RE: Warranty Gold Advice/Feedback?

[alex.fadeev@xxxxxxxxxxx]

"Eduardo E. Silva" <esilva@domain.elided> wrote:
>
> I also have a sedan 98 M3. I've got an extended warranty at the BMW
> dealer. The reason I did this is because not all warranties are honored
> at the BMW dealers.

Ed,
Funny you should put it like that.
Incompetent and overpriced BMW dealers are the biggest reason I would NOT
recommend buying BMW extended warranty.
If you go with an aftermarket warranty package most dealers will still
accept but you will ALSO have an option of taking your car to a competent
independent. BMW warranty charges the same $50/incident deductible but only
pays for the work done by their dealer network.

> I paid for my $2600 dollars, since my car was 47k miles and two months
> away from expiration. M3 are not cheap cars to maintain and or repair,
> because of all of the technology they have. You can also put away
> $100-$200 every month to fix any breakdowns...;)

M3s are not that different from most other cars.
One thing that E36 M3 have are a lot of flaky electrics and electronics. If
those head south, new units (which is all the dealer will install) are
pretty expensive. Used ones are dirt cheap (which is an option with an
independent).
Another way of looking at this is if you always take your car to the
dealer, a warranty might have a chance of paying for itself. If you prefer
competent independents, most likely it never will. Unless you are really
unlucky or thoroughly neglect your vehicle.

> I can bet that within six years you will be spending more than you paid
> for insurance. $2600/5years = $520 per year ( $43.33 per month).

That logic is fundamentally flowed in that it assumes that on average, a
warranty company will pay out more than they charge for their policy.
If you do not see a problem with the above assumption, I suggest you head
out straight to Vegas on the next flight and get rich fast.

alex f
'95 M3

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