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      02-12-2013, 03:32 PM   #28
Private First Class

Drives: 2011 335d
Join Date: Feb 2013
Location: Boston Area

iTrader: (0)

Originally Posted by Aaron Sweat View Post
I would agree that extended warranties do make tons of money, but they can also easily pay for themselves and make a car more attractive to a future buyer.

I'm not sure I follow your logic on engineers. Engineers create the parts, which are manufactured by a multitude of companies. If a part fails due to a manufacturer's defect it is covered by the warranty.
One additional note here, an extended warranty can still make money for the policy writer (bmw in this case) even if the repair bills you see add up to more than the sale price. Remember, BMW does not pay even close to the rates your dealer shows you on the invoice (that you don't pay for because of the warranty). I'll bet it is something like 50% (just a guess). Having said this, a good indy will also not charge you the dealer invoice prices either.

This is where the risk reward eval comes in. From what I have seen over the past few weeks here (newbie): 335 higher risk of expensive repairs, 328 not so much. I would also take into consideration things like miles that you didn't put on it, year - proximity to the first MY of say a new platform, clear maintenance history etc.