Thursday 10th April 2014

Ferrari 'Power Warranty' launched

New extended warranty can provide 12 years of factory-backed cover

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As Chris detailed recently, running a Ferrari requires some financial commitment. Alright, an early-90s flat-12 is a very different proposition to an F430, but Ferraris are not to be run on shoestrings. Today Ferrari has announced two new warranty options to potentially ease the cost of maintaining covering used models.

The standard four-year Ferrari warranty on new cars can now be upped to five years for additional peace of mind. A five-year warranty, just like a Hyundai then. Probably not unlimited mileage, but Ferrari doesn't officially quote a limit.

Kia-beating warranty now available from factory

Of more interest though is the 'Power Warranty' (presumably named thus as even Ferrari warranties have more performance). Reputedly the first such cover of its kind, Ferraris new extended warranty can provide factory-backed support for up to 12 years (up from 10) after a car's first registration. Furthermore, cars previously not covered by a Ferrari extended warranty can be included, subject to a technical inspection. One assumes that must be fairly rigorous!

The Power Warranty can be renewed annually with a 15 per cent renewal incentive when it comes to paying up. If your Ferrari has been free of maladies, another 15 per cent will be taken off the premium.

So if you've been eyeing up 599s in the classifieds, the Power Warranty can act as further incentive. Ferrari doesn't mention a typical price for the cover, of course.

 

 

[Mermaid]

Porsche warranty for up to 9 years, Ferrari 12 years. What do they know that we do not?

[Vantagefan]

Great write up.

Please correct the 'you're' before I explode.

[rosino]

Would this cover also F430s ? If yes then it's great news for 2005 cars that were falling out of the warranty period and now have another 3yrs grace period...

[365daytonafan]

Mermaid said:

Porsche warranty for up to 9 years, Ferrari 12 years. What do they know that we do not?

The typical Porsche covers rather more miles in 9 years than a typical Ferrari does in 12

[toppstuff]

Vantagefan said:

Great write up.

Please correct the 'you're' before I explode.

PH grammar does make my teeth itch. Anyone would think these writers did it for a living...

Oh..hang on..


Anyway, back O/T:

I think these developments are great news, if only because they may encourage people to actually put some miles on their cars.

One of the things that really puts me off modern Ferrari is the fact of how mileage sensitive the resale market has become. Use a 458 properly and the dealer will absolutely punish you if you are crazy enough to ask for a bid ( if they even bid at all ) . Maybe this is why "mileage correction" services do so well...

[British Beef]

BUT AT WHAT COST? I am guessing it will be over £3000 per year.

As with all warranties, it is an insurance policy designed to make the seller money. So Ferrari will only sell this warranty to make money. i.e the average warranty cost will exceed the average repair bill for any given period.

[4a4]

Nice to hear...for potential Ferrari owners... Wonder how much it's going to be?

Plus what a terrible angle to take a picture of the 458 Spider. The front looks like it's been jacked up..Ugghhh

[leedsutd1]

365daytonafan said:

Mermaid said:

Porsche warranty for up to 9 years, Ferrari 12 years. What do they know that we do not?

The typical Porsche covers rather more miles in 9 years than a typical Ferrari does in 12

That's a good point ,plenty of caymans with 100k on clock for sale and most boxsters and 911"s cover 10k annually ,where as a lot off Ferraris cover between 2-4 k annually.
I would have thought the Ferrari warranty would be £1,500 per year and of course means regular serving at main dealer.

[dodgydave]

My California is now 4 years old, price for renewing the warranty for a year, £3,740. I said No Thanks.

[Mermaid]

leedsutd1 said:

That's a good point ,plenty of caymans with 100k on clock for sale and most boxsters and 911"s cover 10k annually ,where as a lot off Ferraris cover between 2-4 k annually.
I would have thought the Ferrari warranty would be £1,500 per year and of course means regular serving at main dealer.

100k mileage limit would be better.

[AndrewSV]

I can imagine the many pages of man maths that will occur because of this...

I just need to work out when I'll be able to afford a 1990 348 tb, it's getting on a bit and I can't imagine a warranty will be cheap for that...

[rosino]

dodgydave said:

My California is now 4 years old, price for renewing the warranty for a year, £3,740. I said No Thanks.

Wait till the F1 box fails or the roof.. then you tell me if the Power Warranty would not have been a good insurance policy...

[MonteV]

Oh, I thought they meant a) My Ferrari would meet the actual performance of the official cars tested by motor journalists, and b) Chris Harris no longer is black listed and allowed to officially test Ferraris in the motoring press and c) Ferrari will be competitive in F1 despite the change of rules for 2014.

[bubney72]

Wow, nice one Fezza!

[DiscoColin]

rosino said:

dodgydave said:

My California is now 4 years old, price for renewing the warranty for a year, £3,740. I said No Thanks.

Wait till the F1 box fails or the roof.. then you tell me if the Power Warranty would not have been a good insurance policy...

These threads come up in the Porsche forums quite often. The short version is that the less time you plan to keep the car, the more it makes sense.

In the case of the number above, if the car was kept long term and ran within warranty for as long as it could be then the average user would need to accrue £30k worth of warranty work in that period for it to make sense. Then you have a 12 year old car that could present you with a big bill at any point having laid out all of that cash with potentially little to show for it. This is why it makes little sense to extend the warranty on a keeper rather than just banking the money instead. If you do that and the big bill lands after the warranty period runs to maximum term, guess what : you have it covered.

Conversely, if it is a short-medium term acquisition you are basically making the ownership cost a fixed and known amount and don't have to hold a contingency fund in liquidity for the duration. For some that makes it a no brainer, for others it can be expensive but reassuring piece of mind.

You do pretty much have to suffer a serious engine or gearbox failure to get pay-dirt from a warranty though...

Edited by DiscoColin on Thursday 10th April 16:26

[pauloroberto]

Like any insurance policy, the insurers are entitled to make a profit, but we take out the insurance because we don't want to be liable for a major problem. Some people may "self insure" (either by putting money aside or doing the work themselves) but I would rather have the comfort of knowing that the big bills are covered and I would be prepared to pay a reasonable premium for that peace of mind.

Presumably the warranties are pretty comprehensive?

I'm off to Maranello on Saturday so I might be browsing the Classifieds next week!

[MitchT]

Not actually a 12 year warranty then, just a warranty that can renewed annually for up to 12 years from the car's date of first registration.

[TNW]

The value in a Porsche warranty is that it's transferable to the next owner, so helps the resale value of the car. I wonder if this is the same? Otherwise 12 years is a bit pointless unless you keep it for that time and as said, you might as well bank the money.

[mikEsprit]

Should greatly increase the number of 'affordable' F cars post-warranty. Hard to think people buying these kinds of warranties wouldn't be driving them.

[Dave211]

Credit to a Ferrari having faith in their product to offer this. You try and get a decent warranty from Lamborghini after the 3 years are up !