New to BMW: Need Warranty Advice for my X5 - Thanks

[trojanman]

I am new to the BMW world, but have loved it so far, for the past 4 weeks that I've owned my car. I have owned many German cars, but this is by far my favorite daily driver I have ever owned.

I picked up this 2003 4.4 for a fantastic price, with only 50k miles on the clock. It is pretty well optioned, and I think I am only missing the rear heated seats.






I have the opportunity to buy an extended warranty for the car for about $2,000, but the suspension will not be covered, and I am limited on each component (ie $4k engine, $2k tranny, $1k electronics, etc.)
Should I spend the money on this warranty, or spend $3500 on the warranty that offers suspension coverage? The car does have the air suspension option.

Thoughts? Suggestions? I do have some mechanical skills, but I am not as motivated as I used to be to work on cars. But I do have some pretty Gnarly Tools.

The car is mint inside. The previous owner was a local doctor, and I purchased the vehicle from a BMW dealer that did a brake job before selling it.




At first I considered flipping it, but now I think I will keep it long enough for my 13 year old to inherit it.

[EH6TunerDaniel]

Can/do you DIY? This will heavily impact your decision to buy a warranty.

[jsoto]

Looks decent. Stock wheels . Clearbra. Running Boards.....

I would go with the warranty without suspension BUT I would make sure how much is covered under the trans, or electronic modules (aka, per incident or 1K) max.

[trojanman]

It is max, not per incident. I can use the money at any mechanic of my choosing, including dealer. Dealer would be last option, as they would burn through my money the quickest.

I considered buying some new wheels, but that would only mean more expensive tires every couple of years. Plus it is a ski car, so the 18's are well enough.

[jsoto]

Here's the reality....

If you're lucky, no issues with tranny.
If not, it's going to run you 3500-4K for a rebuild.

LCM module will run you anywhere from 5-6 Coded
ABS module is like a grand

What's the service history...
Cause there is always the valley pan job, timing guides, cooling, etc.
These will all come up or not, if you're lucky

The insurance is a hit or miss - I'd say go for the xtended minus suspension if the period is for 3 years...I'm sure it will pay itself back

[trojanman]

The car fax shows that all work was completed at the stealership, but it does not tell me what work was completed. The warranty is 5 years or an additional 100k miles. The deductible is $100 per visit.

I can wrench on the car when necessary, but I am not as motivated as I used to be. I would rather pay someone else to bust their knuckles these days. A $2000 warranty seems like it might pay for itself pretty quickly. I am really enjoying the drive of this car, but I know when things break, they break big. $$$

The warranty company said that this was one of their lowest rated cars for warranty work.

[JCL]

If you are considering the warranty because you think you may win the gamble, and come out ahead, don't do it, it's a fools errand. No, it won't pay for itself, unless you are the exception. It's just not calculated in your favour. The warranty (insurance) company makes a profit, so you know that on average, across similar purchasers, more lose than win, and by a margin that covers their profit for the risk they assume. And you have to trust they are making a profit, otherwise they may not still be in business if you ever need to make a claim.

If you are considering it because you couldn't afford a specific repair in the future, due to limited cash flow, then by all means. You are more likely not to need it (to the value of the policy) but it provides peace of mind for cash flow. That is the only reason to purchase it.

[Joshdub]

Welcome and your X5 looks to be in great shape!

As far as the warranty goes, in my opinion you would be better off setting that warranty money aside for when something does break. The big the is the transmission, but you could find a used one for the cheapest fix, but the rest of the things are just nickel and dime stuff. Things such as window regulators, door handles, cv boots, suspension bushings, etc. The two bigger things you'll experience on a pre facelift is a t-case chain replacement (they stretch over time) and the abs module failing (usually a ~$120 repair, but requires you to send the module out).

[David.X5]

I got to say it is all the little things I would worry about and not a sole big expense. Does the warrant really cover window regulators, door handles, DSC modules, IHKA module, seat occupancy sensor, front driveshafts, transfer case chains/actuators, etc at a level that helps? Official rebuild trannies are only $3k from ZF. And no warranty seems to cover PM, even when a failure is eminent.

My choice (recognizing it depends on many personal factors) is to tuck that warranty money into a repair fund that you spend as you need. There absolutely will be repairs and maintenance costs ahead.

I have bought extended warranties on new cars because I think it makes them easier to sell at the 5-6 year mark if I'm not keen on it anymore.

[trojanman]

Coverage is as follows:

The maximum limit of liability per covered component is as follows: Three Thousand Three Hundred Dollars ($3,300.00) in
Engine claims; Two Thousand Two Hundred Dollars ($2,200.00) in Transmission claims; One Thousand Five Hundred Dollars
($1,500.00) in Differential claims; Two Thousand Dollars ($2,000.00) in Air Conditioning and Heating claims; One Thousand
Two Hundred Dollars ($1,200.00) in Electrical and Luxury Electrical claims; One Thousand Dollars ($1,000.00) in Cooling
System claims; One Thousand Dollars ($1,000.00) in Fuel System claims and Three Hundred Dollars ($300.00) in Emergency
Roadside Assistance claims.

LUXURY ELECTRICAL: Power window motors; window regulators; power door lock actuators; power trunk release; power antenna
motor; and all manually operated switches.

COOLING SYSTEM: Cooling fan; cooling fan motor; and fan clutch.
FUEL SYSTEM: Fuel delivery pump; fuel injection pump; metal fuel lines;
AIR CONDITIONING AND HEATING: Accumulator; condenser; condenser fan; condenser fan motor; compressor; compressor clutch,
dryer, evaporator and expansion valve.
ELECTRICAL: Alternator / generator; air conditioner blower motor; starter motor; starter solenoid and starter drive; horns;
windshield washer
TRANSMISSION. (a) All lubricated internal parts contained within the case(s). (b) Computer modules & solenoids; filler tube &
dipstick; vacuum modulator; internal linkage. (c) Transmission case, transfer case & torque converter case, ONLY if damaged by the
ENGINE. (a) The following lubricated internal parts: pistons, pins & rings, connecting rods & bearings; crankshaft & main bearings;
camshaft, followers & cam bearings; push rods, valves, springs, replaceable guides, seats & lifters; rocker arms, shafts & bushings;
timing gear, chain, tensioners & retainers; eccentric shaft; oil pump. (b) Timing belt; serpentine belt; Water pump: Impeller shaft,
bearings, bushings & housing; intake & exhaust manifolds; engine mounts & cushions; engine torque strut; harmonic balancer;
flywheel (flex plate) & flywheel ring gear; mechanical fuel pump; fuel sending unit; dipstick & tube; all pulleys. (c) All lubricated
The housing is covered ONLY if damaged by the
Failure of a lubricated internal part. (d) Engine head(s); engine block; cylinder barrels; timing cover; valve cover(s); oil pan; dipstick
& tube, ONLY if damaged by the Failure of a lubricated internal part.