- #2042 of 2873
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Re: extended warranty vs mechanical breakdown [mikefm58]
by msw66
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Aug 13, 2007 (11:11 am)
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Replying to: mikefm58 (Aug 13, 2007 10:45 am)
You've obviously have had good luck with your vehicles - that not to say you don't take care of them. But as I mentioned, if you do have a warranty and it does cover the repair, the odds are that you will get your money back or at least have the security of knowing that you won't have any surprise repair bills in the future. As for your comment on the $50/$100 deductible - I don't advise getting a warranty with such a deductible, I suggested that a $0 deductible option is the only way to go and when you compare the costs of a $0 vs. a non $0, many times it's only a few hundred dollars difference in cost. So, with a $0 deduct. you are more apt to bring the vehicle in for repair and not 'live' with whatever is 'just not working right'.
If you also read my earlier post I mentioned that I would never go with an aftermarket company. Always go with a factory backed warranty. I worked for an auto manufacturer for many years and I always heard the horror stories of aftermarket warranty companies going BK - I am still active in the automotive field and this trend has not stopped.
It's purely an insurance policy and a matter of choice. If you are the type that doesn't want to spend the few thousand now and take a chance that during the life of your ownership you don't incur any costly repairs, then don't buy one. If you are more of the type that you don't like any surprises and you'd rather pay now to have that added comfort, then you probably should buy something that suits your years of ownership and your annual mileage driving habits. With repair shop rates running about $100 - $125/hr it doesn't take much of a repair for the bill to reach a rather large sum.
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- #2043 of 2873
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Re: Please weigh in on this one... [xcraig]
by bmwdriver4
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Aug 13, 2007 (1:04 pm)
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Replying to: xcraig (Aug 12, 2007 1:12 pm)
Hello xcraig, I do have some advice for you. Regarding the warrenties heres the deal; You can buy an extended (manufactures) warrenty through BMW for 6 years 100k mi. it covers all the non-wear things (e.g. the motor on you window burns out) you have to pay the dealer a $50 deductable to work on it. This warranty is a set price, (I called a bunch of dealers and got the same quote from each of them) for me it was like $2400. Then, there is an maintenace warranty that will vary from dealer to dealer (but not much price difference) this is like $1400 for me for again 6yr 100k mi. I dont think its really worth it. Basically your paying for your services in advance. I dont think you are going to get say 3 grand in maintence over 2 years. Personally, if I were you and had a vehicle at the end of its lease contract, I would do the following. (1) if the car ever had ANY electical issues, I would get rid of it. this could be a big problem down the road. (2) I would shop around for 3-5 price quotes on your make, model and milage. Your basically buying a new car. If you over pay at this point, you will be in a negative equity situation, that is... you owe 20k on a car that you can only sell for say 13-15k. It sounds that you did'nt have much trouble with it if they want to look it over and give you an offer. (My situation was one where I purchased in 2003, financed at 1.9% and paid it off early
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- #2044 of 2873
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Re: Please weigh in on this one... [bmwdriver4]
by joel0622
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Aug 13, 2007 (2:03 pm)
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Replying to: bmwdriver4 (Aug 13, 2007 1:04 pm)
an maintenance warranty that will vary from dealer to dealer (but not much price difference) this is like $1400 for me for again 6yr 100k mi.
I would pay $1400 for a 100K mile maintanence plan on a BMW in a heart beat. Every one I have ever talked to says it cost them at least $125 to get the oil changed on there BMW. 5000 maintanence schedule for 100K miles is 20 oil changes at $125 a pop is $2500. That is at todays prices, not what it will cost you 4 years from now.
That does not even count the other maintanence it covers.
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- #2045 of 2873
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Re: Please weigh in on this one... [joel0622]
by dwynne
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Aug 13, 2007 (2:17 pm)
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Replying to: joel0622 (Aug 13, 2007 2:03 pm)
Even in my M5 it was not $125 per oil change, and in the 330i it was maybe $75.
You also would have to go by the BMW service minder system so you would NOT be getting an oil change every 5k miles - it would be more like 12k to 15k per change or once per year no matter the miles - at least that is how the factory maintenance works.
Other than CPO, I don't think there is a BMW backed extended warranty. They do offer maintenance deals and individual BMW dealers will offer 3rd party warranties.
Dennis
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- #2046 of 2873
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Re: Please weigh in on this one... [xcraig]
by im_brentwood
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Aug 13, 2007 (6:51 pm)
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Replying to: xcraig (Aug 12, 2007 1:12 pm)
Craig,
Depending on the cost, the CPO warranty is well worth it, the maintinence package, not so much IMO.
BMW's "Free Maintinence" is a bit of a scam IMO, as they only pay for a fraction of what the car truly needs to last as long as it ought to. 12k oil changes, lifetime driveline fluids and the like are not good for your car's long term health.
I have yet to see a GM Automatic in a BMW with lifetime fluid make it past 130k miles, yet the damn near identical trannies that got fluid and filter changes every 30k miles easily hit 200k.
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- #2047 of 2873
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Re: Please weigh in on this one... [dwynne]
by joel0622
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Aug 14, 2007 (5:23 am)
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Replying to: dwynne (Aug 13, 2007 2:17 pm)
Thanks Dennis, I had no idea that is how they work. My knowledge of those type cars is obviously lacking. I was just basing it on the fact that 9 times out of 10 when some one trades one in there main reason is they can't afford to drive it.
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- #2048 of 2873
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Re: extended warranty vs mechanical breakdown [bzribee]
by jimbres
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Aug 14, 2007 (8:44 am)
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Replying to: bzribee (Aug 11, 2007 10:57 pm)
Here's another thought: self insure. Worried that you might be hit with a large repair bill several years down the road, after your factory warranty has expired? Start saving money today. Open an online savings account with ING Direct, EmigrantDirect, HSBC or GMAC, among others (disclaimer - I don't work for or own stock in any of these banks) & arrange for an automatic weekly transfer of $25 from your checking account to the online savings account. That's a bit over $3.50 per day, or the cost of a couple of fancy coffee drinks. In 4 years, you'll have over $5,500 stashed away.
Why pay someone else to do something that you can handle on your own? Why give up hundreds of dollars of interest income?
You should certainly buy insurance to shield yourself from catastrophic losses. I carry the best homeowner's policy available in my area because the cost of rebuilding my home could easily cost me hundreds of thousands of dollars. A loss of that magnitude would cripple me. But a $2K repair bill, while unwelcome & annoying, shouldn't be a setback for anyone with a strong balance sheet.
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- #2049 of 2873
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Re: extended warranty vs mechanical breakdown [jimbres]
by mitzij
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Aug 14, 2007 (8:54 am)
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Replying to: jimbres (Aug 14, 2007 8:44 am)
Don't confuse us with good sense! Who's dumb enough to save money? We want to spend, spend, spend! What are you, nuts? We want to give the power to faceless companies, companies that don't care how our cars are fixed. We want to let them decide who fixes our cars, what gets fixed, with what parts. We don't want to have control over our own finances!
We want somebody else to take care of us! Who cares if it costs more, we need peace of mind!
(you know I'm being sarcastic, right?  )
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- #2050 of 2873
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Re: extended warranty vs mechanical breakdown [mitzij]
by jimbres
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Aug 14, 2007 (8:58 am)
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Replying to: mitzij (Aug 14, 2007 8:54 am)
Of course! Good to hear from you, mitzij.
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- #2051 of 2873
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Re: Please weigh in on this one... [joel0622]
by dwynne
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Aug 14, 2007 (2:33 pm)
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Replying to: joel0622 (Aug 14, 2007 5:23 am)
How I know how much the oil changes cost locally is that I paid to have mine done in between the "free" ones from BMW. I could not drive a car 12k-15k miles on not change the oil and filter - just could not do it. I paid them to do it every 5-6k and NOT reset the service monitor so when it showed it was time I would get the free change.
Before they gave away the service the monitor lights would go on about 5-6k to tell you to bring it in for a pay oil change. When they changed to "free" changes they changed it to 12k-15k. Their excuse for the change is that they went to full synthetic oil so they did not need to change it so much.
Dennis
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