Extended Warranty

[JimBob0047]

Purchased a 2016 competition package, DCT, fully loaded, lease turn in, CPO with 20K miles for 63k and I extended the warranty out to 10y/100k for an additional 6.5k with no deductible through the BMW dealer provided by a company called DOWC.

Did I do good?

Thanks!

JB

[Chiraq M5]

Not too bad, I bought 3years/30k miles for 5k and 250 deductible

[Flying Ace]

price for the car...yes. Warranty....no.

[JimBob0047]

Originally Posted by Flying Ace

price for the car...yes. Warranty....no.

It's bumper to bumper not just power train. What do you think a fair price for the warranty would have been?

[Flying Ace]

personally, I've never thought most car warranty products are worth it. My number is unmarketable and unprofitable for the company....for just 1 more year, I wouldn't pay more than $2k. Again, that's from a "risk-assessed/probability/cost-weighted" approach on price.

That said, when I bought my M6GC preowned from a BMW dealer, it was CPO, so I know I paid something for the CPO. But my car also had $10k worth of OEM add ons to the car (MPE, spoiler, e-wheel).


If you care to know my experience on calculating it (I used to own a E90 M3 for which I toiled over extended warranty decision), I'll gladly share you my number breakdown for that car which I feel carries over for all of BMW's M cars. (plus I also have currently own a 6 year old X5).

[BeachM5nster]

Originally Posted by Flying Ace

personally, I've never thought most car warranty products are worth it. My number is unmarketable and unprofitable for the company....for just 1 more year, I wouldn't pay more than $2k. Again, that's from a "risk-assessed/probability/cost-weighted" approach on price.

That said, when I bought my M6GC preowned from a BMW dealer, it was CPO, so I know I paid something for the CPO. But my car also had $10k worth of OEM add ons to the car (MPE, spoiler, e-wheel).


If you care to know my experience on calculating it (I used to own a E90 M3 for which I toiled over extended warranty decision), I'll gladly share you my number breakdown for that car which I feel carries over for all of BMW's M cars. (plus I also have currently own a 6 year old X5).

I agree.

I already had an aftermarket warranty on one and it didnt cover most of the things that you'll be spending money on which is maintenance items.

BMW warranty is better and covers just about everything but it has restrictions too.. like NO upgrades.. and miles

as some people told me and I will tell you now, I would've been better off taking the money i paid for the warranty and putting it in a savings account and using it for anything the car needed and just add a little bit whenever you get a little extra money to add just saving some money )

Most of the time when something bad happens insurance is going to get the bill.
.
on top of that the warranty will have stipulations like they will
only cover let's say $100 an hour in labor so if I want the dealership to do it I gotta come up with $50 an hour labor. this is an exact example of an issue that I was going to have to resolve..

the warranty wasn't gonns save me any money realiy so i just got rid of the car. The guy i sold it to didn't care that it was leaking oil bc it was sharp looking and I told him I had a warranty that I would transfer to him which i did

(it was an N63 motor- stage 2 dinan- lol i bet its already dead)

if the motor blows in this car, by the time it does it will cost more than the value of the car to replace it so insurance will just total it

aaand on to the next.. no warranty

[Flying Ace]

Originally Posted by BeachM5nster

I agree.

I already had an aftermarket warranty on one and it didnt cover most of the things that you'll be spending money on which is maintenance items.

BMW warranty is better and covers just about everything but it has restrictions too.. like NO upgrades.. and miles

as some people told me and I will tell you now, I would've been better off taking the money i paid for the warranty and putting it in a savings account and using it for anything the car needed and just add a little bit whenever you get a little extra money to add just saving some money )

Most of the time when something bad happens insurance is going to get the bill.
.
on top of that the warranty will have stipulations like they will
only cover let's say $100 an hour in labor so if I want the dealership to do it I gotta come up with $50 an hour labor. this is an exact example of an issue that I was going to have to resolve..

the warranty wasn't gonns save me any money realiy so i just got rid of the car. The guy i sold it to didn't care that it was leaking oil bc it was sharp looking and I told him I had a warranty that I would transfer to him which i did

(it was an N63 motor- stage 2 dinan- lol i bet its already dead)

if the motor blows in this car, by the time it does it will cost more than the value of the car to replace it so insurance will just total it

aaand on to the next.. no warranty

wow, I wasn't aware there was restrictions on labor costs. So that's why 3rd party warranty is cheaper. I'm sure BMW branded warranties will cover labor at BMW dealer servicing shops.

My view is always, if they're losing money on the warranty, they wouldn't offer it or the costs will be astronomical.

[INFURNO]

I personally chose to put the cash away. It's a gamble, and you're betting against the house. Even if something does fail, it still has to be covered, and they still have to pay out. I'm sure plenty of people have come out on top. But the F10 has been around for a long time. This engine has been around even longer. And it's now in the F90 so it will outlive the F10. I did my homework and made my choice.

In my case, my mileage now has nearly expired the warranty. And I wouldn't have needed it. So it worked out in my favor.

But you should always consider risk/reward. You're risking $7k (or whatever they offer you) to cover a $50k (?) engine. It's not a bad deal. I just had the confidence to pass.

[luv135i]

Originally Posted by INFURNO

I personally chose to put the cash away. It's a gamble, and you're betting against the house. Even if something does fail, it still has to be covered, and they still have to pay out. I'm sure plenty of people have come out on top. But the F10 has been around for a long time. This engine has been around even longer. And it's now in the F90 so it will outlive the F10. I did my homework and made my choice.

In my case, my mileage now has nearly expired the warranty. And I wouldn't have needed it. So it worked out in my favor.

But you should always consider risk/reward. You're risking $7k (or whatever they offer you) to cover a $50k (?) engine. It's not a bad deal. I just had the confidence to pass.

+1 on this. Of course some people will come out ahead but a majority will not. If everyone came out ahead, they would just stop covering that car since warranty companies aren't in the business of losing money. Replacement rebuilt engines which is worst case scenario are also much cheaper than what BMW would quote for a new one.