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      02-14-2013, 07:52 AM   #33

Drives: E90 & Z4 Coupe
Join Date: May 2012
Location: MARLAND

iTrader: (0)

Originally Posted by ddeliber View Post
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.
So maybe a bit more clarification.... An extended warranty DOES make money for the policy writer. If it did not over all make money for the policy writer, extended warranties would not exist. What really cracks me up is the tire/wheel warranty the dealer tries to sell you. Who in the hell pays to insure a consumable item such as a tire? It's like buying insurance to ward off stale bread. The point being if you can't self insure for a tire replacement, then maybe owning an expensive car with fancy 45-series tires and delicate rims is not in your best financial interest.

And just to be clear, if the 335i can't be owned past the 100,000 mile warranty period (100,000 is the max I see BMW willing to let people pay for) then the car is a peice of shit. That said, if you expect it to only last 100,000 miles and drive great while doing it, then by all means, it's your money so do what thall wilt.