mb1

I have a 2007 C4, which came out of warranty January 2011. I debated about purchasing an extended warranty from Easy Care at $3372 for 2 years, $500 deductible. I decided against it. Two weeks ago, at about 34K miles, I needed to replace a leaking water pump and replace brake pads and rotors. Below is the running account of where I'm at financially after passing on the warranty.

Warranty 3372
Water pump: 1609 (warranty would have paid 1109 with 500 deductible)
Brakes and rotors would not have been covered under warranty.

Currently $2263 ahead with 22 months to go. I don't know at this point whether I made the right choice. I do know that both the warranty and the repair work are expensive.

aaks38

the warranty wouldnt have covered the pads and rotors as thats a wear and tear maintenance item like tires.

The water pump runs about 300 aftermarket. Its probably a 2-4 hours job by book standards. Not sure why they charged you so much for parts and labor.

Targa Tim

your easycare quotation seems high, maybe your car has higher mileage.

I got easycare for about the same price as yours on my club coupe last year, but it is for 5 years and $200 deductable. A no brainer to me. Mainly need it to cover potential IMS failure...

purrybonker

See - I just don't get this. Maybe too many years working as a risk manager. You lay off the risks you can't cover or financially need to stabilize otherwise you carry your own.

Step back and take the macro view. The numbers are like the payday loan business and you're on the wrong side. Take you're warranty cost and plop it on YLO on TSE and hope for the best rather than let someone else make a buck on your capital.

Can afford the ticket price of four recent Porsches but can't afford an IMS failure?

Rationale just doesn't hunt for me.

alexb76

How many miles?

purrybonker

BTW - I assume that your text colour is consistent with the colour of the relevant vehicle - nice touch!

Deansdream

Just had my water pump replaced under CPO warranty. Car has 60k miles, and CPO runs out in Dec. I won't be looking at an extended because I do a lot of track days and assume any significant failures (particularly engine) will just be ascribed to "abusing the car" and disallowed.

Zeus993

As a shot out to EasyCare they just covered a 2500 cracked flywheel repair on my 96 997.1. I am not sure on the precise costs as I'll pick him up this am but this was a completely unexpected mechanical failure 6 months into the extended warranty. 25k miles on the car. I replaced the clutch and some some seals while they were in there. EasyCare did not cover those. But I am very happy with my decision to have purchased it last year. They are covering the rental too but I have to submit separately for that.

mb1

As mentioned on the original post, the car has 34K miles. Also as mentioned on the original post, I know that the pads and rotors would not have been covered. My goal is not to tell people what to do about extended warranty. The post is meant to be informative to all of those who ask about the risks and benefits of extended warranties and what might be around the corner from a maintenance standpoint for these cars.

Spiffyjiff

my factory warranty ran out last aug and ditto.

Frino

Still very happy with Geico 7 year mechanical breakdown insurance/extended warranty...$100/year since new. I've already broken even with two windshield replacements ($50 each) and recent $700 replacement ($250 deductible) of TPMS control module...two years of MBI coverage left.

At Law

Well put. Take the risk and self insure. You also have to factor in the cost
of the money you immediately pay out (albeit cash is worth very little right now, but it still has some value.

winkingchef

Since we are talking datapoints:

I bought my 2006 C4S cab on March 28th, 2009 with a few months of warranty left.
I declined to purchase after-market warranties because I am lucky enough to be able to cover my risk.
I also have a superb indy mechanic who I trust.
I have now had it for 2 years with zero warranty-able repairs.

Only major expenses over the ensuing 20k+ miles were 3 oil changes, the 40k service, monthly car washes, a pricy but effective coat of aircraft wax and a new set of Bridgestone RE-11's all around w. alignment.

At 52k miles it remains the best car I've ever owned.
I grin like an idiot each and every time I touch the steering wheel, just like these people:
http://www.youtube.com/watch?v=Rkz8AVyRn8g

Let me be clear: I don't hate on warranties - I do think that they are a way for corporations to profit from people's risk aversion. If you can afford the unlikely worst-case cost, and can keep your costs in-line with the warrantor (e.g. you have an indy that won't screw you) you don't need the warranty.

Targa Tim

I understand what you're saying, but do not totally agree.

I usually don't bother with extended warranty, until my ex-997S got IMS failure 2 months after OEM warranty expired. Fortunately, my brother bought easycare and the new engine cost and labour was covered.

$3000 for 5 years of peace of mind is well worth it for me.

The $3000 is a gamble that if something bad happens, I wouldn't lose more money.

Putting the $3000 in stock market is a bigger gamble. I've learned a bad lesson 2 years ago. I've also learned that financial advisors do not necessarily know more than an uninformed investor like me, but that's another story.

Also, just because someone can afford 4 cars doesn't mean they don't need to buy car, home or life insurances.

purrybonker

I hear you. There's a number of different forces at play in this kind of decision.

Having lived through IMS failure (new engine, what; $30K?), would certainly have an impact on your risk and cost/benefit assumptions.

I would find it more painful to have purchased the warranty and never needed it than to have needed the warranty and not purchased it. (I'm knocking rapidly on my wooden desk as I type this)

I guess we do whatever we have to do to get us through the long rainy winter.