[Pourky]

Hey everyone, I am purchasing a new 335i and very excited. The car currently has a CPO till 5/2013.

Now the bank I am doing my loan through is offering me a extended warranty program that is 5 years/100,000 additional miles to the vehicle for $1650. My only concern is are these legitiment after-market warranties that will actually cover me or am I just throwing away money that will screw me. They mentioned that this could be used straight through the BMW dealer as well and there is 0 deductible. But I am worried that the warranty company can come up with some BS excuse to say this is not covered due to "blah blah blah."

Here is a copy and paste of the terms. If you guys have any experience PLEASE HELP ME!

Thank you!!

General Terms of Coverage

• Deductible: $0 (Zero deductible is applicable to all Plans.)

• Term/Cost: (See chart below to determine Plan options and cost for your vehicle.)

Term / Miles* Odometer Eligibility Cost**
5 Year / 50,000 miles 150,000 miles or less on odometer $1,399
5 Year / 75,000 miles 125,000 miles or less on odometer $1,399
5 year / 100,000 miles 100,000 miles or less on odometer $1,399
* 5 Years and up to 50,0000, 75,000 or 100,000 additional miles from the time ofpurchase of refinance based on the vehicle’s current odometer reading.

COVERAGE SURCHARGES
AWD/4WD $125
Supercharger/Turbocharger $125
Luxury (All Eligible European Except VW) $125
One Ton Vehicles $125
Seals & Gaskets $150

• Waiting Period: None.

• Transferability: All Vehicle Service Contract Plans described herein are eligible for transfer to an individual to whom you sell or transfer your vehicle. Conditions may apply.

Breakdown Coverage
We will pay or reimburse you for Reasonable Costs to repair or replace any breakdown of a mechanical part or component listed below, less any deductibles you are required to pay. Reimbursement amounts for replacement parts or components may be based on new, remanufactured or used parts, at our sole discretion.

1. Engine and Water Pump – The following parts only are covered: pistons, piston rings, piston pins, crankshaft and main bearings, connecting rods and rod bearings, camshaft and camshaft bearings, timing chain and timing gears, intake and exhaust valves, valve springs, oil pump, push rods, rocker arms, hydraulic lifters, rocker arm shafts and water pump. The Engine Block and Cylinder Heads are also covered if the above-listed parts caused a Breakdown of the Engine Block or Cylinder Heads;Turbocharger/Supercharger (factory installed only) housing and all internal parts. No other parts are included under this warranty. Parts that require normal manufacturer’s recommended replacement intervals are not covered under this service contract. Seals and gaskets are only covered when required in connection with the replacement of a Covered Part and has been elected by customer and included in the service contract.

2. Transmission/Transaxle – All internally lubricated parts of Manual or Automatic Transmissions, including oil pump, drums, planetaries, sun gear and shell, shafts, bearings, side gears, carrier, pinion gear, ring gear, shift rail, forks, synchronizers, and Torque Converter. No other parts are included under this warranty.

3. Transfer Case – All internally lubricated parts of the 4 X 4 Transfer Case. Breakdown of the Transfer Case if caused by the failure of an internally lubricated Covered Part.

4. Air Conditioning – All internally lubricated parts contained within the compressor, condenser, evaporator, orifice tube. Seals and gaskets are only covered when required in connection with the replacement of a covered part.

5. Exclusions - No other parts are included under this warranty. Parts that require normal manufacturer’s recommended replacement intervals are not covered under this service contract. Seals and gaskets are only covered when required in connection with the replacement of a Covered Part and has been elected by customer and included in the service contract.

Towing Benefit
In the event of a Breakdown covered by this service Contract, we will pay or reimburse you for receipted towing
expensed up to seventy-five dollars ($75.00) per occurrence.

Rental Benefit
Coverage will be provided to you up to a maximum of twenty-five dollars ($25.00) for every eight (8) labor hours, or portion thereof, of applicable labor time required to complete the repair, up to a maximum of one hundred dollars ($100.00) for each repair visit. In addition, a maximum on one (1) additional day of rental applies for each parts/inspection delays per occurrence

Not Covered
There are certain circumstances this plan does NOT cover such as:
• Un-authorized claims
• Repairs of parts not listed above
• Damage from collision and Acts of Nature or as a result of modifications to the vehicle
• Breakdown caused by vehicle misuse of lack of proper maintenance
• When a repair is covered by an insurance policy or warranty
Contract Insured by American Bankers Insurance Company, a wholly owned subsidiary of Assurant Insurance Group.

[unrealii]

Check BBB for any complaints against this company.

[wobbles1]

what you have to remember with extended warranty companies is they will only pay what they want too. If there book says the Part cost this much and takes that long to put in. That is all you are getting. If repair shop charges more then you are liable for the rest.
So dealership says a water pump is $856. But warranty company says $450.00 you are paying the difference. I see it everyday at the dealership.

[Pourky]

Originally Posted by wobbles1

what you have to remember with extended warranty companies is they will only pay what they want too. If there book says the Part cost this much and takes that long to put in. That is all you are getting. If repair shop charges more then you are liable for the rest.
So dealership says a water pump is $856. But warranty company says $450.00 you are paying the difference. I see it everyday at the dealership.

Ok... see those are things I am worried about, I don't wanna pay for a warranty that won't legitimatly cover my car issues. This is good to know! Thanks.

[bmwjunky]

I had the same offered to me... Really the only true benefit to the bank/credit unions aftermarket warranties are for suspension items, timing belt/chain (IF it also coveres damages that are in a direct cause to the belt/chain breaking); however, we don't even have belts so that's N/A.

Then again in your circumstance if it covers the turbos/bearings/any damages caused by one failing... Maybe worth it! Do you plan on keeping the car past 2013?

Also make sure you are going to dealerships that directly work with your extended warranty coverage or you will be paying the difference like wobbles1 said.

I would call the extended warranty company, ask them questions about it, what it covers, parts, direct/indirect damages/repairs, also Google them and BBB them. Then, also see what local dealerships/shops you can take your car with that gladly accepts/works with them as a warranty provider.

My $0.02.

[David1]

The way I read this is you are only gaining an extra 12 months of coverage but extra miles. 5 years from time of purchase.

[grubster]

I work IT for a very reputable service contract co. Looks like this is a power train plus coverage. If you choose this make 100% sure you buy the seals and gaskets surcharge and they will of course make you buy the turbo surcharge.

My recommendation is to get an exclusionary coverage. What that means it covers everything except what is listed as exclusions. This is the most similar to a factory warranty. I don't know what company this is from so I can't help on that. My company works mainly through dealers and recently started a direct to consumer program. We are very conservative with bmw and Mercedes so our pricing is not cheap on them.

Our company covers whatever the book says that the shop chooses. So usually Mitchell or Alldata tells labor time and parts price. We also pay some markup on parts within reason.

One other tip, just call your local bmw dealer and ask for the finance manager. They can sell you a service contract with their provider and that way you just take it to the dealer for service. And remember, the prices are marked up so you can negotiate. You aren't buying a car from them so it's just free money for them and they gain your service business when you come in. Most dealers work with at least two programs, factory and aftermarket programs.