At Law

I have looked through the "search" function and have found
a few threads on extended warranty, however, I am still
not certain if you can get a Porsche extended warranty
on a private party car before the warranty expires?
(Not a third party warranty).

MJones

The possibility exists for CPO

At Law

How would this work? Trade it in thru a dealer and buy it from them?

MJones

Something like that...

vitman

I called my dealer this week to ask about the possibility of selling it back to them and then repurchasing the car as a CPO. They said no way. Do you know which dealers will do this?

At Law

Love your avatar--Guards Red is gorgeous on the GT3.

I am concerned that very few dealers would be willing
to run a car thru their dealership to certify it.
Perhaps if you threw them a grand for their time they might
help you out.

kasendorf

My dealer recommended a GE extended warranty at $4500 for 4 years. Sounds kind of high to me. Anyone have any comments?

patela

Considering that years ago, ExtendedWarranty quoted me $3600 for coverage on my A4, I'd think that's not terribly out of line. Depends what they cover and where you live.

Wouldn't you also have to pay taxes on the purchase price? Or only the difference between what they pay you on the trade and what you buy it back for?

At Law

If you were able to find a dealer willing to do this and the trade allowance
is the same as the purchase price, then your taxes would be paid already.
However, he is going to charge $2k for the certification plus most likely
a $1k or so for the trouble. So you would have to pay taxes on $3k
in this scenario.

997, esq

Not in California, I believe, and several other states. In CA, you can't offset the purchase price with your trade in. You pay sales tax on the purchase price of the vehicle regardless. Other states are different.

There may be a way to structure the "CPO-ing", so that it doesn't involve a change in title, but I've heard dealers don't like to do that.

FWIW, I have a CPO'd car for three more years, but I usually don't go for extended warranties. Self insure if you have the liquidity and don't mind living a bit dangerously. You'll often have a fight with the warranty co. when it comes time for them to pay up anything significant.

jcnesq

Actually, in CA the dealer would be purchasing it for resale so no sales / use tax on the dealer purchase, only on the dealer's resale to the ultimate buyer.

I heard recently (but not at all sure) that PCNA is cracking down on dealers running a car through as above just to CPO it.

997, esq

Right. I meant tax on the repurchase. You sell to dealer and no tax is paid by either party, but the buyer would have to pay tax on the repurchase of his car. That would make CPO-ing with by transferring the title cost prohibitive in states like CA. 9.75% in LA County on the repurchase price. OTOH, if you are purchasing the car from a private seller and want to have it CPO'd, this may be a good approach since you can have the title transferred from private seller to dealer, and then to you. You are going to have to pay sales tax anyway. That said, I bet a lot of dealers wouldn't want to be bothered with such a transaction.