- #4275 of 4446
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Re: Extended Warranty [idoc2]
by Mr_Shiftright HOST
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Jun 09, 2009 (7:43 pm)
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Replying to: idoc2 (Jun 09, 2009 12:46 pm)
Sounds like it might be one of those "demon seed" BMWs you see once in a while. I'd consider just trading it in or selling it as the factory warranty expires and putting the $4570 as a down so that you'd start off with equity or near equity on a new one. Basically at the rate you're piling up miles you'll be at 100K in 30 months or so--so this warranty is extending your payments by $152 a month. Gee you could lease a new 328i for $350 a month with $3500 down.
And suspension is not a BMW strong point, and yet its an exclusion on the extended warranty. If this were a 750 I might think differently but this doesn't sound like all that good a deal for you.
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- #4276 of 4446
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Re: Extended Warranty [Mr_Shiftright]
by idoc2
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Jun 10, 2009 (6:46 am)
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Replying to: Mr_Shiftright (Jun 09, 2009 7:43 pm)
Interesting point of view. I own the car. Of course I'll get hammered on the trade-in as they'd give me only about $18K, That amounts to $10K depreciation/year. Leasing a BMW does not seem like a good option for someone who drives about 20K miles/year. A new car will also depreciate at that high rate whereas the current car which looks and drives like new will depreciate much more slowly at this point. I believe its almost always fuzzy logic guided by the desire to have a new car that makes one conclude its cheaper to re-lease every three years as opposed to own for 6-8 years. I agree that the $4600 over two years is a big hit but I think I have to suck it up. Of course one really has to separate out the extended warrant ($3000) from the maintenance agreement ($1600) and view each on its own merits. If the car had a perfect track record I wouldn't buy the warranty but might buy the maintenance agreement so the unplanned hit is $3000. The "electronic gremlins" have never effected the cars operation. The "check engine" light was repeatedly coming on. The dealer was never clear as to why this kept occurring. Each time I was told it was a different error code. Everything from a fuel system leak (never found) to oxygen sensors. It was not clear to me if these codes were simply false positives due to a computer malfunction or real sensor errors. Again the car has always run 100% its just that I'm gun shy about being exposed given the very high cost to repair a BMW. Honestly I have not had a problem now for 6 months so perhaps its all behind me. The other issue is the wife. No way would she let me buy another BMW if I had to tell her after 2 years I needed a new car. I'd be heading directly to some Asian auto dealer.
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- #4277 of 4446
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Re: Extended Warranty [idoc2]
by Mr_Shiftright HOST
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Jun 10, 2009 (8:10 am)
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Replying to: idoc2 (Jun 10, 2009 6:46 am)
Oh, well, that's a somewhat different scenario from what I first interpreted. I thought the car was bedeviling you, but really it was just annoying you. As for the "check engine" light, I think on German cars this is randomly programmed to go on and off for eternity. They should have a voice command that says "ENGINE LIGHT OFF!" 
And you're right, leasing is not an option if you are high miles driver.
My main gripe with extended warranty is the EXCLUSIONS. One has to very carefully read and understand the yes list and the no list..sometimes the sneaky weasels will not state the exclusion directly, only infer it by not including it on the *Inclusion* List!! Now that's dirty.
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- #4278 of 4446
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Auto industry questions?
by pat HOST
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Jun 10, 2009 (8:18 am)
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Join Consumer Advice Editor, Phil Reed, and other Edmunds staff for an auto industry chat TONIGHT, Wednesday, 9:00 -10:00 pm/et (6:00 -7:00 pm/pt). To enter the chat, click on the banner at the top of the page.
See you there!
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- #4279 of 4446
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Re: Auto industry questions? [pat]
by idoc2
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Jun 10, 2009 (11:23 am)
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Replying to: pat (Jun 10, 2009 8:18 am)
Assuming that I take the leap and buy the extended warranty and perhaps the maintenance agreement has anyone had any experience with price negotiations? Its hard to believe in this economy but the two dealers I've spoken with here in CT have basically said "the price is the price."
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- #4280 of 4446
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Re: Extended Warranty [idoc2]
by nyccarguy
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Jun 10, 2009 (7:23 pm)
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Replying to: idoc2 (Jun 10, 2009 6:46 am)
Leasing actually can make sense if you do 20K miles per year, but you are not going to be paying anywhere near the advertised price for a 3 series. Your lease payment will be higher than usual, but the best part about leasing is that you are guaranteed no matter what happens the car will not depreciate more than the bank's set residual value.
My Dad pays $960 per month to lease his '07 X5 3.0si with Premium/Sport/Cold Weather. He leased the truck for 30 months with a 20,000 mile per year allotment. So after 2 1/2 years & 50,000 miles he walks away from the truck (He's under the warranty/free maintenance period for the duration of the lease). He drives to work every day with 2, 2 year old Great Danes who shed like crazy no matter how often he gets the car vacuumed out.
Lets say for arguments sake that he financed the X5 and his payments were $1000 per month for 5 years. After 5 years he'd have an X5 with 100,000 miles (which is not unreasonable) worth how much? Now in addition to the $1000 per month he pays for his hypothetical loan, he'd have to shell out for an Inspection II major service (60K), an oil changes (75K), & another Inspection I major service (90K), plus since the X5 isn't exactly a light vehicle there is a good chance he'd chew through a set of (4) pads and rotors. I know all about indie mechanics, but they don't provide loaner cars and my Dad CANNOT be without a vehicle (He is the president of our family's plumbing supply business & my boss).
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- #4281 of 4446
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Re: Extended Warranty [nyccarguy]
by idoc2
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Jun 11, 2009 (4:45 am)
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Replying to: nyccarguy (Jun 10, 2009 7:23 pm)
I'm sorry but your math is very fuzzy. Frankly every time I work the numbers with our company's accountant its ALWAYS cheaper to own not lease. This assumes you plan to keep your car for 6 or more years. Now if you want a new car every 30-36 months the difference becomes marginal. With that said the accountant prefers we lease because its cleaner to write-off a lease payment than to run a depreciation schedule on a car you or the corporation owns.
Your analysis fails to mention the "capitalization reduction cost" (down payment) on the lease. Also, there is no way you can buy a $60K car and pay $1000/month for 60 months. And yes after 100K miles an X5 would have at least $10K of value if you sold it.
Don't kid yourself, leasing is not cheaper in the long run its simply a play on cash flow. The most cost effective way to buy any vehicle is pay up front with cash (and if you can aggressively depreciate it as a business expense)
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- #4282 of 4446
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German Filter
by joann3
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Jun 11, 2009 (8:59 am)
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I rencently bought a 1999 BMW 328 I and I have to do my first oil change. I called 2 people to inquire on price and 1 told me that the price includes a German Filter, the other one didn't mention anything about a German Filter. Is it necessary to use a German Filter? If so, why?
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- #4283 of 4446
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Re: German Filter [joann3]
by shipo
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Jun 11, 2009 (10:38 am)
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Replying to: joann3 (Jun 11, 2009 8:59 am)
In the case of BMW filters, pretty much all of them are "German". Why? Because as far as I know, there are only two or three manufacturers of filters for these cars, all from Germany, and at least one of them sells their filter with common American names on them such as Fram.
Best regards,
Shipo
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- #4284 of 4446
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Re: German Filter [shipo]
by joann3
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Jun 11, 2009 (11:11 am)
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Replying to: shipo (Jun 11, 2009 10:38 am)
Forgive my ignorance as I know nothing about cars. Is there a filter made specifically for BMW's that should be used when doing an oil change or can a generic filter be used?
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