[sanyomats]

folks,

I have a 11 535 X drive with M, prem 2, heads up, convenience pkg, and such. my warranty is out in 2 months and the car currently has 47k miles. I also own a e46 that I was planning on selling for about 3k.

my options:
1. sell e46 and put rest and buy extended warranty ($4800).
2. same as above and add maintenance plan for an additional 2300
3. keep the e46 and risk not having to cough up more than 5k in expenses fixing the car for the next 3 yrs.

I completely understand that we are in hypothetical situations but I am interested in knowing what most of you would do.

Thanks in advance!!

[M5Beast_NYC]

LOL. Im actually contemplating that myself. I actually own 3 BMWs now being the F10 is the latest one.

I have a 03 E46 M3 that mostly sits in the garage and barely used. I put in my whole life savings on that so selling it might not be the wisest choice in terms of ROI but its better than just sitting there doing nothing. I can also put that cash towards paying off the F10.

My wife drives an 08 E70 X5 with close to 100k now. Right now, maintenance is killing me but its probably the only SUV i will drive and own.

Sorry if I am not much of a help but I think selling off other cars to keep what is mostly used will be the best way to go. assuming you have no ties or sentimental value to your other cars.

[The X Men]

Originally Posted by sanyomats

folks,

I have a 11 535 X drive with M, prem 2, heads up, convenience pkg, and such. my warranty is out in 2 months and the car currently has 47k miles. I also own a e46 that I was planning on selling for about 3k.

my options:
1. sell e46 and put rest and buy extended warranty ($4800).
2. same as above and add maintenance plan for an additional 2300
3. keep the e46 and risk not having to cough up more than 5k in expenses fixing the car for the next 3 yrs.

I completely understand that we are in hypothetical situations but I am interested in knowing what most of you would do.

Thanks in advance!!

How reliable have your F10 been? If it has been reliable, there is another option, put the $4800 aside and self insure. The odds are on your side.

[martin mustang]

3. keep the e46 and risk not having to cough up more than 5k in expenses fixing the car for the next 3 yrs

Warranties are packed with loopholes, the F10 is a reliable car and like our X3 when it developed corrosion on the Alloy after 3 year warranty expired, BMW was happy to change them for free, you do get some care after warranty expiry by BMW if it is obvious the issue you experiencing is out of the norm with the car age.

[sanyomats]

Originally Posted by Carbonm3ny

LOL. Im actually contemplating that myself. I actually own 3 BMWs now being the F10 is the latest one.

I have a 03 E46 M3 that mostly sits in the garage and barely used. I put in my whole life savings on that so selling it might not be the wisest choice in terms of ROI but its better than just sitting there doing nothing. I can also put that cash towards paying off the F10.

My wife drives an 08 E70 X5 with close to 100k now. Right now, maintenance is killing me but its probably the only SUV i will drive and own.

Sorry if I am not much of a help but I think selling off other cars to keep what is mostly used will be the best way to go. assuming you have no ties or sentimental value to your other cars.

No sentimental ties...atleast not too much...lol...good luck to you as well. Thanks for your feedback...

[sanyomats]

Originally Posted by The X Men

How reliable have your F10 been? If it has been reliable, there is another option, put the $4800 aside and self insure. The odds are on your side.

so far so good. I started seeing an error message once I changed out the springs but been good otherwise...
got quite a few things swapped out before warranty expiration...

[sanyomats]

Originally Posted by martin mustang

3. keep the e46 and risk not having to cough up more than 5k in expenses fixing the car for the next 3 yrs

Warranties are packed with loopholes, the F10 is a reliable car and like our X3 when it developed corrosion on the Alloy after 3 year warranty expired, BMW was happy to change them for free, you do get some care after warranty expiry by BMW if it is obvious the issue you experiencing is out of the norm with the car age.

Thanks much for your feedback!!!

[NewM3driver]

Keep them both. Don't spend the money on the warranty. Put a few grand away just in case something goes wrong. I lease a new one every three years. The dealer always wants to sell wheel insurance that is about $1800. Every time I decline and put $1000 in a bank account. In the last 15 years, I fixed ONE wheel for about $300 bucks. There is over $6000 in that "wheel" account.

[crono06]

Originally Posted by NewM3driver

Keep them both. Don't spend the money on the warranty. Put a few grand away just in case something goes wrong. I lease a new one every three years. The dealer always wants to sell wheel insurance that is about $1800. Every time I decline and put $1000 in a bank account. In the last 15 years, I fixed ONE wheel for about $300 bucks. There is over $6000 in that "wheel" account.

Wise words and I completely agree.

Think about it, if the customer was always getting the upside on the insurance, don't you think they would just charge more or not offer it?

[sanyomats]

Well put! Thanks for your feedback!!

Originally Posted by NewM3driver

Keep them both. Don't spend the money on the warranty. Put a few grand away just in case something goes wrong. I lease a new one every three years. The dealer always wants to sell wheel insurance that is about $1800. Every time I decline and put $1000 in a bank account. In the last 15 years, I fixed ONE wheel for about $300 bucks. There is over $6000 in that "wheel" account.

[sanyomats]

Originally Posted by crono06

Wise words and I completely agree.

Think about it, if the customer was always getting the upside on the insurance, don't you think they would just charge more or not offer it?

True...I am wondering how many others have come to this decision point and went one way or the other....

[493263]

Insurance companies used the average payout per customer and calculated their overhead cost + profits on top of that. So for most people, it's better to keep your money as your own insurance.

However, knowing your risks is different. Where I live, I know I will hit pot holes left and right. I also know my 550 with the 19" runflat will not fare well. I picked up the insurance for $1200 on a 5 year coverage. So far, I've already popped 1 tire costing nearly $500 to replace. I'm sure I will have more claims in the next 4 years.

[ezmaass]

I'd say sell the e46 for sure.

Why? Well, you titled the thread "financial concern." If having a few thousand dollars available to pay for repairs on the F10 is a concern, then you need to sell the e46 at a minimum. Keep in mind, it's an old car now, too, and could fail, requiring repairs that outstrip the value.

I'd say the F10 is a semi-reliable car - probably not overly so, but not a mess of a car either. But that said, one bad issue can cost several thousand to repair. Your cash flow and liquidity situation needs to accommodate that potential.

Insurance is a good idea when the risk of loss would far out-strip your own ability to pay. For instance, it's good to have home insurance, as most people would be devastated if their home was destroyed. Same with health insurance - an accident or illness could set you back hundreds of thousands if uninsured, and for most that would be devastating.

For a car like the F10, and one with 47k miles, your exposure for the next few years is probably along the lines of $2,500 - $5,000. Sure it can be lower OR higher, but if I were guessing, I'd say you'll likely pay out somewhere in that price range over 2 - 3 years with 12k - 15k miles per year. If you'd find it a financial hardship to come up with $5k, or in a more extreme situation, something like $10k, you're probably better off being insured - buy an extended warranty (and make sure it's good). But if you're comfortable coming up with the cash, then my take is the warranty is probably a waste. After all, insurance is a business - and a very profitable one. So, the odds are in your favor that your actual payouts will be less than the premium.

That said, owning a German luxury sedan out of warranty isn't for the faint of heart. I've done it numerous times - largely because I bought the car new, was the sole owner, and I had a lot of confidence in the car (and how it was maintained).... not to mention, they were always paid off... so it was still cheaper to maintain the car than buy new. If that's the case, it can be quite rewarding. You don't mind a few hundred here, a thousand or so there. Like I said, it's still cheaper than buying new when the car is under 100k or 150k miles or so.

So, going back to my opening statement - just the fact that you've called this a "financial concern" tells me it's probably a good idea for you to sell the e46 and buy the warranty. If it'll give you some comfort that you're covered, that may be what's best. But if you've got the cashflow and liquidity to weather an expensive repair or two in the worse case scenario, I'd avoid buying a warranty - chances are good you'll pay out less.

[sanyomats]

Originally Posted by 493263

Insurance companies used the average payout per customer and calculated their overhead cost + profits on top of that. So for most people, it's better to keep your money as your own insurance.

However, knowing your risks is different. Where I live, I know I will hit pot holes left and right. I also know my 550 with the 19" runflat will not fare well. I picked up the insurance for $1200 on a 5 year coverage. So far, I've already popped 1 tire costing nearly $500 to replace. I'm sure I will have more claims in the next 4 years.

Thank you!

[sanyomats]

Originally Posted by ezmaass

I'd say sell the e46 for sure.

Why? Well, you titled the thread "financial concern." If having a few thousand dollars available to pay for repairs on the F10 is a concern, then you need to sell the e46 at a minimum. Keep in mind, it's an old car now, too, and could fail, requiring repairs that outstrip the value.

I'd say the F10 is a semi-reliable car - probably not overly so, but not a mess of a car either. But that said, one bad issue can cost several thousand to repair. Your cash flow and liquidity situation needs to accommodate that potential.

Insurance is a good idea when the risk of loss would far out-strip your own ability to pay. For instance, it's good to have home insurance, as most people would be devastated if their home was destroyed. Same with health insurance - an accident or illness could set you back hundreds of thousands if uninsured, and for most that would be devastating.

For a car like the F10, and one with 47k miles, your exposure for the next few years is probably along the lines of $2,500 - $5,000. Sure it can be lower OR higher, but if I were guessing, I'd say you'll likely pay out somewhere in that price range over 2 - 3 years with 12k - 15k miles per year. If you'd find it a financial hardship to come up with $5k, or in a more extreme situation, something like $10k, you're probably better off being insured - buy an extended warranty (and make sure it's good). But if you're comfortable coming up with the cash, then my take is the warranty is probably a waste. After all, insurance is a business - and a very profitable one. So, the odds are in your favor that your actual payouts will be less than the premium.

That said, owning a German luxury sedan out of warranty isn't for the faint of heart. I've done it numerous times - largely because I bought the car new, was the sole owner, and I had a lot of confidence in the car (and how it was maintained).... not to mention, they were always paid off... so it was still cheaper to maintain the car than buy new. If that's the case, it can be quite rewarding. You don't mind a few hundred here, a thousand or so there. Like I said, it's still cheaper than buying new when the car is under 100k or 150k miles or so.

So, going back to my opening statement - just the fact that you've called this a "financial concern" tells me it's probably a good idea for you to sell the e46 and buy the warranty. If it'll give you some comfort that you're covered, that may be what's best. But if you've got the cashflow and liquidity to weather an expensive repair or two in the worse case scenario, I'd avoid buying a warranty - chances are good you'll pay out less.

wow....that's quite a response! thanks much!!!