997.1 powertrain warranty or just save the money
03-29-2019, 04:00 PM
#1
997.1 powertrain warranty or just save the money
I know the pros and cons of extended warranties has been debated and normally I land on the side of “I’ll just put some money and savings and hope for the best.” And going in to the 997.1 I got the improved IMS version and was ok with spending a couple grand each year maintaining it.
Well I was OK until I started reading more and more about bore scoring and the associated 20+k engine rebuild cost.
My car had 80k miles do warranty options are limited and pricey. Clean PPI and No current obvious signs of bore scoring. Consumes average amount of oil for its age.
Fidelity - the warranty of choice on these forums and one of the few that will actually cover my car - is $12k for platinum warranty. At that price, I’ve practically bought a new engine. So that’s a no.
However, I can get powertrain warranty for $3500 that, based on all my research and discussions, covers all lubricated engine parts including cylinders and pistons as well as the transmission and cooling system. Fidelity has a track record for going all the way of supporting engine rebuild if such a thing unfortunately is needed.
That has me considering it. Basically $3k for insurance against catastrophic failure. Bonus is that it’s transferable so the next buyer would also have this peace of mind.
Worth it? Or just put the money away and really hope for the best? Really torn on this decision.
Well I was OK until I started reading more and more about bore scoring and the associated 20+k engine rebuild cost.
My car had 80k miles do warranty options are limited and pricey. Clean PPI and No current obvious signs of bore scoring. Consumes average amount of oil for its age.
Fidelity - the warranty of choice on these forums and one of the few that will actually cover my car - is $12k for platinum warranty. At that price, I’ve practically bought a new engine. So that’s a no.
However, I can get powertrain warranty for $3500 that, based on all my research and discussions, covers all lubricated engine parts including cylinders and pistons as well as the transmission and cooling system. Fidelity has a track record for going all the way of supporting engine rebuild if such a thing unfortunately is needed.
That has me considering it. Basically $3k for insurance against catastrophic failure. Bonus is that it’s transferable so the next buyer would also have this peace of mind.
Worth it? Or just put the money away and really hope for the best? Really torn on this decision.
03-29-2019, 05:46 PM
#2
Racer
I consider the following:
(1) What is your reasonable expectation for how long you plan to own the car? If you plan to turn it by the end of the warranty, that is one thing. If you plan to keep it longer, see #2.
(2) What is the time period covered by the warranty? If it only covers three years or so and nothing happens, you come out the other side facing the same or higher premium. Your only have to do this 2-3 times and you spent a large part of the cost of rebuilding the engine whether it ever fails or not.
(3) I am sure insurance actuarial data lag a little, but generally speaking a good insurance company always makes money. Therefore, it is moderately safe to assume that all things equal, their premium costs are higher than the weighted average cost of their (your) risk.
(4) There is catastrophic failure, then there is bore score. If you spin a rod bearing and break a rod, the engine is done for. If you discover you are starting to experience bore score, there are still things you can do to possibly slow down the process, and you can still drive the car for some 10s of thousands of miles (+ a bunch of oil and fresh plugs), giving the typical Porsche driver years to save up.
For my money, I save up at least the equivalent of what I would have paid for an aftermarket warranty (usually 50% more) and go without a warranty. If my engine fails catastrophically, I will still have some of the money on hand. If I suffer bore score, I should have time to save the rest before I have to have the engine rebuilt. If nothing happens, I have a hefty down payment to apply towards my next car (or mods for the existing one).
That said, I have a pretty high tolerance of risk, and I have a plan if my bet goes south.
(1) What is your reasonable expectation for how long you plan to own the car? If you plan to turn it by the end of the warranty, that is one thing. If you plan to keep it longer, see #2.
(2) What is the time period covered by the warranty? If it only covers three years or so and nothing happens, you come out the other side facing the same or higher premium. Your only have to do this 2-3 times and you spent a large part of the cost of rebuilding the engine whether it ever fails or not.
(3) I am sure insurance actuarial data lag a little, but generally speaking a good insurance company always makes money. Therefore, it is moderately safe to assume that all things equal, their premium costs are higher than the weighted average cost of their (your) risk.
(4) There is catastrophic failure, then there is bore score. If you spin a rod bearing and break a rod, the engine is done for. If you discover you are starting to experience bore score, there are still things you can do to possibly slow down the process, and you can still drive the car for some 10s of thousands of miles (+ a bunch of oil and fresh plugs), giving the typical Porsche driver years to save up.
For my money, I save up at least the equivalent of what I would have paid for an aftermarket warranty (usually 50% more) and go without a warranty. If my engine fails catastrophically, I will still have some of the money on hand. If I suffer bore score, I should have time to save the rest before I have to have the engine rebuilt. If nothing happens, I have a hefty down payment to apply towards my next car (or mods for the existing one).
That said, I have a pretty high tolerance of risk, and I have a plan if my bet goes south.
Last edited by JustinCase; 03-29-2019 at 05:53 PM. Reason: Typos
03-29-2019, 06:36 PM
#3
Rennlist Member
Curious how this works. You bring the car to one of their dealers and they inspect the car prior to giving you a contract? What is involved with the inspection? I would be interested in getting a powertrain warranty if it’s not too much of a pain to get a contract written up.
03-29-2019, 06:39 PM
#4
Three Wheelin'
Mine came In handy with a full motor replacement on a 2006 c2s.
Paid 37k for the car, was 29k in parts.
Paid 37k for the car, was 29k in parts.
03-29-2019, 11:22 PM
#5
I consider the following:
(1) What is your reasonable expectation for how long you plan to own the car? If you plan to turn it by the end of the warranty, that is one thing. If you plan to keep it longer, see #2.
(2) What is the time period covered by the warranty? If it only covers three years or so and nothing happens, you come out the other side facing the same or higher premium. Your only have to do this 2-3 times and you spent a large part of the cost of rebuilding the engine whether it ever fails or not.
(3) I am sure insurance actuarial data lag a little, but generally speaking a good insurance company always makes money. Therefore, it is moderately safe to assume that all things equal, their premium costs are higher than the weighted average cost of their (your) risk.
(4) There is catastrophic failure, then there is bore score. If you spin a rod bearing and break a rod, the engine is done for. If you discover you are starting to experience bore score, there are still things you can do to possibly slow down the process, and you can still drive the car for some 10s of thousands of miles (+ a bunch of oil and fresh plugs), giving the typical Porsche driver years to save up.
For my money, I save up at least the equivalent of what I would have paid for an aftermarket warranty (usually 50% more) and go without a warranty. If my engine fails catastrophically, I will still have some of the money on hand. If I suffer bore score, I should have time to save the rest before I have to have the engine rebuilt. If nothing happens, I have a hefty down payment to apply towards my next car (or mods for the existing one).
That said, I have a pretty high tolerance of risk, and I have a plan if my bet goes south.
(1) What is your reasonable expectation for how long you plan to own the car? If you plan to turn it by the end of the warranty, that is one thing. If you plan to keep it longer, see #2.
(2) What is the time period covered by the warranty? If it only covers three years or so and nothing happens, you come out the other side facing the same or higher premium. Your only have to do this 2-3 times and you spent a large part of the cost of rebuilding the engine whether it ever fails or not.
(3) I am sure insurance actuarial data lag a little, but generally speaking a good insurance company always makes money. Therefore, it is moderately safe to assume that all things equal, their premium costs are higher than the weighted average cost of their (your) risk.
(4) There is catastrophic failure, then there is bore score. If you spin a rod bearing and break a rod, the engine is done for. If you discover you are starting to experience bore score, there are still things you can do to possibly slow down the process, and you can still drive the car for some 10s of thousands of miles (+ a bunch of oil and fresh plugs), giving the typical Porsche driver years to save up.
For my money, I save up at least the equivalent of what I would have paid for an aftermarket warranty (usually 50% more) and go without a warranty. If my engine fails catastrophically, I will still have some of the money on hand. If I suffer bore score, I should have time to save the rest before I have to have the engine rebuilt. If nothing happens, I have a hefty down payment to apply towards my next car (or mods for the existing one).
That said, I have a pretty high tolerance of risk, and I have a plan if my bet goes south.
You have a good point that bore scoring can usually be managed for a while. With a self-funded rebuild there is also the choice to do a 4.0 or better than oem reinforced rebuild (although for extra $)
I guess my real concern now that I think through it is resale. My current plan is to own the car for 2-3 years. I want to be able to sell it with confidence. The warranty is available for 4. I imagine that would help resale?
But then again, whats 5% interest on $3k over 3 years... ;-)
Regarding the process, I was asked to take it into the dealer for service (it’s time for it anyway) and once I have a clean bill of health they could setup the warranty.