johnnyreb2010

Janusz, If you've had all those problems you probably could have checked into that Lemon Law thing, you'd definitely have a good case. Please let the rest of us know who you have your Warranty with, whats the options & how much they charge. And last but not least (I own a Business) and i would like to know how a company could make No Profit & even Lose Money & Still stay in business, cause if it ever gets to that point i need to know how to do it, I guarantee you can't do it for long & if you do the IRS will want to know how.

roadsession

Janusz, warranty companies act like insurance companies.
With some customers, they will keep more of the paid premium than they pay out.
With some customers, they will pay more out than what they collected as premium.

They have actuaries who are basically very talented mathematicians who get paid a lot of money (I have 2 friends who are actuaries for Liberty Mutual insurance and another for State Farm that underwrites extended warranties) - and what they do is set a 'premium' and define what risks they will take on.

Warranty companies, like insurance companies - need to make money to stay in business. They are "for profit" - and not charitable / non profit organizations. That means they need to keep more premiums than they pay out.

I don't doubt your story that in your case, the warranty company paid out more than they collected from you in premiums. But I think as many here have stated, you are the exception - not the norm - and the warranty company probably keeps more $$ than they pay out because the number of customers filing claims and the amount for which they claim is far less than what they've collected in premiums.

But anyway - GOOD FOR YOU! I'm happy it worked out for you.

VGM911

I'm no expert, but I've read that insurance companies make most of their money on invested premiums, not on the premium income itself.

roadsession

By law they are required to have a certain amount in reserves.
Their investments do not count as reserves.

That's not to say they don't make money through invested premiums, but their models require them to make sure that they're solvent even if invested premiums yield very little or negative return.

Now of course things like mortgage backed securities didn't fall into that type of regulation

rturlan

Hey grantf, I am in a very similar situation...I bought a 2002 996 a month ago. I've spent a lot of time (and some money) at the workshop and at a point I was also becoming paranoid about my decision of buying this car. I know very little about mechanics and I was afraid I had made a terrible mistake. However in my case, the sensational feeling I get when I drive this beauty overcomes all my worries.
Hopefully both you and I have seen the worst and all we have ahead are miles and miles and miles of speed and fun!

rotokim

rturlan and grantf - I'm not technically savvy, but I've met some incredibly talented/knowledgeable Porsche owners in the area where I live. They have taken the intimidation out of the technical considerations I have regarding my 996. Nothing beats getting some advice from an experienced do-it-yourselfers over a cup of coffee on a weekend.

LVDell actually put my car on a lift and taught me to change oil, transmission fluid. SH || NC helped me pull the bumper off my car to clean out my radiators. And Jeff996 just helped me install a short shift kit. I would never have tried those things on my own 3 years ago, and a warning light would have blown my mind back then.

Just my 2 cents. Best of luck to you.

Bob

Stuttgart951

Probably the sender. However, if it's not...

Don't ignore the light. Buy a warranty and delete this thread.

BruceP

Just because a Porsche is cheap to buy doesn't mean it will be cheap to own. This has always been true, all the way back to the 356. I hate to sound heartless, but I really don't see the logic in buying a car for pleasure alone, and then making yourself miserable worrying about it.

If I were in your shoes, I'd sell the car and buy yourself something you'll love and can live with. Life is too short, and the world is full of entertaining cars that won't stress you out like this.

BruceP

That's more accurate for life insurance. It's not the same for all forms of insurance. Actuaries and risk managers have to consider also the odds of claims, and the timing of claims. Given that most of us will live long lives, that makes investing the prime source of income for a life insurer. But if you're, say, a car insurance company, you're going to bet on things like commercial paper, treasury bills and the like, where there is lower short term risk and higher liquidity.

Take a look at rates for those kinds of instruments right now, and you'll see there isn't much money to be made there. Moreover, the yield curve is flat as a pancake well past the five year mark. It's very hard to find security and decent returns when your claims risk is all packed into the next two or three years. Put more simply, nobody is going to park cash in a ten year bond when there's a risk they'll need it in two. So, if you want to make money, you have to make it on premium income. Nobody can seriously believe that an insurer is investing premiums at 2 or 3%, covering overhead and claims and still making the profits they do.

grantf

I took it to my local mechanic. He says the oil level is fine, the pressure is there and the light is off. Had the oil pressure actually dropped all the way to zero with the engine running something else would have happened and it wouldn't have just become ok right away. he is sure its an electrical thing-either a sensor or a wire. Unless it does it again he said not to worry about it.

Barn996

Don't you feel better now? You can turn down that offer now.

P7

although very true, no other "attainable" sports car that I owned or drove had the steering of a 911 - it's one of a kind IMO

Janusz

Or, go an extra inch and buy a service contract!! How complicated it can be?

Marc Gelefsky

ahh... but than you need to worry if repairs are covered?
Will they approve the repair?
Whats the deductible?
Can I bring shampoo on an airplane?
Why is the sky blue?
Should I always drive flat out?
Did Yoko really break up the Beatles?
Did Oswald act alone?


sorry.... I promise to ease up on the caffeine today

BruceP

Re-read the OP's post: He's already worried about having spent too much on the car. I doubt that adding another 10 or 15% in sunk cost is going to make him feel any better.

You are correct that an extended warranty is an option for him, and cost predictability is indeed one of the benefits of having one. But it doesn't cause me to alter my advice, which is more broadly based than just who pays if something breaks. I personally believe that it doesn't make sense that something you buy for pleasure should cause you anxiety. I'm entitled to that belief. Someone once gave me this advice about a horse I owned that was beautiful but so hot that I was peeing my pants every time I saddled him up. I took the advice, sent him on his way, found a more level-headed one, and never looked back. At the risk of repeating myself ad nauseam, life is too short.