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BMW 5-Series Extended Warranties



  • Just bought CPO 2005 530i with 41,000 miles. It came with BMW's standard CPO warranty that goes through October 2010 or 100,000 miles. BMW sells an extended maintenance warranty for approx $2800. That's costing $85/month for the remaining 2.7 years. I won't hit the 100K mileage mark before this.

    Is the extended maintenance warranty worth it? What's the normal cost for routine service maintenance (oil/fluids, filters, brakes, tune up, etc)?

    DF - So California
  • All extended warranties and maintenance plans have profit and commissions included in their price. The average driver with an average car with average maintenance and warranty work will always come out ahead on average without extended plans. Potential extended warranty and maintenance work cost me $1400 on my 2002 530i SP 5 speed before 100k miles.
  • I have been reading some of the posts in this forum this morning, and there seem to be some very knowledgeable folks who answer these questions, so am hoping to get some help on a couple of questions.

    My father is the original owner of a 2001 BMW 530 with just under 40,000 miles. He is going to sell it, and I'm interested in buying it. He has purchased 1 year warranties twice now from BMW, which have since expired, and he's been told by BMW that he cannot purchase another.

    If I purchase this car I will do so only if I can also purchase an extended warranty. I called my local BMW dealer to see if I could purchase a warranty from them, and they said I could only purchase it if the car had originally been purchased from them. That is not the case, so I believe I need to get a 3rd party warranty.

    I've done some reading on purchasing extended warranties that cover both wear and tear, as well as mechanical breakdowns. Does anyone have any advice on reputable companies that I can get a quote from? Any advice on the length of the warranty I should get? Can I even get coverage for this type of vehicle and, if I can, is it even worth it (ie will I get nickle and dimed in the fine print and not qualify for repairs)?

    Any advice or experience is most welcome.

  • shiposhipo Posts: 9,152
    Many folks, myself included, would advise that you simply "self insure" by taking the money that you would otherwise spend on the warranty and set it aside for unscheduled repairs. While you may not make out on any one car, the betting is that over years that you are a car owner, you'll come out well ahead in the end.

    FWIW, the last car that I bought the "extended warranty" on was my 1989 Chrysler LeBaron GTC 5-Speed, and the warranty didn't even come close to paying for itself. Following that car we've had a 1993 Ford Probe GT 5-Speed, a 1995 VW Passat GLX 5-Speed, a 1995 Plymouth Neon Sport 5-Speed, a 1998 Dodge Grand Caravan Sport 3.8, a 1999 BMW 328i 5-Speed, a 2002 BMW 530i 5-Speed, and a 2003 Dodge Grand Caravan ES 3.8. The grand total of the extended warranties that my wife and I didn't buy was somewhere just north of $15,000, and against that I can account for some $4,200 in unscheduled repairs. However, that isn't the whole story. Of those unscheduled repairs, almost $3,400 of them came after the extended warranties would have expired (i.e. on the far side of the 100,000 mile mark), and that means that had I paid the $15,000, I would have recovered maybe $800 in "free" repairs (and that doesn't even take into account that many of the warranties had a deductable).

    I maintain that self-insuring is by far the cheapest way to pay for unscheduled repairs. Sure, you may not break even on any one car, but over the course of years and a parade of cars, you'll come out WAAAAY ahead paying for your own repairs.

    Best Regards,
  • dfrilotdfrilot Posts: 3
    It's going to be difficult and expensive buying a 3rd party warranty that's of any real value... e.g: reasonable deductible, good coverage, reliable company.

    If you're buying the car from your father (the original owner) and you know he's kept up on normal maintenance, then I would not buy an extended warranty. You're probably buying the 530 at a favorable price - right? If so, take it to the dealer and have a complete service check done before you buy it. Split the service cost with your father... you both come out ahead.
  • petppetp Posts: 43
    Im considering buying out my lease on my '06 5 series and was thinking of CPO'ing it...which of course BMW charges you for. But after calling Geico last night to compare rates of buying a new car they said my insurance policy already covers my current car for 6 years/100K miles from the date of service for any mechanical problems (with a $250 deductible).

    What does everyone think of this? any experience with geicos warranty? Im not concerned with any little thing that might go wrong, like a broken seat or something, Im mainly worried about a major an engine or tranny failure, which would be covered under geico's policy.
  • I am looking to buy a 2005 545i with 45K and plan to buy an extended warranty. The non-BMW dealer that has this car offered an extended warranty (not sure of the company offering this warranty) for $2600.

    My credit union also offers an extended warranty from Old Republic and I was wondering if anyone has any experience with this warranty company. I cannot find much reviews about this program online... is there any specific forum for such information.

    Quote was $1651 for 4yrs/75k & $0 deductible
  • Hi Guys,
    Please help me!
    I am purchasing a 7 series used,deciding between CPO and from a 3rd party / dealer.

    I am looking for the best deal, and found that CPO rarely covers the full car, + it has a deductible!

    I am looking for a full list of available extended warranty companies out there which I can purchase warranty from:

    It seems Geico includes warranty?? 250 deductible?
    What is Zurich? How much is their warranty? Can I purchase it myself?
    Does Costco insurance include warranty? AAA? State Farm? Allstate??
    I see CarMax offers insurance, I need to see how much$$

    Please help with some extended warranty companies to cover my 7 series! Please note I am posting here because nobody is responding in 7series forums
  • Hi, guys: I am first time BMW owner. I just bought a 2009 BMW 528i for $48,500. the dealer rec extended warranty (7 yrs/100,000 miles) for $2550 to cover major breakdown. Is this worthy it?

    What about road hazard tire plan for $950 to cover tire repair, auto armor plan for $795 to cover body, and key replacement plan for $199.

    please help me out, thanks in advance.

  • I track my expenses and paid $1400 for repairs that would have been covered by extended warranties and maintenance plans. Also, consider they are essentially insurance policies and have profits and commissions included in the price. The average customer will lose money on the deal.
  • Hi guys,

    I own a 2006 525i and it's currently under BMW service maintenance plan. I'm thinking about extending the service maintenance and the cheapest I have been offered is for $1900 (6yrs/100,000miles - whichever comes first). Is this worth buying for the price quoted? Please advice!
  • gardisgardis Posts: 185
    I'm by far not an expert at all. I have a 96 328i that I got through the CPO program in 1999. The car has been off warranty for quite awhile. I have kept it up, I had the major service at 60K miles and I replaced a water pump at 96K miles. Normal servicing, brake job, oil changes since.

    Your car probably went into service in 2005 the way BMW figures it, and add the 6 years to that which means your full warranty lasts until 2011. Service warranty runs out 2009 sometime, right? Why are you thinking about an extended if you still have two years on the major warranty? Also, what does it say about BMW reliability if we have to spend $2000 on an extended warranty, you mean to tell me that you would spend $2000 over the course of two years on repairs? Also, what time period is involved in the 6 years you need to be more clear on that. You mean 6 years from today? Please clarify. Again, I'm certainly no expert there are far more experts on this forum who would probably know. But it's a judgement call. I wouldn't do it personally, that's a lot of money for only maybe needing the coverage. I mean, my water pump job cost me $850 at the dealer, and that's with changing all the belts at the same time.
  • Yeah, this response is a year and a half later...


    That's some of the best advice I've read on the subject of reliability and warranties.

    In my experience (sample size of one person), major repairs only come long after extended warranties have expired. Ie: 100k+ miles. Thus, the huge profit margin for these companies. They're selling security blankets.

    Plus, your opinion reinforces my practice of fixing my own vehicles.
  • Thumbs down!

    I bought their top-of-the-line extended warranty a year ago.

    They fixed a couple of small things that came up, but I just paid $250 because they denied the claim on fixing my HEATER! It was a fan resistor that failed, and they don't cover that part.

    Note the two ways they got me:

    1. Although this was marketed to me as an "extended warranty," it's actually a promise to fix a very specific list of parts that might fail. So if your heating and a/c fails, it might or might not be because of a covered part, so they might or might not fix it.

    I thought that "of course they'll cover a broken heater" but they referred back to the contract, pointed out that the "climate control fan resistor" is not listed in the contract, and denied my claim. So I have no legal recourse. But I can say that I feel misled, that it was my local BWM dealer that sold me this warranty, that I won't buy this warranty again, and finally that I'll reconsider my planned purchase of two new BMWs this year.

    2. I called the customer service number and spoke to a live rep in a reasonable period of time. He referred to the contract and said that my claim was denied. When I told him I was not satisfied, he would not refer me to someone (e.g. manager) who could work with me and would not provide a direct dial number. So they did not provide a way for me to appeal or resolve my issue.

    Bottom line, my experience has been THUMBS-DOWN!
  • shiposhipo Posts: 9,152
    As a general rule, you will not make out on an extended warranty (even if it's from a reputable company that honors both the letter and the "spirit" of the contract), and if you buy them for every car you own, you will virtually never make out on such warranties over the course of many cars. Case in point, I bought an extended warranty on a car I purchased in 1988, a warranty that cost more than what it actually provided in covered repairs. I learned.

    Since then my wife and I have purchased eight new cars, some of which saw the 200,000 mile mark before we turned them over, and we didn't opt for a single extended warranty (and didn't spend some $15,000 on said warranties in the process). Over that same period of time we've yet to spend a total of $5,000 in unscheduled maintenance making for a savings of over $10,000. But wait, there's more! Of that four thousand dollars and change of unscheduled maintenance, $2,600 was caused by a transmission failure that happened 39,000 miles beyond the point where the extended warranty would have covered that particular failure, so in essence, I would have had to spend nearly $18,000 (the eight warranties plus the cost of the tranny) and gotten only about $2,000 in covered repairs from said warranties.

    In the end, I'm over $16,000 ahead by self insuring.

    Best regards,
  • I am planning on getting a 08 528i with 24k miles from a non BMW dealer and was wondering when is the best time to get a extended warranty. I know the longer we wait the more expensive it can get. I do have a quote from warranty direct and wanted to know more about this company and its experience from this forums many experienced BMW owners. So, I would like to get any feedback if possible. Also, is it better to wait to buy extended warranty just before it ends or better to get it when the car is just 2 years old. Any info is greatly appreciated.
  • My new vehicle warranty will end within the next couple of month (I am currently at 47500 miles into my 3rd year). I am wondering if it makes sense to purchase a bumper to bumper warranty (both maintenance plus mechanical plans) or just maintenance plan alone hoping no major problem will occur before I sell it (I usually keep my car for 5 years). I was given a quote of $2295 for 5yr/100,000 on the maintenance plan and $3340 for 5yr/100,000 on the mechanical plan. So together would be $5635 to keep my car and piece of mind for another 2 years and 2 months.

    Anyone has any thoughts or advice? I welcome all your inputs and will make my decisions soon. I live in Los Angeles area.
    • “THE WG”
    Here are the facts of my experience with United Auto Care and United BMW, both Penske companies.  You should read for yourself before taking the risk of doing business with any of these Penske companies.
    January 19, 2010: I test drove a used 2004 BMW M3 convertible at United BMW of Roswell – a Penske company.  After the test drive, I fell in love with the vehicle which is the epitome of “The Ultimate Driving Machine.”  Upon returning home that evening, I performed extensive research on the vehicle, and found many great reviews confirming that the BMW M3 is one of the most favored sports cars available anywhere!
    However, one finding caused me great concern: the hydraulic oil pump for the automatic transmission had been known to experience premature failure; sometimes as early as 40,000 miles.
    The following day, I spoke with United BMW’s used car salesman to discuss my concerns about the oil pump defect with this vehicle.  The salesman reiterated at that time that the vehicle was being offered “as is,” but that the vehicle had been thoroughly inspected and that there were “no problems with the transmission.”  At that time, the salesman also suggested that I could purchase an extended warranty that “would cover any transmission problems should they occur in the next 36,000 miles.” I informed the United BMW salesman that – if the warranty policy was reasonably priced, I would still consider purchasing the vehicle with the extended warranty.
    January 20: I returned to the United BMW dealership to discuss my concerns with the salesman, and to discuss the extended warranty.  At that time, the salesman informed me that the extended warranty by United Auto Care – also a sister company owned by Penske “would definitely cover any problems with the transmission oil pump”.   At a cost of $3,000 for the Hi-Tech coverage option, the extended warranty seemed like an excessive cost for the coverage, but the salesman indicated that – if there were to be a problem with the transmission, “the repair would cost even more than the $3,000 warranty premium.”  I was amazed at that statement, but after much discussion, I agreed to purchase the vehicle complete with the $3,000 additional extended warranty program as peace-of-mind for this potential transmission problem.
    It will become apparent later in the story, why it is important to note that this Penske United BMW used car salesman had a verified history of misrepresenting the vehicles that he sold.  When he sold the vehicle to me, he informed me that the vehicle was equipped with Bluetooth hands-free mobile phone connection.  Only after the vehicle was purchased, did we discover that the vehicle did not – in fact – have Bluetooth capabilities.
    When I informed the salesman of my dissatisfaction with his misrepresentation, he informed me that “I’m sorry.  I was wrong and there is nothing I can do about it.”  It was later determined by United BMW that the salesman had – in fact – misrepresented the vehicle as being equipped with Bluetooth.
    Fast forward 3 months…
    I began to notice a vibration in the transmission during start off from first gear.  I brought the vehicle to United BMW, informing them of the vibration in the transmission.  United BMW was unable to identify the problem, and had no idea as to what might be the cause of the problem.  Over the course of the next two years, I brought the vehicle to United BMW no fewer than five different times requesting that they identify the cause of the problem.
    It ultimately became clear that United BMW had no competence for troubleshooting this transmission problem.  It was clear that they had no understanding of how the vehicle operated, and that they were not competent to perform inspection, troubleshooting, or repairs to this vehicle.
    After two years of tolerating the poor performance of the LEMON that Penske United BMW sold me, I finally drove the vehicle to an independent repair facility (indy).  My indy was quickly able to recommend inspection of the flywheel, which is a common cause of this particular symptom.  Although the flywheel is a “covered component” according to the extended warranty, United Auto Care refused to pay for the cost of troubleshooting.  I, therefore, authorized my indy to tear down the transmission at my cost to perform the inspection and troubleshooting process.
    Upon inspection, United Auto Care’s inspector confirmed that “the flywheel showed abnormal wear, and needed to be replaced.”
    This is where the TOTAL HELL of PENSKE and UNITED AUTO CARE begins:
    I called my indy to check status of the repair, to which he responded “The warranty company is denying your claim.  They are saying that this is not a covered failure.”
    I contacted the warranty company, and after spending several hours on hold and speaking to a variety of different “claims representatives,” I finally was able to escalate my case to a supervisor – Mr. Andrew LaPorte – who continued to argue with me that my claim was not a covered item.  I proceeded to question Mr. LaPorte as to why he was denying coverage for an item that is explicitly covered in my contract.  After extensive argument, and PENSKE United Auto Care refusing to replace the flywheel, Mr. LaPorte conceded to “machine the damaged flywheel” instead of replacing it, even though this was NOT an approved BMW procedure.  It is unacceptable that Mr. LaPorte should be allowed to force me to accept an inadequate repair that is not approved by BMW safety specifications.
    During reassembly of the transmission, it was discovered that the automatic transmission oil pump had also failed.
    November 2: While I was traveling in Asia for business, the indy initiated an additional claim to the warranty company to repair
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