Philsta

I just got a 981 Cayman S with 84000km on the clock. Had a PPI done and no major issues other than a battery (which the dealer replaced) and a couple of minor cosmetic issues.

They sold me a 5 year aftermarket warranty which I, perhaps foolishly, decided to purchase, though I have a right to get a refund of the warranty within 14 days and I am still inside that window.

The warranty has a crazy list of exclusions and won't cover any rubber parts, hoses, exhaust, gaskets, cosmetic issues, anything inside the car and a long list of other things etc. so I am thinking of just getting the refund since it s AU$10k.

For guys with higher millage cars, is it likely that anything costing that sort of money is going to happen? I am very tempted to take the money and use it to kind of insure myself against future problems, and if nothing goes wrong I have saved $10k.

softsand

Yeah, I’d get the refund.

My 2015 Base Boxster had almost 2 years left on the extended factory warranty which I’ll renew down the track as it would be cheaper and more extensive than yours. At a cost of AU$10k, I just had 2 new door trims installed which was a nice bonus. I expect your warranty wouldn’t cover that ?

Lovely cars aren’t they ? (had mine 4 months).

boxdriver

How comfortable are you with working on your own car? If you are, then I wouldn't hesitate to drop the warranty. I have had my car for 4 years and other than wear items and interior items, I have only had one issue that the warranty would have covered. I had to replace the transmission on my car last year. My local mechanic quoted me US$14,000. I found a low milage used one and did the work myself for about US$3,000. But the transmission is an almost a worst-case scenario and not a very common issue. I would get a refund even if you weren't comfortable working on it yourself especially if you are disciplined enough to keep you AU$10k in an emergency account. Most of the costs on these cars are brakes, tires, door cards, and headliners. All of which will not be covered.

MrMoose

I don't think paying for an extended car warranty ever really makes sense. It's insurance, and insurance only makes financial sense when you're insuring something where the cost of repair or replacement could be unaffordable (e.g., your house burning down, or liability from an auto accident or the like).

If the cost of a major repair on your car isn't going to cause you financial hardship then over the long run you'll be better off saving the money and self insuring. And if a major repair *is* going to cause you financial hardship, well, then you're probably buying too expensive a car in the first place. So I don't see the point of extended warranties, especially given the exclusions and the hassles people seem to have getting them to pay out.

Kitc2246

A PDK transmission is the only item that would make me consider a warranty. In the last few years there are a number of independents that specialize in repairing PDK transmission. Like any car, especially high mileage, alternator, AC compressor, and water pump to name a few may need replaced. Being a mid-engine makes the labor to replace these items high. Find a good independent mechanic who works on Porsches is a must. Doing you own brakes: rotors and pads is a good way to save $$$. Door cards and the roof liner are known issues with Caymans. In the states, Pedro's Garage, is the go to for door card repairs.

Osiicks

That's about $7000 USD right? That is approaching a good portion of the cost of a PDK failure or engine failure. My vote would be to say no to the aftermarket warranty and do your own basic maintenance and stash the difference that you would have paid a dealer to do it in an interest bearing "insurance" account so if something does happen you have an emergency nest egg. I looked into an aftermarket warranty here in the US and just could not justify.

That being said, not an attorney or insurance professional or qualified to give this kind of advice - just some dude that likes Porsches and stayed at a Holiday Inn once.

SteingoldVolvoCars

Saving for potential repairs is smart, but major issues like a PDK failure can quickly exceed what you’ve set aside. Adding coverage with a vehicle service contract gives you peace of mind.

I recommend the Fidelity Platinum Coverage—it offers the best value with comprehensive coverage.

You can get a free quote online here: https://factoryprotect.ratessys.com

tomekz

and Fidelity coverage is available in Australia?

SteingoldVolvoCars

Ah, sorry - US vehicles only

jg (atl)

You didn’t say if your car was PDK or manual. If you have PDK, any issues would likely be more than the cost of the insurance. I have an extended warranty on my 2016 GTS that I purchased when the factory warranty was about to expire for US$2400. I just had a dynamic transmission mount failure and the cost to repair was US$5500 from the dealer and I only paid my $200 deductible.

Philsta

It is a PDK - the failure of the PDK is kind of the only thing that worries me. I consider it is pretty unlikely but obviously not impossible.

MrMoose

As a very rough cut, multiply the cost of repair by the chance of failure. If the PDK is a $10K repair and there's a 10% chance of failure (or whatever, I dunno about PDK reliability) over the length of the policy then your expected cost ls $1K. If engine replacement is $20K with 10% chance of failure then your expected cost is $2K. So $3K "expected" cost for those vs. the $7K cost of insurance.

I'm just making up some ballpark numbers here but you get the idea, and that's how insurance works: the vast majority of people pay out more than they get back. It's a bet, and a bet you want to lose because losing means your house didn't burn down, your car didn't blow up, etc. That's why it's best to "self-insure" stuff except in cases where the cost of repair/replacement would be financially ruinous (like your house burning down) because in the long run statistically you're likely to save money. That's the emotionally cold and purely financial look at it, anyway: there's also the peace of mind aspect, and you'd have to be the one to decide how much that's worth to you.

For cars I just don't think extended warranties typically make sense. If something like an engine blowing up is going to be that financially challenging to a person, then that's a sign they should probably be considering a less expensive and/or more reliable car than a used Porsche.

Philsta

A lot of great points in your post - so thank you!

I am not loaded with money, but I am also (thankfully) not in a position where a $5-10k bill would cripple me financially. It would certainly be an annoyance, but I could afford to pay it.

I am leaning towards cancelling. The way I am starting to see it is that if I keep the warranty, then I am 100% out that $10k. If I get rid of it then of course it's possible that I am u for a repair bill, but also a good chance that I am not in which case I save that $10k (or at least most of it).

I feel as if it is almost like gambling, where the casino always wins..... If a $10k or higher bill is likely then the warranty company wouldn't offer the warranty, as they would lose money on average if the repair bills cost more than their warranties. In fact, they would probably lose if the repair bill was even half the cost of the warranties, since they have to cover their overheads and I think the dealer also gets a sizable commission for selling the warranty.

Ernest72

Only you can really make this decision. I can tell you to drop the coverage and the PDK can go the next day. I have only done extended warranties when they were cheap. I had one on my WRX ($800) have one on my daughter’s Acura($1800) I have one on my cayman from Carmax($2200). Luckily have not had to use them. Knock on wood. I would not pay 7k. That’s my bet.

jg (atl)

I have a friend who has a Panamera, and the PDK receintly died. It is looking like a US$20K fix, not US$10K. And I have heard of several examples of PDK failures, so it is not that uncommon.

Might I suggest that you shop around for an extended warranty. You might find something for less money and/or a shorter duration. You do not have to necessarily buy what the dealer offered.