Last week I signed the bottom line on the purchase of a new 2006 X3. It's being special ordered, so I have about 7 weeks until delivery.
Since I may keep this car for a long time, I am interested in buyng an extended warranty. The salesman quoted $3500 for the BMW version, but offered as an alternative an extended Toyota warranty for $2500 (the same dealer operates a Toyota dealership next door). He said that the BMW mechanics would still be the ones who do the work, ven under the Toyota extended warranty.
I'm also considereing other third party extended warranty options. In running a search on this site, I see several references to extended warranties from Warranty Direct.
I'd very much like to hear thoughts and comments (both good and bad) on these and any other alternatives. Thanks!
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Well considering one tird arty company just went under, that way may not bee a good idea.
Also if you get a Toytoa warranty (not sure how THAT would work) you would not be able to take your car into a BMW dealer while traveling.
Thirdly, the BMW warranty is a dealer profit item, so they CAN be discounted. Also you have until the original warranty expires to buy it. The dealer may be more motivated in a year or so.
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I am stating my experience with extended warranties. Purchased a 100k bumper to bumper warranty for two vehicles (Ford Windstar 1995 and Acura 3.2TL-1998) at a cost of $ 5k. Didn't get a penny back as nothing happened to either car. I have decided not to buy any extended warrantes any purchases.
You need to look at what is the worst case scenerio of a major expense and chances of that happening within that mileage limit.
Good luc,
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Bought the warranty when I bought the car-still using it. But so far only the dealership where I bought it will actually make the necessary effort to call the third-party before doing the repairs and working with them to have them pay. That would be a hassle if you breakdown while out-of-town=they never mention that during the sales pitch. So I go 25 miles from home to get my work done vs 6 miles to nearest BMW dealer. But it does give peace of mind and any repair is always $500 plus and as you can see from these forums BMW's breakdown as much or more than other nameplates.
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I have an extended third party warranty, but doesn't BMW have their own extended warranty now? I believe this started after I purchased my 2002 e46. Any dealer will honor the third party extended warranty though - just let them know you have it and after they diagnose the problem they will call the insurance company for payment (or nonpayment as the case may be). Yep it's insurance and not a mfg warranty - the mfg warranty has clear advantages.
I'm now on the extended warranty (high mileage) and it's come in handy but I'm still underwater on it. The big problem w/ it is the insurance company may try to weasel out of paying for repairs. For example, they may only cover parts that have not been redesigned. Then you get into definitions of the word redesigned, etc, but more often then not you will lose the argument.
Overall though I'm glad I got it - I like the "insurance" and peace of mind it provides for my middle of the cycle e46. On my wife's 2005, we may not get it since quality and reliability generally improve thru the life cycle of the model. If we get the warranty it'll be the BMW warranty, heavily negotiated of course.
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I believe Warranty Direct is much cheaper AND they will give you your money back if you have no claims over the warranty period.
Generally it is cheaper to buy warranty as early as possible, however you can purchase right up to the time where the factory warranty expires. Not sure of the additional cost for later purchase but Warranty Directs website should be able to give you details.
For new model year I would recommend an extended warranty, can't say I recommend the price the dealer is quoting you though. If you're going to pay $3500 for an extended warranty after 4 years, you're lowering the cost differential between leasing/buying. You might want to consider leasing.
BMWUSA is quoting (Starting at) $419/Month for X3 lease.
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Extended warranty question