It does not mention every engine component but if any fail you are covered. Believe me no warranty lists a IMS simply because it is part of the engine. You must get pre-approved by any shop that has certified mechanics including Porsche if that is your choice. So your brothers garage does not count.
They are a very large co and doing well and I doubt this is a scam.

My 04 S only had 20k miles when I bought her and I got a 6 year up to 75,000 warranty for about $1400. It gives me some breathing room before I do the IMS.

[Brucelee]

Originally Posted by jditom

I bought my Boxster from Carmax in Salt Lake and I got the extended warranty. It covers all major components including engine failure. It does not mention every engine component but if any fail you are covered. Believe me no warranty lists a IMS simply because it is part of the engine. You must get pre-approved by any shop that has certified mechanics including Porsche if that is your choice. So your brothers garage does not count.
They are a very large co and doing well and I doubt this is a scam.

My 04 S only had 20k miles when I bought her and I got a 6 year up to 75,000 warranty for about $1400. It gives me some breathing room before I do the IMS.

Carmax can offer a warranty, no issue there.

They cannot offer a Porsche CPO warranty or anything else through Porschae NA without Porsche's agreement.

That is the issue, not whether a warranty can be offered.

[baxster]

Originally Posted by Brucelee

Carmax can offer a warranty, no issue there.

They cannot offer a Porsche CPO warranty or anything else through Porschae NA without Porsche's agreement.

That is the issue, not whether a warranty can be offered.

The sales guy clarified that it is a Maxcare, not a Porsche warrantee. So now my issue is if Maxcare will cover an engine failure due to an IMS failure.

[baxster]

Originally Posted by mikefocke

http://www.carmax.com/enus/maxcare/default.html

Claims that all parts are covered except those listed. Then goes on to give an elaborate list of what is covered. Which is it? IMS not listed.

Claims non-covered parts covered if the result of covered part failure. No claim of covered part covered as the result of non-covered part failing (as in IMS taking out engine if IMS not covered).

The link above that Mike gave is for the Maxcare brochure. The attachment (if it works) is the terms and conditions of the Maxcare contract.

[Perfectlap]

That language looks like a sea of red tape. "insufficient lubrication".....your engine explodes. they drain the oil from your new roller and determine that you were 1.5 ticks below (or maybe above) where Porsche said you should maintain. "sorry you failed to maintain, claims are denied".

[baxster]

Originally Posted by Perfectlap

That language looks like a sea of red tape. "insufficient lubrication".....your engine explodes. they drain the oil from your new roller and determine that you were 1.5 ticks below (or maybe above) where Porsche said you should maintain. "sorry you failed to maintain, claims are denied".

I agree that they'll look for any reason to not pay. If you maintain your car per mfr rec and can prove it, that should strengthen your position if they deny. I always carry an extra quart of oil; if your engine dies just make sure it's topped up.

[baxster]

Originally Posted by mikefocke

http://www.carmax.com/enus/maxcare/default.html

It says that all internally lubricated engine parts including seals are covered. May i be so bold to say that covers the IMS and RMS. Of course, I'm sure they'll still come up with a reason to deny it.