jherm

From what I've seen around the forum, it looks like idrive components are not necessarily covered under the BMW extended warranty. This is an item that I am worried about since so many functions are controlled via idrive and it seems like many potential issues could arise as a result. Warranty Direct says that its extended warranty would cover idrive and related electrical.

So is a 3rd party extended warranty the way to go as opposed to BMW?

PanPanks

Well, I looked at Warranty Direct but they wanted $5,700 for my '07 550i. I ended up going through the dealer and got the same extended warranty as the 7-series that covers all the electronics; $2,600 + tax for 48 mo/75K miles additional coverage.

Ricracing

Third party warranties are like crap.

Most don't still seem to understand why the economy is what it is today.

jherm

That sounds like an intelligent response...I understand that the third party extended warranty marketplace is filled with numerous shady companies. However, there unquestionably are also numerous companies that offer better warranties (more coverage) at cheaper prices than a dealer.

Ricracing

We all have seen the intelligent behavior of US bankers and insurance companies executives...
Smart for them, but I hope you are OK.

Third party, as hedge founds etc. are smart options? For the bankers, yes.

Do you really think the third party insurance company will give you a deal that is not good for them?

A car is a car and BMW is one of the best ones, but something can still go wrong.

jherm

I'm having trouble deciphering a point from your post? As best as I can tell, you are negative on third party auto warranties because of wall street?

And no obviously, a third party will not give a deal that is not good for them. The same is true for 100% of businesses in the world from McDonald's to Orkin Pest Control. As is the case with any going-concern entity, they are a business after revenue. It's not a non-profit. That being said, yes, third parties routinely have a lower markup than dealers on extended warranties. As a general rule, dealers charge up to a 100% markup from the price they pay for extended warranties.

The fact is, any warranty (on any product) is not worth it. Studies prove that warranties (regardless of the seller) are not worth it for the consumer. But I am going into it knowing that and am shopping for peace of mind.

pukka

I don't think the BMW extended warranty covers any electronic components. Since the car is so heavily reliant on its electronics, going the 3rd party route is a good decision. Just make sure you do your research before you purchase. There are shady warranty companies out there as previously mentioned

z06bigbird

Third party extended warranty notes to self:

1. Read the contract. Three or four times.
2. Check BBB.
3. Ask any friendly service mgr to read it for/with you. Buy him lunch.
4. What specifically does warranty cover?
5. What does it exclude?
6. Does it require actual breakage, or will it pay for worn rings, noisy rear end, etc?
Many warrs cover ONLY BREAKAGE.
7. If the repair costs exceed the value of the vehicle, how much will warr co pay?
Many pay only up to the wholesale value of vehicle.
8. If the problematic item has a TSB, will the warr pay for it? Some will not pay
anything if there was ever a TSB on item. Cars typically have thousands of TSBs
on each model.
9. Does the warr provide new parts or used parts? If the used item fails, will warr
pay for labor on the next go around? The warrs will likely refer you back to junk
yard or shop that installed the item, hoping they have a warranty.
10. Repeat item. Have you asked your service mgr to read the contract with you?
Best advice you can ask for. He/she is the guy/gal who knows what is and what
is not a great contract.
11. What have you found on an internet search?
12. What is the best book rating on this company?
13. Are you aware that third party warrs go bankrupt at the rate of about 12 per
year? More now than ever.
14. If you ask for a refund, where does the company send the refund? To you or to
the dealer? What if the dealer goes out of business or goes bankrupt? How do you
get your $$ back?
15. What other questions do you have about or for the warr co?
16. Does warr pay entire labor cost, or just a portion?
17. Google the warr company name. Has it made headlines recently like US Fidelis?
18. Repeat item: Select a warr that covers wear and tear, not just physical breakage.
19. Buy your warr early. Major discounts on prices if purchased sooner than 24 months and
36 months. If you are out of your original warr, you are likely in big trouble. Most
reputable cos do not cover vehicles that are out of manufact warr; or they charge a
larger premium.
20. If someone wants to charge you $3,000, then put money in bank. Self insure.
21. Dealers are negotiable on these warranties.
22. Good warrs: Toyota, Honda, Ford ESP, MasterTech, GMPP, Fidelity Direct, etc.
23. These companies want you to purchase their warr within 36 months of in-service date.
You come out on the good end with a lower price. They sell another contract. Win-win
situation.
24. Repeated item: Talk with service mgrs and service writers at various dealerhships--Ford,
GM, Toyota, BMW, etc. Some will tell you that with certain warrs, dealer wants you to
pay. You then bill the warr company. That can be a red flag. Or it could mean that
that dealer has been trying to milk that warr company.
25. Lastly, take control of your vehicle, your $$, and your life. Do your homework. Be
proactive and ask tons of questions. Read a variety of contracts. Mark these contracts
up, identifying strange looking items and exclusions.

z06bigbird

Google "problems with Warranty Direct."

Consider self insuring.

BC.

I paid $1450 for a 3 year/50K extended warranty on my 06 530. The company that provided the warranty is called Guardian. I checked with my BMW dealership and they said they accept that company's warranty, and I checked Guardian's contract and it does include almost all electronics.

Extended warranties, like insurance is mostly just for peace of mind. I get insurance on all car rentals, but not once have I used it. However, my buddy recently rented a big U-hual truck and crashed it into garage that was too low for it. Cost him $5K for repairs, that $20 he could of spent on insurance would have paid off. Also, I pay $150 a month for health insurance, but I hardly ever use it (I'm 27). I want to cancel it, but this guy i know, who didn't have insurance got hit by a car, and all the medical bills forced him to file for bankruptcy. So if you think about it, warranties and insurance are worth it, but most likely you will never need it.