Purchasing an Extended Warranty???

[Mbauer]

I just want to give a lil warning to everyone. About 5 years ago purchasing an extended warranty was a great idea. You could get your car fixed under your plan with a small deductible, and the plans were relatively cheap. Technicians could shop the car for other issues to add to the repair order to help the customer get their moneys worth. Just like the housing market, car purchases dried up too... So the insurance companies had minimal incoming cash flow to pay for repairs on existing warranties. This is when things get bad.....

How do they manage to stay in business? Cheating the customer.
Deep inside the fine print, they find ways to escape liability for repairs on your car. You ready..... its not covered because:

*Power steering hose is fitted with a clamp and not a banjo bolt
*Your window regulator is noisy, its not broken
*Thats not leaking enough... thats seepage
*The fault is not currently present
*You have the wrong size tires on your car
*You don't have service history
*We don't pay that much

The list goes on and on.... meanwhile you paid $$$ for nothing. To get a repair approved.... they send out a independent adjuster. They have to document all of the complaints, and causes with a camera and email it to the warranty company. More times than not, they want the diagnostic machine hooked up, so they can see if the fault is present, clear the fault and then want us to drive with them to see if it comes back. Can you imagine how much of my time is wasted trying to get a oxygen sensor fault or a adaptation fault to reoccur??? Did I mention nobody gets paid for this time wasting? As a repair facility we are forced to deal with 3rd party companies.

OK, OK.... your electric steering column is covered.... but.... were gonna pay you .3 hrs to replace it at 1/2 of your hourly labor rate. Don't worry we used the "Chilton" or Mitchell manual to verify the time. What do you mean it needs programing.... doesn't say it in Mitchell? Too bad.....

This is where your advisor has to argue with them for days/hours to try and convince them to get a correct time paid near what BMW normal warranty time would cover.

Ok, OK, you've reached a acceptable labor time/amount. We will only allow you to install a used part. YES its true... its in the fine print. So you shoveled out $4,000 for them to put a used transmission in your car with zero warranty coverage on the part in the future. EVERYONE looses and they TAKE more of your money... that $500 deductible remember?

The meaning of this story is to do yourself a favor before you go down the path of extended warranty. Purchase the BMW Extended warranty at the dealership. Same as CPO coverage, or you buy the "ESP" which is pretty much the same thing. Much more simple, no bait and switch. Yes its a little more money, but having the correct new part installed, correctly, with an available parts warranty if it were to fail again, is a lil more reassurance that your not getting ripped off.

Please feel free to share your horror stories.... Ive seen plenty of people cry already.

[Bpark1977]

Which companies are you basing this on? In my experience, the BMW extended coverage is not the best stuff out there, cost or coverage. Dealers pack A LOT of profit into additional coverage and aftermarket items.

[mark25]

I took out an extended warranty on my R8. It wasnt an Audi warranty but with a different warranty provider. It paid for itself when the clutch died. It actually proved better than the Audi warranty as their manufacturer warranty would not have paid out. Typically when an R8 clutch is changed so is the fly wheel as they both wear together. With some clever wording from my mechanic the company paid out for the whole flywheel and also the labor in fitting it which covered most of the labor associated with changing the clutch. Saved me about $2,000!

Still deciding if I will bother with an extended warranty for my M3 when it runs out end of this year.

[Mbauer]

Originally Posted by mark25

I took out an extended warranty on my R8. It wasnt an Audi warranty but with a different warranty provider. It paid for itself when the clutch died. It actually proved better than the Audi warranty as their manufacturer warranty would not have paid out. Typically when an R8 clutch is changed so is the fly wheel as they both wear together. With some clever wording from my mechanic the company paid out for the whole flywheel and also the labor in fitting it which covered most of the labor associated with changing the clutch. Saved me about $2,000!

Still deciding if I will bother with an extended warranty for my M3 when it runs out end of this year.

Yes, if you have the BMW maintance plan, clutch is covered.

[Mbauer]

Originally Posted by Bpark1977

Which companies are you basing this on? In my experience, the BMW extended coverage is not the best stuff out there, cost or coverage. Dealers pack A LOT of profit into additional coverage and aftermarket items.

Dont get me wrong, theres a couple that are ok. If a BMW dealer sold it, and theres issues, that dealer will pick up any middle ground if you take it to that dealer for repairs. As far as them being expensive....Just remember.....EVERYTHING is negotiable. Im gonna refrain from bus rolling any companies by name for now. Ive got a E60 dead on a rack right now, needs a transmission. They will only approve replacement with a used part.

[Day Laborer]

I just got a 3rd party warranty from the BMW dealership "The Mechanic- by Automotive Warranty Group)

Can anyone share your experiences with that company? I think its based out of Chicago & Florida

[m3an]

welcome to the world of insurance.. As always the burden of proof is on the insured, not the warranty company. Most a/m warranty companies are run by 3rd partiy admins and are hit or miss. I would only trust a warranty purhcased through BMW.

[jqsmooth]

Good to know. Thanks for posting!

[Z K]

Originally Posted by Bpark1977

Which companies are you basing this on? In my experience, the BMW extended coverage is not the best stuff out there, cost or coverage. Dealers pack A LOT of profit into additional coverage and aftermarket items.

There is a lot of profit they make on selling it. But if you need a factory backed warranty, it's your only reliable choice. With 3rd party extended warranties, it is a hit or miss... mostly miss.

Still, $5500 for "Gold" coverage for an additional 2 years is a lot of money.

[Mbauer]

Just remember that a DCT trans is like 13k... You got to pay to play

[Z K]

Originally Posted by Mbauer

Just remember that a DCT trans is like 13k... You got to pay to play

It's not a problem if you have a manual transmission.

[Mbauer]

Originally Posted by Z K

It's not a problem if you have a manual transmission.

We're in the same boat... Clutches are cheap

[Boostin FD]

I haven't heard of any DCT's having issue with tranny or clutches. It's "supposed" to protect the clutch better then a human.

[TVMA Doc]

Originally Posted by Mbauer

I just want to give a lil warning to everyone. About 5 years ago purchasing an extended warranty was a great idea. You could get your car fixed under your plan with a small deductible, and the plans were relatively cheap. Technicians could shop the car for other issues to add to the repair order to help the customer get their moneys worth. Just like the housing market, car purchases dried up too... So the insurance companies had minimal incoming cash flow to pay for repairs on existing warranties. This is when things get bad.....

How do they manage to stay in business? Cheating the customer.
Deep inside the fine print, they find ways to escape liability for repairs on your car. You ready..... its not covered because:

*Power steering hose is fitted with a clamp and not a banjo bolt
*Your window regulator is noisy, its not broken
*Thats not leaking enough... thats seepage
*The fault is not currently present
*You have the wrong size tires on your car
*You don't have service history
*We don't pay that much

The list goes on and on.... meanwhile you paid $$$ for nothing. To get a repair approved.... they send out a independent adjuster. They have to document all of the complaints, and causes with a camera and email it to the warranty company. More times than not, they want the diagnostic machine hooked up, so they can see if the fault is present, clear the fault and then want us to drive with them to see if it comes back. Can you imagine how much of my time is wasted trying to get a oxygen sensor fault or a adaptation fault to reoccur??? Did I mention nobody gets paid for this time wasting? As a repair facility we are forced to deal with 3rd party companies.

OK, OK.... your electric steering column is covered.... but.... were gonna pay you .3 hrs to replace it at 1/2 of your hourly labor rate. Don't worry we used the "Chilton" or Mitchell manual to verify the time. What do you mean it needs programing.... doesn't say it in Mitchell? Too bad.....

This is where your advisor has to argue with them for days/hours to try and convince them to get a correct time paid near what BMW normal warranty time would cover.

Ok, OK, you've reached a acceptable labor time/amount. We will only allow you to install a used part. YES its true... its in the fine print. So you shoveled out $4,000 for them to put a used transmission in your car with zero warranty coverage on the part in the future. EVERYONE looses and they TAKE more of your money... that $500 deductible remember?

The meaning of this story is to do yourself a favor before you go down the path of extended warranty. Purchase the BMW Extended warranty at the dealership. Same as CPO coverage, or you buy the "ESP" which is pretty much the same thing. Much more simple, no bait and switch. Yes its a little more money, but having the correct new part installed, correctly, with an available parts warranty if it were to fail again, is a lil more reassurance that your not getting ripped off.

Please feel free to share your horror stories.... Ive seen plenty of people cry already.

I agree, although I wouldn't sweat the window regulator. The 3 series loves to chew those up, so I've replaced a few over the years. It only costs about $80 in parts and takes about an hour-would be less but BMW insists upon interlocking EVERY panel on the car with EVERY OTHER panel.

I wouldn't even go through a deductible for a window regulator.

For those looking for great coverage on a new/nearly new BMW, take a look at Geico's mechanical breakdown coverage. I pay about $70 a year to get 7 year 100k coverage with a $250 deductible. The customer reviews state that they don't try ANY tricks to get out of the payment.

[Mbauer]

$80 for a regulator at a dealer? Your dreaming. Coupes/verts require a special tool to adjust the glass. It's a lil more complicated than just bolting a new one in. If your mechanically inclined and had some directions, you could figure it out after a few hours.

[FlorezBethel]

It paid for itself when the clutch died.

[Mbauer]

Originally Posted by Boostin FD

I haven't heard of any DCT's having issue with tranny or clutches. It's "supposed" to protect the clutch better then a human.

DCT has a clutches.... all clutches wear eventually. Even DCT has launch mode

[mjposner]

I bought a used Audi Allroad from Car Max in 2007 with 36k miles, one owner, juts out of warranty. I paid $1,800 for a 3 year 36 month exclusionary warranty (covers everything but tires, brakes..). In a year and 1/2 they replaced the transmission at 7k, two pieces of the air suspension at 1k each, a bunch of oil seals at 500, front bushings twice, at 1k each,. The only time I had trouble was the first repair at my independent tire suspension guy, they gave him a hard time. I then took all repairs to Audi Dealer, and except for tranny (Dealer wanted 8k to repair, they were willing to go to 6k, I got dealer to knowck off 1k and I paid difference) they took care of everything. Total claims in 1.5 years, 16k

[Boostin FD]

Originally Posted by Mbauer

DCT has a clutches.... all clutches wear eventually. Even DCT has launch mode

No way! That's a brand new information!

Yes, Clutches wear... eventually. If you put a newbie that doesn't know how to drive a manual in manual M3 or DCT... which clutch do you think he'll screw up faster? DCT prevents you from burning the clutch... and that Launch mode, in my opinion is useless. Launching at 5k is just crazy.

[Day Laborer]

Originally Posted by mjposner

I bought a used Audi Allroad from Car Max in 2007 with 36k miles, one owner, juts out of warranty. I paid $1,800 for a 3 year 36 month exclusionary warranty (covers everything but tires, brakes..). In a year and 1/2 they replaced the transmission at 7k, two pieces of the air suspension at 1k each, a bunch of oil seals at 500, front bushings twice, at 1k each,. The only time I had trouble was the first repair at my independent tire suspension guy, they gave him a hard time. I then took all repairs to Audi Dealer, and except for tranny (Dealer wanted 8k to repair, they were willing to go to 6k, I got dealer to knowck off 1k and I paid difference) they took care of everything. Total claims in 1.5 years, 16k

What was this warranty company's name? They sound solid

[iatros]

I too have deliberated on this very topic as my 08 M3 goes out of warranty in June. Just like the OP stated, I have also been warned by other folks of difficulties of getting things covered by a third party payer. I think I'm gonna chance it and go without....

[Mbauer]

Originally Posted by iatros

I too have deliberated on this very topic as my 08 M3 goes out of warranty in June. Just like the OP stated, I have also been warned by other folks of difficulties of getting things covered by a third party payer. I think I'm gonna chance it and go without....

Honestly M3 is the most reliable car we make, another reason why I bought it. So I probly wouldn't purchase one, but if I had a turbo motor I would. Injectors, high pressure pumps, Turbos.... Ect more stuff to go wrong