After market warranty- should I go for it ?

[Iftekar]

Hey guys,
I am really confused here so thought it getting your opinions.
I got a 2011 335i manual with 83k miles on it.
Car is really running nice with and never caused me big troubles. I do road trips a lot. Each month appx 2k miles trip on my car.
My extended warranty will expire on Aug 2017 ( 7 years extended from BMW).
So far the major works that were done between 2016-2017

Valve cover gasket
Engine oil pan drain cover gasket
Drive belt tensioner
Drive belt replace
Radiator replacement

Back in 2015 - fuel pressure pump replaced.

The car is in really in great shape. But as I do long trips thinking of buying an aftermarket warranty from carchex. The platinum covers almsot everything with a monthly payment of 208 for 3 years 45k miles. Considering the earlier repairs, although very less, each were more than 2000 bucks at BMW dealer.

What other parts are possible to break within 100k ? Should I buy the warranty for a peace of mind?

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[TonyAngel]

I had an aftermarket warranty from carchex for about 2 months and I only had it that long because I was too busy to jump through the hoops to cancel it. The phone call discussing the policy made it sound like the best thing since sliced bread. After I signed up and got my actual contract in, what I read really turned me off. There is actually 3X's as much content in the contract explaining what isn't covered as there is that explains what is.

Another thing that turned me off was that I bought the coverage based on all of the positive reviews carchex got. After getting the contract, I found that the company (unfortunately I don't remember the name) that was going to be handling my policy was one of the worst reviewed companies. I really don't know how that happened or how that would have worked out.

It may be right for you, but it wasn't for me. I'm pretty good at doing many repairs myself so the numbers just didn't crunch for me.

If you decide to go with it, read the contract and pay particular attention to the parts where they explain how damage to a covered part isn't covered if the damage is caused by a non covered part (essentially all electronics like tranny solenoids), their policy on oil leaks, and the fact they don't have to use new OEM parts for repairs. Not to mention their policy on having all repairs inspected before work can begin. To me, this sounded like a 1 day job turning into a 3 or 4 day job while waiting on the inspection.

As an example, I recently changed my eccentric shaft sensor. It's around a $200 part, but requires the removal of the valve cover gasket. From what I understand, it's around a $1200 job at a dealership. I did the job myself for under $300 and had it done in 3 hours. For me, it wouldn't have been worth dealing with the warranty to get the repair done.

Of course, I never had the opportunity to try to actually use the warranty, so I don't know how that would have worked out in real world terms. Just food for thought.

[Iftekar]

Wow. That's a good information.
As a matter of fact I see "American Auto shield" as the warranty provider in carchex sample contract that they have sent it to me.
What I heard is to get the maximum coverage from these companies. The gold coverage says they can cover most of the parts and I can repair in any dealership with hourly rate max 100 bucks per hour. For any warranty work , they have 4 days rental ( 160 max).
I can do few stuffs on my own. I changed my spark plugs, replaced all the fluids etc. But for some complex repairs is what I am worried about.
Let's say the water pump fails or injectors fails- the oem parts itself will cause lot of money.

I am still confused

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[TonyAngel]

Your example of the water pump is what I was thinking of when I wondered what make of parts they would use to make the repairs.

[Iftekar]

Your example of the water pump is what I was thinking of when I wondered what make of parts they would use to make the repairs.

If I repair my car from bmw dealer- they will use oem parts. Are you saying the warranty company can ask them to use other aftermarket parts ?

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[TonyAngel]

If I remember correctly, my contract said something to the effect of using "oem or like" parts.

All I'm saying is that you should carefully read the contract. I told you of my reasons for cancelling the contract.

If it makes you feel better, just get the warranty. If yours was like mine, you can cancel it at anytime.

[Iftekar]

Hmm. I read the contract. You are right-they are more focussed on what is not covered part. I saw somewhere it says the maximum repair cost should be $250. And if it crosses that limit an inspector will authorize the repair upon inspection but how much can it go- not clearly mentioned. I guess I will transfer those $180 to my savings account and get prepared. I may even add mods after a trouble free year from my savings. Just hoping

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[MIKYZZ4]

Take the $208 monthly payment and deposit it into a savings account specifically for auto repairs,
or purchase some shares in up and coming companies, cash out shares as repair needs arise.

[slides]

I have one that goes up to 100k, currently at 59k.

I am worried that they will not cover items to tell the truth. They cover the turbos, water pump, coils and other very common items that do fail but im stating to read more and more "horror" stories. I think the trick is to find a good indy shop that works with these warranty companies frequently to help increase your chances of getting a repair covered.

mine cost $2500 and covers up to $7500 so i have basically $5000 dollars of coverage. I figure the water pumps will be replaced for sure and hopefully the turbos if its within the budget.

[mike the snake]

AUL is I think the name of my aftermarket warranty, and I agree with the last post, find a good shop that will cooperate with the company, and that the company will cooperate with the shop.

I'm not interested in working on repairing my own car. IMO it's good insurance to have as ANY repair on a late model BMW is gonna be a LOT of $$

[Iftekar]

AUL is I think the name of my aftermarket warranty, and I agree with the last post, find a good shop that will cooperate with the company, and that the company will cooperate with the shop.

I'm not interested in working on repairing my own car. IMO it's good insurance to have as ANY repair on a late model BMW is gonna be a LOT of $$

That's what I am worried about. Each warranty Job repair was more than 1k.
Those guys called me and offered the platinum plan which covers almost everything and they don't have maximum labour rate restriction on this plan. They said they work with bmw dealer. I am only concerned that during warranty, how much they will cover.
On the other hand , I don't think my car will have any major repair of more than 2k. But who knows.
I will keep my car for another 2 years or so.

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[xbimma]

Iftekar I purchased carchex coverage March 2017 (Deluxe underwritten by AAS)48k miles/48 months, for $160 payable in 24 months. I did not take their first offer. These were my key criteria negotiations:
- I expected to keep the car ('06 X5) for a while
- no cap on labor
- no limitation on coverage (generally capped at market value)

Just want to point out couple things you should be sure before you agree. Reading your first post did you say you average 2k monthly? The proposed coverage is 45 months?
Also are you to cough up $208 for 36 months?

The part about OEM vs aftermarket is for real. They will not pay for OEM, you will (the difference that is).

Had my first claim in May, defective wheel bearing. Made appt 9AM Monday with BMW, dropped off the car and left to work (no loaner). During diagnostic tech confirmed bearing issue and also uncovered leaking valve cover gasket seal on passenger side. Did not get the car back until following week on Friday. See claim diary:
1) Monday: SA did not call up claim until late PM Monday. Probably burn one day of response time by adjuster IMO
2) Wednesday PM: adjuster stopped by. Requested MX records which I had and emailed to SA
3) Thursday AM: personally called up claim rep to speed up approval. Nicely informed me it was under review given high $ estimate. Also they will only approve aftermarket parts pricing. BMW received approval later in afternoon.
4) Friday AM: spoke with SA who thinks I would get the car back next Monday.
5) Monday AM: SA calls up and informed some part not in shop... standby
6) Wednesday AM: SA confirms car ready for pickup. I picked it up Friday.

Carchex covered roughly $1300 and I coughed up $280 (100 deductible and the difference in parts). I'm not too mad in the end because this convo covered nearly 1/3 of the full value of the coverage in the first two months of coverage. Knowing E53 I expected valve cover gasket to go out but not so soon. Actually claims rep found out in MX records same valve cover gasket was repaired in fall 2016 and and said it should be covered under warranty of previous repair. But he quickly realized I had just purchased the vehicle so that did not work.

I know I shared too much here but if you only expect to own this car for 2 years you should think again. As you saw with my first claim you should be prepared for alternate transportation because they do not cover rental until claim is fully approved. Maybe be you can score a loaner if you nice to BMW SA or if they like you.
Last thought did you ask BMW how much they would charge for another extension of their service coverage if at all possible?

Hope this helps.



Garage:
E53 X5 4.4i M62 born 2003-03-04 (SOLD)
E53 X5 4.8iS N62 born 2006-03-16
E90 325i N52 born 2006-03-28
F30 328i N20 born 2012-09-06

[Pilgrim]

I'm surprised at what the OP considers to be "major work".Most of the items he mentioned are trivial items that can be done in 30 minutes to an afternoon by anyone with DIY experience.

However, if you have no DIY experience, no mechanical background and no place to work, it's more of a challenge. I personally think that the cost of an insurance policy is not a good buy (that's what this "warranty" is, as they're betting they will pay less in claims than you pay in premiums. If they think they'll make a profit, you should pay attention to that.)

If there is some expensive assembly that you think is failing, and you KNOW that it's covered by this "warranty", then it may be worthwhile. Otherwise, I suggest that you not buy it, and pay an independent shop to do all necessary periodic maintenance and any repairs. You should come out just fine. If you need to rent a car once or twice, that's just part of the bill.

[TonyAngel]

When I first got the warranty, I envisioned it covering a catastrophic failure. Most repairs that people say they are worried about because they are $1000+ plus repairs don't worry me because I can do most things myself. Once I started reading the fine print, it became evident that, for me, the warranty could/would cause more headaches than it was worth. It just doesn't cover all of those things that I was worried about and of the things that the warranty did cover, those were unlikely to happen.

One way or the other, it's just a gamble, but if you don't do your own repairs, I suppose the warranty could be worthwhile.

[rerrico]

Here's my recent experience with Endurance as my after-market insurance provider. Brought my X5M in because of check engine light and "reduced power" alert. Turned out to be cam sensors and VANOS. Of course I find out nothing in the repair job is covered. I'm on vacation in San Clemente (from Scottsdale) so I have a 400+ mile drive home and have to get it fixed. Luckily I found a German car repair shop within walking distance from where I am staying who is going to do the repairs.
My question is does anyone know of an after-market insurance company that would've covered the repairs, or is an industry standard (the after-market insurance industry) that these less common repairs are not covered?
I'm looking to drop Endurance and go with another company if anyone has any suggestions.

[TonyAngel]

Based on what I've found through my research, no one would have covered the cam sensors, because they are an electrical part (it's funny how the contracts distinguish between electrical parts and electronics); but why did the refuse coverage on the VANOS? Did they claim that it was a pre-existing problem. My understanding of the contract that I had was that the VANOS should have been covered.

On the other hand, your problem and check engine light were probably caused by the cam sensor(s) and the VANOS problems were something that they just discovered could use attention but wasn't technically "broken," which would have made it a preventive maintenance item.

Check out carchex, it's what I had and research showed that they were the best, relatively speaking. I cancelled mine.

[MIKYZZ4]

Take the $208 monthly payment and deposit it into a savings account specifically for auto repairs,
or purchase some shares in up and coming companies, cash out shares as repair needs arise.

Cancel, and follow my advice, odds are you'll come out ahead in the long run.

[Iftekar]

Thank you so much guys for sharing your thoughts.
As I mentioned, I will probably have this car for another 2 yrs or so because I think it's practical to sell this once it crosses 100k and buy a new one. It's my daily drive car and I do long trips so need a peace of mind.
So in 2 years i will pay appx 4.5k to the insurance and I am gong to sell it after 2 years. So doesn't seem practical.
I have already started saving money for the repairs( hope not).
But I love this convertible and I wish I could drive this till 200k. I get emotional even thinking about selling it

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[MIKYZZ4]

There is no reason why your convertible can't be driven for 200k mi.
As long as the vehicle is well maintained, there is no reason it can't be driven for 200,000 miles and beyond.
And if you keep setting aside the monthly cost of the warranty that you cancelled,
you should have a healthy maintenance budget. Just an option you should consider.

[rerrico]

Thanks, I'll check out Carchex, but will probably end up canceling my current contract and putting money aside for any repairs.

[mike the snake]

If you buy a 4 year warranty, and sell the car in 2 years, you'll get a pro-rated (around half) refund on the warranty, or you can sell it along with the car.

[Iftekar]

Thanks, I'll check out Carchex, but will probably end up canceling my current contract and putting money aside for any repairs.

Based on the discussion, I am not purchasing the warranty. Keeping aside my money for repairs and new bimmer. I do not like the newer models somehow so my new car choice would be difficult. But that's a whole new discussion and don't want to hijack the thread.

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[Gruss]

Adding my 2 cents. I would never buy an extended warranty that is not backed by the manufacturer of the vehicle. The warranty companies come and go and are expensive for what you get. If you buy one from a used car dealer you would be shocked at the commissions the dealers get.