I read that the consensus is to put aside money into a rainy day BMW account, and hope you’ve picked the right stocks to keep it full!
No, what is being said, figure out what a ‘worst case scenario’ repair would be; After factory warranty is up, and put that much in the bank. I would suspect that to be about 2000 bucks in transmission repairs.
Any other repairs are your responsibility anyway (brakes, shocks, struts, tires, alignment, filters, battery.)
I would suspect that 2 grand is what you are being quoted anyway. Save it. In all likelyhood you won’t use it. I would rather gamble that way, and have a chance at getting my 2000 back, than kissing it away for good, on a less than reputable, scandal ridden ‘insurance’ plan. Just my $0.02 worth.
Did I not just say this??
The trouble is that the warranty companies also know what BMWs are like. Any expensive repair is statistically going to happen after the extended warranty runs out - otherwise they’d go out of business.
Once you bear that in mind, you can see that it’s statistically much safer to sock the money away in an interest-bearing account. Yes, you might have to spend it, but the probability is that by the time you have to spend it, the extended warranty wouldn’t have covered it anyway.
And that’s assuming that the extended warranty isn’t a scam that won’t cover what it claims to cover, which most of them are.
Well any car can have major expensive repairs.
The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay. Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.
Remember that the seller is out to make money and they get to write the rules and set the price. They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.
Would you gamble with a car dealer who gets to set all the rules and knows all the odds?
Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.
Good Luck
If you take it in for regular maintenance for the life of the warranty and then continue to maintain it at least as well as BMW did for the first 50,000 miles (or 4 years) it should be fine.
And only girlfriends are expensive.
Someone revives a 7 year old warranty thread and names two companies I suspect stealth advertising ,
@cdaquila Carolyn , what do you think?
It’s spam…I flagged it as such. It should be removed and persons account deleted. It was opened when he posted it. At least it adds to my list of companies never to use. Any company that has to do this type of advertising is a sleaze company and should be avoided at all costs.
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