Warranty for 10 year old 360?

Kidding right? After market warranty companies sell lots of warranties, have no regulation or reserve requirements, and go out of business sometimes. A Ferrari backed power warranty costs thousands of dollars per year. So you are looking to give thousands of dollars to some company, whose financials you will never see, and who is unregulated and legally capable of taking advantage of bankrupcy should they overpromise; for what?

A ten year old exotic is risky. Parts prices are horrific. Labor for anyone who knows how to work on the car is high but not stupifying (perhaps because no one who works on cars is willing to charge $1,000+ an hour, but believe me parts are on a thousand dollar per hour price scale).

Of mass production cars, the Ferrari is least conductive to the person on a budget. Driving it is not like driving most Porsches, Vetts or Vipers, but as an owner I say it is an indulgence and a luxury. You have to be able to write a five thousand dollar check with aplomb (complete and confident composure or self confidence). Insurance against those sorts of expenses will cost you more than the expenses because the insurance company makes a profit. Now, for losses you HAVE to risk and cannot bear (death while children are dependent on you) you pay the insurance company their pound of flesh. Insuring car repairs for a car you do not need to own . . . really.

 

+1

 

id agree with doug. Although I am sure you can find a company that will cover it. But its going to be so much money that it won't be worth it to you... and then when you do... you do have to ask if that company is going to be around. i have seen lots of people lose there money because the company went out of business... and these were huge warranty companies...

 

What they all said. I've yet to hear any happy stories about these aftermarket warranties.

 

Have you noticed that about a year ago, there were tons of TV ads for these extended warranty programs and now there are none?

That should tell you something.

 

And telemarketers too.

 

Forego the money that you would spend for the warranty and put the same amount away for your repair budget.

 

Ding, ding, ding!

 

They seem to file for bankruptcy and then start up again.

I was listening "The Car Guys" last year on the radio and they said there were sisters in DFW area that had gone bankrupt and restarted new warranty companies 3 times.

 

I used to work for a aftermarket warranty company by the name of Automobile Protection Corp. They've been around since 1984, were owned by Ford for several years and are well established and are going no where. Another is GE Capitol's company. Both are very stable. Neither would write a service contract on a Ferrari as there is too much liability.

 

I agree with the comment to simply save until you have a repair fund. I would suggest at least $5000. You would then be prepared to cover most unforeseen expenses (or at least a good portion of it). If you don't have that amount of money to put away then perhaps it would be prudent to wait on buying until you do. In addition to the $5000 repair fund, one should also have a $3000 /year maintenance fund (if cash flow is a concern).

 

Even if you found someone, I wonder if it would be a battle to extract actual coverage should something break. We bought a custom home about a year ago, and seller paid for the usual 1-year home warranty plan. First time something broke they said, "Uhh, that is a very expensive oven, we don't match brand, color, or size, we only match features." They offered a low-end brand replacement oven in matching color, but in a dimension that did not fit the cut-out in the kitchen... go figure... This is one of two identical stacked ovens, and they obviously only offered one oven... When I was marginally displeased with their offer, they said, "Oh, if you are not happy, we will be happy to send you a check for the value of the replacement oven we offered you, and you can buy your own". Needless to say, the cash offer only covered a fraction of the equivalent current model oven. The part about not matching color, size, or brand was indeed printed in the policy, so there was no course against them, and they were in their full right.

Unless the warranty is from Ferrari I would not bother, as I can see all the arguments down the road... "Well, sir, if you are not happy with a Dodge replacement transmission, we will be happy to send you a check for $29.99"

Jes