New car warranty. Did I get ripped off?

[Bread]

As some of you know I recently purchases a '01 750iL Sport w/42k miles. It came with a BMW CPO warranty until 50k miles. Every car or bike I've bought in the past, new or used, I've paid cash for. So really this is the first time I've delt with financing and stuff. I've never bought a warranty because they are usually a ripoff considering I work on cars professionally and I know what I'm doing. But this car is in a different league electronically and I'm kinda worried about diagnostic time adding up in the future. Plus some of the members here have mentioned spending approx $2000 a year for maintenance.

So to cut to the chase I bought a $4000 all-inclusive warranty from JM&A which will cover the car until 94k miles or 4 years. It's supposed to cover everything from fluid replacement to gaskets and ALL diagnostic time in any shop I choose. I have the details if you'd like to know more. And then I bought GAP coverage which is supposed to pay the full difference of the value of the vehicle that insurance does not cover in the event that the car is stolen. I figured this is reasonable since the car devalues faster than payments are made on it and the insurance company will only give me it's current market value regardless of what I've invested in it.

So, I feel like a sucker though. The dealer said I can cancel this at any time and get my money back for the unused portion. Do you think I got ripped off, or is this a worthwhile way to spend $4600? If I'm a fool please tell me. I'd never buy an extended warranty on a stereo or TV because if they break I'd rather get something different anyways, but this is kinda different.

I'd especially like to hear from 750 owners since the E38 750 seems to be a really well built engine.

[The Beastmaster]

Are you sure you have a CPO warranty? Most BMW CPO warranties I have seen are factory warranty for the 1st 4 years and 50k, then the CPO kicks in for the next 2 years and up to a total of 100k.

[Bread]

Are you sure you have a CPO warranty? Most BMW CPO warranties I have seen are factory warranty for the 1st 4 years and 50k, then the CPO kicks in for the next 2 years and up to a total of 100k.

Maybe I didn't explain that well, sorry. The car has the BMW warranty until 50k miles which carries over from the previous owner. Then I bought an ADDITIONAL warranty for $4600 which will cover the car until 94k miles after the BMW warranty expires. This is the one I'm unsure of. In fact there is no reason for me to have both warranties going at the same time now that I think about it. I'm going to cancel it.

But what about the GAP coverage? Should I keep that?

[Joe-BMW]

You may want to look into having your local dealer CPO the car. If they will do it, it should be less than $4k, then you don't have to worry about these so-called fly-by-night warranty companies leaving you high and dry or not paying a claim. My BMW stealer hates dealing with them.

On the gap insurance, I wouldn't bother, but that's just me. I worry about those things when they happen. Sounds like you financed most of the purchase price.

[Auraraptor]

Which warrenty did you buy? If it is a well known one, their might be someone else that has bought it, and tell you how well they do claims.

[Reed Hunt]

So you bought a 4 year, 50K mile warranty for $4K? That does sound a bit high - how much homework did you do?

Also, IF the warranty overlaps (and gets used up) concurrently with the car's original warranty, you are wasting a bit of money right there...

Most after-market companies require that you have a month or tow and/or 1K miles or so of existing warranty to put their extended warranty in place (or else they charge much more).

So there really is little reason to buy this warranty RIGHT NOW, it appears...?

[Bread]

So you bought a 4 year, 50K mile warranty for $4K? That does sound a bit high - how much homework did you do?

I'm embarresed to say, but none. Looking back I kinda got pushed into it in the hurry to get the car financed over at Huling Bros. in south Seattle. He kinda gave me the impression that he was doing me a favor already by extending financing, and this would be the way to go because the extra cost would put me over the $50k mark and extend my terms, thereby lowering my monthly payment. I realize now however that is false and I should be able to select any length of payment term (24,48,60,72, etc...).

Also, IF the warranty overlaps (and gets used up) concurrently with the car's original warranty, you are wasting a bit of money right there...

So there really is little reason to buy this warranty RIGHT NOW, it appears...?

I agree. I'm wasting money and need to cancel this warranty at this time if he will allow me to keep my extended terms.

Also, more info on the warranty. Brochure says, "JM&A Group" in which there are 4 levels of protection. I've purchased the "Gold" which is the 3rd level. It covers 4 years and 48k miles. I thought it was the Gold plus, but my paperwork here doesn't reflect that. Damn, more questions for him. But it covers some of the things such as engine mounts, tranny mounts, steering lines, all brake parts excluding pads/rotors, wheel bearings, suspension bushings , and tons of electrical stuff including window motors and regulators, switches, instrument panel, and various sensors.

So, it's good in that it covers some of the problem areas on the 7 series, but. I don't know if I need it at this point.

[Reed Hunt]

Also, more info on the warranty. Brochure says, "JM&A Group" in which there are 4 levels of protection. I've purchased the "Gold" which is the 3rd level. It covers 4 years and 48k miles. I thought it was the Gold plus, but my paperwork here doesn't reflect that. Damn, more questions for him. But it covers some of the things such as engine mounts, tranny mounts, steering lines, all brake parts excluding pads/rotors, wheel bearings, suspension bushings , and tons of electrical stuff including window motors and regulators, switches, instrument panel, and various sensors.

So, it's good in that it covers some of the problem areas on the 7 series, but. I don't know if I need it at this point.

To keep things simple (with warranties), look for outfits that tell you what is NOT covered, as opposed to what is - it's much easier that way.

The better ones will do this...

[Auraraptor]

Yes, also, as I stated, try and touch base with someone who has bought this and tried to make a claim.

[Bread]

Yes, also, as I stated, try and touch base with someone who has bought this and tried to make a claim.

I'll go talk to the dealer about the extended BMW warranties so I can compare. Either way I'm going to cancel the one I bought because there is no sense in doubling my coverage for the next 8k miles. I went there today (Bellevue BMW) to set up a 40k mile service appt. and I must say they ROCK! The previous owner extended the parts warranty to 50k miles as well, so they are going to replace the brake pads and rotors if need be along with the missing headlight washer nozzel, oil change, any fluids, etc... That is service that I'm not used to. Well, I've never paid for service on my own vehicle before since I'm a do-it-yourselfer, so I guess I'm not used to any service. But I've had experience with Ford and Chevy with company vehicles and they do not compare in any form with the way I was treated today at BMW.

[Joe-BMW]

They do treat you nice at BMW dealerships, mine does anyway. I'd say the service has me hooked on going there. I was planning on going back to my indie post CPO, but the dealership makes it so convenient with a loaner, Saturday appointments, and lots of cars to look at while you wait.

The hot looking service chicks don't hurt either.

[Reed Hunt]

I'll go talk to the dealer about the extended BMW warranties so I can compare. Either way I'm going to cancel the one I bought because there is no sense in doubling my coverage for the next 8k miles. I went there today (Bellevue BMW) to set up a 40k mile service appt. and I must say they ROCK! The previous owner extended the parts warranty to 50k miles as well, so they are going to replace the brake pads and rotors if need be along with the missing headlight washer nozzel, oil change, any fluids, etc... That is service that I'm not used to. Well, I've never paid for service on my own vehicle before since I'm a do-it-yourselfer, so I guess I'm not used to any service. But I've had experience with Ford and Chevy with company vehicles and they do not compare in any form with the way I was treated today at BMW.

Wow, good for you, Bread. Maybe all the complaints during the last 2-3 years finally woke them up over in Bellevue (including complaints from me).

They have not had the best service lately, though again, perhaps things are looking up...

[Bread]

The hot looking service chicks don't hurt either.

I can attest to that! There's no limit to my spending when I'm working with a hot chick!

[ibew595]

Look in the owners manual about "valet" service. 750 owners can have their car picked up and delivered from where ever they want and a loaner also. This expires with the warranty, see the manual.

[Bread]

Look in the owners manual about "valet" service. 750 owners can have their car picked up and delivered from where ever they want and a loaner also. This expires with the warranty, see the manual.

Holy crap. And I told them I had other cars to drive. I better call back and set up a cool loaner bimmer for my service appt!

[Joe-BMW]

I can attest to that! There's no limit to my spending when I'm working with a hot chick!

LOL!

I'm telling you, I personally deal with this particular hot looking blonde at the BMW Gallery in Norwood, MA every time I go in. She also knows her stuff, well at least well enough to explain the problem. I pretty much melt when I get the phone call that says "you are all set, but we recommend the following that will cost you about $1,000. Of course I have to act like some big shot (Im not) and say, "Whatever it takes" (emphatically). "Sure, throw in the $169 detail".

I admit, if I were dealing with a guy, I would probably come back with "no F-ing way buddy, those prices are outrageous"

Luckily, my car has been a rock. I *only* have put about $1500 into it in two years - usual front end work, belts, brake fluid flush, and a very expensive power steering hose. Any other stuff was covered under CPO (inlcudung a very expensive valley pan gasket).

I'm telling you, as I said above, see if the dealer will CPO it.