Auto Extended Warranties

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JustWantToGetItRight
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Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 9:38 am

Background:

-Car: 2016 BMW 328i (9k miles in three years)
-Situation: Buy out from my lease: I know my car history and I plan to keep it for another 6 years. Didn't want to do two more leases and figured my car will still have very low mileage in 6 years given the way I drive.
-I am 54 and wanted to treat myself (I know there are lower cost cars, but that's not my question)
--------------------------------
Question:

-Do you find extended warranties (above Factory) to be worth it?

-Warranty: $3.5 K and a $250 dollar deductible with EasyCare. Good for 100,000 miles
--------------------------------
My Solution:

Put 3k in the bank as an emergency instead of giving half of it to a sales guy's commission.

Thoughts?

Thank you,

Just Want To get It Right

barnaclebob
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Re: Auto Extended Warranties

Post by barnaclebob » Mon Feb 18, 2019 10:17 am

You say your car wont be driven much. I'd pass on the warranty. 3.5k can fix a lot even on a bmw.

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bottlecap
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Re: Auto Extended Warranties

Post by bottlecap » Mon Feb 18, 2019 10:19 am

This looks like a half-decent write up:

https://www.consumerreports.org/extende ... ve-gamble/

If BMW lost money on these, they wouldn’t sell them.

JT

mega317
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Re: Auto Extended Warranties

Post by mega317 » Mon Feb 18, 2019 10:20 am

You should understand exactly what it covers and what are the most common problems your model has.

Jalopnik had a fantastic recurring series about how handsomely an extended warranty paid off for one of the writers. I think it was a land Rover.

MotoTrojan
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Re: Auto Extended Warranties

Post by MotoTrojan » Mon Feb 18, 2019 10:21 am

I would only consider it if it was a true bumper to bumper warranty at that price. They are out there but most have verbiage about what’s covered down to the part name (shady).

Don’t trust anything the sales person says.

mega317
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Re: Auto Extended Warranties

Post by mega317 » Mon Feb 18, 2019 10:22 am

bottlecap wrote:
Mon Feb 18, 2019 10:19 am
If BMW lost money on these, they wouldn’t sell them.
I have seen this logic before. Do you think anyone buys them like health insurance -- not to come out ahead but to limit downside?

barnaclebob
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Re: Auto Extended Warranties

Post by barnaclebob » Mon Feb 18, 2019 10:38 am

mega317 wrote:
Mon Feb 18, 2019 10:22 am
bottlecap wrote:
Mon Feb 18, 2019 10:19 am
If BMW lost money on these, they wouldn’t sell them.
I have seen this logic before. Do you think anyone buys them like health insurance -- not to come out ahead but to limit downside?
The downside of no health insurance is a life of poverty. The downside of no car warranty is maybe 10-15k out of pocket if your engine completely fails.

Admiral
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Re: Auto Extended Warranties

Post by Admiral » Mon Feb 18, 2019 10:45 am

JustWantToGetItRight wrote:
Mon Feb 18, 2019 9:38 am
Background:

-Car: 2016 BMW 328i (9k miles in three years)
-Situation: Buy out from my lease: I know my car history and I plan to keep it for another 6 years. Didn't want to do two more leases and figured my car will still have very low mileage in 6 years given the way I drive.
-I am 54 and wanted to treat myself (I know there are lower cost cars, but that's not my question)
--------------------------------
Question:

-Do you find extended warranties (above Factory) to be worth it?

-Warranty: $3.5 K and a $250 dollar deductible with EasyCare. Good for 100,000 miles
--------------------------------
My Solution:

Put 3k in the bank as an emergency instead of giving half of it to a sales guy's commission.

Thoughts?

Thank you,

Just Want To get It Right
I don't know what "Easy Care" is but I assume it's a third party warranty. Is is possible to get the car certified as CPO? That's likely to be cheaper, and the deductible is less ($50 or zero last time I checked).

As a very long time, multiple BMW owner, I can tell you that what's likely to go wrong is the electronics, not the mechanicals. PITA but not likely to cost $3500 to fix, assuming a good indy mechanic.

That said, if your car is a turbo motor and not an I-6, those are relatively new and unproven. Will it last 100k miles with proper maintenance and no abuse? I'd say probably. Longer than that...who knows. With your low mileage driving habits the car will probably last many years with only minor electronic irritants.

smitcat
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Re: Auto Extended Warranties

Post by smitcat » Mon Feb 18, 2019 10:48 am

JustWantToGetItRight wrote:
Mon Feb 18, 2019 9:38 am
Background:

-Car: 2016 BMW 328i (9k miles in three years)
-Situation: Buy out from my lease: I know my car history and I plan to keep it for another 6 years. Didn't want to do two more leases and figured my car will still have very low mileage in 6 years given the way I drive.
-I am 54 and wanted to treat myself (I know there are lower cost cars, but that's not my question)
--------------------------------
Question:

-Do you find extended warranties (above Factory) to be worth it?

-Warranty: $3.5 K and a $250 dollar deductible with EasyCare. Good for 100,000 miles
--------------------------------
My Solution:

Put 3k in the bank as an emergency instead of giving half of it to a sales guy's commission.

Thoughts?

Thank you,

Just Want To get It Right
I am not aware of any 3rd party auto warrantee companies that have remained in business.

mega317
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Re: Auto Extended Warranties

Post by mega317 » Mon Feb 18, 2019 10:53 am

barnaclebob wrote:
Mon Feb 18, 2019 10:38 am
mega317 wrote:
Mon Feb 18, 2019 10:22 am
bottlecap wrote:
Mon Feb 18, 2019 10:19 am
If BMW lost money on these, they wouldn’t sell them.
I have seen this logic before. Do you think anyone buys them like health insurance -- not to come out ahead but to limit downside?
The downside of no health insurance is a life of poverty. The downside of no car warranty is maybe 10-15k out of pocket if your engine completely fails.
You are correct. I was asking a question not recommending extended warranties.

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bottlecap
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Re: Auto Extended Warranties

Post by bottlecap » Mon Feb 18, 2019 11:21 am

mega317 wrote:
Mon Feb 18, 2019 10:22 am
bottlecap wrote:
Mon Feb 18, 2019 10:19 am
If BMW lost money on these, they wouldn’t sell them.
I have seen this logic before. Do you think anyone buys them like health insurance -- not to come out ahead but to limit downside?
Sure they do. But they still do not come out ahead, which is the question.

Honestly, if you need an extended warranty to limit your downside, you can’t afford the car.

JT

Admiral
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Re: Auto Extended Warranties

Post by Admiral » Mon Feb 18, 2019 11:27 am

bottlecap wrote:
Mon Feb 18, 2019 11:21 am
mega317 wrote:
Mon Feb 18, 2019 10:22 am
bottlecap wrote:
Mon Feb 18, 2019 10:19 am
If BMW lost money on these, they wouldn’t sell them.
I have seen this logic before. Do you think anyone buys them like health insurance -- not to come out ahead but to limit downside?
Sure they do. But they still do not come out ahead, which is the question.

Honestly, if you need an extended warranty to limit your downside, you can’t afford the car.

JT
I would add that overall, new cars are pretty reliable, certainly much more so than 20 years ago. One driven less than 5000 mi/year strikes me as one that would have to be REALLY unreliable/unlucky (lemon?) to necessitate a repair that costs more than $3500. That would essentially be engine or major transmission failure. I think I read the average age of cars in service is now like 8 years...

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 11:41 am

bottlecap wrote:
Mon Feb 18, 2019 10:19 am
This looks like a half-decent write up:

https://www.consumerreports.org/extende ... ve-gamble/

If BMW lost money on these, they wouldn’t sell them.

JT

I always trust research and proven data. Thank you for this link and study.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 11:41 am

Thank you All.

carolinaman
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Re: Auto Extended Warranties

Post by carolinaman » Mon Feb 18, 2019 1:13 pm

Extended warranties are big profit makers for auto companies. Consumer Report, Clark Howard and other consumer experts advise against doing one. One of my BILs was a car salesman and he advises to never buy an extended warranty. Extended warranties do not usually cover things you would expect to be covered. For example, their definition of wear and tear items (not included) is much broader than mine. Even people who buy these warranties from reputable dealers like Toyota have lots of complaints about them.

Your strategy to have a car emergency fund is good and the fact you drive so few miles means you are at much less risk to ever use such a warranty.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 3:15 pm

carolinaman wrote:
Mon Feb 18, 2019 1:13 pm
Extended warranties are big profit makers for auto companies. Consumer Report, Clark Howard and other consumer experts advise against doing one. One of my BILs was a car salesman and he advises to never buy an extended warranty. Extended warranties do not usually cover things you would expect to be covered. For example, their definition of wear and tear items (not included) is much broader than mine. Even people who buy these warranties from reputable dealers like Toyota have lots of complaints about them.

Your strategy to have a car emergency fund is good and the fact you drive so few miles means you are at much less risk to ever use such a warranty.
Thank you.

HIinvestor
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Re: Auto Extended Warranties

Post by HIinvestor » Mon Feb 18, 2019 3:19 pm

I have bought extended warranties on our current car and two of my prior cars. The two prior cars needed the transmission repaired under warranty, just before the warranty expired. The new car got us 10 year, 100,000 mile warranty for $2007. We are very concerned that our new car that is a hybrid with LOTS of computer components that may break and cost a LOT to repair. It's pretty much bumper to bumper, with a separate warranty for the battery.

Personally, I really think it varies a great deal.

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JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 3:59 pm

HIinvestor wrote:
Mon Feb 18, 2019 3:19 pm
I have bought extended warranties on our current car and two of my prior cars. The two prior cars needed the transmission repaired under warranty, just before the warranty expired. The new car got us 10 year, 100,000 mile warranty for $2007. We are very concerned that our new car that is a hybrid with LOTS of computer components that may break and cost a LOT to repair. It's pretty much bumper to bumper, with a separate warranty for the battery.

Personally, I really think it varies a great deal.
But what I do not understand is that how the contract says "pre-existing condition." What happens if the transmissions just wears down? Is that preexisting or wear? Is that covered or NOT?

Rudedog
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Re: Auto Extended Warranties

Post by Rudedog » Mon Feb 18, 2019 6:57 pm

Pass on the warranty, just a way for dealer to make more $$ from you. Rudedog

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munemaker
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Re: Auto Extended Warranties

Post by munemaker » Mon Feb 18, 2019 6:58 pm

Buy a reliable car and forget the extended warranty.

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TexasPE
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Re: Auto Extended Warranties

Post by TexasPE » Mon Feb 18, 2019 8:33 pm

Purchased the factory extended Subaru "Gold" warranty (7 years, 100,000 miles) for my Forester ($1200). My concern was for the electronics and CVT. The Gold warranty covers essentially everything - even the original tires against road hazards. A few normal wear items (brake pads, etc.) are excluded.

Includes roadside service, trucking the vehicle to the dealer, and a loaner should one be required. Remaining warranty is transferable to the new owner (small registration fee). I believe I will recover a reasonable portion of the warranty cost when I sell. Shopped around and paid 50% of what the dealer was asking for the warranty (any Subaru dealer can sell the extended warranty).
At 20: I cared what everyone thought about me | At 40: I didn't give a damn what anyone thought of me | Now that I'm 60: I realize that no one was really thinking about me at all | Winston Churchill (?)

azianbob
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Re: Auto Extended Warranties

Post by azianbob » Mon Feb 18, 2019 9:52 pm

I wouldn't keep a BMW that is older than 5 years. They seem to be money puts after then. They are only useful to lease if you can write it off.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Mon Feb 18, 2019 10:13 pm

azianbob wrote:
Mon Feb 18, 2019 9:52 pm
I wouldn't keep a BMW that is older than 5 years. They seem to be money puts after then. They are only useful to lease if you can write it off.
My 2016 BMW is three years old with only 9k miles. At that rate, In 6 more years, I'll have only 30K miles on it (a baby).

My 2016 lease buyout is only 20k.

To lease two new cars over 6 years my costs will be about 32K. Leasing is a luxury, and a lifestyle, and I prefer it, BUT I love my car and hope to make out on the plus side by owning.

OldBallCoach
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Re: Auto Extended Warranties

Post by OldBallCoach » Tue Feb 19, 2019 7:09 pm

I was once told that owning any German luxury car without a warranty was the definition of insanity...however...you are putting very few miles on the car and a BWM is a fine car. I would throw the money into a savings account and not any sleep. 30K on any decent car should NOT be an issue. For what its worth I NEVER buy extended warranties on my cars...and I drive them AT LEAST 300K hopefully...( recent CRV broke that streak) . Also it used to be that any problem that caused emissions issues was covered up to a certain mileage level. And its YOUR money, enjoy the nice car!

NotWhoYouThink
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Re: Auto Extended Warranties

Post by NotWhoYouThink » Tue Feb 19, 2019 7:38 pm

Just replaced a 2007 335i (bought CPO) with a 2015 CPO. So far so good on the 2015.

The 2007 had Thousands and Thousands of $$$$ repairs under warranty. Turbo chargers (twice), fuel injectors, door locks, and some weird stuff. We sort of got to know the tow truck guy. If not under the additional BMW warranty period the repairs would have paid for a new car.

Why do we have another one? Don't know, my car is the Mazda3.

Anyway, for a BMW consider the extra BMW branded warranty period only, absolutely no 3rd party warranty. And have fun with it. Responsibly, I mean.

SQRT
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Re: Auto Extended Warranties

Post by SQRT » Tue Feb 19, 2019 7:58 pm

I’ve bought extended warranties on low mileage BMW’s (3 series,X5,M5). All were losers for me. Wouldnt do it again.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Tue Feb 19, 2019 9:17 pm

NotWhoYouThink wrote:
Tue Feb 19, 2019 7:38 pm
Just replaced a 2007 335i (bought CPO) with a 2015 CPO. So far so good on the 2015.

The 2007 had Thousands and Thousands of $$$$ repairs under warranty. Turbo chargers (twice), fuel injectors, door locks, and some weird stuff. We sort of got to know the tow truck guy. If not under the additional BMW warranty period the repairs would have paid for a new car.

Why do we have another one? Don't know, my car is the Mazda3.

Anyway, for a BMW consider the extra BMW branded warranty period only, absolutely no 3rd party warranty. And have fun with it. Responsibly, I mean.
Why do you think a car that is supposed to be so well built would have so many problems. I have owned a Ford Explorer for 13 years and had 130 miles on it and the door locks never gave out. I don't get it?

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JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Tue Feb 19, 2019 9:18 pm

SQRT wrote:
Tue Feb 19, 2019 7:58 pm
I’ve bought extended warranties on low mileage BMW’s (3 series,X5,M5). All were losers for me. Wouldnt do it again.
You mean the extended warranties were a waste of money , right, not the cars?

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JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Tue Feb 19, 2019 9:19 pm

OldBallCoach wrote:
Tue Feb 19, 2019 7:09 pm
I was once told that owning any German luxury car without a warranty was the definition of insanity...however...you are putting very few miles on the car and a BWM is a fine car. I would throw the money into a savings account and not any sleep. 30K on any decent car should NOT be an issue. For what its worth I NEVER buy extended warranties on my cars...and I drive them AT LEAST 300K hopefully...( recent CRV broke that streak) . Also it used to be that any problem that caused emissions issues was covered up to a certain mileage level. And its YOUR money, enjoy the nice car!
Thank you!

LarryAllen
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Re: Auto Extended Warranties

Post by LarryAllen » Tue Feb 19, 2019 9:27 pm

As others have pointed out for as little as you drive I would not bother with the warranty if it were me... unless you are one that would sleep better with the safety net. In the net it's $3,500 so it's not going to make or break you (I assume). So if you will not sleep soundly then just get it. The technically correct answer is one thing and the touchy-feely emotional answer might be something different.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Tue Feb 19, 2019 9:47 pm

LarryAllen wrote:
Tue Feb 19, 2019 9:27 pm
As others have pointed out for as little as you drive I would not bother with the warranty if it were me... unless you are one that would sleep better with the safety net. In the net it's $3,500 so it's not going to make or break you (I assume). So if you will not sleep soundly then just get it. The technically correct answer is one thing and the touchy-feely emotional answer might be something different.
Thank you. The insurance is $3,500 with a $250 of deductible.

So, let's say I have a $425 problem, now the total I will have paid is $3,750 (3,500 + $250), while if I don't get the insurance its just $425. Still ahead without.

Then lets say I have a $1,800 problem, now the total I will have paid is $4000 ($3,500 + $250 +$250), while if I don't get the insurance its $2,225 ($425 + $1,800). Still ahead without.

Then lets say I have a $1,700 repair, now the total I will have paid is $4,000 (3,500 + $250 +250), while if I don't get the insurance its $3,925 ($425 + $1,800 + $1,700). Still ahead without.

Now the question is, will I have a $425, $1,800 and a $1,700 problem on a 2016 BMW with 9,000 miles (3,000 miles a year) in the next six years? (Note I plan to sell it before its tenth year, when it will still be under 40K miles at the rate that I drive it?

Doesn't it makes sense to keep my $3,500 snd use that toward regular maintenance like brakes, wheels, oil, Battery, and plugs?
Last edited by JustWantToGetItRight on Tue Feb 19, 2019 9:49 pm, edited 1 time in total.

NotWhoYouThink
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Re: Auto Extended Warranties

Post by NotWhoYouThink » Tue Feb 19, 2019 9:48 pm

Actually the truth is that the correct answer is unknowable. Over a fleet of cars the correct answer is skip the warranty. On one particular car the correct answer can only be known in retrospect. Life is like that in many ways.

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Tue Feb 19, 2019 9:50 pm

NotWhoYouThink wrote:
Tue Feb 19, 2019 9:48 pm
Actually the truth is that the correct answer is unknowable. Over a fleet of cars the correct answer is skip the warranty. On one particular car the correct answer can only be known in retrospect. Life is like that in many ways.
You mean if you get a lemon, your life could be hell. Right? I've had the car for three years with no problems. God, I hope I have no lemon.

NotWhoYouThink
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Re: Auto Extended Warranties

Post by NotWhoYouThink » Tue Feb 19, 2019 9:52 pm

JustWantToGetItRight wrote:
Tue Feb 19, 2019 9:17 pm
NotWhoYouThink wrote:
Tue Feb 19, 2019 7:38 pm
Just replaced a 2007 335i (bought CPO) with a 2015 CPO. So far so good on the 2015.

The 2007 had Thousands and Thousands of $$$$ repairs under warranty. Turbo chargers (twice), fuel injectors, door locks, and some weird stuff. We sort of got to know the tow truck guy. If not under the additional BMW warranty period the repairs would have paid for a new car.

Why do we have another one? Don't know, my car is the Mazda3.

Anyway, for a BMW consider the extra BMW branded warranty period only, absolutely no 3rd party warranty. And have fun with it. Responsibly, I mean.
Why do you think a car that is supposed to be so well built would have so many problems. I have owned a Ford Explorer for 13 years and had 130 miles on it and the door locks never gave out. I don't get it?
the 2007 335i was upgraded to meet a horsepower threshold to keep up with the then-current competition. Maybe some corners were cut. Maybe we just got a lemon, who knows? The 2015 is working out better.

The Mazda3 at 50K miles has had no unscheduled maintenance. But it does not ever have the low frequency throaty growl of the 335i, and it is an automatic (with shift paddles) not a 6-speed manual. So a sissy car.

SQRT
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Re: Auto Extended Warranties

Post by SQRT » Tue Feb 19, 2019 11:22 pm

JustWantToGetItRight wrote:
Tue Feb 19, 2019 9:18 pm
SQRT wrote:
Tue Feb 19, 2019 7:58 pm
I’ve bought extended warranties on low mileage BMW’s (3 series,X5,M5). All were losers for me. Wouldnt do it again.
You mean the extended warranties were a waste of money , right, not the cars?
Cars are/were great. Only drive BMW’s. I meant the warranties. I’ve owned many BMW’s over the
last 20 years. Never had any unusual maintenance issues.
Last edited by SQRT on Wed Feb 20, 2019 3:53 am, edited 1 time in total.

amindu
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Re: Auto Extended Warranties

Post by amindu » Wed Feb 20, 2019 12:02 am

Head over to Bimmerfest forum if you are not already in there. The warranty that most folks recommend that is not BMW is Route 66 they have without question covered quite a few drivers above and beyond what BMW would cover. You may want to compare the cost of both and read testimonials from other users as well.

I don’t know a lot about the reliability of the 3 series however in my experience the CPO warranty on my X5 covered water pump, cooling tank, 2 oil leaks, ignition coil/spark plug.

Good luck

msk
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Re: Auto Extended Warranties

Post by msk » Wed Feb 20, 2019 12:13 am

Older BMWs also do depreciate but spare parts are always sold at inflation-proofed prices. Quite quickly expensive parts for repairs may almost equal the residual value of a 7 year-old still-running car. Would you panic if your BMW has to be sold for parts at that juncture? That would be my yardstick.

Stormbringer
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Re: Auto Extended Warranties

Post by Stormbringer » Wed Feb 20, 2019 7:17 am

They are probably a bad deal, but they do limit the downside. My wife's Audi A4 that we bought new had the motor seize up with 72K miles on it. The repair would have been 9K. The car ended up getting scrapped for parts.
"Compound interest is the most powerful force in the universe." - Albert Einstein

OldBallCoach
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Re: Auto Extended Warranties

Post by OldBallCoach » Wed Feb 20, 2019 7:54 am

JustWantToGetItRight wrote:
Tue Feb 19, 2019 9:47 pm
LarryAllen wrote:
Tue Feb 19, 2019 9:27 pm
As others have pointed out for as little as you drive I would not bother with the warranty if it were me... unless you are one that would sleep better with the safety net. In the net it's $3,500 so it's not going to make or break you (I assume). So if you will not sleep soundly then just get it. The technically correct answer is one thing and the touchy-feely emotional answer might be something different.
Thank you. The insurance is $3,500 with a $250 of deductible.

So, let's say I have a $425 problem, now the total I will have paid is $3,750 (3,500 + $250), while if I don't get the insurance its just $425. Still ahead without.

Then lets say I have a $1,800 problem, now the total I will have paid is $4000 ($3,500 + $250 +$250), while if I don't get the insurance its $2,225 ($425 + $1,800). Still ahead without.

Then lets say I have a $1,700 repair, now the total I will have paid is $4,000 (3,500 + $250 +250), while if I don't get the insurance its $3,925 ($425 + $1,800 + $1,700). Still ahead without.

Now the question is, will I have a $425, $1,800 and a $1,700 problem on a 2016 BMW with 9,000 miles (3,000 miles a year) in the next six years? (Note I plan to sell it before its tenth year, when it will still be under 40K miles at the rate that I drive it?

Doesn't it makes sense to keep my $3,500 snd use that toward regular maintenance like brakes, wheels, oil, Battery, and plugs?
Maybe I got this wrong but at the end of the time period your car will have 30K on it? The only thing you should have to do with a car over that period is change the oil I think...unless you are really hammering it the rest should be fine..maybe brakes or a battery but that service falls WAY under 3500 even at a BMW dealer..

Topic Author
JustWantToGetItRight
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Re: Auto Extended Warranties

Post by JustWantToGetItRight » Wed Feb 20, 2019 8:14 am

OldBallCoach wrote:
Wed Feb 20, 2019 7:54 am
JustWantToGetItRight wrote:
Tue Feb 19, 2019 9:47 pm
LarryAllen wrote:
Tue Feb 19, 2019 9:27 pm
As others have pointed out for as little as you drive I would not bother with the warranty if it were me... unless you are one that would sleep better with the safety net. In the net it's $3,500 so it's not going to make or break you (I assume). So if you will not sleep soundly then just get it. The technically correct answer is one thing and the touchy-feely emotional answer might be something different.
Thank you. The insurance is $3,500 with a $250 of deductible.

So, let's say I have a $425 problem, now the total I will have paid is $3,750 (3,500 + $250), while if I don't get the insurance its just $425. Still ahead without.

Then lets say I have a $1,800 problem, now the total I will have paid is $4000 ($3,500 + $250 +$250), while if I don't get the insurance its $2,225 ($425 + $1,800). Still ahead without.

Then lets say I have a $1,700 repair, now the total I will have paid is $4,000 (3,500 + $250 +250), while if I don't get the insurance its $3,925 ($425 + $1,800 + $1,700). Still ahead without.

Now the question is, will I have a $425, $1,800 and a $1,700 problem on a 2016 BMW with 9,000 miles (3,000 miles a year) in the next six years? (Note I plan to sell it before its tenth year, when it will still be under 40K miles at the rate that I drive it?

Doesn't it makes sense to keep my $3,500 snd use that toward regular maintenance like brakes, wheels, oil, Battery, and plugs?
Maybe I got this wrong but at the end of the time period your car will have 30K on it? The only thing you should have to do with a car over that period is change the oil I think...unless you are really hammering it the rest should be fine..maybe brakes or a battery but that service falls WAY under 3500 even at a BMW dealer..

Nope, you are right. I drove under 10k miles in three years, and no sign in sight of that changing in the next three years for sure. In 2022 I'll have 20 k miles on it, in 2025 I will have 30k, and in 2028 (when the car is nine years old), I might have 40k. At that point, I will probably trade in for something else.

DarthEnol
Posts: 29
Joined: Mon Jan 21, 2019 9:50 am

Re: Auto Extended Warranties

Post by DarthEnol » Wed Feb 20, 2019 8:21 am

Skip the extended warranty. Do something productive with the money.

NextMil
Posts: 549
Joined: Wed Dec 13, 2017 12:33 pm

Re: Auto Extended Warranties

Post by NextMil » Thu Feb 21, 2019 6:50 am

I decline every time, especially the "tire warranty." SMH. The warranty is not the same as if you buy new or in the lease, there is always a deductible and they cover either parts or labor - one or the other.

Just do some research on any known issues. Get those serviced and then make the call on if you should buy your lease out. Either way bank that cash for repairs.

I bought an 8 year old 328i as a temporary car from the dealer with 90k miles on it. It was in such good shape mechanically, that we held onto it for 2 years longer than we thought we would.

If you have good indy mechanic he will tell you when to dump it. On the 328i ours said we had to dump it before 150k miles.

Topic Author
JustWantToGetItRight
Posts: 159
Joined: Sat Aug 18, 2018 2:18 pm

Re: Auto Extended Warranties

Post by JustWantToGetItRight » Thu Feb 21, 2019 7:28 am

NextMil wrote:
Thu Feb 21, 2019 6:50 am
I decline every time, especially the "tire warranty." SMH. The warranty is not the same as if you buy new or in the lease, there is always a deductible and they cover either parts or labor - one or the other.

Just do some research on any known issues. Get those serviced and then make the call on if you should buy your lease out. Either way bank that cash for repairs.

I bought an 8 year old 328i as a temporary car from the dealer with 90k miles on it. It was in such good shape mechanically, that we held onto it for 2 years longer than we thought we would.

If you have good indy mechanic he will tell you when to dump it. On the 328i ours said we had to dump it before 150k miles.
Thanks. Mine is three years old with 9k miles on it. I still have one year of factory warranty, so I can still buy a Warranty if I really want to this time next year. But probably will not. I'll jab on to this for awhile and then sell before it starts breaking down. In the mean time, I'll enjoy the car I always wanted.

SQRT
Posts: 1197
Joined: Sat Feb 05, 2011 9:44 am

Re: Auto Extended Warranties

Post by SQRT » Thu Feb 21, 2019 10:58 am

JustWantToGetItRight wrote:
Thu Feb 21, 2019 7:28 am
NextMil wrote:
Thu Feb 21, 2019 6:50 am
I decline every time, especially the "tire warranty." SMH. The warranty is not the same as if you buy new or in the lease, there is always a deductible and they cover either parts or labor - one or the other.

Just do some research on any known issues. Get those serviced and then make the call on if you should buy your lease out. Either way bank that cash for repairs.

I bought an 8 year old 328i as a temporary car from the dealer with 90k miles on it. It was in such good shape mechanically, that we held onto it for 2 years longer than we thought we would.

If you have good indy mechanic he will tell you when to dump it. On the 328i ours said we had to dump it before 150k miles.
Thanks. Mine is three years old with 9k miles on it. I still have one year of factory warranty, so I can still buy a Warranty if I really want to this time next year. But probably will not. I'll jab on to this for awhile and then sell before it starts breaking down. In the mean time, I'll enjoy the car I always wanted.
Agree the 3 series is a fabulous car. My daughter is still driving her 2007 328xi. Still handles very well. However trying to “sell it before it breaks down” might be iffy. How do you know in advance when something expensive will break?

SeaToTheBay
Posts: 170
Joined: Thu Jun 08, 2017 6:11 pm

Re: Auto Extended Warranties

Post by SeaToTheBay » Thu Feb 21, 2019 12:14 pm

Despite my own warranty experience working out well so far, I say don't get it given the high-ish price and your very low miles/usage. 9k is nothing and your car is roughly average in reliability - if you continue driving well under 10k/yr, I highly doubt you'll make your money back.

However, to those who say it's always a losing bet, that's not true. I got an EasyCare warranty for $2,350 for my 2011 BMW M3 in 2016 with 42k on it. It's good for 5 years and up to 100k, but has a $500 deductible and only covers certain things, not the whole car. I got this because this model/generation is generally fairly reliable, but has 3-4 expensive issues (including rod bearings, which can grenade the whole engine = $20-25k) that while not what I'd call "common" are also far from uncommon.

A week ago, after 2.5 years I finally got to use the warranty on a couple of repairs that were relatively minor but still not cheap - thermostat and leaking valve cover gasket. $2,450 repair and I only paid the $500 deductible. So I'm $400 away from breakeven, with 2.5 years or now 42k miles of coverage left.

One great thing about EasyCare warranties is you can cancel them and receive a pro-rated refund for the remaining balance of coverage. So I could technically cancel mine now and come out ahead since I've only used half the 5 years. However, given the car is only getting older, I'll definitely be keeping it.

In researching EasyCare, I came across a BMW 7-series forum where multiple owners got up to $50k of repairs covered over the time they owned their cars. That made me think that EasyCare is a decent company (and that I should never buy a 7-series!!).

researcher
Posts: 1154
Joined: Thu Mar 12, 2015 7:05 pm

Re: Auto Extended Warranties

Post by researcher » Thu Feb 21, 2019 12:58 pm

SeaToTheBay wrote:
Thu Feb 21, 2019 12:14 pm
Despite my own warranty experience working out well so far...

A week ago, after 2.5 years I finally got to use the warranty on a couple of repairs that were relatively minor but still not cheap - thermostat and leaking valve cover gasket. $2,450 repair and I only paid the $500 deductible. So I'm $400 away from breakeven, with 2.5 years or now 42k miles of coverage left.
I've always found this mindset to be quite bizarre.

It's almost as if you are hoping your car is unreliable, so that that the warranty "works out well" for you.

With any luck, your car will have more problems in the next few years, so you can "breakeven" and have a great warranty experience.

smitcat
Posts: 4324
Joined: Mon Nov 07, 2016 10:51 am

Re: Auto Extended Warranties

Post by smitcat » Thu Feb 21, 2019 1:10 pm

SeaToTheBay wrote:
Thu Feb 21, 2019 12:14 pm
Despite my own warranty experience working out well so far, I say don't get it given the high-ish price and your very low miles/usage. 9k is nothing and your car is roughly average in reliability - if you continue driving well under 10k/yr, I highly doubt you'll make your money back.

However, to those who say it's always a losing bet, that's not true. I got an EasyCare warranty for $2,350 for my 2011 BMW M3 in 2016 with 42k on it. It's good for 5 years and up to 100k, but has a $500 deductible and only covers certain things, not the whole car. I got this because this model/generation is generally fairly reliable, but has 3-4 expensive issues (including rod bearings, which can grenade the whole engine = $20-25k) that while not what I'd call "common" are also far from uncommon.

A week ago, after 2.5 years I finally got to use the warranty on a couple of repairs that were relatively minor but still not cheap - thermostat and leaking valve cover gasket. $2,450 repair and I only paid the $500 deductible. So I'm $400 away from breakeven, with 2.5 years or now 42k miles of coverage left.

One great thing about EasyCare warranties is you can cancel them and receive a pro-rated refund for the remaining balance of coverage. So I could technically cancel mine now and come out ahead since I've only used half the 5 years. However, given the car is only getting older, I'll definitely be keeping it.

In researching EasyCare, I came across a BMW 7-series forum where multiple owners got up to $50k of repairs covered over the time they owned their cars. That made me think that EasyCare is a decent company (and that I should never buy a 7-series!!).
"A week ago, after 2.5 years I finally got to use the warranty on a couple of repairs that were relatively minor but still not cheap - thermostat and leaking valve cover gasket. $2,450 repair and I only paid the $500 deductible. So I'm $400 away from breakeven, with 2.5 years or now 42k miles of coverage left."

Do you actually have a receipt that shows that a thermostat and a valve cover gasket costs $2,450?
Wow - what can I say?

SeaToTheBay
Posts: 170
Joined: Thu Jun 08, 2017 6:11 pm

Re: Auto Extended Warranties

Post by SeaToTheBay » Thu Feb 21, 2019 1:17 pm

researcher wrote:
Thu Feb 21, 2019 12:58 pm
SeaToTheBay wrote:
Thu Feb 21, 2019 12:14 pm
Despite my own warranty experience working out well so far...

A week ago, after 2.5 years I finally got to use the warranty on a couple of repairs that were relatively minor but still not cheap - thermostat and leaking valve cover gasket. $2,450 repair and I only paid the $500 deductible. So I'm $400 away from breakeven, with 2.5 years or now 42k miles of coverage left.
I've always found this mindset to be quite bizarre.

It's almost as if you are hoping your car is unreliable, so that that the warranty "works out well" for you.

With any luck, your car will have more problems in the next few years, so you can "breakeven" and have a great warranty experience.
I was speaking to the warranty experience only. Meaning if I hadn't purchased the warranty, I would probably be upset about the unexpected expense and worried about similar occurrences in the future. Just like one tends to be happy they have good insurance coverage when they get into an accident. I'm not sure what's so bizarre about that.
smitcat wrote:
Thu Feb 21, 2019 1:10 pm
Do you actually have a receipt that shows that a thermostat and a valve cover gasket costs $2,450?
Wow - what can I say?
Yes, I do. Both jobs involve a fair amount of labor, especially for my car, which was the majority of the expense. I replaced the thermostat myself in a previous BMW M5 I owned, which is a similar process (have to take apart an intake system that is far more complex than an average car's), and that was not a fun experience.

bltn
Posts: 579
Joined: Mon Feb 20, 2017 9:32 pm

Re: Auto Extended Warranties

Post by bltn » Thu Feb 21, 2019 1:32 pm

barnaclebob wrote:
Mon Feb 18, 2019 10:17 am
You say your car wont be driven much. I'd pass on the warranty. 3.5k can fix a lot even on a bmw.
3.5k won t fix as much as you might think if you have your car serviced at a BMW dealership. Over 10 years you re almost guaranteed to spend well over 3.5k on BMW repairs at the dealer. Based on the two BMW s my family has had.
I would check the coverages and exclusions of the policy.
A battery replacement on our 650i was around 500 dollars. I know. Ridiculous!!
The cars are a lot of fun to drive, but I m not sure I can afford that kind of entertainment.

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