Aftermarket Warranties for Used Cars

[mdw48009]

I am thinking about buying a 996 used. While I can afford to buy the car, a big service bill would be a significant problem. There are several companies that sell aftermarket warranties such as Warranty Direct and others. Does anyone have any experience - good or bad with aftermarket warranties?

[silverc4s]

They are like an insurance policy, different from a factory warranty in a number of ways. They will only pay for a BROKEN part and the LABOR associated with replacing it. Even then, only for those items SPECIFICALLY called out on their documents. Hint- Read Carefully.
You also need to get their authorization number PRIOR to a covered repair taking place, most times YOU will pay the shop, then get your money (or whatever part of it) from the warranty company.
An example of a problem here: My wife's ML320 had a fuel pump failure after the factory warranty expired, but covered by the extended warranty. MB had a complete upgraded filter kit that goes in with a new pump, because the original fuel filter is too small, and when it clogs up, the pump fai;ls.
Well. the warranty company would only pay for the new pump, not the upgrade kit (filters are not covered, and the hoses etc. that were being replaced were not failed components)
Bottom line - out of about $900 total bill warranty coverage was about $350. I HAD to get ALL the work done, as MB would not warranty the work unless I had the upgrade installed, and the warranty company would NOT pay for anything unless the work was warrantied..
To make matters worse, while we were having this three way bicker fest, the MB wrench went ahead and put the whole deal in the car WITHOUT my OK!
In the end I settled with the MB dealer 50-50 on the balance, and the warranty paid their share. I was out about $300.
You decide. I think they ALL work pretty much the same, UNLESS offered by the Auto MFR (Porsche, etc.), NOT the dealer as they sell these "policies as well"

[mdw48009]

Which company did you use?

[s_wilwerding]

My advice would be to either buy a 996 that's still under factory warranty (2000 or later models) or just pay for the repairs yourself. You have to figure that warranty companies aren't losing money, so, on average, you're paying more for the warranty than they will ever pay you. I think warranties on 996s cost $3000 and up, so unless you have a particularly troublesome car, I wouldn't think that you would ever use that $3,000 on repairs. Also, with 996s so cheap, figure some of the discount could go towards car repairs.

But, I do realize that there are some people who like the piece of mind of a warranty. In that case, I've heard that Warranty Gold and Warranty Direct are good companies.

[Dantilla]

Warrenties sold by dealerships are usually third party transactions. It is very common for these warrenty companies to sell a bunch of warrenties, then go belly up or disappear, starting over again under a new name. When you go back to the dealer to get some needed work, you are not covered. The dealer will tell you that you bought the warrenty from the third party which no longer exists, not the dealer. I would only consider an extended warrenty backed up by the dealer.

[island911]

My 2¢ worth:

Don't do it.

These are 'sucker policies.'

[einreb]

I used to go to an alley mechanic for work on my RX-7. he had recently purchased a maxima from a dealer for his daily driver. interesting enough, he bought the extended warranty for the car. the car had 70k and the injectors were known to go at 80k or so. at $175 a pop he made up for the $600 he paid for the warranty when the injectors went bad a year later.

I suppose the first thing is to figure out if its worth the piece of mind for you. the next thing would be to find a reputable company... previous happy customers are the best source for that. you might be better off asking on a 996 or boxster board.

good luck! if you buy a 996 dont forget to wave to the oil cooled guys.

[Hockey fan]

I thought I read in the new Panorama that Porsche was finally going to start offering "certified" used cars along with a warranty. Might want to check into that and see if that would work for you.

Jeff

[s_wilwerding]

Originally posted by Hockey fan
I thought I read in the new Panorama that Porsche was finally going to start offering "certified" used cars along with a warranty. Might want to check into that and see if that would work for you.

Jeff

Supposedly, Porsche has had this program for awhile. However, I think the warranty only lasts one year, and there's usually a hefty premium put on "certified" cars over non-certified cars, which may or may not be worth it.

[MIK911]

I've had the same experience as Silverc4s with my in-laws Cadillac. Dealer hesitant to fix problem, cuz they might not get paid by insurance co., only certain parts listed as 'covered', blah, blah, blah. Pain in the butt. I would not buy aftermarket warranty, just make sure you get a good PPI, then pay for repairs as needed.

mike
'86 coupe

[s_wilwerding]

Originally posted by s_wilwerding
Supposedly, Porsche has had this program for awhile. However, I think the warranty only lasts one year, and there's usually a hefty premium put on "certified" cars over non-certified cars, which may or may not be worth it.

I was mistaken. The above is the "old" policy. Someone on the Boxster board said that he just received a letter stating Porsche's "new" warranty program - 6 years or 100,000 miles. Sounds like a good deal to me.

[Hockey fan]

Actually, I saw this info on the Oregon PCA website. Here's a copy of the info:

"Under the program, a 4- to-8-year-old car no longer under original warranty would be certified for another two years and up to 100,000 miles. Vehicles still under the new-car warranty are guaranteed up to six years, or 100,000 miles. Porsche's warranty on new cars is 4 years/50,000 miles."

Jeff

[mdw48009]

Trying to buy the car wholesale and have a back up plan if the car has a significant problem.

Can you bring the car into a P dealer, have him inspect it and warranty it (for a fee)?

[CarreraS2]

You'd definately want one if you've had one of Moe's "Crayola Oblogatas."

[nostatic]

Originally posted by mdw48009
While I can afford to buy the car, a big service bill would be a significant problem.

In my book, that means you can't actually afford to *own* the car (as opposed to *buy* the car). But I'm just a stick in the mud...

[mdw48009]

There is a difference between being able to own one and wanting to take the risk of a significant service bill. Buying the car for less and capping my down side is a smart way to go.

I just left my mechanic who was repairing a 993 TT that was leaking significant amount of oil. Not sure what was wrong, but the estimate was $20k ++ to fix. The car had less than 10k miles.

Not to mention the notoriously high parts cost.

I've been reading about P cars since I was a kid. I'm 38 now and have the money to try one.