Canada545

I'm with you Aaron ...

cobradav

I don't think anyone said that. Driving a new car costs money, sometimes a LOT of money. The assumption is that people driving new/newer cars have more disposable income to allot to transportation than people driving older cars. A $6000 hit on depreciation is a lot easier to take by someone in a high income bracket who is voluntarily trading it in on a newer model. They are the ones that put themselves in that situation. A $6000 repair bill on an older car, however, is a lot harder to swallow when you are driving an older car because that is all you can afford.

No one NEEDS a new car. People WANT a new car. Is it "financially smart" to buy expensive jewelry? Of course not. You do it for the prestige, the personal enjoyment, the "look at me" factor. You get a new car for the same reason. You have the money to do it, and you want something better. Plus, assume for a minute that you are an extremely busy executive. Your time is very valuable. It would be completely unacceptable for you to miss a meeting, etc... or be late because you had car trouble. How many times is, "I'm on the side of the road waiting for the tow truck," or "I'm stuck at the dealer waiting for my rental car to show up" going to fly as excuses? Driving a new car mitigates that risk. It is expected that once you get to a certain income level, you will use that income to purchase nicer things.

A car should never be looked at as an investment (with very rare exceptions). It is something you choose to spend your money on. The more disposable income you have, the more choices you have. No one needs a new 5 series as transportation. We could all take the bus, or drive a $1000 car. They would get us from point A to point B just the same. They may be more inconvenient, and they certainly won't get you there in style, but they accomplish the goal of transportation. If everyone looked at getting a new car as wasting money, there would be a lot less new cars on the road. And look around you-- I don't think that is happening.
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Right on the mark. My buying habits are changing as my disposable income situation has changed through the years. Unfortunately and as is the norm, the older one gets the more disposable income is available, generally speaking. So I may have to change cars every year to get in all the fun I want

Where I used to buy and hold a car for 7-10 years I am now at a point I can upgrade or at least change far more frequently. I now use the fun or wow factor more and the financial factor less. And that is certainly why the vehicle manufacturers market and produce the cars that they do. Notice now how many upscale vehicles there are.

And my discussion is purely on the non-business related attributes of the issue. When you factor in the types of business reasons for transportation decisions then you add alot more complexity to the process.

So it is not one size fits all and hence the reason there are so many differing opinons. But isn't that what makes it all so much fun

Aaron

Yes it is!!!

gwf545

I am curious what others think about extended warrantys since I've never purchased one for anything. An extended warranty is essentially just insurance and as such you are betting the issuer that your car is going to require repairs that cost more than the cost of the warranty. The issuer is betting the opposite. My view is that they are basically a rip-off, much like casino gambling. The reason is that there is inherent overhead that the issuer has to cover as well as their need to make a profit and we as the consumer end up paying for it. Statistically it seems that we are better off assuming the risk that our car will need an exepnsive repair ourselves. If that was not true, then warranty issuers would be out of business, right? Yes, you might be unlucky and take a big hit, but over the long haul you would come out ahead.

SueBMW

Manufacutrers offer extended warranties because they basically have to... and those really are the best warranties.
As far as aftermarket warranty companies, they sell service contracts on a variety of cars, not just one marque. The more reliable/cheaper to repair cars even out the less reliable/more expensive to repair cars. Thats how they stay in business. As the cost of repair becomes much more expensive on a particular marque, you will often see the warranty company drop that marque all together, or raise their rates so high no one will buy it.
A warranty is much more like insurance, not casino gambling. The difference between a warranty and insurance is that you are required to have insurance. How often do you use your car insurance? Hopefully not that often. How much do you pay? Most of the time a whole lot more than you actually receive in benefit. BUT, the fear of a total loss (in addition to the legal requirements) is why you continue to carry insurance. Yes, most of the time you may use insurance in $2000 increments if at all, but you may need to use it for $50,000. A warranty is the same concept on a smaller scale. Most of the time repairs will be a few hundred dollars, but what about if that engine needs to be replaced? Or a transmission? An ECU? Paying a one time fee of $1500-$3000 takes the fear and uncertainty out of car ownership.
Expensive cars are expensive for a reason. Yes, some of it is prestige, but a lot of it is finer, more expensive materials, or more complicated, technologically advanced or robust parts. They are also manufactured on a much smaller scale, driving the cost of parts up. So while a warranty on a Toyota may not be that necessary, one on a Land Rover is.

Aaron

SueBMW,
I agree. It is more like insurance. And, if any of you lived in or worked in Mexico, you would know how important insurance is...even if you don't use it. At least in Juarez, insurance must be optional, but people drive as though they are fully covered and ready to use it!!!

All of this talk has me seriously considering getting an extended warranty. Am I correct in thinking that it doesn't have to be purchased at the time you purchase the car? I figure if I can spend 3k or 4k on some aftermarket wheels, I can spend a couple of thousands on peace of mind.

For the extended warranty, does BMW cover everything that they cover with the original warranty?

EBMCS03

Same here !
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OH man you kids... already decinding on your next car...

soc_fans

Same here !
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OH man you kids... already decinding on your next car...
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I'm not a kid anymore!

EBMCS03

oh sorry there sonny...

netjazz

Will keep it till at least the new model design in 2009 or so.. Still got my '97 528i with 293,000 miles, so I guess I like to get my money's worth.. To save the miles on the 545i, I alternate between the two on my 140 mile round trip commute. Expect the 545i to hold up as well as my '97, but am a bit concerned with the computerization of the E60. Will go for the extended warranty for that reason.