Hey everyone,
Need some advice with a calculated risk. Here's the deal:
I have an early 2005 997 Carrera. I bought a 3 year/36k mile extended warranty last year, exclusionary, mostly for IMS peace of mind. Most things covered besides wear/tear. Warranty expires March 2013, or 76,000 miles, whichever comes first. I'm only putting 8,000 miles a year on my car so by the time the warranty expires I'll have 65k total miles, or about 14,000 miles from now.

I'm thinking if I should I cancel the extended warranty now, and get a pro-rata refund of 2,800 back or keep the warranty till it expires. I would use the refund on preventative maintenance to replace the IMS bearing with the LN engineering retrofit, the RMS, Air Oil Separator, and Clutch and LWFW.

My reasoning is that I haven't made a claim yet, and with such low annual mileage the odds of something happening 14,000 miles/2 years from now seem low. I feel that the warranty would expire without making a claim to get my money's worth and that I should just cash out now and use the money on proactive maintenance on items that seem prone to giving out after my warranty period. Of course there's no guarantee that other things won't go wrong but thats the risk in it. Thoughts??

 

Well, Aaron, I see you're incorporating Marc's (mkaraoglan) experience into your number crunching! If you feel that the biggest liability would have been the RMS/IMS issue, and got the warranty solely for that, I think you'd come out fine if you just went ahead with it. However, that being said, if the warranty is pretty comprehensive - you could reason that having the warranty for another 2 years is worth the extra protection for the rest of the covered items in the car.

I personally would try to avoid cracking the engine unless necessary - I would always be worried something will be leaking afterwards. However, if you're ready to crack the case for the clutch anyway, and want to change out the flywheel too, cashing out now would definitely keep you ahead in the numbers...

Ron

 

Well, here's my experience with an aftermarket warranty. I've had my 2006 C2 for a year and a half and the warranty company has shelled out over $1000 for minor repairs:
Horn replaced
Coolant tank replaced
Shifter cable replaced
The warranty cost me $1875 and expires 1.24.15 or 90K miles (25k on the car now)
Something tells me I will make out OK in the end.
Next I'm going to try to get the spoiler motor and TPMS sensors covered.

 

Please share what warranty company this is? Sounds like a good one! I can tell you that I have recently inquired about getting an extended on my 2007 C4S and the rates have gone way up. Specifically with Easy Care and Fidelity. I had Fidelity on my old car (2005 997) for 6 years, 80K miles which I paid $2100 and recently was told they have shortened their duration and increased their costs. They no longer offering 6 year coverage only 4 years, 50K miles max and the price was astronomical like almost 7K!!! So for that kind of money, it's not worth taking the risk. I was thinking in the back of my mind that if they raised their rates this much on the Porsches, that means they were losing alot of money on claims so what does that say about our reliability?!?! Anyways I decided unless I could have got the same warranty coverage for under $3K, it's totally not worth it and I'll take the risk. For 7K, I can pay for alot of repairs, why spend it all up front and possibly never use it. Doesn't make sense. I think the chances of you using it for something major is slim and for $2800 I would just get the $$ and be proactive and do the upgrades if you plan to keep it for longer. Besides, you never know if they will actually pay out when you do have a claim, so there is that risk also.

 

The warranty company provides services in California to CarMax. I don't know off the top of my head who the actual provider is but If you google around I am sure you will be able to figure it out. It is an exclusionary policy that specifically states what items it does not cover. That said, the one drawback is that they only cover $80 per hour labor so you're on the hook for anything over. Hope this helps.

 

These extended warranties have been discussed many times over, but I'm not a fan of them. If anyone watches Clark Howard on CNN (financial consultant), he is not a fan either.

These companies are in the business of making money, not helping you win the maintenance war as they advertise. Most people lose money in the end, if it were the other way around, these warranty providers wouldn't be in business.

While there is always the chance you could stick with it and be one of the 'lucky' few, I'd cash out if I were you...

 

Thanks for the advice guys, I really appreciate it. It helps to get some outside advice. I thought about this warranty thoroughly in the beginning and bought it as a safeguard for the IMS specifically. All my other factory warranty claims in the past were all minor (mostly electronic issues) and when added up doesn't even amount to the price that my Extended warranty cost me. Now with the LN engineering IMS bearing released and with successful results I feel that I could just get that to get over my IMS fears and save the rest of the money for the "rainy day" moments. All this added with the fact that my warranty will expire due to time and not mileage since I don't daily it and keep the miles low makes the extended warranty less of a value.

 

Thanks Ron. Marc's thread definitely triggered these ideas. I agree with you, I really don't like cracking the engine open unless necessary, but with over 50k miles I feel like I could use the opportunity to go ahead and change out my clutch and get the LWFW mod i've been itching to do, as well as do the proactive items such as the RMS/IMS bearing.

 

Even though my CPo coverage ended last august on my 04 build 2005 c2s I still probably would not have gotten an extended warranty ( had a bad experience with my previous Boxster)

The only want to point out that at 78k miles my car really had not had any major issues at all and taking the ims out of the equation I would only be out about 1600 at Hergesheimer for the AOS and rms.
When my car was in their shop last year for the clutch the ims was not a concern and I'm not sure I would have replaced it then and the clutch work already included the rms.
The clutch was only being replaced to to a valet abuse and my clutch still and a lot of life in it.
Personally,I would save the insurance money and use it for maintenance and issues as they come along.
If you need a clutch then sure, do the ims and go to sleep with good piece of mind

Only my opinion.

 

FWIW I would see if the AOS is covered by any extended warranty. I know that the warranty I am going to buy excludes any emissions control parts, and I believe the AOS is part of that by sending crankcase vapors into the intake to be burned off.

 

Here is what mine DOES NOT Cover, everything not named here is supposedly covered.

• Manufacturer's maintenance items including services and parts described in your owner's manual.
• Other normal maintenance services and parts including engine tune-up (includes spark plugs, glow plugs, ignition wires, distributor cap and rotor), carburetor, throttle body assembly (except injectors), batteries, filters, lubricants or fluids, air-conditioning refrigerant, engine coolant, all hoses and belts (not specifically listed), wiper blades, brake pads and shoes, brake rotors and drums, suspension alignment, tires, wheel covers, wheel rims, wheels, wheel balancing, shock absorbers, exhaust system, friction clutch disc and pressure plate, and clutch throw out bearing.
• Glass, glass framework, fastening adhesives, sealed beam head lamps, light bulbs, lenses, trim, moldings, bright metal, upholstery, vinyl and convertible tops, paint, sheet metal, bumpers, alignment of body parts, flexible body parts, door panels, body panels, structural framework, structural welds, and removable hardtop assemblies.
• After market accessories, unless it is a CarMax-approved, vendor installed accessory purchased through CarMax at the time of vehicle purchase, or non-original equipment, components and systems not installed by the manufacturer, examples include: anti-theft systems, radar detectors, CB radios, radio/speaker equipment, telephones, cruise control and sun roof.
• Solar powered devices, telephones, TV/VCR and related components (unless it is a CarMax-approved, vendor installed accessory purchased through CarMax at the time of vehicle purchase), appliances.

It also specifically lists items that are covered however there are other parts that are covered that are not listed here. You may find the item you are looking for below.
1. Engine

Gasoline Engine - Cylinder block, and all internal lubricated parts including: crank shaft, rod and main bearings, cam bearings, expansion (freeze) plugs, connecting rods, wrist pins, pistons, piston rings, camshaft, cam tower, lifters, cylinder head, valves and guides, valve springs, rocker arms (cam followers), pushrods, timing chain housing (cover), timing chain and sprockets, timing belt and pulleys, timing belt tensioner, intake and exhaust manifolds, exhaust manifold cover, flywheel, balance shafts, harmonic balancer and retainer bolt, crank shaft pulley, valve covers, idle speed control, fuel pressure regulator, barometric pressure sensor, oxygen sensor, throttle position sensor, mass air flow sensor, idle air control solenoid, oil pan, oil pump and pressure relief valve, oil cooler, oil temperature sensor, air cleaner assembly, engine oil cooler hoses, oil filter adapter/housing, engine oil sending unit, motor mounts, water pump, water temperature sensor, temperature sending unit, thermostat and housing, fuel supply pump, fuel pump control unit, fuel tank sensor, vacuum pump, vacuum control valve, vacuum switch, positive crankcase ventilation valve, dipstick and tube, seals and gaskets, fasteners for the components listed above.
Turbocharged/Supercharged/Rotary/Diesel/Enhanced Engines - All of the above listed parts or equivalent plus: turbocharger, waste gate controller, intercooler, hard lines, compressor, clutch and pulley, bypass valve, injection pump, diesel injection tube, pump gear, tensioner pulley, timing belt and injection timing control, lines and nozzles, seals and gaskets.

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2. Transmission

Automatic - Case and all internal lubricated parts including: oil pump, valve body, torque converter, vacuum modulator, governor, main shaft, clutches, bands, drums, gear sets, bearings, bushings, sealing rings, TV cable, solenoids and electronic shift control unit, transmission front cover, transmission mounts, cooler, cooler hoses and hard lines, automatic transmission control unit, parking pawl, range select lever, dipstick and tube, seals and gaskets, fasteners for the components listed above.
Standard - Case and all internal lubricated parts including: main shaft, gear sets, shift forks, synchronizers, bearings, bushings, seals and gaskets, fasteners for the components listed above.
Transfer Case - (4X4 vehicles) - Case and all internal lubricated parts including: main shaft, gear sets, chain and sprockets, bearings, bushings, mounts, transfer relay, interlock control unit, seals and gaskets, fasteners for the components listed above, electronic and vacuum engagement components.

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3. Front Wheel Drive

Front Wheel Drive - Final drive housing and all internal parts including: carrier case, gear sets, chain and sprockets, bearings, bushings, axle shafts, constant velocity joints and boots, universal joints, front hub bearings, locking hub assemblies (4X4), drive shaft support, rear axle hub bearings, seals and gaskets, fasteners for the components listed above.

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4. Brakes

Brakes - Master cylinder, assist booster, wheel cylinders, combination valve, disc brake calipers (and rear caliper actuators), caliper yoke, front baffle plate, back plate, adjuster assembly, level indicator, load sensing valve, anti-skid sensor assembly, rotor assembly sensor, hard lines and fittings, backing plates, springs, clips and retainers, self-adjusters, parking brake linkage and cables, rear cable adjuster, seals and gaskets, fasteners for the components listed above.

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5. Electrical System

Electrical - Alternator, voltage regulator, distributor cap, rear window defroster, speedometer cable, head lamp relay assembly, horn relay, ignition relay, head lamp dimmer relay assembly, interlock emergency switch, fuse block, flasher unit and relay, seat belt warning timer, retractable head lamp motor assembly, wiper arm, rear wiper arm, reverse lamp assembly, clock, windshield wiper motors and delay controller, wiper washer tanks (front/rear), starter motor and drive, starter solenoid, wiring harnesses, manually operated switches (such as turn signal, headlight, dimmer, and wiper switches), and mechanically actuated switches (ignition, brake light, and neutral safety switch), cruise control system, power seat motor(s) and transmission(s), power window motor(s) and power regulator(s), power door lock actuators, power trunk release actuator, and power antenna motor.

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6. Electronic System

Electronic - Digital and analog instrument display(s), compass and thermometer display(s), low fuel sensor, low coolant sensor, low oil sensor, electronic rear view mirrors, keyless entry system, electronic fuel injection systems (specifically sensors, pressure regulators, fuel rails, injectors, seals and gaskets), electronic fuel pump, electronic ignition module, distributor and coil, engine management control unit, power window regulator, alarm units, power units and sensors, knock sensor and oxygen sensor, electronic air suspension compressor.

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7. Rear Wheel Drive

Rear Wheel Drive - Drive axle housing and all internal lubricated parts including: carrier case, gear sets, bearings, bushings, limited slip clutch pack, axle shafts, axle hub bearings, propeller shafts, universal joints, drive shaft support, front axle hub bearings, rear cover 4WD, select switch, rear cover, differential case, control lever boot and socket, seals and gaskets, fasteners for the components listed above.

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8. Steering System

Steering - Housing/case and all internal lubricated parts including: rack and pinion valve assembly, sector shaft, rack mounts and cushions, inner rod ends and bellows boots, speed sensor or steering gear equipped pitman arm and valve assembly, sealing rings, bearings, bushings, pitman arm, center link, tie rods, idler arm, power steering pump and pulley, fluid reservoir, pressure and return hoses, cooler and hard lines, power cylinder assembly, steering wheel, horn button assembly, steering gear arm, steering damper, steering lock, steering upper and lower collars, tilt lever, pump reservoir tank and tank cap, steering main and intermediate shafts, coupling, seals and gaskets, fasteners for the components listed above.

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9. Cooling System

Cooling System - Thermostat housing, fan blade, thermostat, radiator cap, radiator shroud, reservoir tank/bracket, thermal switch, coolant temperature sensor, radiator fan relay, blower motor timer.

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10. Front Suspension

Suspension - Steering angle sensor, front coil/leaf springs, MacPherson struts (includes upper mount and pivot bearing assembly), rear coil/leaf springs, upper and lower control arms, torque arm, adjustable shock support, bump stop cushions, control arm shafts, torsion bar mounts and bushings, tension rod, bushing and bracket, panhard rod, upper and lower ball joints including: dust boots, steering knuckle (spindle), wheel bearings and seals, stabilizer shaft, stabilizer linkage including: mounts and bushings, strut rods and bushings, king pins, rear strut assembly, rear stabilizer, seals and gaskets, fasteners for the components listed above.

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11. Interior Assemblies and Controls

Interior - Seat belt control unit, seat belt power unit, seat belt slide assembly, seat belt limit switch, air pump, slide assembly (power seat), lift assembly (power seat), automatic transmission range indicator.
Assemblies & Controls - Accelerator pedal, bell crank assembly, 4WD skid guard, hood hinge, lock and lock cable, seat belt anchor stay, fueling stopper assembly, front door hinge and lock, lock **** rod, remote control rod, lock striker and ****, lock cylinder, front outside handle, handle rod, front inside handle, front window regulator; Rear door hinge and lock assembly, remote control rod, lock striker, rear outside handle, handle rod, rear inside handle, rear window regulator, regulator handle, slide door lock assembly; Side window control assembly, remote control rod, side window control cable, regulator wire, slide door roller, slide door link, deck lid lock striker, lid opener cable, deck lid lock, trunk opener solenoid, deck lid hinge, deck lid torsion bar, back door lock and handle.

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12. Air Conditioning

Air Conditioning - Relay, control, vacuum control switch, thermistor, compressor and mounting brackets, clutch and pulley, condenser, evaporator, orifice tube, POA valve, accumulator, temperature control programmer, radiator fan control amplifier, solenoid valve, automatic climate control sensors, shift actuator valve, power servo, acceleration cut timer, RPM sensor, high/low pressure cutoff switches, high/low pressure hoses, pressure cycling switch, thermostat, drier, temperature control head, o-ring seals, gaskets, fasteners for the components listed above, refrigerant if necessary (in conjunction with the repair of the components listed above).

 

I've said this before, but no one has responded to my logic.

I think warranties add value in a few ways.

a) if you know you are going to drive the car rough, rougher than average and think you have a statistically higher chance of breaking something. or if you know there is something wrong with the car.

b) if your p-car breaking down is catastrophic to your finances (sort of like health insurance, I could be very well-off, but go broke if I get cancer without insurance, or car insurance, if you hurt someone else with no insurance, it could be catastrophic to your finances) So, if you're well capitalized, you should just let the money sit in investments and take care of problems as they arise.

That being said, there is still value in buying these things and never think/question it again.

 

Preaching to the choir brotha. Just got a 3 year platinum warranty through Fidelity. For $2400 it's worth it IMO, these cars are not cheap to fix and I'm not willing to take my chances. Everyone can say an extended warranty is a waste of $$ until their own car breaks down and they get raped by the repair shop. I'm interested to hear what their opinion is at that time when they are facing an expensive repair. My colleague bemoaned not having an extended warranty when his Turbo required a $5000 repair service.

 

IMO the extended warranty also makes my car more attractive for resale if I choose to go that route. If not the prorated amount is reimbursable.

 

So I just called the warranty company, and my prorated refund would actually only be $2100. It's less of a refund than I calculated so i'm going to just keep it till it expires March 2013/77,500 miles and drive worry-free until then. My clutch still feels good so I'll let it ride and just replace it along with everything else when it needs to be done rather than now. Thanks for all the advice!