alohalc

welcome aboard, stoley !

elchevere

How long do you plan to own your car....I am coming off of a 3 year lease and purchased an extended warranty which I will never use.....it has no value--even if you don't even surpass the original manufacturer warranty, but does transfer with the vehicle...my point: why pay for something up front that you might not even use?

GB525dTour

Here in the UK I asked about extended warranty, they do it as a deal per year with unlimited mileage but costs nearly ?1000 , (that's $1700 on current exchange rates!!!!).

On a car that has a reputation of reliabiltiy that seems VERY expensive - I think you're better off putting the money in an account making some interest yourself and if you need it the money its there. If you don't then why not use it for options on your next e60.

Seems such a rediculous price. Especially as they will eventually use the "Hmmnn seems to be wear and tear" argument!

Doesn't appear worth it to me.

skipper

It's not that rediculous. Get them to guarantee the 100k mile service and it more then covers it. The price of the service will go up with inflation. While you can make a 13% return on your investment of capital resources, a 13% return on $1,200 or so compounded yearly 1000 is roughly $180 per year after taking into account for the previous year's gains. Roughly $720-$800 over 4 years. That would mean that if the cost of the program remained the same you would lose money, but as you are most likely well aware nothing remains the same. I would expect the price to climn to about 1800 or so in 4 years.

Just my 2 cents worth.

GB525dTour

It's not that rediculous. Get them to guarantee the 100k mile service and it more then covers it. The price of the service will go up with inflation. While you can make a 13% return on your investment of capital resources, a 13% return on $1,200 or so compounded yearly 1000 is roughly $180 per year after taking into account for the previous year's gains. Roughly $720-$800 over 4 years. That would mean that if the cost of the program remained the same you would lose money, but as you are most likely well aware nothing remains the same. I would expect the price to climn to about 1800 or so in 4 years.

Just my 2 cents worth.
[/quote]

I think You misunderstand me & reading my previou post - perhaps it could lead to misinterpretation.

Let me explain:

1. The ?1000 is NOT for 4 years or 100,000 miles warranty (I agree that wouldn't be bad).
2. UK BMWs get an unlimited mileage 3 years warranty.
3. It is after this the Extended Warranty is ?1000 [$1700] per year (i.e.Yr 4 = ?1000, Yr5 = ?1000 etc)
4. They do not offer a 100,000 miles warrany in UK, unless you opt for no.3 & you cannot take it out when buying new - it will be renewable year on year AFTER the initial 3 year warranty. A sting of ?1000 per year & you still have to pay for the servicing on top of that (after 60000 miles if service inclusive taken out).

Thanks anyway