New X5 owner!

[Naz24]

amazing looking car. Enjoy her!

[JCL]

Originally Posted by Hit Redline

I highly recommend purchasing a good aftermarket warranty. Trust me, you will come out on top of that deal.

Originally Posted by cfmistry

I agree with Hit Redline,

It does look lowered, and an good aftermarket warranty will save you thousands.

You guys do realize that the aftermarket warranty companies make money selling warranties? And that pricing is specific by vehicle model? Given that, it is impossible for everyone to come out on top, except the warranty company. That is just a math calculation, and it applies to all types of insurance.

If you can't afford or don't want to deal with, the cash cost impact of a breakdown, then a warranty is a good idea. You are trading overall cost (higher with a warranty), for peace of mind (security of knowing what the cost will be). That is on an average of the population. It is certainly possible for one or more people to come out ahead, but it is impossible for most to come out ahead.

[Naz24]

Originally Posted by JCL

You guys do realize that the aftermarket warranty companies make money selling warranties? And that pricing is specific by vehicle model? Given that, it is impossible for everyone to come out on top, except the warranty company. That is just a math calculation, and it applies to all types of insurance.

If you can't afford or don't want to deal with, the cash cost impact of a breakdown, then a warranty is a good idea. You are trading overall cost (higher with a warranty), for peace of mind (security of knowing what the cost will be). That is on an average of the population. It is certainly possible for one or more people to come out ahead, but it is impossible for most to come out ahead.

maybe we are the only ones who come out on top because we are very meticulous about the mechanical nature of our cars that we have EVERY little thing checked out. But remember that many people have aftermarket warranties who dont realize what it covers, or even use it at all (due to negligence and just plain stupidity)--those are the ones who make the money for the warranty companies!

[cfmistry]

Originally Posted by JCL

You guys do realize that the aftermarket warranty companies make money selling warranties? And that pricing is specific by vehicle model? Given that, it is impossible for everyone to come out on top, except the warranty company. That is just a math calculation, and it applies to all types of insurance.

I absolutely see where you are coming from. However, the cost of repairs is so expensive on the X5 that I do feel more people will come out on top than with other cars. Again, I am aware that the warranty costs more in the first place since its an X5; but I am also aware that the insurance is the cost of 2 or 3 common issues with the X5 that are very prone to happening on a 5+ year old car in a 3-year timespan. Just my $0.02! My personal experience (which I'm not implying is the norm) is that the X5 costs about $2k a year in repairs (not maintenance), most of which would be covered by an aftermarket warranty. Again that's just me and I wouldn't be suprised if there are people with 4.6is models that spend 1/2 as much and people with 3.0s that spend 2x as much.

-Cyrus

[JCL]

Originally Posted by cfmistry

I absolutely see where you are coming from. However, the cost of repairs is so expensive on the X5 that I do feel more people will come out on top than with other cars.

Here's an analogy. You feel that BMW drivers are more likely to come out ahead, partly because of the high cost of repairs.

If that was true, then BMW drivers should go to Vegas, and bet against the house. While there, they should place larger than average bets (correlating to their more expensive cars). They would come out ahead.

Bet against the house, and eventually you will lose. On average, the entire population of betters will lose. Yes, some may win in the short term. But they didn't pay for all those casinos from the profits of winners.

Because of the high cost of repairs on BMWs, there are more people that are good candidates for aftermarket warranties because there are more people that don't want to face the cash crunch brought about by an unplanned major repair. That is perfectly valid. It just isn't valid, IMO, to say that BMW drivers are more likely to cause the warranty companies to lose money. That isn't how insurance companies operate. They charge premiums based on their risk.

[Hit Redline]

Originally Posted by JCL

You guys do realize that the aftermarket warranty companies make money selling warranties? And that pricing is specific by vehicle model? Given that, it is impossible for everyone to come out on top, except the warranty company. That is just a math calculation, and it applies to all types of insurance.

If you can't afford or don't want to deal with, the cash cost impact of a breakdown, then a warranty is a good idea. You are trading overall cost (higher with a warranty), for peace of mind (security of knowing what the cost will be). That is on an average of the population. It is certainly possible for one or more people to come out ahead, but it is impossible for most to come out ahead.

I agree in most cases yes the insurance company comes out on top, but with a BMW X5 especially a 4.6. They are going to loose.

Its a 4.6 and its not a matter of if, but when the transmission goes. Just search the BMW forums and you see how common the transmissions failure is on the V8 models and is even higher on the 4.6. Most being well under 100k miles.

My experience of ownership with my 4.6 cost me around 7k in less than 2 years of ownership and was purchased with 67k miles and I folded at 89k miles. That doesn't include the regular maintenance of oil changes and brakes. Now I am not saying that all will have the same experience but just the transmission issues alone that so many have would be enough to convince me to spend few thousand up front just for peace of mind. Dealer charge for transmission is around $9,000.

Even to the last day I owned it I was making repairs. Never had an issue with a window regulator until a few days before I traded it in. Rear window regulator broke and that was my last repair which I did myself with an aftermarket part at the cost of $85. For those that can't make there own repairs they would be paying out at least $600 for a repair as simple and common as a window regulator.

Anybody know what the average cost might be for a good aftermarket warranty on an X5?

[franikk]

Originally Posted by Hit Redline

Anybody know what the average cost might be for a good aftermarket warranty on an X5?

Now you have me curious!

[JAXX5]

Originally Posted by franikk

Now you have me curious!

Me too. Since I just recently dipped into BMW territory with a very low mileage '01 4.4i. I wonder how much I'd have to shell out for peace of mind? Any ideas guys?

[JAXX5]

Originally Posted by franikk

Now you have me curious!

BTW, might I suggest you clay bar amd wax it. The moment the transport truck unloaded mine in my driveway, I clay barred and waxed it. I'm not ashamed to admit sometimes I stand there and watch rain bead so much it looks like it is falling around X5!

[franikk]

Originally Posted by JAXX5

BTW, might I suggest you clay bar amd wax it. The moment the transport truck unloaded mine in my driveway, I clay barred and waxed it. I'm not ashamed to admit sometimes I stand there and watch rain bead so much it looks like it is falling around X5!

Its been fricken cold here, so I opted with using Meguires for now. I haven't used a clay bar in a loooong time when I did body work. Hell, yesterday I was finishing up while it started to sleet.