Need Advice - Should we get an extended warranty?

[btanks]

Hello Bimmers -

I recently did a lease buyout on my 2021 BMW 330i xDrive after 3 years (directly from BMWFS), and my warranty expired with the lease end of 3 years. The car is in perfect condition (no issues/faults) with low miles (~11400). I wanted to understand what do other bimmers usually do

• Do you opt for Extended Warranty on the car?
• If yes, then any recommendations if should get it from BMW itself or any good third party ones - such as Endurance/ or any others?
• If no, do we just rely on our regular insurance? (I'm using Metromile Insurance)

Any other suggestions/recommendations overall for a first time car owner post a lease buyout to be aware/known off?

Apologies if this is too naive to ask, but am pretty new to all this and seeking help and guidance to understand how fellow bimmers of think or it and opt for

[DanG]

First, your maintenance period has expired but you still are under BMW factory warranty. The factory warranty is four years from the date of delivery of your BMW. It doesn’t expire at the end of the lease.

Auto insurance does not cover regular repairs on your car. It only covers repairs due to an accident.

In general extended auto warranty plans are a bad deal. Just save the amount of the premiums in a savings account and you should be ahead of the game. I personally have never taken out an extended warranty plan.

In any case you have a year left on your warranty. See if you have any brake downs during that period. If your BMW proves to be reliable (which is most likely) then pass on buying an extended warranty.

[tturedraider]

Your warranty expired?? The standard new car warranty is 4yr/50k miles. The included maintenance is 3yr/36k miles.

[NickyC]

11,400 miles.

No, you have essentially a brand new car.

[SpaceSilver.X1]

for a 2021 BMW 330i that's still under the 4-year/50,000-mile BMW warranty, you can definitely buy a BMW extended warranty. Based on what I learned last year, the price for a 7-year/100,000-mile BMW extended warranty with no deductible for the 330i will be around $2900 to $3200.(if you research this forum and find those BMW finance managers who will sell these plans at a discount)

Some people will say buying an extended warranty(even if it's from BMW itself) is a waste of money. That's not entirely wrong. An extended warranty, similar to insurance, is suppose to make money for the company or underwrite that offers it. They are counting on the fact that not all cars will have problems. Like a casino, the house ALWAYS wins.

Having said that, these plans offer peace of mind for BMW owners who keep their cars who keep their cars for 5, 6 or 7 years. The $3000 buys you protection for the extra 3 years. That's around $80 per month for 36 months. Without warranty, these items will cost way more than $3000 to repair/replace: engine, transmission, infotainment computer, climate control system, etc. Just one repair will offset the cost of the $3000 extended warranty.

An alternative is to NEVER buy extended warranty and put all that money away in an account for rainy day.(i.e. car repair)

I prefer to pay for peace of mind... but that's just me.

[khp3655]

Another way to look at it is to ask people on the forum what they have spent on repairs on their cars that are under 7 years and under 100,000 miles. I suspect that while a few have spent much more than $3,000 the majority of people, and thus the average person, has spent much less than $3,000 on repairs.

It's too bad car companies don't offer a middle ground -- extended warranties with high deductibles (say $500 or $750) that would have us pay for small or even medium repairs, but provide real relief once the cost gets high. It seems like an insurance product like that might cost a fraction of the regular low/no deductible repairs and be mutually beneficial. I would strongly consider a low-cost warranty where I knew the worst my bill would be would be $500 or even $750.

[LogicalApex]

There are no perfect answers. You’ll get a lot of perspectives, but ultimately you’ll want to do what you feel is best for you.

I would suggest reading the extended warranty details pretty well to know what is covered and for how long then decide if you feel it is worth it…

For me, I extended the warranty on my BMW 530e with the BMW ESC option. I also extended the maintenance out far as well. People opined that extended both of these were a bad idea, but I purchased my extension as COVID impacts were getting started and things looked very inflationary to me. That has proven correct. The ESC and MP have allowed me to lock in 2019 prices in a market that has seen significant inflation.

Additionally, people will always be quick to quip that extended warranties must not have claims to still win. I’d suggest that’s the world isn’t black and white. Meaning, they could actually make money even if you have claims and even if most people exceed the cost they paid for the warranty (on sticker price repairs) for a given brand or model. Just like insurance they have a larger more diverse pool to spread it across if they are a generic underwriter. So, they may have elevated losses on BMW 5-Series cars and lower than expected losses on Toyota Camry cars. But more importantly, they are often able to access pricing that isn’t easily accessible by you. So they can purchase the part at fleet discount rates and negotiate labor rates. Making their out of pocket cost for the repair lower than you’d pay. If it is a BMW ESC then BMW likely pays the same rates it does when the car is under factory warranty further lowering their costs. Allowing them to still make money on a repair that would have been a “loss” if priced at the same rate you’d pay.

My advice is always the simple. If you don’t think an EW buys you piece of mind and you’d prefer to save. Do so, but make absolutely sure you know what the EW price would have been. If your car exceeds that in repair costs during the time that you would have had the EW. Sell it and get out from under it. To minimize your losses. As without the EW you’d have no cost backstop and you can use the EW pricing to gauge a “reasonable” repair cost estimate since that’s what an actuary has done pricing the plan.

[crashoverride]

This is a common question and you will get definitely get some vocal haters (that tend to skew a solid discussion). Yet the happiest people in a dealership waiting room is those that have someone else paying the bill. I've always been taught are you in a position to write a check or would writing the check be difficult i.e. I cannot write a check to replace my house in the event of an earthquake so I have earthquake insurance.
There are hundreds of different auto policies. There is a lot of markup and the price is negotiable. Also should you sell the car before the extended policy expires you can get a refund. The nice thing about getting an official BMW issued by BMW is they for the most part going to be around and honor the repair.
You can also watch for trends and judge costs for example on an early e90 BMW it was not a matter of "If" but "When" the water pump would be needing replaced. I like Audi's but would NEVER... EVER... EVER buy an Audi without an extended warranty.

[Westside Guy]

Also if the extended warranty is transferable that is an important factor to consider. IMHO, that can add some value to the plan if that option is ever used.

[Ravedave]

Have just had the engine replaced under warranty in my M6 . 52,000 miles 2013. warranty covered up to purchase price of car. I had to pay £9000 on top as bill was £43,000, so in answer to the question, yes im glad I had bmw extended warranty.

[NikMN]

Car shouldn't need to have an engine replaced after 52k. And you paid 9k. Bless you heard

[Bc2005]

Even if you buy it from BMW, it is really more like a repair insurance policy than an extended “warranty”. That doesn’t make it a bad choice, but there are more limitations and uncovered items than what is covered by the OEM 4 yr/50k warranty. Make sure you understand what is and is not covered.

Also, the opinions you get are mostly anecdotal, and I doubt anyone here has data based on repairs to multiple BMW M340 vehicles. I have purchased an extended warranty a few times. Sometimes it paid off and sometimes it didn’t. Many new cars are also very reliable up to about 80k-100k miles, and even then it’s usually water pumps, alternators and other relatively simple repairs.

Remember - you are buying insurance against repair costs. Insurance policies often don’t have a good ROI, but they make you feel better.

[NikMN]

Originally Posted by Bc2005

Even if you buy it from BMW, it is really more like a repair insurance policy than an extended “warranty”. That doesn’t make it a bad choice, but there are more limitations and uncovered items than what is covered by the OEM 4 yr/50k warranty. Make sure you understand what is and is not covered.

Also, the opinions you get are mostly anecdotal, and I doubt anyone here has data based on repairs to multiple BMW M340 vehicles. I have purchased an extended warranty a few times. Sometimes it paid off and sometimes it didn’t. Many new cars are also very reliable up to about 80k-100k miles, and even then it’s usually water pumps, alternators and other relatively simple repairs.

Remember - you are buying insurance against repair costs. Insurance policies often don’t have a good ROI, but they make you feel better.

I'll translate. Buy something else

[Rafichicago]

Whatever you will do you still have one year or so of warranty left. You kind of know how your car was over the past 3 years since you own it since new. Depending on cost associated with it I’d decide if it’s worth buying. If you decide to buy expensive extended warranty I always prefer to pick those that state what’s not covered instead of those that state what is. If you’d like to keep the car long term get it. If you have decent independent shop in your area or can fix small things yourself don’t.

[DocL]

Absolutely buy one if you are planning on owning the car for at least three years. I got one through the dealer that sells them here for my 2018 M3. I opted for the Axiom Platinium 5/100k additional when my OEM warranty had one month left. I paid $3200 for it. In the last five months I needed the gas tank and valve cover replaced. Total for both repairs was $6,900. I do have a $250 deductible which is no big deal.

[SpaceSilver.X1]

Originally Posted by Rafichicago

If you have decent independent shop in your area or can fix small things yourself don’t.

are there any decent independent shops that you can recommend in the Chicago area? (for Mercedes C43 AMG and maybe BMW X1 and 530i in the future?)

Thanks!

[Rafichicago]

Originally Posted by SpaceSilver.X1

are there any decent independent shops that you can recommend in the Chicago area? (for Mercedes C43 AMG and maybe BMW X1 and 530i in the future?)

Thanks!

I honestly don’t use any shop since I work on my own cars. Occasionally take them to the dealer but my wife works for one so I get to be treated there more than fair
Fluid motor union is one shop that is great it’s in Naperville area. There’s small BMW shop in Roselle. It’s called Luke G workshop I believe it’s on Central ave. There’s one more BMW specific shop down south. Like orland park or that area. That’s all I can think of.

[BMWbiker]

I have owned three cars for which I purchased extended warranties.

For two of them, they paid for some minor work, but I did not make my money back.

For the other one, it alone more than paid for all three extended warranties. (Not a BMW.)

Just for what it’s worth.

[Westside Guy]

The last extended warranty I purchased was for a 2004 CLK500 cabriolet and after they had to replace the entire command center module which was flown in from Germany it more than covered the cost of the warranty.

I haven’t purchased any extended warranties for my 2022 Z4 yet which only has 11,500 miles and have been monitoring the complaints on the G29 forum to see if there are any major issues.

[Highline-Autos.com]

Originally Posted by Westside Guy

The last extended warranty I purchased was for a 2004 CLK500 cabriolet and after they had to replace the entire command center module which was flown in from Germany it more than covered the cost of the warranty.

I haven’t purchased any extended warranties for my 2022 Z4 yet which only has 11,500 miles and have been monitoring the complaints on the G29 forum to see if there are any major issues.

We have had extended warranty customers replace a single seat at the Mercedes-Benz dealership and make up the cost of their extended warranty coverage, no surprise you did well on your command module replacement as well!

Keep my information for when you're approaching your factory warranty expiration on the Z4. Our extended warranty providers Fidelity and Freedom Warranty are accepted at all BMW dealers and licensed indents in the US/Canada.

You can reach me at tgibson@highline-autos.com or (855) 924-1333 if you have any questions, or would like a quote and example contract that explains coverage.

[Westside Guy]

Why was the seat replaced?

[c1pher]

I gave up on extended warranties as a general practice a long time ago. I have never said “damn, if I had only gotten an extended warranty.” That’s not to say I don’t buy CPO cars when buying used.