Ranger

Bruce, you make valid points. But......
Insurance and warranties are always a gamble. I bought my car to go have fun with it, not to baby it. I figured that there was a reasonable chance that I'd have $2800 worth of issues in 4 years (at which point the car would be 12yrs old). Heck, I figure a couple AC components alone would have me bumping into $2800.

What I bought was peace of mind. And you're right, I bought some hassles too. For me it has worked out, but for most folks it probably does not work out. If aftermarket warranties weren't profitable, they wouldn't exist.

Years ago I bought an aftermarket warranty on a Toyota. I figured that the AC would never last. I lost that bet.

bpoteat

Damn. I took the bet that it WOULD last. Now I have a highlander, about 8k miles out of warranty with not a bit of cold air coming out of the vents.

BruceP

I actually always thought of insurance as a fee you can pay to avoid gambling. It's life that's the gamble. I think to buy an aftermarket warranty with your eyes open, you need to ask yourself if it's worth the money for the financial safety and predictability it buys you, not whether you're going to 'win' or 'lose'. If safety and predictability are worth two or three grand to you, then the warranty is a bargain, and for some people that would be true. For me, I would HATE to buy a new motor, but I could afford it. So, for me, that makes a warranty a waste of money.

joes c4 cab

Great info from the OP. Nice write up.

I too had the same decision when I first bought my 99, and I opted not to get the warranty. Turns out it was a good decision (so I thought at the time), because 2 of the companies that had given me quotes went belly-up. I thought to myself, "I just saved $3,000 bucks. Smart me."

But then when I did need an engine replacement, it hurt. My father told me that there is a difference between being able to BUY something, and being able to AFFORD something. For me, being able to afford the engine replacement didn't mean that I had to like it - in fact, PCNA's callous attitude about the whole thing made me even more mad (my car had 54K miles).

What's my point?

1. I am glad that the warranty company poined up for your replacement. Good for you for fighting them.

2. If I were buying a 99 today, even if it had a replacement motor, I would buy the warranty. When the car costs $20K-25K, it REALLY makes sense.

3. Porsche should be doing more to help owners with this problem just like BMW did. Hell, Microsoft just lost $1BB replacing X-box's and extending warranties. Now wouldn't that make us all feel a little better if PCNA would just say, "We know there are problems and we love our owners, so here is a bone for your trouble."

BruceP

A wise man. Pretty cool little aphorism, which I think I might steal, if you don't mind.

Chuck Jones

This has been a great discussion....with good input from both sides....but I too have to agree with what Joe'dad told him.

The fact remains that with what we've already got into these cars (focused upon the 3.4L), we're more or less locked into having the engines either repaired or replaced. You'd be hard pressed to get anywhere what it might be worth with a blown engine. I'm just not convinced that the percentage of blown engines happens to be worth the $3,000 I'd spend betting that it's going to happen. Bruce and I happen to think one way...but I realize that there are a lot of folks out there who need that peace of mind.

I find it curious that I never have given even the slightest thought to the durability or longevity of my 01 Dodge dually diesel sitting in the driveway. I only paid $20K for it and I pull a 14K pound fifth wheel with it all over the place. Here I sit with a $40K Porsche pondering over it's potential frailties like it's a porcelain prima donna. We just need to drive these cars and enjoy them and quit worrying about the what-if.

Wellardmac

Bingo! I agree. Don't buy a Porsche if you cannot afford to deal with the worst that it has to throw at you.

Amen.

VGM911

Nicely said, Bruce.

Bucket_hat_Loren

I will offer my own expereince as a foil. Warranty Direct has been great for me. Just this week completely covered leaking valve covers. Have also covered RMS, cab top motors (x2) and a bunch of other stuff. Never a problem. My dealer calls them and they approve the work on the spot. Every time and at this point I am well past break even.

rmillnj

Ouch! Not much of an endorsement for Porsche though.

Sometimes I wonder why I read this forum. I have had 7 Porsches over the years racking up lots of miles and never had a problem. Never thought I needed to really worry until I started reading this forum.

I have a '99 with 86,000 miles on it and it has been basically trouble free since I got it at 40,000. My warranty runs out at the end of January. My original thought was to keep the car past warranty, but after reading all of these tales of woe, it makes me wonder.

As I read through here, it is difficult to guage just how big a problem it is. Are we reading about a very small percentage of problems or are we really driving ticking time bombs? I just wish there was some way to definitively know.

viper501

Warranty companies are in business to make money. The only way they do that is by limiting the money that they pay out. As this thread demonstrates, they will do what they can to avoid paying the claim. I've had to refer friends to colleauges of mine to resolve these issues through litigation. I've also represented dealerships and finance companies where they get sued because the warranty company isn't doing what they should be doing, i.e. paying for the repair. Furthermore, aftermarket warranties are a profit center for the dealerships. They get, generally, about half of the 'cost' you pay for the warranty just by shuffling the paper through to the warranty company. More frightening is the very real possibilty that the warranty company will evaporate before you actually make the claim. Then you're left with a worthless piece of paper to go after a warranty company that has/had no assets so even if you get a judgment, there is nothing to collect on. In effect, you're betting that a) you will need to make a claim in excess of the payment, b) that the company will be around to deal with the claim, and c) that you will actually get them to pay for the repair.

Save your money and invest it. You're going to be much better off.

joes c4 cab

Steal away - use it in good health.

He told me that story when his buddy brought over his new Ferrari he bought since his Rolls Royce was in the shop so much. That was probably around 1982. I asked my dad, "how come we cannot have a Ferrari?" He said, "I could buy one, but there is a difference between being able to buy something and being able to afford something."

He was right, because about 5 years ago - I loaned my dad's same friend some money. He never learned that lesson.