[linus]

I originally posted this erroneously in the Canada subforum. Should have posted here. Sorry for double post.

I recently called up my dealership (BMW Toronto) to ask them about their extended warranty package for the E90/E92. Here's what I found out.

* Insurance is provided by a third party (Coverage One, I believe). Dealership is the middle man.
* They will ensure most vehicles regardless of mileage.
* But mileage will determine pricing.
* For a E90/E92 with less than 20,000 km, the pricing for a warranty that extends beyond the mfg's 48/80k to the 84months/142,000km is about $2675 assuming a $200 deductible (per repair order).

My question is: If I plan on keeping my E90 and E92 for at least seven years (more likely 10 yrs), do you think the $2675 price is reasonable? Of course, there are exclusions.


Here are the coverage details:

Maximum coverage! Virtually every mechanical part on your vehicle is covered except for those excluded under the General Provisions section of the agreement. Examples of covered parts
include:

ENGINE:
Cylinder Block, Cylinder Head(s) and all internal lubricated parts contained within the engine including; Pistons; Piston Rings; Connecting Rods and Bearings; Crankshaft; Crankshaft Main Bearings; Camshaft; Camshaft Bearings; Cam Followers; Timing Chain or Belt; Timing Gears, Guides, Tensioners; Rocker Arms; Rocker Shafts; Rocker Bushings; Cylinder Head Valves; Valve Guides; Valve Lifters; Valve Springs; Valve Seals; Valve Retainers; Valve Seats; Push Rods; Water Pump; Oil Pump and Oil Pump Housing; Harmonic Balancer; Oil Pan; Timing Chain Cover; Intake and Exhaust Manifolds; Valve Covers; Engine Mounts; Seals and Gaskets.

TURBOCHARGER/SUPERCHARGER: (factory installed only)
Turbocharger/Supercharger Housing and all internal parts; Seals and Gaskets.

TRANSMISSION:
(Automatic or Standard) Transmission Case and all internal parts plus: Torque Converter, Flywheel/Flex Plate, Vacuum Modulator; Electronic Shift Control Unit; Shift Control Sensors; Transmission Cooler; Transmission Mounts; Oil Pan; Seals and Gaskets.

TRANSFER CASE:
Transfer Case and all internal parts; Seals and Gaskets.

DRIVE AXLE:
(Front and Rear) Drive Axle Case and all internal parts contained within the Drive Axle; Locking Hubs; Drive Shafts; Center Support Bearings; Universal Joints; Constant Velocity Joints; Axle Bearings; Four-Wheel Drive Actuator; Differential Cover; Seals and Gaskets.

STEERING:
All internal parts contained within the Steering Box; Rack and Pinion Gear; Power Steering Pump; Power Steering Hoses; Steering Knuckles; Pitman Arm; Idler Arm; Tie Rod Ends and Drag Link; Steering Dampener; Upper and Lower Steering Column Shafts and Couplings, including Internal Tilt-Wheel Mechanism; Steering Box and Rack and Pinion Gear Housings; Seals and Gaskets.
Rear Wheel Steering: Rear Steering Shaft and Couplings; Power Cylinder and Pump; Electronic Control Unit/Solenoid; Phase Control Unit; Stepper Motor; Steering Box; Control Valve; Rack; Tie Rod Ends; Seals and Gaskets.

BRAKES:
Master Cylinder; Power Brake Cylinder; Vacuum Assist Booster; Hydro Boost; Disc Brake Callipers; Wheel Cylinders; Compensating Valve; Brake Hydraulic Lines and fittings; Hydraulic Control Unit; Seals and Gaskets.
The following ABS Parts are also covered: Electronic Control Processor; Wheel Speed Sensors; Hydraulic Pump/Motor Assembly; Pressure Modulator Valve/Isolation Dump Valve; Accumulator; Seals and Gaskets.

AIR CONDITIONER:
Condenser; Compressor, Compressor Clutch and Pulley; Refrigerant Lines; Evaporator; Idler Pulley; Belt Tensioner and Idler Pulley Bearing; High/Low Compressor Cut-off Switch; Expansion Valve; Pressure Cycling Switch; Seals and Gaskets.
The following parts are also covered if they are required in connection with the repair of a covered part listed above: Accumulator/Receiver Dryer; Orifice Tube; Oil and Refrigerant.

ELECTRICAL:
Alternator; Voltage Regulator; Starter Motor; Starter Solenoid, Starter Ring Gear and Starter Drive; Engine Wiring Harness; Transmission Wiring Harness; Computerized Timing Control Unit; Powertrain Control Module; Electronic Ignition Module; Crank Angle Sensor; Cam Sensor; Knock Sensor; Ignition Switch; Ignition Switch Lock Cylinder; Front and Rear Window Wiper Motor, Pulse Wiper Delay Module; Washer Pump and Switch; Stop Lamp Switch; Headlamp Switch; Turn Signal Switch; Heater/A.C. Blower Speed Switch; Manual Heater/A.C. Control Head and Horns.

FUEL DELIVERY:
Fuel Pump; Fuel Injection Pump and Injectors; Vacuum Pump; Fuel Tank; Fuel Tank Sending Unit; Metal Fuel Delivery Lines.

FRONT AND REAR SUSPENSION:
Upper and Lower Control Arms; Control Arm Shafts and Bearings or Bushings; Upper and Lower Ball Joints; Radius Arm and Bushings; Torsion Bars and Mounts or Bushings; Stabilizer Bar, Links and Bushings; Spindle and Spindle Support; Wheel Bearings. Variable Dampening Suspension Compressor, Control Module, Actuator, Solenoid, Height Sensor and Mode Selector Switch.

COOLING:
Engine Cooling Fan and Motor; Fan Clutch; Belt Tensioner; Radiator; Heater Core; Thermostat; Blower Motor; Hot Water Valve.

ENHANCED ELECTRICAL:
Automatic Climate Control Programmer; Electronic Instrument Cluster; Mileage/Kilometrage Computer; Distributor; Ignition Coil; Ignition Coil Packs, Coil Pack Housing; Oxygen Sensor; Electronic Combination Entry System (Does not include Transmitters and Receivers for Remote Locks); Cruise Control Module, Engagement Switch, Transducer, Servo and Amplifier; Headlamp Motors; Power Window Motor and Switch; Power Seat Motor and Switch; Power Mirror Motor and Switch; Power Antenna Motor/Mast Assembly; Convertible Top Motor; Factory installed Power Sunroof Motor; Rear Defogger Switch; Power Door Lock Actuator and Switch.

EXAMPLES OF NON-COVERED PARTS INCLUDE:
Carburetor, battery, shock absorbers, struts, manual transmission clutch assembly; glass, lenses, headlamps, light bulbs, fuses, upholstery, cup holders, paint, bumpers, body sheet metal, etc? Also, maintenance services and parts described in the owner's manual which include, but are not limited to: alignments, adjustments, cleaning, wheel balancing, tune-ups, spark plugs, spark plug wires, glow plugs, hoses (except steering and air conditioning), drive belts, timing belts (if not replaced at manufacturer's recommended maintenance interval), brake pads, brake linings/shoes, etc?
Please see our agreement for details.

As with every level of coverage, included with Ultimate are:

RENTAL
In the event of a covered breakdown, we will pay up to forty-five dollars per day for up to six days for a maximum of two hundred seventy dollars for each repair visit, for expenses to rent a replacement vehicle if the covered vehicle is required to be at a repair facility overnight.

TRIP INTERRUPTION
If a covered breakdown occurs more than one hundred sixty kilometres from home which results in a repair facility keeping the vehicle overnight, we will pay up to seventy-five dollars per day for up to three days for a maximum of two hundred twenty-five dollars, for motel/hotel and restaurant expenses.

TIRE ROAD HAZARD
In the event the covered vehicle's tire(s) incur damage from a road hazard, we will pay up to twenty dollars for each tire repair or if non-repairable, up to one hundred dollars for each tire replacement. Exclusions and limitations apply; please see our agreement for details.

TOWING / ROADSERVICE
In the event the covered vehicle is disabled, we will pay up to seventy-five dollars per occurrence. Coverage is limited to one occurrence per disablement.

LOST KEY / LOCKOUT
If keys for the covered vehicle are lost, broken or accidentally locked inside, we will pay up to fifty dollars for locksmith services.

[Driver72]

negotiate it down as low as you possibly can.

Warranties are great for piece of mind on higher mileage cars.

So if you're going to keep the car for 7-10 years as you stated, it'd get the extended warranty.

Make sure it's transferable to another owner though just in case you decide to sell the car early, it then becomes a GREAT selling point/feature.

But again, if it takes an hour of back and forth negotiating, get the price down as low as you can.

On a work van I bought 3 years ago, they quoted me $1900 for the extended warranty.
I got them down to $100 over the dealer cost, which ended up being like $875.

The dealer "buys" these warranties from third party insurers.
So the dealers, in their ever interest to rip the consumer off, usually tries to charge you twice what they are being charged for the service, just to SELL it to you.

Good luck.

[noro]

If it does cover the high pressure fuel pump then maybe worth it, if not then I am not sure.

[linus]

Originally Posted by noro

If it does cover the high pressure fuel pump then maybe worth it, if not then I am not sure.

It does cover the fuel pump.

[canucklion]

maybe try buying it direct from the insurance company?

[Gig103]

Does it cover iDrive? I don't see anything about that one.

Also, does "Electronic Combination Entry System" include Comfort Access?

[jngjng72]

yes, if you plan to keep the car. Even if you don't plan to keep the car it definitely is a great selling feature if it is transferrable. You start to have issues with any car after the 5 year mark, when it starts needing some repairs. My CPO 2003 E46 has already had an alternator replaced, and it only has 18000 miles on the car.

Always negotiate the price with the dealer. Another alternative is to check AAA (or in your case CAA) to see if they offer extended warranties as well. I had purchased an extended warranty via AAA and used it a few times on my VW for some minor fixes. The nice thing is that AAA would let me go anywhere for service, so I always took it to the dealership and the dealership handled the claims directly with AAA, so I didn't have to pay for the repair myself and then submit a claim to AAA.

[335i4u2nv]

yes if u plan on having the car for along time then yes! it is very important... some people never need it but its good security

[johnc_22]

I bought a warranty from AAA Autoguard of AAA of NY (even though I live in GA). It was about $3K but has lots less exclusions than the factory extended warranty (e.g. covers the hard top origami for e93 owners and "luxury electronics" meaning iDrive, navigation, bluetooth, etc). It's also $0 deductible, 7/100K and transferable should I sell the car. It's more expensive but seems in the long run to be a better deal.

[linus]

The real thing I'm trying to determine is whether the $$$ are worth it for the three year period 5-7. Is that when things start to fall apart or is it really in year 8+?

In considering the price of about $2700, I've gotta think that even one trip to the dealer could represent at least $1000 fix (parts and labour) at the labour rate they charge. Also, consider Canadian pricing on BMW parts is pretty much horrendous vs. the US. The common perception is that after the warranty period, 'start sharing your wallet with BMW'. Perhaps, the warranty is good value is the perception is accurate...

[Majikthese42]

Originally Posted by johnc_22

I bought a warranty from AAA Autoguard of AAA of NY (even though I live in GA). It was about $3K but has lots less exclusions than the factory extended warranty (e.g. covers the hard top origami for e93 owners and "luxury electronics" meaning iDrive, navigation, bluetooth, etc). It's also $0 deductible, 7/100K and transferable should I sell the car. It's more expensive but seems in the long run to be a better deal.

I tried them for a quote on my E91 -- 7/100k with $0 deductible. $2898. In my case I sure *hope* I'm not accumulating $2898 in repairs on a 328i wagon over the 3 years/50k miles after the warranty expires. But for an E93 335i at $3k it would seem a bargain. (Shush! Don't tell their underwriters!!!)

[noro]

Originally Posted by linus

The real thing I'm trying to determine is whether the $$$ are worth it for the three year period 5-7. Is that when things start to fall apart or is it really in year 8+?

In considering the price of about $2700, I've gotta think that even one trip to the dealer could represent at least $1000 fix (parts and labour) at the labour rate they charge. Also, consider Canadian pricing on BMW parts is pretty much horrendous vs. the US. The common perception is that after the warranty period, 'start sharing your wallet with BMW'. Perhaps, the warranty is good value is the perception is accurate...

Well.. it comes down to this, the actual chance of you needing $2700 worth of repairs in the 5-7 year period is less than 50%, which is why they offer you the warranty in the 1st place. If you have 2 failed fuel pumps, it will justify itself, if you don't then I can't think of anything that will require that much money. I wouldn't buy it, but that's me, I can do a lot of work on my own so I am not a good candidate for these extended warranties.

[demosthenes]

I researched extended warranties recently and this company looked good to me. It's been around a long time.

http://www.directautoextendedwarranty.com/index.aspx

It requires that you purchase the warranty while the car is still has 30 days left on the factory warranty.

This one looked good too, but it wasn't offering policies in California the last time I checked.

http://warrantydirect.com/

If I purchased a 335 and I wanted to keep the car a long time, I'd purchase an extended warranty. But I'd probably wait until the end of the factory warranty in case I decided to sell the car before then.

I just checked the price for a 2008 335i w. 5000 miles in California for 7/100 coverage with $50 deductible: $2419 for their best coverage (Gold). A 328 would cost $2020. If you purchase the warranty 3 1/2 years from now, it would cost a bit more.

[klo]

Can you purchase extended warranties in Canada, if I bought my car in the U.S.? I'm currently living in WA but planning on moving back to Toronto in a year or so - there was no point in getting an extended warranty here, since it didn't transfer to Canada; I'm planning on keeping my car for the long haul.

I don't want to make any assumptions, though I'm not sure why the dealers in Toronto wouldn't offer it to a car purchased in the U.S....

[getInline]

well I paid $2700 for the extended warranty of my 2002 c32 AMG and to date I estimate that I've had close to $14,000CAD in repairs covered under the extended warranty (tranny fluid pump, alternator, water pump, belt tensioner, supercharger + supercharger clutch). Doesn't say much for the car but the MB service has been excellent and hassle free.

[ArmyBimmerDude]

Interesting. Does anyone know of or is there an insurance company that will cover aftermarket upgrades, like bigger turbos, modded tranny's, etc? This is definitely something I want as I have no plan on ever selling this car.

[linus]

Originally Posted by getInline

well I paid $2700 for the extended warranty of my 2002 c32 AMG and to date I estimate that I've had close to $14,000CAD in repairs covered under the extended warranty (tranny fluid pump, alternator, water pump, belt tensioner, supercharger + supercharger clutch). Doesn't say much for the car but the MB service has been excellent and hassle free.

In your case, that was a great value warranty purchase. MBs have had a poor reliability reputation recently so perhaps well warranted. Not too sure about BMW... I generally don't drive my cars very hard, will not track my E92 and will be extremely anal when it comes to vehicle maintenance. Looks like the E90s have held up quality-wise so far from anecdotal experience.

[captainaudio]

Originally Posted by linus

I originally posted this erroneously in the Canada subforum. Should have posted here. Sorry for double post.

I recently called up my dealership (BMW Toronto) to ask them about their extended warranty package for the E90/E92. Here's what I found out.

* Insurance is provided by a third party (Coverage One, I believe). Dealership is the middle man.
* They will ensure most vehicles regardless of mileage.
* But mileage will determine pricing.
* For a E90/E92 with less than 20,000 km, the pricing for a warranty that extends beyond the mfg's 48/80k to the 84months/142,000km is about $2675 assuming a $200 deductible (per repair order).

My question is: If I plan on keeping my E90 and E92 for at least seven years (more likely 10 yrs), do you think the $2675 price is reasonable? Of course, there are exclusions.


Here are the coverage details:

Maximum coverage! Virtually every mechanical part on your vehicle is covered except for those excluded under the General Provisions section of the agreement. Examples of covered parts
include:

ENGINE:
Cylinder Block, Cylinder Head(s) and all internal lubricated parts contained within the engine including; Pistons; Piston Rings; Connecting Rods and Bearings; Crankshaft; Crankshaft Main Bearings; Camshaft; Camshaft Bearings; Cam Followers; Timing Chain or Belt; Timing Gears, Guides, Tensioners; Rocker Arms; Rocker Shafts; Rocker Bushings; Cylinder Head Valves; Valve Guides; Valve Lifters; Valve Springs; Valve Seals; Valve Retainers; Valve Seats; Push Rods; Water Pump; Oil Pump and Oil Pump Housing; Harmonic Balancer; Oil Pan; Timing Chain Cover; Intake and Exhaust Manifolds; Valve Covers; Engine Mounts; Seals and Gaskets.

TURBOCHARGER/SUPERCHARGER: (factory installed only)
Turbocharger/Supercharger Housing and all internal parts; Seals and Gaskets.

TRANSMISSION:
(Automatic or Standard) Transmission Case and all internal parts plus: Torque Converter, Flywheel/Flex Plate, Vacuum Modulator; Electronic Shift Control Unit; Shift Control Sensors; Transmission Cooler; Transmission Mounts; Oil Pan; Seals and Gaskets.

TRANSFER CASE:
Transfer Case and all internal parts; Seals and Gaskets.

DRIVE AXLE:
(Front and Rear) Drive Axle Case and all internal parts contained within the Drive Axle; Locking Hubs; Drive Shafts; Center Support Bearings; Universal Joints; Constant Velocity Joints; Axle Bearings; Four-Wheel Drive Actuator; Differential Cover; Seals and Gaskets.

STEERING:
All internal parts contained within the Steering Box; Rack and Pinion Gear; Power Steering Pump; Power Steering Hoses; Steering Knuckles; Pitman Arm; Idler Arm; Tie Rod Ends and Drag Link; Steering Dampener; Upper and Lower Steering Column Shafts and Couplings, including Internal Tilt-Wheel Mechanism; Steering Box and Rack and Pinion Gear Housings; Seals and Gaskets.
Rear Wheel Steering: Rear Steering Shaft and Couplings; Power Cylinder and Pump; Electronic Control Unit/Solenoid; Phase Control Unit; Stepper Motor; Steering Box; Control Valve; Rack; Tie Rod Ends; Seals and Gaskets.

BRAKES:
Master Cylinder; Power Brake Cylinder; Vacuum Assist Booster; Hydro Boost; Disc Brake Callipers; Wheel Cylinders; Compensating Valve; Brake Hydraulic Lines and fittings; Hydraulic Control Unit; Seals and Gaskets.
The following ABS Parts are also covered: Electronic Control Processor; Wheel Speed Sensors; Hydraulic Pump/Motor Assembly; Pressure Modulator Valve/Isolation Dump Valve; Accumulator; Seals and Gaskets.

AIR CONDITIONER:
Condenser; Compressor, Compressor Clutch and Pulley; Refrigerant Lines; Evaporator; Idler Pulley; Belt Tensioner and Idler Pulley Bearing; High/Low Compressor Cut-off Switch; Expansion Valve; Pressure Cycling Switch; Seals and Gaskets.
The following parts are also covered if they are required in connection with the repair of a covered part listed above: Accumulator/Receiver Dryer; Orifice Tube; Oil and Refrigerant.

ELECTRICAL:
Alternator; Voltage Regulator; Starter Motor; Starter Solenoid, Starter Ring Gear and Starter Drive; Engine Wiring Harness; Transmission Wiring Harness; Computerized Timing Control Unit; Powertrain Control Module; Electronic Ignition Module; Crank Angle Sensor; Cam Sensor; Knock Sensor; Ignition Switch; Ignition Switch Lock Cylinder; Front and Rear Window Wiper Motor, Pulse Wiper Delay Module; Washer Pump and Switch; Stop Lamp Switch; Headlamp Switch; Turn Signal Switch; Heater/A.C. Blower Speed Switch; Manual Heater/A.C. Control Head and Horns.

FUEL DELIVERY:
Fuel Pump; Fuel Injection Pump and Injectors; Vacuum Pump; Fuel Tank; Fuel Tank Sending Unit; Metal Fuel Delivery Lines.

FRONT AND REAR SUSPENSION:
Upper and Lower Control Arms; Control Arm Shafts and Bearings or Bushings; Upper and Lower Ball Joints; Radius Arm and Bushings; Torsion Bars and Mounts or Bushings; Stabilizer Bar, Links and Bushings; Spindle and Spindle Support; Wheel Bearings. Variable Dampening Suspension Compressor, Control Module, Actuator, Solenoid, Height Sensor and Mode Selector Switch.

COOLING:
Engine Cooling Fan and Motor; Fan Clutch; Belt Tensioner; Radiator; Heater Core; Thermostat; Blower Motor; Hot Water Valve.

ENHANCED ELECTRICAL:
Automatic Climate Control Programmer; Electronic Instrument Cluster; Mileage/Kilometrage Computer; Distributor; Ignition Coil; Ignition Coil Packs, Coil Pack Housing; Oxygen Sensor; Electronic Combination Entry System (Does not include Transmitters and Receivers for Remote Locks); Cruise Control Module, Engagement Switch, Transducer, Servo and Amplifier; Headlamp Motors; Power Window Motor and Switch; Power Seat Motor and Switch; Power Mirror Motor and Switch; Power Antenna Motor/Mast Assembly; Convertible Top Motor; Factory installed Power Sunroof Motor; Rear Defogger Switch; Power Door Lock Actuator and Switch.

EXAMPLES OF NON-COVERED PARTS INCLUDE:
Carburetor, battery, shock absorbers, struts, manual transmission clutch assembly; glass, lenses, headlamps, light bulbs, fuses, upholstery, cup holders, paint, bumpers, body sheet metal, etc? Also, maintenance services and parts described in the owner's manual which include, but are not limited to: alignments, adjustments, cleaning, wheel balancing, tune-ups, spark plugs, spark plug wires, glow plugs, hoses (except steering and air conditioning), drive belts, timing belts (if not replaced at manufacturer's recommended maintenance interval), brake pads, brake linings/shoes, etc?
Please see our agreement for details.

As with every level of coverage, included with Ultimate are:

RENTAL
In the event of a covered breakdown, we will pay up to forty-five dollars per day for up to six days for a maximum of two hundred seventy dollars for each repair visit, for expenses to rent a replacement vehicle if the covered vehicle is required to be at a repair facility overnight.

TRIP INTERRUPTION
If a covered breakdown occurs more than one hundred sixty kilometres from home which results in a repair facility keeping the vehicle overnight, we will pay up to seventy-five dollars per day for up to three days for a maximum of two hundred twenty-five dollars, for motel/hotel and restaurant expenses.

TIRE ROAD HAZARD
In the event the covered vehicle's tire(s) incur damage from a road hazard, we will pay up to twenty dollars for each tire repair or if non-repairable, up to one hundred dollars for each tire replacement. Exclusions and limitations apply; please see our agreement for details.

TOWING / ROADSERVICE
In the event the covered vehicle is disabled, we will pay up to seventy-five dollars per occurrence. Coverage is limited to one occurrence per disablement.

LOST KEY / LOCKOUT
If keys for the covered vehicle are lost, broken or accidentally locked inside, we will pay up to fifty dollars for locksmith services.

I attached a PDF of the AAA Autoguard and the BMW Extended.
I paid $2800 for the AAA Autoguard 7 Year 100,000 mile with the luxury electronics option for my 07 335I Cabrio.

[John 070]

I don't know from a practical sense, but I think we all know from theoretical and common sense, none of these extended warranties or protection packages are worth the money. They can't be, in theory, because if they were, they wouldn't be offered. In all likelihood, they're like taking the "protection package" on a rental car. For $40/day, you can lose the car and walk away. Otherwise, you go through your own insurance. Doesn't the pretty girl behind the counter try to use that to sell the insurance?

The Harvard econ prof. says humans will pay almost anything for peace of mind, i.e. they'll pay nearly 3 grand today to feel they are protected for 6 years after their warranty runs out. Even if they don't use it, one would be quite surprised to find the buyer of the warranty doesn't usually feel that they made a bad purchase. They actually feel their peace of mind was worth the 3 grand spread out over 6 years. And the underwriter grins like a Cheshire cat.

[captainaudio]

Originally Posted by John 070

I don't know from a practical sense, but I think we all know from theoretical and common sense, none of these extended warranties or protection packages are worth the money. They can't be, in theory, because if they were, they wouldn't be offered. In all likelihood, they're like taking the "protection package" on a rental car. For $40/day, you can lose the car and walk away. Otherwise, you go through your own insurance. Doesn't the pretty girl behind the counter try to use that to sell the insurance?

The Harvard econ prof. says humans will pay almost anything for peace of mind, i.e. they'll pay nearly 3 grand today to feel they are protected for 6 years after their warranty runs out. Even if they don't use it, one would be quite surprised to find the buyer of the warranty doesn't usually feel that they made a bad purchase. They actually feel their peace of mind was worth the 3 grand spread out over 6 years. And the underwriter grins like a Cheshire cat.

The whole point of insurance is that the risk is being spread out among a lot of individuals. I paid $2,800 for an extended warranty to avoid having to pay a lot more if something goes wrong after the initialy warranty runs out. Obviously the odds are in favor of the insurance company, if it was not they would not offer it. So let us , for example, say that 10 people purchase the warranty for $3,000 ($30,000 for the insurance copmpny) and one person puts in a claim for $10,000 when the convertible top on his E93 craps put after the initial 4 year warranty runs out. The insurance company is still $20,000 ahead and the insuree saved $7,000.

[linus]

Agreed with both previous posts. I think the thing for us to consider is:

1. Yes, this is insurance and insurance companies do, quite often, make good money. If their cost was higher than the price they sell the warranty for, this would be bad business.

2. So, in all likelihood, the cost of the insurance is not worth it for the average/mean buyer. The mean buyer is essentially subsidizing the cost of repairs for the outlier(s) buyers and to help pay for the profit margin of the warranty/insurance company.

3. Now, this all assumes that the insurance/warranty provider has priced its service appropriately. If the provider has underpriced it, all the buyers either benefit or are essentially indifferent between buying and not buying (i.e. if the price of the option equals the probably weighted costs of repair).

Is it possible that the warranty we're being quoted for the E9x is lower than the estimated cost of repairs in years 5-7? Turbos, BMWs high priced parts, $120/hr Canadian dealer labour charges. This is what I'm having a difficult time assessing.

[demosthenes]

Given that the 335 N54 engine contains new technology and it is more complex than a NA engine, I'd recommend an extended warranty from a carefully chosen company to anyone keeping it past factory warranty.