[HKD126]

Looking at buying a used E90 335xi with under 100k miles. I know repair costs on these cars can really start adding up. So I’m also thinking about purchasing a third party maintenance warranty for it. Can any one make any recommendations for one?

Thanks.

[BeaterM3]

Was worth if for me. It has already paid for itself at this point even with an N55.

[jt335i]

There have been numerous thread discussions on the pros and cons of 3rd party/extended warranties if you search this forum. As for me, I bought my 2010 E92 335i new and never got an extended warranty after the factory warranty expired because haven't any major mechanical or electrical issues that required repeated warranty related repairs for the same part(s) or to cover a laundry list of repairs costing $1000s. Yes. I have had things to fix or replace throughout the years due to age, but nothing as catastrophic or as frequent as others have posted which a warranty would cover. I pay for my repairs a la carte because I have a trusted Indy BMW mechanic who really knows how to service and maintain my 335. Other than the regular scheduled maintenance, when I need something fixed or replaced my Indy mechanic does things right the first time so I don’t have to go back to him to re-repair something because it was done in haste, or improperly done by an inexperienced technician, or cheap OEM parts were used.

If you do decide to get a warranty, for peace of mind, I’ve heard good things about Route 66.
If you have $$$ to spend, then find a good Indy BMW mechanic and pay for repairs a la carte.
Good luck with whatever you decide.

[Explorerlyon]

As an OVERALL financial principle, if you never buy extended warranties on anything over you life, you will likely come out way ahead financially. Just say NO to all the extended warranties on cars, Amazon, Best Buy, home warranty etc etc. When you look at just one vehicle in a vacuum, may or may not be worth it.

Also, if you do not have enough money to pay for repairs out of pocket, you may be buying the wrong car.

[jarmend]

Easily $5k in the black on my 3rd party warranty on 2012 e92 n55 at ~65k miles.

[Run Silent]

Originally Posted by HKD126

Looking at buying a used E90 335xi with under 100k miles. I know repair costs on these cars can really start adding up. So I’m also thinking about purchasing a third party maintenance warranty for it. Can any one make any recommendations for one?

Thanks.

Originally Posted by Explorerlyon

As an OVERALL financial principle, if you never buy extended warranties on anything over you life, you will likely come out way ahead financially. Just say NO to all the extended warranties on cars, Amazon, Best Buy, home warranty etc etc. When you look at just one vehicle in a vacuum, may or may not be worth it.

Also, if you do not have enough money to pay for repairs out of pocket, you may be buying the wrong car.

^This.

As someone who is a CPA and spent years as the director of sales and finance operations for a large dealer group, I can wholeheartedly recommend that you do not purchase an extended warranty.

You have to look at cost of goods sold. There are costs for overhead; secretaries, people to process the claims, rent a building, etc. The company needs to make a profit, so I need to add that on there, also need someone to sell the warranty. As much as 50-80% of the price of the warranty—depending on the warranty company—goes to commissions back to the dealer. So the warranty company or franchise has to pay a commission, and that’s in the cost. If you add all of that up, now you have the price of the warranty. It’s what charged you for it.

Really, all you’re getting coverage for is the actual statistical probability of the breakdown, but you’re paying for overhead profit and marketing in addition to that. Were you to save the money and you have an average BMW that breaks down an average number of times, you’re going to come out way ahead financially. If it breaks down more than average, then you won’t. But if it breaks down more than on average, then the warranty company goes broke. In other words, they know they’re not going to have to pay out all the money they take in on warranties.

Never buy extended warranties. There will be several posts after mine with folks telling you how they saved thousands in repair costs by getting the extended warranty. Some will be telling the truth, some will be full of crap. But the bottom line is that if the warranty company didn't come out ahead way more than you do, then they would be broke. It's a bad investment.

Also, If you buy a warranty from a company, and they go bankrupt, you don’t have a warranty anymore.

[BeaterM3]

Originally Posted by Explorerlyon

As an OVERALL financial principle, if you never buy extended warranties on anything over you life, you will likely come out way ahead financially. Just say NO to all the extended warranties on cars, Amazon, Best Buy, home warranty etc etc. When you look at just one vehicle in a vacuum, may or may not be worth it.

Also, if you do not have enough money to pay for repairs out of pocket, you may be buying the wrong car.

Kind of an ignorant statement there.

I decided to roll the dice on an extended warranty because I knew there was a chance I would be seeing certain issues with the mileage the vehicle had - turbos, coolant expansion tank, radiator, hpfp, lpfp, etc.

My 3 year extended warranty was 3k...covers everything other than the usual wear and tears. So far almost 2 years into it, my repairs have totaled to over 4k so far on this car...Do I have the $$$ to pay off the $4,500 if I didn't have the warranty. Sure. It is nice that I am $1,500 in the black because of the warranty and I didn't have to pay out of pocket? Yes. Having more money on your pocket regardless of financial standing is always a good thing.

[BeaterM3]

Originally Posted by Run Silent

^This.

As someone who is a CPA and spent years as the director of sales and finance operations for a large dealer group, I can wholeheartedly recommend that you do not purchase an extended warranty.

You have to look at cost of goods sold. There are costs for overhead; secretaries, people to process the claims, rent a building, etc. The company needs to make a profit, so I need to add that on there, also need someone to sell the warranty. As much as 50-80% of the price of the warranty—depending on the warranty company—goes to commissions back to the dealer. So the warranty company or franchise has to pay a commission, and that’s in the cost. If you add all of that up, now you have the price of the warranty. It’s what charged you for it.

Really, all you’re getting coverage for is the actual statistical probability of the breakdown, but you’re paying for overhead profit and marketing in addition to that. Were you to save the money and you have an average BMW that breaks down an average number of times, you’re going to come out way ahead financially. If it breaks down more than average, then you won’t. But if it breaks down more than on average, then the warranty company goes broke. In other words, they know they’re not going to have to pay out all the money they take in on warranties.

Never buy extended warranties. There will be several posts after mine with folks telling you how they saved thousands in repair costs by getting the extended warranty. Some will be telling the truth, some will be full of crap. But the bottom line is that if the warranty company didn't come out ahead way more than you do, then they would be broke. It's a bad investment.

Also, If you buy a warranty from a company, and they go bankrupt, you don’t have a warranty anymore.

Hey an extended warranty might be a flop for some but it works out for others. It has for me and another poster here. On my previous E36, I didn't have any warranty...Paid for the work straight out of pocket or did it myself and it worked out. But I would never buy another 335i or the like without an extended warranty though.

[Run Silent]

Originally Posted by revengeismine

Hey an extended warranty might be a flop for some but it works out for others. It has for me and another poster here. On my previous E36, I didn't have any warranty...Paid for the work straight out of pocket or did it myself and it worked out. But I would never buy another 335i or the like without an extended warranty though.

Originally Posted by Run Silent

Never buy extended warranties. There will be several posts after mine with folks telling you how they saved thousands in repair costs by getting the extended warranty. Some will be telling the truth, some will be full of crap. But the bottom line is that if the warranty company didn't come out ahead way more than you do, then they would be broke. It's a bad investment.

It will be a flop for about 85-92% of every buyer. These statistics are well documented.

[Explorerlyon]

Originally Posted by Explorerlyon

Also, if you do not have enough money to pay for repairs out of pocket, you may be buying the wrong car.

Originally Posted by revengeismine

Kind of an ignorant statement there.

I decided to roll the dice on an extended warranty because I knew there was a chance I would be seeing certain issues with the mileage the vehicle had - turbos, coolant expansion tank, radiator, hpfp, lpfp, etc.

My 3 year extended warranty was 3k...covers everything other than the usual wear and tears. So far almost 2 years into it, my repairs have totaled to over 4k so far on this car...Do I have the $$$ to pay off the $4,500 if I didn't have the warranty. Sure. It is nice that I am $1,500 in the black because of the warranty and I didn't have to pay out of pocket? Yes. Having more money on your pocket regardless of financial standing is always a good thing.

Nothing ignorant about my statement at all when you understand the finances involved. You buy an extended warranty for only one of two reasons:

1. You cannot afford the repair costs and maybe should be looking at a less-expensive car to maintain, or

2. You are willing to gamble that the extended warranty will pay out more for you than for the dealer. Some win at this, some loose. You won, which is good.

[Divbetic]

I purchased through Carmax at 37k and bought the 5yr/100k MaxCare with $250 deductible for $2749. I had an issue shortly after my normal 30 day warranty expired and took it in to BMW to get it looked at. Just during that first trip I was able to get a $6769 bill payed for with just my deductible. They had even offered a loaner during the week it was being worked on. Just figured I would share my experience, MaxCare has definitely payed for itself and now I get the free peace of mind over the next 4 years.

[BadContrakt]

I say no to third party warranties.

With simple tools and the internet you can do a lot of the work yourself and for the work you can't do yourself, find someone who is passionate about these cars and knows how to work on them and that'll help you out a lot. Independent import repair shops are key for people who can't turn a wrench. Going to the BMW dealership will make you regret buying this car... Or so I hear anyway... I've never been to a BMW dealership to be fair. Maybe they're great and everyone is just lying.

[Thorin]

Originally Posted by Divbetic

I purchased through Carmax at 37k and bought the 5yr/100k MaxCare with $250 deductible for $2749. I had an issue shortly after my normal 30 day warranty expired and took it in to BMW to get it looked at. Just during that first trip I was able to get a $6769 bill payed for with just my deductible. They had even offered a loaner during the week it was being worked on. Just figured I would share my experience, MaxCare has definitely payed for itself and now I get the free peace of mind over the next 4 years.

This has been my experience as well. They covered all my oil leaks (OFHG, VCG), washer pump failures (front and rear), fuel sending unit, a door lock actuator, a window regulator, and a few other things. The warranty also covers a rental for when the car is in the shop, so I don't lose mobility while it is serviced, and can use that time to do other things instead of working on the car myself. I did the $150 deductible ($100 at RepairPal centers) for a bit more than that, but it has paid for itself, and it's only 1/2 way through the 4 year/30k miles expiration. Keep in mind this warranty is a deductible per visit, so if you can stack a bunch of things on one visit you'll only have to pay the deductible once. That said, MaxCare is one of the best aftermarket warranties in the business. Any other warranty and I would probably stash the upfront cost in a CD and keep it for a rainy day.

[riczon.335i]

I gambled and went with aftermarket warranty when i bought my 335i, paid 3k for it but they also paid over $9,000+ of repairs before it ended lol.. Definitely got my money's worth.

[Run Silent]

It's crazy how statistics prove that less than 15% of all buyers of extended warranties for automobiles come out even or ahead, yet miraculously, so many seem to be posters in this forum...

[King Rudi]

Originally Posted by Run Silent

It will be a flop for about 85-92% of every buyer. These statistics are well documented.

This. The other 8-15% is what sells extended warranties. The only person truly benefiting from the extended warranty is the person and/or company selling it to you. To those that have benefited from extended warranties, congratulations. This is the car equivalent to winning at a scratch-off ticket. Take solace in your purchase.

Make sure to buy the undercoating too!

https://www.investopedia.com/article...warranties.asp

[Explorerlyon]

Originally Posted by riczon.335i

I gambled and went with aftermarket warranty when i bought my 335i, paid 3k for it but they also paid over $9,000+ of repairs before it ended lol.. Definitely got my money's worth.

There is often a difference between what a car actually needs when you are paying for it out of pocket vs. what the repair shop can ding the insurance for. Same is true when you go to the doctor.

[riczon.335i]

okay...
Those repairs were legit by the way, now I just DIY.. who buys a BMW and rely on someone else to fix it without warranty is absurd. Also replacing turbo's under warranty, valve cover, oil pan gasket, leaky bushings, HPFP crapped out, Injectors, the list goes on.. all freebies.. just happy I came out on TOP. Might want to recheck your comparison all I ever do when I go to the doctor's my copay. Might want to change doctor's..

Originally Posted by Explorerlyon

There is often a difference between what a car actually needs when you are paying for it out of pocket vs. what the repair shop can ding the insurance for. Same is true when you go to the doctor.

[Explorerlyon]

Originally Posted by riczon.335i

Might want to recheck your comparison all I ever do when I go to the doctor's my copay. Might want to change doctor's..

That is exactly my point....all you paid at the Dr. was the copay. The Dr. billed the insurance whatever they can get away with and the patient doesn't really care. When you pay the doctor yourself, you find out exactly how negotiable the rates are and how much the Dr. dings the insurance company. Just like care repairs do. I am not saying YOUR repairs were not legitimate. I am simply stating the fact that when someone else foots the bill, a lot more work is always needed.

[Run Silent]

Originally Posted by Explorerlyon

That is exactly my point....all you paid at the Dr. was the copay. The Dr. billed the insurance whatever they can get away with and the patient doesn't really care. When you pay the doctor yourself, you find out exactly how negotiable the rates are and how much the Dr. dings the insurance company. Just like care repairs do. I am not saying YOUR repairs were not legitimate. I am simply stating the fact that when someone else foots the bill, a lot more work is always needed.

Funny. I am also a CPA and have much experience with the dealership OEMs including sitting on several boards in the past.

But hey - what the heck would we know, right? I'm sure ESC's are a great product for the consumer, contrary to all evidence, right?

[riczon.335i]

Gotcha! Misunderstood what you were trying to say.

Originally Posted by Explorerlyon

That is exactly my point....all you paid at the Dr. was the copay. The Dr. billed the insurance whatever they can get away with and the patient doesn't really care. When you pay the doctor yourself, you find out exactly how negotiable the rates are and how much the Dr. dings the insurance company. Just like care repairs do. I am not saying YOUR repairs were not legitimate. I am simply stating the fact that when someone else foots the bill, a lot more work is always needed.

[hassmaschine]

The only way you can save any money with one of these rip off warranties is if you take everything to the dealer where you're paying thousands of dollars in labor. so you're "saving" by spending money - a bit like using a coupon to save $5 on something you didn't need or want in the first place.

I would be waaaay behind on both my BMWs (and one's a freaking POS X5), with an extended warranty. It's basically like tacking on an extra 30% to the cost of the car - which you also pay interest on in many cases (because they roll it into the loan).

if you want to get ahead, invest and save your money.. don't buy stuff you don't actually need (like paying $150-$200/hr labor or buying a car you can't actually afford to fix).