Extended Warranty worth it?

[swildy]

Looking for some collective wisdom here.

I have a 2004 X5 4.4 with 34k miles that is coming off its lease and I'm going to buy it (love this car!). My dealer is offering to certify it for $1600 so as to extend the warranty by another 2yrs/50,000 miles. I realize that the certified warranty doesn't cover everything the original warranty covered, like interior and exterior trim, seals, stereo, navigation system, etc, but it covers the major items like engine, transmission, drive train, electrical system.

I'm interested to hear from others with their opinions and experience with BMW's "Extended Warranty". Is it worth the $1600 for peace of mind?

[ljnlaw]

There are the obvious pros and cons to buying an extended warranty. I would do the CPO. My X was not CPO and knock on wood I have not had any problems but I did consider an aftermarket extended warranty. The only reason I considered the aftermarket warranty was because of common auto trans failures associated with the X5s. The warranty that I wanted was roughly between $4-$5,000, in fact the same price or more than a trans replacement/rebuild. I chose the pay as I go route...but for $1,600 I would definitely CPO the car.

[Vonbimmer]

I would have to say go for it. I have an aftermarket warranty that has saved my rear end on several maintenace items. For example intake maifold gaskets, $1700 including labor, covered. One other example would be if you lost an alternator or water pump. I believe both are around $1000 jobs. (Alternator is water cooled and the part alone is $600+).

Just my $0.02

[motordavid]

You still have 16k miles left on your orig. warranty, but the Stlr maybe
trying to push you into the ext. warranty with that low ball offer.

If he's offering BMW 2OP deal, it's a very good price, assuming the
ext warr. "starts" when your current oem warr. expires, time or mileage
first. That is my question: do you buy the car off lease and continue
on with oem warr. and then the real 2OP kicks in?

If so, it's a very good buy, esp. if you are going to hang on to it
for another 2 years+.
GL,mD

[PersonaNonGrata]

That is a good price BUT is he selling you an aftermarket warranty or a BMW warranty? Many people have had good luck with Warranty Direct but who knows what company your dealer might be pushing. There was one that went under last year and policy holders were SOL. Now, if it's a BMW backed warranty then even better, IMO.

I say go for it. Read 4.6Ryder's recent post about his warranty saving him thousands. My BMW extended warranty has paid for itself already and I have another year on it. Also, do a search to get more info. We've discussed this many times before so you can get some more opinions.

[noncom23]

If BMW original, prorate to your current data!

[swildy]

Yes, it's the BMW certified pre-owned warranty. Essentially they buy out the lease, certify it and then resell it to me for the same price plus the certification cost. The existing 4yrs/50,000 miles warranty still applies for another year, then the CPO 2yrs/50,000 miles warranty would kick in. Seems like a good deal, considering that an after market warranty from an insurance company would be more like $3500-$4000 and wouldn't cover as much.

I guess I'm just wondering how prone to failures these recent X5's are....?

[Wagner]

Also remember when you buy it, you're paying taxes (on the sale, depending on state) that time around, unlike with the lease.

[cmyX6go]

Originally Posted by swildy

I guess I'm just wondering how prone to failures these recent X5's are....?

Extended warranty = no brainer.
Murphy's Law says as soon as your warranty is up, something goes wrong. It is inevitable, BMW or not. There are countless threads here about extended warranties saving someone big bucks. Go for it.

Glad you love your baby enough to keep her.

[Aimster]

I would get it only because it is a BMW.

The repairs on BMW is costly.
If it was a Toyota/Nissan/Honda I would probably say no because their transmissions/engines are built like a rock .. usually.