Extended Warranty - Yes I've searched ;-)

[Blade69]

I know there are a few "Extended Warranty" threads but none seemed to help me in my search. I bought my 2004 X5 4.8is from a used car dealership. I signed up with the warranty they offered because I didn't want to drive off the lot without coverage until I could get the vehicle checked out. After reading quite a few threads, I'm pretty positive I want to keep a warranty on it because of all the horror stories I've heard about the 2004s. So I started searching online and calling around for warranties.

Let me get this out of the way, I can't get a CPO warranty. So those of you that have one cannot offer any suggestions unless you found out how to get a CPO warranty on a 3rd owner vehicle. From what I've read, you can't. Also, I'd rather pay a few grand for a warranty rather than trying to stockpile cash. There's always a good reason you convince yourself why you have to spend it....lol.

I want to hear from those that have either called, or found a place online that is reasonable. My current extended warranty that I have is for 2/yr 24k miles for $2800. It's not just the powertrain. It covers other items as well. I won't go into the whole list but it's pretty comprehensive. But I would like to think there is a better deal than that out there either price wise or term wise.

Thanks guys.

[JCL]

I think it would help to drop the term warranty in this discussion, and think about what you are buying, which is insurance. Are you insuring against defective parts, or wearout? Anything that was defective from the factory has likely failed by now. The big expenses will be as things wear out. Because of that fact, a list of what is covered is not as important as the mode of failure, which will be in the fine print. There will be significant differences in costs depending on what type of failure is being covered, not just which component. And not suprisingly, the lowest price policy will be the one with the most exclusions.

Sorry I can't recommend an insurer for you, but I think if you narrow down the scope of the discussion to what you are looking for, then any responses you get will be more helpful as you make your decision.

Good luck.

[motordavid]

I had Warranty Direct, which was quite reasonable, but a few years ago...they may have jacked up their ins coverage rate(s), but worth a look at their site, and maybe a call to bargain.

They, like most 'warranty companies', have many levels of 'coverage', and one needs to read the fine print/what's excluded, carefully. Not pitching them, but for the few & minor claims I had, they were easy to deal with...but, I did not recover my 'cost', as our X has run so trouble free for a decade+.
GL, mD

[Blade69]

Thanks JCL. Yes I am insuring against breakdown/failure. I'm guessing the most expensive pieces is the powertrain (engine and trans). I just don't want to get nickel and dimed by little things always going wrong. Living in the Chicago area, the streets are not kind to suspensions. Most inexpensive warranties don't cover the air suspension (which I plan to leave space on the credit card for), but the other bits like the control arms, axles, ball joints...etc can add up quick and I'd rather pay a deductible than shell out $1500 here and $900 there. Now that I have this vehicle, I plan on keeping up with the scheduled maintenance on it. I'd hate to have to spend almost half of what I paid for the vehicle for the engine or trans. I called one of the BMW shops and they don't have an "inspection" per se where they give the vehicle a good once over to see what may be wrong or anything of concern. I'll call a couple others though just to make sure. I learned my lesson from the Audi I had. Don't get it if you can't afford to fix it...lol.

[Blade69]

David - I'd like to believe that mine will be trouble free for as long as I own it, but the only way to insure that is to insure it....lol. Murphy's Law seems to hang around the corner for me. As soon as I drop coverage, something will go wrong. So maybe I'll just get powertrain and bite the bullet when anything else goes wrong.

[motordavid]

Again, not pitching WD, but they were easy to deal with, and the price was decent, then...they may have jacked the pricing. But, as I wrote, they have several levels of coverage.

As you searched you probably read umptyseven posts of mine, banging on the table for one needing to have an extended coverage of some kind. I am more ambivalent about it these days, though our X is a 3.0 and has a manual trans, no Nav, no gizmos, and good old E53 electronics, so I was less invigorated when it came time for WD's renewal situ.

I hear you on the safety net, mental health situ...for those with problematic Xs they can be cost nightmares to repair. GL, mD

[JCL]

Well, if you want to insure your total maintenance costs just make sure that any policy covers wear and tear, in addition to specifically including the components you want covered. One policy will cover breakage of a suspension arm, another will cover wear out of the same suspension arm. Those can be very different policies, and many purchasers just check to see that suspension is covered, when it isn't the salient point.

Just a side comment, which I am sure you know, but you are swimming upstream here. You have purchased an 8 year old vehicle that had higher than average maintenance costs even when newer, and further increasing maintenance costs when older. Many of us sold our X5s at 4-5 years for that reason, and that is why there are so many used ones out there, and that is why purchase prices are relatively low. It isn't reasonable to expect low maintenance prices in addition to the low purchase price.

I would spend the time finding a good independent shop that you trust to do the repairs, instead of an insurance policy. All the insurance is doing is adding an insulator between you and the shop. It is the shop that is actually going to keep your vehicle running at the most efficient cost.

[motordavid]

What JCL said...

[JCL]

Here is a data point for you.

http://www.xoutpost.com/bmw-sav-foru...ny-advice.html

2006 4.8. Suspension covered, apparently. 5 years, $7,200 to $11,500 depending on deductible chosen. Appears to cover wear out.

That may help to illustrate the difference between wear out and breakdown coverage. Said another way, if your vehicle experienced the average number of covered breakdowns which the accountants used when they worked out the price in the first place, you should expect to pay the difference in between the two policies as non-covered wear and tear repairs, if the term is the same. That also assumes that both companies have the same financial reserve level, and that both will still be in business when you need them. That is another big difference between vendors. Overall, it is a simplistic example that leaves out their profit margin, but it serves the purpose.

I would still expect more expenses due to wear than defects, in total.

[Blade69]

David - I hear ya. For some reason, I just always thought BMWs were reliable. Guess I didn't research the X5s enough.

JCL - In my searches, any policy that covers wear and tear literally covers everything, and costs about $10k. I wish there was a way I knew I'd get that much back out of it. People will complain more than praise. That's just our nature. You'll read more about what went wrong than what's right. But I look at it like this. If nothing goes wrong, there's nothing much to say. So I look at the amount of complaints. I'm nervous, to not have insurance, but like you said, something is probably more likely to wear out than break.