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BMW CPO Warranty and Warranty Extension questions

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Comments

  • dujoxdujox Posts: 10
    I do agree with you that dealers has a right to make profit. But then one again buying a car isn't quite like buying a bread or a gallon of milk. If you got to a supermarket this week and see a gallon of milk for $10.45 would you but it?

    There are different strategies. Knowing how much did a dealer pay in fact could help you to know how much could you push to as you say 'negotiate the best deal" :D
  • Hi kyfdx,
    I recently joined this grp. wass pretty impressed by sort of discussions going on around. I also had one query if you guys can help me out. I got CPO 2007 model last year & currently having 46K miles.. So basically i have 6y/100K on top of my 4y/50k. But i'm about to run out of 50k maintenance warranty. also my breakpads front/rear are due in another 10-14k miles..so as per the dealer at that time i would be in my 6k/100k extended plan & that wont cover all that stuff. So what is your opinion.?? should i buy any any other extended warranty that can cover my oil changes,brakes,tire?? becasue as far as i understood dealer offered me all that(except tires) for around $2300..that will cover up to another 50k miles..(just oil changes & brakes pads/rotors)...while that 6y/100k CPO warrantly will run in parallel.

    My point is although i have 6k/100k i still need to but that xtra another 50k miles warranty on top of my actual 4k/50k maintanence warrantly to cover just oil & brakes?? makess sense?? or should i just pay out of pocket for brakes/oil change whenever due instead of $2300??

    please advice.

    Thanks everyone for your time & help

    Regards,
    bimmer_2007
  • kyfdxkyfdx Posts: 27,623
    When does your CPO warranty expire? And, how many miles do you expect to have on the car by then.. That has a lot to do with the value of the extended maintenance.. If the 6yr/100K is up in September, 2012... then, it's worth less than if it's up in July, 2013... If you drive 10K/year, then it's worth less than if you drive 18K/year..

    You don't say what model you have... That affects the price of the extended plan... But, for most models the spread between MSRP and dealer cost on the plan is $500... It isn't too hard to find a dealer willing to discount the plan by $200.. or even $300-$350.. And, you can buy the plan from any BMW dealer...

    So, before I could give an opinion, need to know the warranty expiration date (or in-service date), and your annual expected mileage.... Also, what model did you buy?

    regards,
    kyfdx

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  • I have 2007 525i..in service date was Dec 2007..Right now its almost 47K miles..and yearly it would be around 15K going forward as i see.

    Thanks
    Bimmer_2007
  • kyfdxkyfdx Posts: 27,623
    Well.. at that rate, you'll get full value for the extended maintenance and warranty (in-service of Dec, 2007, not Dec, 2006?)... so, that tilts things in your favor...

    But, I think the cost of the plans might still be prohibitive... I wouldn't want one plan without the other... If you get the extended warranty, it's going to be hard to save money, by servicing your vehicle at an independent... and, then taking it to the dealer only for warranty claims... If you buy just the maintenance plan, you'll have the opposite problem... They come up with a mechanical repair diagnosis while doing your maintenance, and you'll be stuck with dealership rates for that...

    It's a dilemma... Hard to part with an extra $5K upfront, even if you can justify it on paper....

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  • Hey,
    Sorry for the confusion. In-service date was Dec 2006 as you just thought..so my 6y/100k will expire in max dec 2012. So does that mean that no matter my miles are less than 100K I'll be out of all the warranty in 2012??

    So should i go for extended maintenance plan of around $2300 that dealer is offering me?? is that worth or overpriced specially for my case??

    Thanks
  • kyfdxkyfdx Posts: 27,623
    That's exactly it... You'll be out of warranty and/or maintenance in Dec, 2012, no matter what mileage you have...

    So, you'll probably get the 60K mile Inspection II ($800-$1000?), and the 75K oil service ($150-$200?) and that's it, unless you need suspension bushings or brakes, etc... that's from the maintenance plan..

    The extended warranty? Same thing... you'll get until DEC, 2012.. which will be approx 80K miles..

    If that's as long as you'll keep the car, I'd put that $5K in the bank, and take my chances... You might come out ahead, even, or behind... who knows... but, on average, I'd think you would come out ahead...

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  • Thanks..
    but my rear brake pads are due in another 8k miles and front in 14k miles.And that wont be covered as i'll be Out of 50k maintenance..
  • kyfdxkyfdx Posts: 27,623
    Well... there you go, then... the maintenance might be worth it, if you are sure you'll need brakes... I'm guessing the front and rears on a new 5-series would be at least $1000 total..

    For some people, they are going to the dealer for service, no matter what... In that case, the plan will likely pay off.. If you are the kind of person that will use an independent repair shop, then you can save a lot of money... but, they usually don't offer loaners, etc...

    MODERATOR
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  • Yes..actually front/rear would cost me $1500 atleast as per dealer..so better i buy that extended maintenance..will try and negotiate with him as i heard something new... like coverage till 200k..not sure what that was.will update you if i find something interrsting.
    Thanks man.
  • Any recommendations on purchasing an extended service warranty? I purchased a 2004 325xi and the warranty is about to expire.
  • shiposhipo Posts: 9,152
    edited October 2010
    The only rational way to cover yourself is to "self insure". Simply take the $2,000 (or whatever you planned on spending on the warranty) and stash it somewhere (bank, CD, IRA, Safety Deposit Box, mattress; it make no matter these days). Then when you need maintenance on your car for a "covered repair" you draw down on your stash. Chances are extremly good that by the time you dispose of the car (or the mileage point where the warranty would have expired), you'll still be ahead of the game.

    FWIW, I've opted to not buy a extended policy for any of my cars since 1989, and over that period my math shows that I'm about $11,000 ahead of where I would have been had I bought those policies. Have there been a few losses along the way? Yes. Has any one policy failed to at least break even? No; well, maybe. In one case the cost of the repairs I put into that car exceeded the cost of the extended warranty; that said, $2,600 of the repairs for that car occurred after the warranty expired, and as such, they wouldn't have been covered anyway. Said another way, I got a "free" transmission out of the deal.
  • I've been reserching extended warranties for my BMW, is it wiser to go through the dealer (and are those prices really negotiable) or keep researching elsewhere?
  • dujoxdujox Posts: 10
    I followed the advice of no taking the extended warranty and rather "save" the money. This is my first bmw and so far I ma ahead of the game. I have a 325xi /03 with 165k and from my "2,000" budget I had spend about $1680 so far (included insurance).

    I do about 5% of the repair myself and My Indy garage charges 75/hour and does not provide a loaner . :D

    My advice: Check the car. If you happen to have access to the car's record check for any repair that looks like a partner. Then, plan for the worse case scenario and check to see if you could came out with some basic number. Ah make sure that both Inspection I & II has been done! Enjoy your car as much as you can as the maintenance cost of the ego of the Ultimate Driving Machine. :cry:
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