To get extended warranty???

[Franklin Joseph]

Looks like we have decided to keep our 2003 4.6 for much longer (another 2-3 years). Currently have 75k miles. Had alot of work done few months back (prior to CPO expiring - fixed leaks/seals/PS hoses/radiator)

We hardly drive the X5, mostly on weekends only...but i do use it to tow my racecar 4-5 times a year. I dont foresee us putting more than 20k miles over the 2-3 year period.

Is it worthwhile for me to get extended warranty? (my main concern is the tranny) The 2 main local dealers here sell Fidelity, EasyCare and MAP extended warranties. I'll get pricing on Monday. With some research, looks like people have good success with Fidelity.

Thanks
Franklin

[Weasel]

I would also consider getting the warranty for the other expensive items that can come up, like the >$1k water cooled alternator, outer axle boots,air suspension, possibility of DSC module, intake manifold/valley pan resealing, etc.

I know I could get my moneys worth out of an extended warranty if I weren't fixing it myself with parts at cost.

[Franklin Joseph]

Got some pricing to start. Not sure how good it is.

Fidelity Platinum

2yrs/24k miles = $3400
3yrs/36k miles = $3600

Both with $100 deductible. No brainer to get the 3yr warranty. To get the $50 reducing deductible...add $300 to the policy. 10% down, pay balance over 18 months. Fully transferable and can be cancelled any time, they will refund prorated balance.
Its only applicable if i sign up before 75k miles (i'm at 74k today), otherwise i'll have to get their lesser plan.

Does this sound reasonable?

Thanks
Franklin

[faz]

$300 extra to save $50/deductible, that is like paying for 6 savings upfront... do you anticipate to have more than 6 warranty work done?

You are spending $3600 now, plus deductibles, plus whatever amounts that are not covered under warranty... do you anticipate any major work needed in the next 20-30k miles to justify $4k+ cost now??

I chose to take the risk and didn't get extended warranty, but mine is an 05 3.0 with about 55k miles on it now. If the $3k-$4k worth of warranty covered the rest of the life of the car, that would be well worth it.. but since it only covers 2-3 years period, one needs to consider chances of something happening in that period only. It might be a good idea for your car though, if there are known issues that come up between 75-100k miles.

[Franklin Joseph]

thanks...looks like i have some figuring to do and more research on my car.

thanks
franklin

[roadfrog]

Extended warranties historically are worthless. Every consumer org and publication advises against it. Did you look into what the cap is for repairs? Some specify a maximum per incident repair cap at 2500. A tranny repair alone will be more than that.

Put it this way, the "warranty" company (it's actually a service policy) is betting that you'll never use the warranty and your betting you will (with your money up front). Are you a betting man? Because the house almost always wins.

There is so much small print it'll make a lawyer squirm. Another example, I was given free of charge, a 1 yr powertrain and seals/gaskets warranty from Coast to Coast with my purchase. I'm almost trying to get out of the policy because it requires me to do oil changes every 3000 miles or 3 months (to the tune of 130 bucks each) on synthetic. And it must be done by a certified shop - no DIY. So in a year I'll spend over 500 dollars in oil changes for a limited chance that I'll need to use it. It also has a 2500 dollar repair cap.

[sprocket1200]

if you are a saver (have emergency cash on hand or available), then self insurance is the way to go.

NO deductible, NO hassles, NO waiting, NO issues at all! I love it!!

[killcrap]

trans is usually not covered by the extended warranty when going to the dealer, the trans is $5,424.62 parts only. add another 9hours of labor comes to $6702.62

what is going to to happen is they are going to tell you to bring it to Aamco.

Do you want them to do it? or Do you want the Dealer to do it? I'd rather have the dealer do it, as it is OEM R parts. Who knows what Aamco will put in, or break when they take apart your $74,000 truck.

Also extended warranties usually do not cover the correct labor, as they go with the Chiltons Labor Manual. You will have to pay the difference depending on how your relationship is with your dealership. Other parts they usually dont use OEM on is

Steering Racks(off site rebuilt), Pump(off site rebuilt), A/C compressors(off site rebuilt), Torque Converters(aftermarket Reman), Trans(aamco), Engines(junkyard), Transfer Case(junkyard)

The only reason i would get the extended warranty would be if i really wanted to screw the warranty company over.

Say you got a 2006 X5 4.4i
I'll make sure some big ticket items are malfunctioning at the time. Such as...

Intake Manifold Siezure- 1,769.46
Intermediate Levers- 2,104.00
Engine Wiring Harness- 689.02
Air Mass Meter- 545.00
Coolant Cross Over Pipe- 53.40
Transfercase Control Unit 775.94
Steering wheel(horn malfunction) -638.00
Stuck Brake Calipers -1400.38
Dsc Control unit -1,264.82
Instrument Cluster Pixels-1,266.63
Ihka Control Unit-566.00

Have inspector come out and inspect the vehicle....
$11,309 parts, $9,798 in labor =

$21,107 check for dealership.
billout(but dont install in vehicle) all parts
pay my self in labor to "install" all the parts.

use the money to buy what ever i want. Sell the parts on ebay or the forums, use the money to pay for the extended warranty, pocket the change.

[Franklin Joseph]

thanks for the eye opening information. My main concern is the tranny...reading all the high cost of repairs here.
I'll be stopping by the dealership to get information on it....just want to read everything first.
Never knew there was a billout with warranties...hmmm

[BMW03X5]

From my experience with Warranty Direct, they will only provide a replacement part that is equivalent to what has failed. My alternator just failed and they paid $289 towards a new alternator that cost me $1100. A BMW 3.0 alternator is $700! plus installation,but they will not replace it with a BMW alternator. If I had to do over again I would self insure, or sell it.