Porsche 911 aftermarket warranty analysis
It’s a common topic on the forums. Someone buys a Porsche. The OEM warranty is expired, but an aftermarket warranty is available. What should you do? Faced with this situation recently, I decided to share my analysis which resulted in a decision against the aftermarket warranty.
I bought a 991 from a West coast broker (backstory). It was a low mileage car, and I was able to talk with the original owner as part of the due diligence. Though I was encouraged by the narrative, I still opted to have a Prepurchase Inspection (PPI) completed at a West coast Porsche dealership. I talked to the service tech during the process and asked if the car would be eligible for CPO. Of course it is a requirement that the car is sold by a Porsche dealership to be eligible for CPO, but I thought of the question as a litmus test to gauge the overall condition of the car.
We also discussed other options for aftermarket warranties, and the service tech suggested that I follow-up with my local Porsche dealership since they frequently sell these warranties in addition to offering CPO cars. I sent the VIN# and mileage to my local dealership for an estimate. They responded with the following proposal:
There are a few notable differences between CPO and other aftermarket warranties like the EasyCare VSC option presented to me by the dealership. For example, with EasyCare VSC you can select mileage limits, term, and a deductible to arrive at a package tailored for you. Another difference is that the coverage includes wheel and tire care, whereas the CPO program does not.
Armed with the terms of the warranty, I was ready to make a decision based on data. I thought it might be useful to analyze my 997 ownership experience with and without the warranty as a proxy for the 991.
I’ve owned the 997 since 2013, so naturally there have been repairs in addition to the required maintenance. I used the costs of the repairs to evaluate if an aftermarket warranty would have benefited me financially.
The table below shows the costs that I incurred for three repairs without warranty coverage, plus the cost of the repairs with a $500 deductible EasyCare VSC warranty. After factoring in the cost of the warranty (note: I chose the lowest cost option available from EasyCare VSC), the analysis shows that I was approximately $300 ahead without the warranty.
I support local businesses as much as possible, so the repairs on the 997 were completed at an independent shop, not a Porsche dealership. Had the work been completed at a dealership, the repair costs likely would have been higher and the warranty would have been more advantageous financially.
Also, though I’m annoyed that the 997 required these repairs, they are more minor in scope. Higher cost repairs (e.g. PDK replacement) would have also made the aftermarket warranty more advantageous financially.
Finally, as with any analysis, your mileage may vary as may my experience with the 991 vs. 997. Here’s hoping for the best!