3rd Party warranty - worth it or not?

[meansartin14]

I purchased a 3rd party warranty from Continental Warranty last week for our 2001 BMW 330ci Convertible. I now sit here and wonder whether I jumped the gun or whether it was an intelligent purchase.

I'm sitting here reading through the contract and looking at the price tag of the whole thing ($3400; bumper-to-bumper, including electrical) and wondering to myself... Is it really worth it?

It does not cover "wear and tear" items, such as brake pads, rotors, tires, etc, or normal/recommended maintenance (e.g. Inspection I and II and oil changes). It truly only covers mechanical/electrical failures of the parts listed in the 'covered' section (pretty much everything on the vehicle, with a few minor exceptions). It does not cover parts that 'saw gradual degradation of performance resulting in failure'. And it, interestingly, does not cover parts that failed 'due to improper or insufficient fluid levels, and/or build-up of sludge or foreign objects'. It also does not cover parts where 'the manufacturer has acknowledged mechanical defect in any way'.

I'm thinking that if I do the maintenance on my own, I'll gain a boat-load of knowledge and save myself a bunch of money. But if the transmission fails, I'm out a significant chunk of change which the warranty may or may not have covered...

Just looking for some input or thoughts on this. I have until 20-Aug-2007 to cancel for a full refund. Any advice, input, comments or suggestions would be much appreciated! Thanks in advance!!!

[ThEnder]

i would never buy a 3rd party warranty, there are just too many ways for them to screw you. also, that part about "gradual degradation of performance" makes it sound like if anything is only partially malfunctioning they will leave you high and dry.

[nicknoodles]

yeah i would return it...i wish i never bought mine :/

[meansartin14]

i would never buy a 3rd party warranty, there are just too many ways for them to screw you. also, that part about "gradual degradation of performance" makes it sound like if anything is only partially malfunctioning they will leave you high and dry.

My feelings exactly. I have never ever bought an extended or 3rd party warranty EVER. The stories of transmission failures and rediculous prices of relatively common repairs made me jump the gun a bit. The problem is, I don't know if it's worth the gamble or not...

yeah i would return it...i wish i never bought mine :/

This is the feeling I want to avoid.

I figure that if I turn a lot of my own wrenches, I'll be saving myself enough to pay for any major failure that I can not perform myself. Plus, even for relatively 'major' issues, my buddy has a 4-post lift in his home garage, with air tools and every possible tool you could think of, including a transmission jack.

[ThEnder]

if it helps your decision at all, before i got my bimmer i had 2 high milage mercedes M-class, and those have to be some of the most unreliable cars made. the most expensive repair i had to make was to the aux cooling fan on the ml320, and it cost $1400 and would not have been covered under your warranty. i dont think i even spend $3400 total for all the repairs i had to do.

[meansartin14]

if it helps your decision at all, before i got my bimmer i had 2 high milage mercedes M-class, and those have to be some of the most unreliable cars made. the most expensive repair i had to make was to the aux cooling fan on the ml320, and it cost $1400 and would not have been covered under your warranty. i dont think i even spend $3400 total for all the repairs i had to do.

Interesting. The problem is there's no real way to determine whether the warranty would be a good idea or not. I know now that it certainly does not cover quite a few things.

Perhaps I should look at my vehicle's maintenance history (which at first, uneducated glance appears to be normal) and figure out the average cost of the items listed per year, continued from here on out. Seems like a moderately safe reasoning, right?

The only real problem is, there's no way to truly account for catastrophic failure.

[ThEnder]

i actually just had a thought, does the warranty cover the convertible top, bc i know those can sometimes be a problem.

checking the service history is definitely a good idea, you might also want to get an inspection done just to see if there is anything thats on the way out. if there arent any problems there, i think you're probably safe w/o the warranty as total failure is pretty rare and you could probably even cover repair for one with the money the warranty cost you.

[nathancarter]

Does it have a deductible?
Does it cover diagnosis?

[meansartin14]

Does it have a deductible?
Does it cover diagnosis?

Yes it has a $100 deductible. It covers diagnosis of the problem if the failure is covered. If it is not, then the diagnosis is not.

Another piece of information I didn't post originally is that the warranty is pretty much bumper-to-bumper (electrical, trans, engine, suspension, diff, convt top motor, etc) and is good for 49 months/49,000 miles; $3400 w/ $100 deductible.

i actually just had a thought, does the warranty cover the convertible top, bc i know those can sometimes be a problem.

checking the service history is definitely a good idea, you might also want to get an inspection done just to see if there is anything thats on the way out. if there arent any problems there, i think you're probably safe w/o the warranty as total failure is pretty rare and you could probably even cover repair for one with the money the warranty cost you.

Yes, it covers the mechanical part of the covertible top.

I guess I should post each service item here, along with mileage, just to have a good idea of what it's been in for. I know it was serviced at 3 dealerships. 2 of the 3 have given me the repair history with no problems whatsoever. The 3rd dealership will not release the repair history unless the person who owned the vehicle at the time asks for it. They've referred me to their Corporate Attorney if I would like to continue pressing for the information. What a bunch of jerks... I do not care about the person who paid for the maintenance, just what maintenance was done, sheesh...

I will say I'm leaning towards cancelling the warranty. Especially after reading a DIY article for oil changes and control arm replacement... As far as oil changes go, I don't think it gets much easier. These vehicles appear to have been designed with maintenance in mind.

[ChrisK]

I recently bought a 02 330i with 21K miles. Even with the low miles I opted (On my own free will) to purchase a 3rd party extended warranty for $1700. The most importent part for me was the transmission coverage if/when my steptronic fails during my ownership I should be covered. Also it should cover my window regulators as well if/when they go out. It also covers suspension control arms, minor electrical like starter, steering rack, tansaxle and such. My warranty is only a 48 month 48K mile warranty which covers me until July 2011 or 69K miles. At that point I probably would sell the car so $1700 peace of mind in case my tranny needs replacing was worth it. At $3000+ though I'm not sure it it is worth it.

[meansartin14]

I recently bought a 02 330i with 21K miles. Even with the low miles I opted (On my own free will) to purchase a 3rd party extended warranty for $1700. The most importent part for me was the transmission coverage if/when my steptronic fails during my ownership I should be covered. Also it should cover my window regulators as well if/when they go out. It also covers suspension control arms, minor electrical like starter, steering rack, tansaxle and such. My warranty is only a 48 month 48K mile warranty which covers me until July 2011 or 69K miles. At that point I probably would sell the car so $1700 peace of mind in case my tranny needs replacing was worth it. At $3000+ though I'm not sure it it is worth it.

I'm guessing the difference between us (and our prices) is the 57K mile gap... I'm 78K, you're 21K...

*sigh* I have until 20-Aug-2007 to decide whether I want to keep this thing or not, but how can I reasonably determine whether it's a good idea or not?

Should I use the method I suggested (e.g. compile all maintenance records and determine annual cost, then determine if the warranty will pay for itself based on parts covered and amounts paid out for repairs in previous maintenance history)? Would there be a better way to figure out whether the warranty is a good idea or not?

I just feel like $3400 is a lot of money. If I could cut that in half, I'd keep it in a heartbeat.

[mfumbesi]

1. I took one when I bought my car, about a year later the dreaded Regulator died on me. I called them, they told me they only cover electrical faults (motor, electrical pumps etc).
2. My power steering pump started acting up, I call them again, it turns out they only budget $200 for the power steering pump (quoted price was $900).

Moral of the stories, stay away from them. You will do better doing your own DIY. You are at the right place (bimmerforums) check the DIY section to get the feel of the difficulty of DIYs.

[nickdeck]

Well, there are warranties and then there are warranties. Do careful research and be sure you know what's covered and for how much.

I'm strongly considering going with autowarrantybrokers.com. They offer a good range of different types of coverage, and their Better Business Bureau rating looks good. I just haven't yet decided what range of coverage I want.

I talked to my indy mechanic about this a long time ago (previous car). He said that he quit doing extended warranty business because it was too much hassle getting paid, which I imagine would be the case with many of the shadier companies. Auto Warranty Brokers pays the (licensed) mechanic of your choice, or the BMW dealer, with a corporate credit card upon completion of the work.

Anybody else done business with them?

[meansartin14]

1. I took one when I bought my car, about a year later the dreaded Regulator died on me. I called them, they told me they only cover electrical faults (motor, electrical pumps etc).
2. My power steering pump started acting up, I call them again, it turns out they only budget $200 for the power steering pump (quoted price was $900).

Moral of the stories, stay away from them. You will do better doing your own DIY. You are at the right place (bimmerforums) check the DIY section to get the feel of the difficulty of DIYs.

The level of difficulty I've seen so far is relatively low. I couldn't believe how easy an oil change appears to be (made easier by the INGENIOUS placement of the oil filter) and even something like replacement of control arms seems relatively easy. The problem I always have is finding the TIME to do these things...

[meansartin14]

Well, after reading through a bit of the warranty information offerred by autowarrantybroker.com, I noticed that it does not cover as much of the electrical equipment on the vehicle, as well as the convertible top. I've been told that replacing the convertible top motor is a ~$1500 adventure. So there's one difference despite the $600 savings...

I am still undecided and I've only got 20 days to cancel this thing...

For those of you who have 3rd party warranties:
1) Have your typical Inspection I and Inspection II's been paid for by your warranty?
2) Also, which parts have not been covered, fully or in-part, during the course of your claims to your warranty company?

For those of you who do not have 3rd party warranties:
1) Do you regret not having one?
2) About how much on average, during the course of your ownership, has the vehicle cost you in non-standard maintenance?

[mikeqube]

I got one through People's Vehicle Protection when I got my car. It seems like it covers a lot. I got the "Premier Plan"

[salocin111]

You should evaluate like any insurance policy. Obviously not everybody will get full value for their policy because if they did, the company would be out of business.

A more comprehensive policy will cost more and for policies that include wear and tear items and service inspections, all you are doing is prepaying for all the service upfront. The company does a calculation of what service will be needed in the future and how much it will cost. If it allows you to go to the dealer than it would have used dealer prices in their calculations and the policy will cost more accordingly. The warranty companies are not in business to give money away but then again, nobody is.

In a sense, all BMW owners were FORCED to buy an "extended warranty" that covers bumper to bumper service for the first 3-4 years or 60-80K miles. It was built into the price of the car. Without this I imagine that the service bays at the dealer would be quite empty.


What the extended warranties are selling you is peace of mind but it comes at a cost. The rest is a bit of luck but do you consider yourself lucky or not if your car has a major breakdown?

[meansartin14]

Ugh, I am no closer to a decision on whether to keep or cancel this warranty than when this thread started. I have only 16 days left to decide also...

I looked at the warranty info and here's what it says about replacement parts:

Replacement may be made with a part which is of like, kind and quality comparable with the original design specifications and wear tolerances of your vehicle.

I'm so on the fence. I don't want to have to pay a ton for huge repairs down the line, but at the same time, I don't want to have to pay monthly for a plan that will not replace with new (not rebuilt or non-OEM) equipment.

Anyone got any ideas how I can decide?

[salocin111]

unfortunately we don't have a crystal ball. I never buy extended warranties because I figure I will use the money I save for repairs and I'm pretty handy so I can do most repairs myself.

If you can't fix stuff yourself and you want the dealer to fix your car then you may want an extended warranty. If you want new OEM parts only then there are probably policies that have that but the will cost more.

You are the only one that can decide what is best for you. What good is it if I recommend a fantastic policy that lets you take the car to the dealer and get OEM parts but it costs $1000/month.

If the decision was that black and white we would all buy policies but the companies would be out of business because they paid out more than they took in from payments.

[milobloom242]

It's a kind of crap shoot. I bought a 3rd party extended warranty when I bought the car new. I don't remember the name and am too lazy to get it. It has covered 2 window regulators, final stage resistor, edk but not the engine wiring harness since this was redesigned at some point, control arm bushings and housings.

I'm about break-even on it now with another 2 yrs and 15k miles or so to go on it.

If I had the time to do some of this myself the extended warranty wouldn't be worth it. But since I don't, it's paid for itself. Plus, I think there's at least a 2 yr warranty from the dealer on repairs.

[ChrisK]

I posted above I bought an extended warranty for my 02 330i. This is actually only my second extended warranty I have ever bought. Mostly because I don't really believe in them, and also because I owned many Lexus and Acura cars which are fairly reliable anyway. My first extended warranty I bought was for my second Acura Legend Coupe. The only reason why I bought it was because I owned this same generation car before and I knew exactly what and approximately when the specific problems would occur. The extended warranty including my $50 decutible at that time came out cheaper than if I had those potential problems fixed on my own. So it was a risk reward gamble which paid off for me because everything I thought would fail failed about the time it generally was learned that it probably would fail.

Now, the only reason why I bought an extended warranty for the BMW was because of the potential tranny failure (Or that reverse gear failure that people have been reporting) in the steptronic. Everything else I'll probably fix it myself anyway, or simply do preventitive maintenance and replace potential problematic parts before they go out. Personally, I don't think anyone of us want to be stuck with a tranny replacement bill if/when the time comes.

By the way, I have the GE 3 Star Plus warranty. I asked a lot of question before I signed up so I believe I'm covered for what I want it to cover unless they were flat out lying to me. I also can take it to any SAE certified mechanic for the initial warranty inspection and repair as well as the dealer if I want which give me options. More than likely I used an Independent BMW Service shop.

[Joey 325i]

Read the fine print and don't overpay. You should be able to get a fairly comprehensive unlimited mile warranty for 3 years for about $1k or more. I'd suggest checking out a company like Great Lakes Warranty Co. or something similar.

I don't know whether to say third party warranties are rubbish or not. I haven't had a chance (and I'll be happy if I don't) to fully utilize my third party warranty. At the same time, it sounds as though my coverage is similar to yours, and I paid less than half of what you did. I'd drop your plan and research alternatives. Good luck!

[meansartin14]

Read the fine print and don't overpay. You should be able to get a fairly comprehensive unlimited mile warranty for 3 years for about $1k or more. I'd suggest checking out a company like Great Lakes Warranty Co. or something similar.

I don't know whether to say third party warranties are rubbish or not. I haven't had a chance (and I'll be happy if I don't) to fully utilize my third party warranty. At the same time, it sounds as though my coverage is similar to yours, and I paid less than half of what you did. I'd drop your plan and research alternatives. Good luck!

But how many miles did you have on your vehicle when you purchased the warranty? I had 75K and my vehicle is a 2001.

[Joey 325i]

I bought a 2001 325i with 102k miles on it. Technically, I wasn't supposed to qualify for the warranty, but the dealer was able to cut me a break. I think your ride would qualify, assuming that it's still under 100k miles.

[meansartin14]

T-minus 7 days... I have read a ton of threads here, some stating that they love their 3rd party warranty, others say that its not worth it and have had little repairs aside from normal maintenance.

I have no clue what I want to do, but if I don't make a decision between now and the 20th, I'll have already made my choice...