[AnnoyedVelociraptor]

Hi all. I have an M240i xDrive convertible with ~40,000 miles coming up on 4y. Nothing wrong with the car. I cannot in good conscience get rid of it.

I baby the car. Always wait for the temp (oil, not water) to be on point before flooring it.

It is a BMW however, with xDrive and a convertible for that matter. So it is the holy trifecta about stuff that can go wrong.

Looking at their top extended warranty (no deductible) for $5,050 for 3y/100,000 miles or $4,150 for 3y/75,000 miles.

Im gonna go with the 100,000 miles (plans don't line up with 75,000) but 5K is A LOT.

And this is a quote from Christine from Steve Thomas BMW. Around here they were $900 more.

What are your thoughts? Should I do it?

Other options that are trustworthy? The BMW is extremely convenient after all.

[XutvJet]

Total waste of money.

The chances of $5K in repairs happening on your M240 in the next 3 years is very low. My 2016 M235 is over 7 years old and I've owned it since day one. It's only need routine maintenance and went in for one warranty repair 6 months after getting it; a ECU reflash. That's it. My story is nothing special on this forum either.

[dradernh]

Originally Posted by AnnoyedVelociraptor

What are your thoughts? Should I do it?

It's important to remember that you buy insurance because you might need it, not because you expect to come out ahead.

In this context, I think almost all of us here have chosen to self-insure, but I can certainly understand why an owner might choose to buy BMW's extended warranty. Peace of mind can be worth quite a bit.

I don't know much about non-manufacturer warranties. I do recall reading somewhere (WSJ? C&D? NYT?) that every aftermarket warranty organization went bankrupt during or soon after the 2007-2009 financial system meltdown. (Don't quote me on that, though, as my memory isn't what it once was! )

[jzeiler4]

Take that 5K and put it in a high interest account and drive the car like you stole it.

[dradernh]

Originally Posted by jzeiler4

a high interest account

Can you provide us with a few links to such a thing?

[Gregoryb01]

Why do you suppose every spammer, telemarketer and their mother are trying to sell everyone an extended warranty for their car? Because they are typically money makers for the companies that offer them. That said, I’d skip it! Insure yourself.

[bcwalks2]

I wouldn’t get it, but I also do my own work. Have a 235i and X3 M40i, both out of warranty. I don’t see you have 5k in repairs and would take that bet any day.

For me, being mechanically inclined and having two pretty reliable platforms, I have no issue not getting a warranty. I think you are better off without it.

That being said, I did spend a few hours having to replace a leaky washer fluid pump on the X3. Would have been several hundred at the stealership I’m sure. Instead I bought the part for $30 and did the work myself. Little silly shit can go wrong, but there would have to be quite a bit to reach the $5k mark.

I’m rolling the dice if I’m you!

[morphomeman]

Not to pile on, OK I am piling on, this topic comes up frequently, and the answer is always the same: put your money in the bank.
This response applies to all paid warranties for anything.
The same $5000 in the bank will cover any emergency repairs, a very elegant solution.

[VAcurler]

When I bought my first BMW (E90) I bought an extended warranty and thanks to the design of the valve cover gasket on the N52 it easily paid for itself so when I bought my second (F23) I did the same thing. I don't have to worry about anything on my car for the next 7 years and that's worth it to me. As they said above - you are paying for piece of mind. Does it make financial sense to spend $5k on a piece of paper - no, but the piece of mind might be worth it.

[msej449]

Here in the UK, the BMW Extended Warranty for my 40K mile M235i is around £400/year. That’s the fully comprehensive cover with the only exception being coolant hoses. I already claimed for a replacement LSD which would have been at least £4K and the premium hasn’t gone up. At this price, I think that Extended Warranty is worthwhile, but …

$5K for 3 years is ridiculous. Basically, this is only cost-effective if you needed a new gearbox or engine. Yes, it happens, but it’s pretty rare. And remember that the repairs usually can’t cost more than the resale value of the car at the time.

It’s like paying $200,000 a year to insure a $1m home.

[Nickies]

Originally Posted by AnnoyedVelociraptor

Hi all. I have an M240i xDrive convertible with ~40,000 miles coming up on 4y. Nothing wrong with the car. I cannot in good conscience get rid of it.

I baby the car. Always wait for the temp (oil, not water) to be on point before flooring it.

It is a BMW however, with xDrive and a convertible for that matter. So it is the holy trifecta about stuff that can go wrong.

Looking at their top extended warranty (no deductible) for $5,050 for 3y/100,000 miles or $4,150 for 3y/75,000 miles.

Im gonna go with the 100,000 miles (plans don't line up with 75,000) but 5K is A LOT.

And this is a quote from Christine from Steve Thomas BMW. Around here they were $900 more.

What are your thoughts? Should I do it?

Other options that are trustworthy? The BMW is extremely convenient after all.

If you don't trust your car at 40K, you better replace it with something else.

I am at the end of warranty in 2 months with the same mileage as yours and there is no way I would invest in an extended warranty.

I will ask for a full inspection and if anything is wrong, they will fix it, period.

[Ajowhan]

Forget the warranty and be glad that its time to slap a tune on it. Maybe put a downpipe and go stage 2.

[Kernel Kurtz]

The extended warranty might be useful if you plan to sell the car (assuming it is transferable), but 5K is a lot, I don't think you would make that much back in resale value.

[jv92red]

I agree with both sides of this discussion.

First, extended warranties are almost PURE profit for car dealers. No other car on any manufacturer's lot has anywhere close to the profit margin of an extended warranty.

But keep in mind, just like sticker prices on cars, extended warranties are negotiable as well. And on an almost 100% profit service, they also are willing to negotiate on these too.

You just need to decide how much are you willing to pay for peace of mind.

Case in point, in 2019 when I purchased my 2017 M240i with 20K miles lease return, it came with a CPO warranty from the dealer. But even with a CPO warranty they STILL tried to push this same $5K 3yr/100K additional warranty on me HARD since I came in buying the car cash so they couldn't make any money on the back end with financing kick backs. I said no thanks, 5K was way too much. But I told them the idea of a warranty was nice on a car I don't know how the previous owner treated it. After some back and forth I ended up paying $1,500. So $1,500 for an additional 3 years and up to 100K warranty to start after my 1yr CPO warranty was expired seemed like it was worth it to me for the peace of mind it gave me for a warranty to cover a 7 year old car by the time it expired. And the warranty is transferable to the next owner, just need to pay a $50 transfer fee. I'll actually be listing my car for sale soon and this should allow the next perspective buyer some peace of mind as it expires in October 2023. If my math is correct (1,500/36) that's about $42 value per month so with 7 months remaining, will I get $300 more for the car advertising 7 more months of extended warranty on a 7 year old car? Hard to put buyers feelings into dollars but if I were in the market for a 6 or 7 year old used BMW buying private party, if I had the chance to buy a 7-month warranty from BMW for $300 for the car on the side compared to everything else you're looking at for sale private party that's sold as-is, would I pay that? I sure would. Sure helps buyers feel better about their purchase. As a seller, it's all about mitigating cognitive dissonance and buyer's remorse.

More on how I negotiated it if you're interested:
So lets say you are ok to pay $1,500, be ready to battle and start at $500 when they start at $5k. Sure, they'll laugh at you and say they're losing money at $500 and that you're joking with that offer but what they won't tell you is now they know they can sell you since you're interested so they know they need to break you down to get from you as much money as they can so they'll be dropping the price some and expect you to come up some as well. Every time they drop the price they'll tell you they're losing money on it or they're at cost. Jusy ignore all that noise and stay focused. If things don't go how they like they'll give you one last offer and be ready to tell them your what your top dollar amount you would pay for it minus half from thier final offer. So for example they gave me a final offer of $2k and I said the best I could do was $1k. They said no on the 1K but if we split the difference then it was a deal. In the end the finance sales guy left with a smile on his face. He started at 5K but still got $1,500 in which he probably got 50-75% commission from 10 minutes of haggling so he's happy. And I got my peace of mind for the amount I felt I wanted to pay.

[dc5525]

Originally Posted by morphomeman

Not to pile on, OK I am piling on, this topic comes up frequently, and the answer is always the same: put your money in the bank.
This response applies to all paid warranties for anything.
The same $5000 in the bank will cover any emergency repairs, a very elegant solution.

Great point as well. I have never had extended warranties on my cars for same reason. If the price of repairs scares you, you should not buy the car in the first place!

[leftoverture]

That extended warranty covers the portion of the vehicle's life where it is least likely to suffer a catastrophic failure. I'd suggest saving your money. $5k is a lot of money.

[mecheng77]

Waste of money at least for North Americans who do a lot of DIY, these cars are very reliable