kayjh

I'm purchasing/leasing a new 911 C4 Coupe - arrival in May.

While debating whether to lease or buy, I'm thinking about purchasing an extended warranty from Porsche which I understand is similar to the CPO coverage. The cost for 2 additional years (160,000 kms total) is around $4,495 ($CAD) plus taxes. So it adds 2 years to the 4 years the car comes with.

The thinking is, if I buy the car, I have an extra 2 years on top of the factory warranty and it should have additional value to a private purchaser.

If I end up leasing the car and turn it in at or before the end of the lease, it should have a higher trade value because the dealer will just sell it used and non CPO but with the same CPO warranty coverage. The dealer says that it costs them quite a bit more to CPO and do the maintenance than just selling a car with the additional warranty already in place.

Any thoughts on Porsche extended warranty? Has anyone negotiated a better price with the dealer? Amortized over the 2 years, its about $180.00 plus taxes/month.

STG

Don't need it. It's a new car. If you keep it, worry about one close to the 4yr mark.

Leasing?? You might as well give me the money. Adds ZERO value to the car when you hand it in. Just a happy commission to the dealer selling the warranty.

Put that $4,500 in the bank to self insure. Guarantee you that it will still be there in 6yrs and probably not touched. Or give me the $4,500 and I'll insure you for 2yrs past the original warranty

Although, I am a fan of the CPO warranty when buying used which is like a $3K value.

kayjh

Thanks for the thoughts. Keep in mind that $3,000 USD = $3,800 CAD, so the values are similar. With respect to leasing, I always seem to want an "out". While interest rate is a factor (vs tying my own money up), I have a set buyout value if I want the car or can walk away if I don't. More importantly, if I have an accident with the car and it is leased, diminished value isn't a problem. So I'm just rolling the lease vs buy decision around and the question of extended warranty came to mind. I'm not sure if I can add the extended warranty a month before the lease is up though - if I decided I wanted to buy the car out.

In the end, if these cars don't tend to break - especially with the 8,000 miles a year I'll put on it, maybe its just best to pass.

STG

My feeling is that it won't make sense to buy it out at lease end. At the end of the day, the next gen 992 will be coming out by lease end and I'm sure you'd rather want that over the .2 anyway.

You can add on this Porsche branded warranty anytime before the 4 year is up I believe anyway.

Up to you, but with so much uncertainty in your plans, I'd pass.

Hurricane

^this. Most problems will pop up in the first few years anyways.

STG

That too!

GregD

Don't forget to buy the paint protection and the unlimited refill of turn signal fluid !! ;-)

Nah, seriously, how long is your lease? You said "new" so you have all the factory warranty to run through... Is that a 6yr lease ??? I'd never heard of anyone buying post warranty coverage on a lease, generally the car is returned before that's even in play. If you are sure you'll want to keep it, you could buy coverage once your factory warranty is close to expiring (just not with porsche).. Is it refundable? Seems way overkill, and so far those cars seem solid - no IMS/RMS/etc... If transferable I seriously doubt you'd get your $ back anyway, maybe $1000 extra or an easier sale, no more...

kayjh

I'm contemplating a 3 year lease. I'm also contemplating an outright purchase. At 5.4%, the interest is getting up there but tying up $150,000 (taxes in) when I am regularly putting capital to work in two of my businesses returning 33% is a consideration if I am able to get 100% of my capital working. Just working that out now.

The consensus seems to be to skip the extra warranty. I'll just think about tire and rim protection if I'm leasing. $2,400 (CDN) for 3 years. I'm assuming if I ruin one tire/rim in a pothole (they are like craters where I live and drive), I suspect it would be paid for.

GregD

You seem hellbent on insurance in one form or another... If it'll let you sleep better, go for it. I totally get it...

I'd point out bent rims can be repaired for a few hundred $, or replaced from used cars (check out PCA mart, tons of them). Even that seems overkill to me - and generally curb rash repair is about $150 per wheel... Easy to do at home with the right Wurth paint too...

Tires? You'll probably wear them sooner than you think... I'd pass, again, but go with what makes you comfortable ! Enjoy !!!

BlueSander

Same as what everyone else has said, you don't need any type of additional warranty right now. It's a lot cheaper to fix wheels and tires. Also, once you replace your first set of tires, you should be able to buy wheel and tires or just tires coverage then for a lot cheaper. extended warranty can be purchased close to the end of your manufacture warranty for similar pricing as well from 3rd party. Unless you just want to get everything done now so you don't have to do anything later and you have the money to burn, buy them now.

Porsche911GTS'16

Just to play devil's advocate on the rim and tire protection plan - I live in LA and I have gotten nails in two of my GTS's rear P-zeros. Just had a new tire put on today for $0.00. I have already paid the price of the three year insurance with the two replacement wheels and two touch-ups on rim scrapes. So glad I purchased it!

kayjh

A valid story. If you saw the streets I had to drive on, you wouldn't believe it. I bent one rim and damaged a tire (19") on my BMW. $400 for the tire and $150 to fix the rim and in the end still had a vibration. I just wonder what my experience will be with 20" wheels.

Gary JR

Fixing a curb rash around here is $79. Insurance question is just the basic age old question for insurance on anything.

As far as leasing I never do so I can be on my schedule not someone elses. No hoops to jump through if I want to trade in 1, 5, 10 years, etc.

kayjh

There is a GaryJ on the BMW G30 forum that says the exact same thing. I don't get it though. With a lease, you can just buy it out at anytime you want for a pre determined price. Then you own it and can do what you want with it. Or ... you can drive it to the end of your lease and walk away from it, knowing from the start what your depreciation and interest cost was. And there is no diminished value to deal with if you have an accident. There is with a purchased car.

With my current BMW, my lease is up in 2 weeks. I had the pre return inspection done at my office while I was working at my desk. The guy handed me the inspection sheet which showed about $1,300 in excess wear and tear (which is covered by the protection) and I'd paid $1,100 for the protection, so no big deal either way. So it will be a nice and easy simple return. As a bonus, the deal on my new Porsche was uncomplicated - no trade to value (or devalue). I do have to rent a car for 2 months, but that will cost me less than my BMW lease was costing monthly.

A final confirmation of my choice to lease was the right thing for me is that I offered my car for sale in my local market, first at $4,500 above its residual and then at and below its residual. I didn't get one reply. Now, I am in a smaller market, but some cars are just hard to sell used. So, I wouldn't call owning the car being able to do what I want when I want.

With respect to the Porsche, if I buy the car, I pay 8% PST and 5% GST (VAT) depending on the province. If you trade the car at the dealer, you just pay taxes on the difference between your trade value and the new car. If you sell the car privately and the new owner registers the car in the same province, you get a PST rebate. You don't get a GST rebate in any event, so on a $100,00 trade, you are out $5,000 just on the GST alone. If you sell the car to someone who takes it to another province, you don't get a PST rebate either, so thats another $8,000 you don't get. So, really, how much freedom do you have if you own the car? If you want a new one you have to trade it at the local dealer and get what they are prepared to give you for it. Then watch what they put it on the lot for.

There are several reasons to buy a car and several reasons to lease, but I wouldn't say "I can do whatever I want if I buy with out hoops to jump through" as one of the reasons to buy vs lease.

That's my take on it anyway.

CSK 911 C4S

Some good points there on the tax savings.