[johnlemon]

I'm looking at a 2019 i8, which I wouldn't consider buying without a warranty. It's surprisingly difficult to find information about what options are available for vehicles that are outside of the factory warranty window, and non-CPO?

Here's what I have found so far, but take these with a grain of salt:

1. BMWs <6 years old and <60k miles are eligible for CPO. However, dealerships only give CPO status to a select few cars that meet this criteria, and usually they're a lot newer. I asked a BMW dealership if I could buy a BMW from a non-BMW dealership and bring it to them for pre-purchase inspection, and pay them to CPO it if it passes inspection. They told me they don't think so.
2. I know there are people on this forum who sell extended factory warranties, but again, I'm assuming these wouldn't apply for cars who's factory warranties have expired?
3. Beyond that, are there any recommended sources for third-party VSCs? I'm looking for the most comprehensive coverage I can get.

Related: platinum warranties cover virtually everything except wear and tear. Why isn't it more common for people on this forum to buy a used car with 50k miles at a steep discount, and shell out for the warranty? Am I missing something?

[thestumper]

For most brands, the warranty gets much more expensive at those miles. You get your best deal the lower the miles. I've seen it posted here a few times: "Engineered for the Life of the Warranty". IMO that's all brands these days. Once you get to 50K, the cars start needing service and certain things start break (or become suspect...). It doesn't mean the car is crap, but it might require some expensive things moving forward. That is accounted for in the price of the warranty. You can get a smoking deal on the car, but if you have to tack on 10K for a couple of years of warranty coverage, it changes the equation. Most people would just hang onto that 10K and put it into the car over time as it needs things. There's a reason European cars around 50K are "cheap".

[johnlemon]

Originally Posted by thestumper

Most people would just hang onto that 10K and put it into the car over time as it needs things. There's a reason European cars around 50K are "cheap".

I think you hit the nail on the head.

But imagine you're on a tight budget, and you have high reliability needs, this will be your daily driver. Using i8 prices as an example:

• Buy low mileage for $75k, pay out of pocket for repairs that inevitably come up. These could easily run $10k+
  
• Buy for $50k, pay $10k for a warranty, and have peace of mind. I understand there is normal wear and tear from higher mileage, there might be minor scratches, the seats might be a little worn, but... beggars can't be choosers

What is really difficult, is finding where you can get a reliable warranty; I've seen a lot of comments saying that anything besides a factory warranty is basically useless, because they will spend more money trying to deny your claims than actually paying for repairs.

[afadeev]

Originally Posted by johnlemon

I'm looking at a 2019 i8, which I wouldn't consider buying without a warranty.
[...]
I know there are people on this forum who sell extended factory warranties, but again, I'm assuming these wouldn't apply for cars who's factory warranties have expired?
Beyond that, are there any recommended sources for third-party VSCs?

The real question is - where will that warranty be accepted?
The only places that will work in BMW i-cars are the dealers, with maybe one or two exceptional independent shops nationwide. So the only important question is - what aftermarket warranties, if any, will YOUR dealer accept?

Any warranty that claims they will "reimburse" you for repair expenses after the fact is flat out BS-ing. The work either gets pre-approved and covered, or it doesn't. And if the shop (dealer) is not willing to put in the time and effort to work with the aftermarket warranty company to get pre-approvals, for any reason, you will get stuck with the full bill for repairs on top of the cost of "warranty".

I would start by talking to your local dealer as to what warranties they would be willing to accept. And proceed once you get those names.

Originally Posted by johnlemon

I asked a BMW dealership if I could buy a BMW from a non-BMW dealership and bring it to them for pre-purchase inspection, and pay them to CPO it if it passes inspection. They told me they don't think so.

That sounds right.
Unless you paid the dealer markup on the used car, dealer has no incentives to deal with CPO-ing headaches.

Originally Posted by johnlemon

Related: platinum warranties cover virtually everything except wear and tear. Why isn't it more common for people on this forum to buy a used car with 50k miles at a steep discount, and shell out for the warranty? Am I missing something?

Yes - most of those warranties are worthless, as few dealers and independents bother working with any of them.
Here is an example of why and how:

HTH,
a

[johnlemon]

Originally Posted by afadeev

The only places that will work in BMW i-cars are the dealers, with maybe one or two exceptional independent shops nationwide. So the only important question is - what aftermarket warranties, if any, will YOUR dealer accept?

This is the answer I needed! I reached out to my local dealer, here's their response:

"We will always accept any 3rd party warranty. The only thing that becomes an issue is if the warranty company does not pay full list price on parts or at our hourly rate. any difference on repairs would then be on the custoemr"

Should I trust this?

Also, the guy in the video you sent says that aftermarket warranty companies try to screw you with the language in their contracts. I'm not knowledgeable enough to see through the legalese, so I'd probably need to find a company that has a reputation for being fair to customers. Any recommendations?

Originally Posted by afadeev

Unless you paid the dealer markup on the used car, dealer has no incentives to deal with CPO-ing headaches.

Well, they certainly have an incentive, because I'd be willing to pay them a lot of money. It sounds like they're just not set up to operate this way.

[IanH]

If there was an aftermarket used warranty company that was fair to its customers then it would go bankrupt leaving you with no warranty.

aftermarket warranties are not worth the money you pay for them. If they were nobody would sell them.

Self warranty, and if you cant afford to do that then do not buy car. there is no secret trick.

[johnlemon]

Originally Posted by IanH

aftermarket warranties are not worth the money you pay for them. If they were nobody would sell them.

Not true. It's basically like buying insurance in case something breaks.

You're paying money now to reduce out of pocket costs/headache in the future.

[IanH]

Originally Posted by johnlemon

Not true. It's basically like buying insurance in case something breaks.

You're paying money now to reduce out of pocket costs/headache in the future.

That would be true if there was even a snowball's chance in hell of them paying you out the cash value plus returns for the money you put in.

I've read the terms of many of these warranties. They are all scams and they are not like insurance, insurance is a regulated industry and is still kind of a scam.

You are giving this warranty company like $5,000 up front, that could be earning in a brokerage account, to then have them come back to you later and refuse and fight every claim. Not to mention that you may not ever use the $5k in value of covered repairs. Most of the cost of running these cars is in maintenance.

[MJBO]

Originally Posted by johnlemon

I think you hit the nail on the head.

But imagine you're on a tight budget, and you have high reliability needs, this will be your daily driver. Using i8 prices as an example:

• Buy low mileage for $75k, pay out of pocket for repairs that inevitably come up. These could easily run $10k+
  
• Buy for $50k, pay $10k for a warranty, and have peace of mind. I understand there is normal wear and tear from higher mileage, there might be minor scratches, the seats might be a little worn, but... beggars can't be choosers

What I’l is really difficult, is finding where you can get a reliable warranty; I've seen a lot of comments saying that anything besides a factory warranty is basically useless, because they will spend more money trying to deny your claims than actually paying for repairs.

If you’re on a tight budget and require reliability, you’d be beyond stupid to be considering any of this rubbish.

Go and buy a new Toyota Camry with an actual warranty and a proven reputation for going the distance.

[MaxVO2]

Originally Posted by MJBO

If you’re on a tight budget and require reliability, you’d be beyond stupid to be considering any of this rubbish.

Go and buy a new Toyota Camry with an actual warranty and a proven reputation for going the distance.

****The above is most likely the best and most realistic answer given the high cost of fixing these higher end cars.

[Revan]

I asked my SA this same question and he told me Fidelity was excellent at paying claims. No first hand experience on claims though but they did refund the platinum warranty on my car that got totaled a few years ago with no issues.

[afadeev]

Originally Posted by johnlemon

Well, they certainly have an incentive, because I'd be willing to pay them a lot of money. It sounds like they're just not set up to operate this way.

Money would NOT go to the dealer. You would be buying 1-year CPO warranty from BMW NA. The cost of reconditioning the car to meet CPO requirements would be born by the dealer.

After the driver buys a CPO car, he could take it for service and repairs to any BMW service center, so there not even an expectation of seing any future revenue from that car for the CPO-certifying dealer.

Originally Posted by johnlemon

It's basically like buying insurance in case something breaks.
You're paying money now to reduce out of pocket costs/headache in the future.

Right.
As with all insurance products, unless one is cash flow constrained to cover potential future repairs, one is always better off self-insuring. For the obvious reasons.

Of course, a lot of folks are risk-averse, so paying (loosing) a fixed amount upfront is more attractive to them then the lower probability of potentialy paying for a larger (or smaller) repair bill in the future. Insurance industry flaurishes on this human trait.

The same human risk bias, just in reverse, is underpinning the lottery and gambling industries.

a

[MaxVO2]

Originally Posted by afadeev

Right.
But as with all insurance products, unless one is cash flow constrained to cover potential future repairs, one is always better off self-insuring. For the obvious reasons.

Of course, a lot of folks are risk-averse, so paying (loosing) a fixed amount upfront is more attractive to them then the lower probability of potentialy paying for a larger (or smaller) repair bill in the future. Insurance industry flaurishes on this human trait.

The same human risk bias, just in reverse, is underpinning the lottery and gambling industries.

a

****Not a bad way to look at it. Many people are more worried and get more upset regarding losing money than happy in making it in my experience. I am well insured myself for my homes, cars, have Umbrella policy, etc.. but would not pay extra for additional warranty on a car.

I can see the reasons for doing so, but am generally self insured for repairs as some of those warranties seem *very* expensive for what they purport to do.

Some cars are just lemons and break down a lot. Hopefully, you have the history of the cars repairs in making a judgement in terms of purchase or negotiating price. New cars generally have decent warranties now and are exceedingly more complex than in the olden days but are overall quite reliable, or at least have been for me.

I guess I can see both sides.. I know someone with a Huracan that was hit with a $34k repair bill for an oil leak in the car and $5k for a computer that went on the fritz in the same car. The car was purchased used but without knowing much regarding its history, etc.. Low mileage but nothing but stress and money for a weekend driver. He was offered an"extended" warranty but it was $12k and had pretty limited coverage and exclusions... He really wanted the car and he got a seemingly "great" deal on it at the time...

[DanG]

Guys, the OP can’t get his i8 CPOed. It is too old and out of warranty. CPO extendes the factory warranty from 4 to 5 years. The i8 is older than 5 years.