Looking for an extended warranty

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radman07
Posts: 4
Joined: Sun Feb 22, 2015 2:19 pm

Looking for an extended warranty

Post by radman07 »

Hello all,

This is my first time posting to this forum. I just took possession of an imperial blue 535XD and I am loving it! Now I want to look into getting an extended warranty while I have low milage on the vehicle. Does anybody have any recommendations? I am currently looking at the BMW 7/70k extended warranty and the totalcare 10yr/120k warranty. Does anybody have an contacts to get discounts on these warranties?

Thanks for your help in advance....

sgoatley2001e46
Posts: 391
Joined: Thu Jan 10, 2008 4:49 pm

Re: Looking for an extended warranty

Post by sgoatley2001e46 »

Hey - welcome to the forum. I have mixed feelings on the warranty. I purchased a non-BMW warranty for my first BMW, and it was on the cheaper side, but still pricey. I did have a major failure at around 136K miles, and the repair was covered...mostly. I still had a large out of pocket cost, and when factored with the original price of the warranty, it didn't save me anything. My current car came with a CPO warranty that will expire later this year. (for a reference point its a 2009 328i). The expiration is going to happen based on time, not miles. I have about 58K miles on the clock now.

I think the smartest thing you can do is to maintain the car properly, and above what is recommended by the dealer. While there are more expensive cars out there to maintain, BMW's certainly aren't cheap. In my experience, it's easier and cheaper to service the car regularly, use OEM or OEM approved parts for repairs, and for the love man, change the trans fluid, and the differential fluids.

If you're in the Morris County area, hook up with the guys at Shade Tree Garage. They're a club sponsor, and genuinely trust worthy independent shop. If you prefer the dealer route, I have no complaints about Morristown BMW, but avoid Roxbury for anything other than parts. Other folks say JMK BMW in Springfield is the way to go (also a sponsor). Circle BMW in central jersey is also a reputable shop, and I believe we have a club member working in service there.

If you're still set on getting a warranty, I suppose you could also call the national office to see if we are eligible on any extended warranties...BMW or otherwise.

Sorry to write so much. I just know what I went through, and think it was a lot of money for little piece of mind, and little results when actually needed.

Good luck!

radman07
Posts: 4
Joined: Sun Feb 22, 2015 2:19 pm

Re: Looking for an extended warranty

Post by radman07 »

Thanks for your comments and suggestions....I have a couple of different routes:
1) BMW warranty
2) Totalcare warranty
3) Geico MBI policy (very cheap)

I agree with your comments but as you probably know these cars have lots of electronics...I also have a turbo on mine so I am guarding against some sort of really expensive repair after the warranty. My first inclination is the get the Geico MBI policy as a start. Geico treats this as another insurance policy and from what I have read its supposed to be pretty good.

What is your experience with Prestige BMW? I just took in my vehicle for the 1,000 service and they screwed up my tire pressures big time. I am a little bit of a tire nut and I like to make sure the tire pressure are where they need to be. Any independent shops in Sussex county you recommend?

sgoatley2001e46
Posts: 391
Joined: Thu Jan 10, 2008 4:49 pm

Re: Looking for an extended warranty

Post by sgoatley2001e46 »

Unfortunately, I don't have any experience with Prestige. I think there is a dealership in Newton somewhere...used to be Bell BMW I think, but now owned by Open Road. As for independent shops, I'm really not sure. I can't think of the site, but know there is a list of independent BMW shops online. I'm hoping someone else can chime in here... might be bimrs.org?

As I was typing my last reply, 2 of your concerns were on my mind, and I can relate to one of them. For a turbo car, I really can't say that I know much about them, but truly believe that you will want to change the oil more often than recommended. At higher temperatures, the oil will break down faster. BMW's "free" factory service is minimal at best. If you're doing a 1K service, then I'm guessing you're a bit of a fanatic, which is a good thing. As for electronics, I had an LED tail light fail on my car around 45-50K miles, and it wasn't even covered under the CPO warranty. Although I tried like heck to argue that it was an electronic part, they classified it as a "bulb". So, it wasn't covered...$220 later, my tail lights worked again.

I'm not sure if you're new to the club or just the forum, but if you haven't yet joined the BMW CCA, do it! Most dealerships will give 20-25% off parts and merchandise, plus discounted oil change services outside the "free" period. It's a good deal, and a wealth of information.

radman07
Posts: 4
Joined: Sun Feb 22, 2015 2:19 pm

Re: Looking for an extended warranty

Post by radman07 »

Actually the 1k service is Prestige's service. I believe it was a way to get you in for the Encore presentation.....they basically just topped off the fluids, check tire pressure (so they claimed) and washed the car.

Yeah...I joined BMW CCA a few months ago...wish I joined it over a year ago to take advantage of the new car rebate!

My car now has a 10k/ 1 yr oil change schedule....not the 15k oil changes from years ago when I had a 2010 328xi.....are you recommending doing a 5k oil change instead of the 10k oil change? I'm curious what other people think about this....

320iJT
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Joined: Wed Sep 15, 2004 2:24 pm
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Re: Looking for an extended warranty

Post by 320iJT »

I work for a used car dealer and I can tell you warranty's can be hit or miss. We've gone through several warranty company's because they were no good to the customer. Nothing better than a phone call from a buyer who spent $1,800 of a full coverage warranty telling you the warranty company will not fix their ABS situation even though its clearly within the coverage stated on the policy.

The thing you also have to factor in is how good of a warranty is it on the paying side to the shop? BMW will obviously take care of the issues 100%. As for Geico, when it comes time to do the repair, they only authorize aftermarket parts. That's how they operate with their accident claims for their "recommended shops". They will not pay the full labor rate for another shop you may bring it to and will only pay for inferior parts. I am not familiar with Total Care but if it is being offered by the BMW dealer, that might be a good company. If its an aftermarket company you found on the internet, I would do your research thoroughly before committing.

Also how long are you planning on keeping the car? 4 years, 6 years, or until it hits 300,000 miles. If you are doing short term ownership (4 years) then I would recommend foregoing the warranty and maintain the car per the recommended maintenance schedule or better.
~ JT Burkard ~
Brick, NJ
1977 320i
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radman07
Posts: 4
Joined: Sun Feb 22, 2015 2:19 pm

Re: Looking for an extended warranty

Post by radman07 »

I plan on keeping this car for some time....at least 6 years or more....

The problem is these warranties are in excess of $4k+ (except Geico) and it makes me wonder if I just put money aside for repairs and stuff should I just self-fund any future repairs.....this is the big gamble with these policies.....

320iJT
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Re: Looking for an extended warranty

Post by 320iJT »

You are correct. Of course they are inflating the cost of the warranty so they make a little, but that is expected as they are a business and need to make a profit. I would say self funding is the most fiscally recommended direction.

When my Dodge Ram was coming out of warranty I had the opportunity to extend the factory 7/70 for $2,800 to an extra 50,000 miles and 4 years. I declined. I unfortunately had to rebuild the rear at 82k miles. Dodge quoted me $1,800 to replace the faulty posi unit. I brought it to a speed shop I've used for my muscle cars and they installed a stronger than stock unit, rebuilt the whole rear (new bearings, etc.), all for $1,400. Now I am at 130k so I would have been beyond that warranty coverage and I saved $1,400 plus gained a stronger than stock rear to boot.

As for the oil changes, synthetic, 5,000 should be the schedule, not once a year or 15,000 miles. Manufacturers extended the maintenance time when they were including oil changes and maintenance for 4 years. If they have to pay for it, they say keep going. If you were paying for it, it would be shorter.
~ JT Burkard ~
Brick, NJ
1977 320i
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sgoatley2001e46
Posts: 391
Joined: Thu Jan 10, 2008 4:49 pm

Re: Looking for an extended warranty

Post by sgoatley2001e46 »

$4K seems super pricey. In my experience, self funding is the better way to go. If you're going to spend $4K on a warranty, why not set that same money aside in case of a catastrophic repair.

Did you buy the car new or used, and how many miles are on it now? If it's new, then take advantage of the factory warranty. After 4 years or 50K miles, you should have a pretty good idea of how reliable the car will be over the long haul. Even then, you'll still have $4K in the bank in case of something emergent. However, as JT points out, maintenance is the key. You have to remember that if you spend 4 grand on this now, that still won't even include any maintenance items you need addressed down the road (i.e tires, oil changes not covered by the dealer, trans/differential services, bulbs, etc.) Periodically, I'll take my car to the dealer over Shade Tree for something that's a matter of convenience (i.e. loaner car), so I'll get flack from the service writer about how I don't need an oil change, or this fluid or that one is lifetime, etc. The reality is, you can maintain your car the way you want to maintain it. I don't know why someone would pay $30-50K or more for a car, and not take the time to maintain it properly.

I had my last BMW for 7 years, and fixed nearly everything on it. I sold it to another club member with 150K+ miles on it, and last I heard it's still running strong. Sure, some of the older parts tucker out at that age, and I'm aware of a few repairs it needed as of a few months ago. However, it's a 14 year old car now, and probably has many more miles on the odometer. At that age it's to be expected. But it didn't stay in that condition, and still running like a top with proper maintenance, and warranties just don't buy that, and BMW extended service plans don't offer anything more than what they typically cover under the new car plan.

I know it sounds like I'm trying to talk you out of it, and I guess in some ways I am. You need to do what you're comfortable with, and that'll make most sense. Tough decision, and certainly a lot of money. Good luck!

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