I am hoping someone here will have an answer to this question.

I am looking at purchasing a 2005 996TT 'S' from a dealership. The car is obviously well within the original warranty, and the dealer is not offering the CPO on the car. I would prefer to have the CPO, not neccessarily from the perspective that I think I will still own the car in 2010, but that the dealership is on the hook to Porsche NA that they have certified the car as not having any issues.

The salesman I am working with is claiming that they have to decide when the take the car in if they are going to offer a CPO on it, and that once that decision is made it cannot be changed. He is claiming it is against federal law to do so, since it is an extended warranty and not an extended service plan.

I have never heard of such a law. I have purchased other cars (non Porsche) in the past that were offered with the extended warranty and negotiated to buy the car without it to save some cash. I have also negotiated with other Porsche dealers to include the CPO and they said they would do so for their cost ($1800).

This dealer claims those dealers are breaking the law and that Porsche NA could choose to go after them. The little voice in my head is going off saying to stay away from the car. It was sold by them originally and they have all the service records. They would know if there is an issue with the car. Since the dealer is 1,000+ miles from me I can't go back to them if I have an issue, hence my logic in having them be on the hook to Porsche NA.

Anyone know the real answer to this? Is it techncially illegal and nobody pays attention? Or is this guy full of it and I should stay clear? It does appear to be a very large dealership.

Thanks,
Andrew

 

My CPO experience was similar to what you describe. The car I bought was advertised as "pre-certified" by the Porsche dealer, and I was told that it went through the inspection process and was eligible for CPO status for the cost of the warranty. So I could have had it either way, with or without the CPO warranty.

If a car does not meet the CPO criteria (more than 8 years old, accident history, etc) then it can't be CPO'd. I have had dealers tell me that a "newer" car that still has a few years of full factory warranty isn't "worth it" to them to CPO. It dosn't sound right that a decision for CPO status or not is to be made at the take in of the car, as it still has to go through inspection to see if it's eligible.

 

I think you're getting a line. I recently was going to purchase a used 2006 Cayman and the CPO was offered for $2k (later reduced to 1.5). Didn't purchase that car in the end, but I think they can easily do CPO on a car they sold and serviced if they want to. If you want the car tell them it is a deal breaker and see what happens. There are lots of cars on the market so I'm sure you can find another if this deal falls through.

 

Never heard of the federal law telling a dealer they have to certify a car when they take it in. If you want to pay for the certification, what harm is it to them---unless there is something with the car that it can't be certified.

 

Thanks for the replies. I hate dealer games.

-Andrew

 

This doesn't make sense. If they won't CPO the car on your dime, then there is something wrong with the car that makes it ineligible for the CPO program.

Don't give up on that, if they are being honest they will certify the car or tell why they can't. There has to be a story here.

RG

 

i would say they are hidding on something..
the salesman and the dealer will love to sell you a warrenty normally to make some money...
i was pushed when i purchase my 07 cayman...it cost $2500 for 20K miles..i think the number is wrong..the finance department guy even ask me how many miles do u drive,.give me a 5/70k for $2000.so he is selling me 1 year for $2000..
btw ,what do you guys pay for the extented warrenty ?they say its cheaper at the time when you purchase the car ..however i didnt think so...what if i want to keep the car longer the then 4/50K...where should i go to buy the warrenty?

 

Generally extended service/warranty plans cost the same if you buy it when you purchase the car new or if you buy it later, as long as the original warranty is still in effect. Only once was I offered an extended warranty at a "discount" if I bought it when the car was new. However, I have no idea if they were just discounting the price to make a sale or if the fact the car was new made a difference. From a pure financial perspective, if you pay $2k and don't "use" it until 4 years later, you're giving the insurance company free interest on $2k for 4 years. They could be doing nothing more than giving you that money back, and booking a sale now. Plus there is always the chance that you'll sell the car in under four years and forget to transfer the warranty or claim your money back. This is called breakage, and results in 100% profit for the warranty company. It is the same concept with mail-in rebates.


-Andrew

 

got you..
thanks for the input..thats the way it is..