Is warranty worth it?

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fidel5

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Hey, just bought a 2001 325i with 44K miles. It is still under factory warranty for the next 6 months. After this expires, I'm considering getting an extended warranty online, which I found for about $2,500 - for 4 years or 100,000 miles. This is a bumper-to bumper warranty, but it still wont cover brakes, battery, oil service etc. My question is, in your experiences is it worth it, or should I just put aside $2,500 to use for repairs in the next 4 years and hope not too much goes wrong? The way I see it, maybe nothing will go wrong and I can use that money toward things that aren't coverd like new brakes. And if something does go wrong, how likely is it to add up to more than $2,500?

your thoughts / experiences are appreciated...
[burnout]
 
D

deutsch100

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Congrats. In my personal opinion...warranty is always a good idea on a high end car. If you bought a base model Japanese car with little or no options, I would def. say pass...but with a BMW, warranty is peace of mind. A few years back my aunt bought a cpo 540i. Before the factory warranty expired, she purchaed 3 more years of warranty. In those 3 years....she totaled over $10,000 in legitimate repairs. Luckily, the ext. warranty covered them all, incl. a new transmission!!!

Get the warranty, at least you will know that you are covered if something goes wrong. Again, congrats, and enjoy your "new car" [thumb]
 
J

JTravick

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I would get it, too. BMW's are extremely expensive in repairs...I think the piece of mind is worth it too. But honestly, it's stupid little things that go wrong sometimes that would suck if you had to pay out for that. Do you know if there is a way to get the oil services/maintenece covered?...because those schedule maintenence/service intervals are kinda pricey too. My waranty expired on my previous bimmer 3 months before i traded it in -- and I ended paying $200 for my 36k service --. which was a waste because I traded it 3 months later.
 
F

fidel5

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wow, thanks people for all the quick responses! I'm starting to think you're right, I should get the warranty. The thing is theres no warranty that covers maintainance, brakes, etc, so it seems like even if I spend the $2500 on the warranty I'll still have to shell out some cash for other repairs over time.
So I think it boils down to how likely am I to have over $2500 in COVERED repairs over the next 4 years. From your responses I'm starting to think its very likely... I'd be interested to see some rundowns of peoples' repair costs over the years. This forum is awsome, its really helped me out, thanks all!

also, any recommendations for rims? Right now I'm riding on 16's...
 
Blue

Blue

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If anything mechanical (transmission, engine, suspension) or electrical (ECU & behind the dash) goes wrong, the bill can easily & quickly top $2500.

Did you buy this car outright? How long do you plan on keeping it? Is it for personal or business use? If this is your personal car and you plan on keeping it forever, or at least for another 4 years / 100k miles, then $2500 is a wise investment. Another thing to consider is the reputation of the warranty company - there are plenty of aftermarket warranty companies that deny coverage as standard operating procedure. There's nothing worse than paying for the warranty and then having to fight tooth & nail for coverage when they try to worm out of everything.

Of course, if you buy the warranty nothing will ever go wrong and if you don't buy the warranty the car will fall apart. I'd take the former if I were you. [;)]

P.S. I don't know offhand of any aftermarket warranties that cover routine maintenance / preventative maintenance. I'd imagine it would be pretty expensive. From the aftermarket warranty company's perspective, they'd have to charge at least as much as your projected standard maintenance costs for it to be cost effective for them. Maybe you could get a volume discount through them, but you'll probably end up at Jiffy Lube for el cheapo dino oil & generic brake pads.
 
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ibcnunhell

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i'm in a similar situation, i got a cpo 2001 325i with 32k and still with the factory warranty. Should i go for an extended bumper to bumper warranty as well before my factory warranty expires? What does the cpo warranty cover after my factory warrant expires?

fidel5 what company are you looking to get your warranty from?
 
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commander_crash

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talk to your dealer

My dealer allowed me to purchase extended full maintenance too. So I have warranty going to 100,000 as part of the CPO and maintenance going to 100,000 as well. It cost me about $1025.
 
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dumayou

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I never pay for aftermarket warranty though cause when you try to file a claim...lot of them give you run around and try not to pay for it. Plus you have to read everything on the contract make sure it's cover even when they tell it's covert. Make sure it's on the paper. I still have long way till my Factory Warranty go out, but when it's time I will take a look at the Factory offer extened warranty. They offer two type of warranty I believe..one is cover all your maintance such as oil change, inspection II and brakes and the other one is cover the big stuff like transmission, Electrical..ect..not really sure but I will look into it when it's time to get it. Please if anyone on this board got the factory offer extened warranty please share some thought and let us know it's worth it or any trick we have to look for when we finally buying it. TIA
 
Blue

Blue

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ibcnunhell said:
i'm in a similar situation, i got a cpo 2001 325i with 32k and still with the factory warranty. Should i go for an extended bumper to bumper warranty as well before my factory warranty expires? What does the cpo warranty cover after my factory warrant expires?

fidel5 what company are you looking to get your warranty from?
Click to expand...
http://www.bmwusa.com/CPO/Benefits/default.htm
 
Audible

Audible

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Warranty???????

Yes.........................................................!!! Get it. An engine for your car would be 4 times that.

Audible
 
S

SplinterPDC

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I did it, was a third party that the dealer was pushing here in ATL. Was like $2500 for 100k and another 3 years. Could have save a couple of hundred by going with another company but i figure my service shop was used to dealing with them so I would run into the smallest amount of grief over a claim. Have not had to use it yet, murphys law i figure but there is no way i will not get myt $2500 out of the plan in the next three years, its just a matter of time.
 
Blue

Blue

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commander_crash said:
My dealer allowed me to purchase extended full maintenance too. So I have warranty going to 100,000 as part of the CPO and maintenance going to 100,000 as well. It cost me about $1025.
Click to expand...
$1025 for maintenance through 100k miles is a sweet deal. Is there any deductable? What do they cover? Oil, filter, & other fluids? What about 30, 60, 90k mileage inspections? I'd imagine that brake pads & rotors aren't covered. Still, if oil & inspections are covered, it's worth it. I'm surprised at the the price!
 
Blue

Blue

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SplinterPDC said:
I did it, was a third party that the dealer was pushing here in ATL. Was like $2500 for 100k and another 3 years. Could have save a couple of hundred by going with another company but i figure my service shop was used to dealing with them so I would run into the smallest amount of grief over a claim. Have not had to use it yet, murphys law i figure but there is no way i will not get myt $2500 out of the plan in the next three years, its just a matter of time.
Click to expand...
smart choice - go with the company your dealer is used to working with. Otherwise, your car will sit in the service bay for days while the dealer screws around with some witless answering service for the other no-name warranty companies.
 
F

fidel5

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warranty

If I am going to buy the warranty it will be from WarrantyDirect.com. It was recommended by carbuyingtips.com which seems to be a pretty comprehensive site. For $2,500 I can get their highset lever warranty for 4 years which covers everything in the car EXCEPT these named components:

"Carburetor; battery; shock absorbers; manual transmission clutch assembly; friction clutch disc and pressure plate; throw out bearing; manual and hydraulic linkages; distributor cap and rotor; safety restraint systems; glass; lenses; sealed beams; light bulbs; brake rotors and drums; exhaust and emission systems; weather strips; trim; moldings; bright metal; chrome; upholstery and carpet; paint; outside ornamentation; bumpers; body sheet metal and panels; tires; wheels/rims; GPS navigation systems; phone systems and TV/video/entertainment systems.

Maintenance services and parts described in your vehicle's owner's manual as supplied by the manufacturer. (i.e. oil changes, tune-ups, brake pads, belts, hoses and spark plugs)"

they say you can go to ANY service shop in including the dealership, and they will pay for it on the spot.

So from all your responses I'm thinking its worth it, right?
 
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commander_crash

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Blue said:
$1025 for maintenance through 100k miles is a sweet deal. Is there any deductable? What do they cover? Oil, filter, & other fluids? What about 30, 60, 90k mileage inspections? I'd imagine that brake pads & rotors aren't covered. Still, if oil & inspections are covered, it's worth it. I'm surprised at the the price!
Click to expand...
Indeed it covers the breaks - as this was why I got the full maintenance extended. The cost of new breaks alone makes the deal worthwhile. It covers everything, including windshield wipers. Not sure if the dealer just likes me (my family has now bought 4 cars from the same dealer), or if it's something anyone can do.
 
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cordelli

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I would speak with the dealer first to see their history with it. We had a third party extended warantee on another car, through AAA and it was never ever accepted for any repairs at all. They use a company called Member Services Center out of Massachuestts, and it's just like throwing money away.

The dealer at the time explained to me that most third party waranties were like that, you pay a ton of money and never can get a claim paid.

I'd be very careful if it's not something your repair people deal with.
 
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