Value Of Extending BMW Warranty?

- R
- Rand Simberg
  
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posted
20 years ago

Mon, Jul 14, 2003 7:52 PM

I've got a 2000 323i that's about to hit 50K on the clock. If I wait until after it turns over to buy an extended warranty, the price goes up.

But even now, it's over three grand for another fifty thousand miles and three years.

The car's been mechanically trouble free until now. What kind of thing is likely (or even possible) to go wrong in the next fifty thousand miles that will cost over three thousand dollars, assuming I don't do anything stupid (e.g., running without oil or water)? Somehow this doesn't sound like a great deal to me.

On the other hand, it's transferrable, so I also wonder if having an extended warranty will increase the resale value enough to make it worthwhile.

Does anyone have any thoughts or wisdom on the subject?

- K
- kgold
  
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posted
20 years ago

Mon, Jul 14, 2003 9:30 PM

Most advice I've read says that extended warranties are generally not a good buy.

Also

- Read the fine print. Many are not bumper to bumper coverage.

- Read your warranty manual. You might already have an extended power train warranty?

- Is it a BMW, dealer, or a third party warranty. Will the third party be around for three years? Can you bring the car to any repair facility, or are there restrictions?

- Read the f> I've got a 2000 323i that's about to hit 50K on the clock. If I wait

- B
- bobby
  
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posted
20 years ago

Tue, Jul 15, 2003 1:50 PM

I don't know that much about BMW reliability and repair costs specifically, but in my personal experience, I am way ahead by NOT buying the extended warrantys on stuff (cars, electronics, etc.) as the warranty cost more than I have ever spent on repairs during the extended warranty period. Also, the automotive warrantys I've seen often have a deductible, so you still pay for part of each repair. While BMW parts will cost more than my Chevy or Ford, if the base cost is "over $3K", you are prepaying for $3500 - $4000 worth of repairs during that added 50K mile. Personally, I'd gamble and not pay for those potential repairs up front. Butttt, if you plan to sell the car between now and the end of the warranty period And you believe that the existance of the extended warranty will increase the value by $2-3K, then maybe it is worth it.

On the flip side though, I prefer to maintain my own vehicle, so asside from a catastrophic engine or transmission failure, I would prefer to replace my own water pump, fuel pump, etc. and would not want to hassle with the warranty......