Are you questioning the value of an extended warranty?

[pcohen15]

I had $5,000 worth of repairs completed today. My cost? $221.

Here's the backstory. I took delivery of my 2013 M5 with 68k miles Dec 4. It was an out-of-state purchase. The driver's door comfort access was not working, but otherwise all was good. I knew I was going to purchase an extended warranty, so I just worked around it until the warranty was in effect.

I purchased a 4yr/50k mile warranty from EFG through my BMW dealership, for $6k. I made a $1500 down payment and chose to pay the balance over 24 months at zero interest. So I've made three payments thus far for a total of $510. So I'm out about $2k at this point.

The car was running great, but the service records showed that the plugs had about 45k miles on them. So I decided to change the plugs and coils, taking advantage of end-of-year savings at FCP. Two of the plugs showed fuel fouling, suggesting an injector problem. Codes also indicated a rich mixture, supporting the thought that injectors were heading south.

Two weeks ago, we had our first 80-degree day here in AZ, and I notice that the AC is not blowing cold air. That goes on the list as well. I pay the warranty deductibles per visit, not per repair item, so whenever possible I tend to wait until I have a couple warranty items to fix for just the one $200 deductible.

With the warranty (technically, a service contract) 30-day waiting period behind me, last week I leave my car at the BMW dealer. I get a loaner at no cost.

The driver's door CA handle was bad, so a new one was ordered. It takes a few days because like the key fobs, the handles are coded by BMW to match the VIN of the car. Waiting for the new handle, the Bank 1 injectors are replaced, and a new AC compressor is installed.

The new handle arrives (ordered in your color, BTW, so no local paint job required), is installed, activated, and fries the two rear door handles. My SA calls the warranty company, they say they won't cover those since they went bad at the dealership. So my dealership covers them on goodwill. The front handle was $444, so I Have to assume they were close, if not the same cost, since they have the same functionality as the driver's door as far as I can tell.

Here's the total, parts and labor:

Injectors - $1980
AC Compressor with clutch - $2291
Comfort Access door handles - $614
Throw in some misc. parts like seals and gaskets, plus tax, for a grand total of $5146.23

I think it's likely that in the course of the next almost four years, I'll have another $1,000 worth of warranty fixes, which would take me to break even on the service contract purchase price. More important to me, is no way I would have stashed away $5k in three months to cover these repairs. YMMV.

[M5Rick]

Originally Posted by pcohen15

I had $5,000 worth of repairs completed today. My cost? $221.

Here's the backstory. I took delivery of my 2013 M5 with 68k miles Dec 4. It was an out-of-state purchase. The driver's door comfort access was not working, but otherwise all was good. I knew I was going to purchase an extended warranty, so I just worked around it until the warranty was in effect.

I purchased a 4yr/50k mile warranty from EFG through my BMW dealership, for $6k. I made a $1500 down payment and chose to pay the balance over 24 months at zero interest. So I've made three payments thus far for a total of $510. So I'm out about $2k at this point.

The car was running great, but the service records showed that the plugs had about 45k miles on them. So I decided to change the plugs and coils, taking advantage of end-of-year savings at FCP. Two of the plugs showed fuel fouling, suggesting an injector problem. Codes also indicated a rich mixture, supporting the thought that injectors were heading south.

Two weeks ago, we had our first 80-degree day here in AZ, and I notice that the AC is not blowing cold air. That goes on the list as well. I pay the warranty deductibles per visit, not per repair item, so whenever possible I tend to wait until I have a couple warranty items to fix for just the one $200 deductible.

With the warranty (technically, a service contract) 30-day waiting period behind me, last week I leave my car at the BMW dealer. I get a loaner at no cost.

The driver's door CA handle was bad, so a new one was ordered. It takes a few days because like the key fobs, the handles are coded by BMW to match the VIN of the car. Waiting for the new handle, the Bank 1 injectors are replaced, and a new AC compressor is installed.

The new handle arrives (ordered in your color, BTW, so no local paint job required), is installed, activated, and fries the two rear door handles. My SA calls the warranty company, they say they won't cover those since they went bad at the dealership. So my dealership covers them on goodwill. The front handle was $444, so I Have to assume they were close, if not the same cost, since they have the same functionality as the driver's door as far as I can tell.

Here's the total, parts and labor:

Injectors - $1980
AC Compressor with clutch - $2291
Comfort Access door handles - $614
Throw in some misc. parts like seals and gaskets, plus tax, for a grand total of $5146.23

I think it's likely that in the course of the next almost four years, I'll have another $1,000 worth of warranty fixes, which would take me to break even on the service contract purchase price. More important to me, is no way I would have stashed away $5k in three months to cover these repairs. YMMV.

I can understand why you are questioning the fact that your premium is 6K dollars and you are on course to break even with the probable of 1k or more of further claim(s) for the rest of the remaining term of warranty.
The cushioning factor here is that the niggling engine rod bearing nightmare is also covered should it suddenly rear its head so I would at the end of the day be satisfied with what has been claimed with that small deductible payout.

[pcohen15]

Originally Posted by M5theonlyone

I can understand why you are questioning the fact that your premium is 6K dollars and you are on course to break even with the probable of 1k or more of further claim(s) for the rest of the remaining term of warranty.
The cushioning factor here is that the niggling engine rod bearing nightmare is also covered should it suddenly rear its head so I would at the end of the day be satisfied with what has been claimed with that small deductible payout.

I obviously didn't write the title of my initial post in proper English

In fact, I'm thrilled with the service contract and wouldn't own an M car without one. My post was intended to prove the value of having a service contract/extended warranty rather than question my purchase.

There are so many threads about whether or not to buy an extended warranty that I wanted to provide some real-world details on how we never know what will go wrong with these cars nor when it will happen.

[M5Rick]

Originally Posted by pcohen15

I obviously didn't write the title of my initial post in proper English

In fact, I'm thrilled with the service contract and wouldn't own an M car without one. My post was intended to prove the value of having a service contract/extended warranty rather than question my purchase.

There are so many threads about whether or not to buy an extended warranty that I wanted to provide some real-world details on how we never know what will go wrong with these cars nor when it will happen.

Glad your enjoying your warranty cover,it certainly is paying of for your M

[nencmeister]

I have the same exact car, lower miles; about to purchase a "Mechanic 2.0" warranty from "The Warranty Group" hopefully they will honor their warranty. Read some bad feedback about them but it's one of the few options available..

[pcohen15]

Originally Posted by nencmeister

I have the same exact car, lower miles; about to purchase a "Mechanic 2.0" warranty from "The Warranty Group" hopefully they will honor their warranty. Read some bad feedback about them but it's one of the few options available..

If you ever have your car serviced at a BMW dealer, ask your service advisor about the Warranty Group. They may have some insight for you.

Good luck with it.

[AWF10M5]

I have a good warranty too and my injectors failed too.

BMW has a warranty on the injectors for 10 years / 120k miles. I'm surprised bmw didn't cover the injectors as that's their responsibility. They probably made twice the money and claimed it twice.

My warranty company covered the coolant lines while bmw did bank 1 injectors and 4 plugs. My SA had told me bmw is responsible since they have a full warranty on it not the aftermarket.

[EnderG60]

I had my engine blow on me. My warranty ended up wasting so much time and doing so much unneeded "investigation" work that they wouldnt cover I came out of it spending $2000 more than the actual engine replacement would have cost and the warranty combined. Carchex can suck my D.

Ill roll the dice now.

[nencmeister]

Originally Posted by pcohen15

If you ever have your car serviced at a BMW dealer, ask your service advisor about the Warranty Group. They may have some insight for you.

Good luck with it.

Thanks, I hope it works out, about to take it to the Ford dealership tomorrow for an inspection (where I'm getting the warranty.) The BMW dealership near me isn't really that helpful, then again I haven't spent a dime with them. Hopefully I'll friend someone up there at my next scheduled service that can give me an in, like I have at the VW dealership with my winter car.

[dzm3]

Originally Posted by pcohen15

I had $5,000 worth of repairs completed today. My cost? $221.

Here's the backstory. I took delivery of my 2013 M5 with 68k miles Dec 4. It was an out-of-state purchase. The driver's door comfort access was not working, but otherwise all was good. I knew I was going to purchase an extended warranty, so I just worked around it until the warranty was in effect.

I purchased a 4yr/50k mile warranty from EFG through my BMW dealership, for $6k. I made a $1500 down payment and chose to pay the balance over 24 months at zero interest. So I've made three payments thus far for a total of $510. So I'm out about $2k at this point.

The car was running great, but the service records showed that the plugs had about 45k miles on them. So I decided to change the plugs and coils, taking advantage of end-of-year savings at FCP. Two of the plugs showed fuel fouling, suggesting an injector problem. Codes also indicated a rich mixture, supporting the thought that injectors were heading south.

Two weeks ago, we had our first 80-degree day here in AZ, and I notice that the AC is not blowing cold air. That goes on the list as well. I pay the warranty deductibles per visit, not per repair item, so whenever possible I tend to wait until I have a couple warranty items to fix for just the one $200 deductible.

With the warranty (technically, a service contract) 30-day waiting period behind me, last week I leave my car at the BMW dealer. I get a loaner at no cost.

The driver's door CA handle was bad, so a new one was ordered. It takes a few days because like the key fobs, the handles are coded by BMW to match the VIN of the car. Waiting for the new handle, the Bank 1 injectors are replaced, and a new AC compressor is installed.

The new handle arrives (ordered in your color, BTW, so no local paint job required), is installed, activated, and fries the two rear door handles. My SA calls the warranty company, they say they won't cover those since they went bad at the dealership. So my dealership covers them on goodwill. The front handle was $444, so I Have to assume they were close, if not the same cost, since they have the same functionality as the driver's door as far as I can tell.

Here's the total, parts and labor:

Injectors - $1980
AC Compressor with clutch - $2291
Comfort Access door handles - $614
Throw in some misc. parts like seals and gaskets, plus tax, for a grand total of $5146.23

I think it's likely that in the course of the next almost four years, I'll have another $1,000 worth of warranty fixes, which would take me to break even on the service contract purchase price. More important to me, is no way I would have stashed away $5k in three months to cover these repairs. YMMV.

I have warranty through EFG as well. Good to know that they are easy to work with.

[pcohen15]

Originally Posted by dzm3

I have warranty through EFG as well. Good to know that they are easy to work with.

Indeed. My second EFG service contract. First was on my E92 M3. They covered about $7k on that one that only had a total cost of $5k. I transferred it it the buyer when I sold the car.

I'm convinced that the Service Advisor is the key element in the equation. they represent us to the warranty company. And they represent us to their dealership's management when it's time for BMW to stand up for its customers and cover some costs, like they did with my rear door CA handles.

Definitely somebody to keep on the holiday gift list

[iknowspurgeon]

who is efg? Compared to Fidelity are they competitive?

[PRKELLY]

Just a quick note: I bought my 06M5 at Carmax, I paid around 45K for it out the door with the maxcare warranty.

Over the course of two years the company paid right around 37K into repairs of various items eventually leading to engine replacement.

I love my after market warranty co. CNA is the product that CarMax sells and it is excellent!

[M5Rick]

Originally Posted by PRKELLY

Just a quick note: I bought my 06M5 at Carmax, I paid around 45K for it out the door with the maxcare warranty.

Over the course of two years the company paid right around 37K into repairs of various items eventually leading to engine replacement.

I love my after market warranty co. CNA is the product that CarMax sells and it is excellent!

That must be a record surely and adding the engine replacement on top of that.

[94jedi]

Wow...good call on getting the warranty pcohen15 !!!

How were you able to get a warranty on the car w/ the factory warranty expired? I've read a lot about aftermarket warranty companies not wanting to cover cars out of the mfgr. warranty period.

[pcohen15]

Originally Posted by iknowspurgeon

who is efg? Compared to Fidelity are they competitive?

I believe they are sold only through dealerships, no direct-to-consumer channel. https://www.efgcompanies.com/

But the work can be done through any repair facility with prior approval, just like at the dealership.

[pcohen15]

Originally Posted by 94jedi

Wow...good call on getting the warranty pcohen15 !!!

How were you able to get a warranty on the car w/ the factory warranty expired? I've read a lot about aftermarket warranty companies not wanting to cover cars out of the mfgr. warranty period.

Since it's not a BMW warranty, I think the fact that the original warranty had expired is irrelevant. A thorough inspection is required prior to buying the warranty, and there there's a 30-day waiting period. (At least there was with mine.)

[iknowspurgeon]

Originally Posted by pcohen15

I believe they are sold only through dealerships, no direct-to-consumer channel. https://www.efgcompanies.com/

But the work can be done through any repair facility with prior approval, just like at the dealership.

Originally Posted by pcohen15

I believe they are sold only through dealerships, no direct-to-consumer channel. https://www.efgcompanies.com/

But the work can be done through any repair facility with prior approval, just like at the dealership.

Thanks !!

[94jedi]

Originally Posted by pcohen15

Since it's not a BMW warranty, I think the fact that the original warranty had expired is irrelevant. A thorough inspection is required prior to buying the warranty, and there there's a 30-day waiting period. (At least there was with mine.)

Pete, I still haven't picked up my M5 but I'm a little concerned w/ the rate of failure and the need for a warranty. My e90 M3, even w/ Rod bearings being done wasn't this bad. My e46 M3 was like a toyota camry in terms of reliability.

[slun80]

I'm a big fan of extended warranties on any vehicle where the cost of known failures exceed the cost of the warranty. I've had experience with an E60 M5 and a 2011 Range Rover where the warranty paid for itself within two years.

[pcohen15]

Originally Posted by 94jedi

Pete, I still haven't picked up my M5 but I'm a little concerned w/ the rate of failure and the need for a warranty. My e90 M3, even w/ Rod bearings being done wasn't this bad. My e46 M3 was like a toyota camry in terms of reliability.

The amount of tech on newer cars definitely makes a difference in my opinion. It's great when all the systems work together well, but there are so many ways trouble can occur when something goes sideways. Search through this forum for "drivetrain malfunction" and you'll find huge variations of causes. Sometimes just finding the real problem can cost more than the fix itself.

And there seems to be very little correlation between use/abuse and problems. Baby the car or track it, stuff still breaks.

All part of the charm.

[pcohen15]

Originally Posted by 94jedi

Pete, I still haven't picked up my M5 but I'm a little concerned w/ the rate of failure and the need for a warranty. My e90 M3, even w/ Rod bearings being done wasn't this bad. My e46 M3 was like a toyota camry in terms of reliability.

The amount of tech on newer cars definitely makes a difference in my opinion. It's great when all the systems work together well, but there are so many ways trouble can occur when something goes sideways. Search through this forum for "drivetrain malfunction" and you'll find huge variations of causes. Sometimes just finding the real problem can cost more than the fix itself.

And there seems to be very little correlation between use/abuse and problems. Baby the car or track it, stuff still breaks.

All part of the charm.