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2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums General 5-Series Sedan and Wagon (F10 / F11) Forum Platinum Warranty- $5,600!!!!**@@##
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      06-06-2014, 03:05 PM   #1
WhiteWalker
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Angry Platinum Warranty- $5,600!!!!**@@##

Ive been quoted by two dealers.
3 year / 100,000 Platinum Coverage

$5,600! - Does this seem very high to anyone else?

I drive a 2011 - 550xi

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      06-06-2014, 03:06 PM   #2
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I thought these could be negotiated? Also, does that include maintenance? Seems a little high to me.
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      06-06-2014, 03:32 PM   #3
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I was quoted in the $5200 range for my 2011 550i.
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      06-06-2014, 03:34 PM   #4
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Not so high. They need to make a bundle off of you -- and fix the car as well!
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      06-06-2014, 03:47 PM   #5
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Seems to be non-negotiable and set by BMW.

One dealer does offer 12mo. 0% financing. The other said they never heard of financing the true BMW warranty.

The mixed messages is not making this any easier of a decision.

My luck is not the greatest with these things and just can't decide to roll the dice or not....
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      06-06-2014, 04:53 PM   #6
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At that cost, I would set the $ aside and roll the dice.
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      06-06-2014, 05:09 PM   #7
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if you can access USAA they have a reputable warranty company they deal with and its pretty straight fwd ASSURANT and no deductible. some of the ones sold by bmw are no deductible if you get your car worked on at the dealership you bought it from n if you go else where u have a deductible
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      06-06-2014, 05:21 PM   #8
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Interesting. USAA is who I have my financing through.

If I remember correctly - their brief online quote generated something like $6k+.

I look again..
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      06-06-2014, 08:20 PM   #9
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Choosing to buy a warranty or not is all about risk. You need to factor in your potential risk, which must include things like how long you plan to keep it, if you abuse the car (drive it hard), any past issues or concerns, your ability to pay for a large repair, etc.

In most cases, insurance companies make BIG money, and if you can "self insure," that's sometimes your best bet. Consider this: most insurance companies are really investment banks in disguise. Selling insurance is really only a means of raising capital for running and investment firm. Take a look at companies like Markel (great stock to own by the way - like a mini Berkshire Hathaway) - an insurance company but really makes most of its money from investing premiums.

So what does that mean? Lots of liquidity - much less in payouts than what's collected in premiums. Hell, there are even laws governing this - BASEL II and BASEL III, for instance - due to the high popularity of insurance companies really operating as investment banks.

Now, keep in mind that I think a 2011 550xi is probably going to be an expensive car to maintain as it continues to age - it's only 4 years old at the moment, but give it a year or two more, and that's when the bigger problems (in my experience) tend to start really kicking in... which is also why I've sold my cars at about 6 years, which is what I think is the sweet spot between getting value and before most major repairs starting coming into play (the "knee" in the curve if you will). But anything can happen, and there's no magic formula for all cars obviously.

Not to oversimplify it, but here's my logic... if the following are true, I'd pocket the $5,600 and take my chances:

1. You're the first owner of the car and/or have it's entire maintenance history, and you feel comfortable that it's been well maintained.

2. You drive it moderately and don't beat it up.

3. You plan to keep it for no more than 1 or 2 more years.

4. You'd be able to pay for a major repair if it hit you.

If you answer "no" to 1 or more of the above statements, I'd consider getting the warranty.

For future reference, I'd encourage people to also look at GEICO's Mechanical Breakdown Insurance (MBI). You need to be the first owner of the car, and you need to add it to your policy before the car is 1 year old and 15k miles, I think. However, it's very, very cheap - you'll likely pay less than $1k into it before the car is out of warranty. And then it covers you up to 7 years or 100k miles, whichever comes first. So, you somewhat need to know that you plan to keep the car, and you need to be the original owner. But it's really nice peace of mind. All GEICO policy holders I've known who have used it love it. There are no exclusions and a $200 deductible, which makes it quite simple.
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      06-06-2014, 08:32 PM   #10
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This is great, thank for taking the time to write such a detailed reply.

My other question would now be what can I pick up in terms of a warranty *after* 50,000 miles? If anything.
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      06-06-2014, 09:13 PM   #11
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Quote:
Originally Posted by 007mead View Post
This is great, thank for taking the time to write such a detailed reply.

My other question would now be what can I pick up in terms of a warranty *after* 50,000 miles? If anything.
There are plenty of aftermarket warranties out there, but clearly the market is full of junk, as well. I honestly don't have a lot of experience with them because I've never gone for one. My formula has been:

(a) Buy the car new.

(b) Maintain it.

(c) Drive it with respect.

(d) Sell it 2 years after warranty expires.

I've had good luck with this so far. Yes, there have been some minor repairs, but that's somewhat the luck of the draw. Plus, a 550xi is going to be a more expensive animal in general.

But, for nothing else, think of it this way - getting a PRICE on a warranty is like getting expert financial advice. These guys have access to all of the historical data and have crunched the numbers on their potential payout risk. Then, because they're in the business of making money, they uplift it to get you a price of $5,600. So, in my book, the chances are PRETTY good that, if your car falls within a standard deviation or so from the "norm," you should see less than $5,600 in repairs during that same period. But again, it's gambling and nobody really knows what any individual car may do... just generalities.

Another option - set aside $5,600. If and when you reach $5,600 in repairs, sell the car. If you never reach that amount, sell it when you naturally would have planned. The one contingency here is, again, being able to afford a much bigger problem should it arise.
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      06-10-2014, 09:16 PM   #12
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Quote:
Originally Posted by 007mead View Post
Interesting. USAA is who I have my financing through.

If I remember correctly - their brief online quote generated something like $6k+.

I look again..
young can change it up if you want but i used them it was pretty seamless
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      06-11-2014, 11:51 AM   #13
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Let's use my experience as an example.
I recently purchased a 2012 CPO from a dealer. I'm still in the original warrenty. After about 3 months I noticed a slight hiccup in my rpms when stopped at a red light and I always smell oil burning after spirited drives. Took it too my dealers service Center and described my issues. I receive a call from my SA saying the car will be of the road for a couple of weeks. Turns out
Engine valves very badly coked with carbon build up. They must pull engine out and remove heads and do a head job. Also walnut blasting
Burning smell turned out too be both turbos leaking oil.
There are some other minor issues.
Right now the bill is close to $13,000 plus tax. My point if I was not covered under warranty I would be in trouble
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      06-18-2014, 11:11 AM   #14
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Quote:
Originally Posted by Siren05 View Post
Let's use my experience as an example.
I recently purchased a 2012 CPO from a dealer. I'm still in the original warrenty. After about 3 months I noticed a slight hiccup in my rpms when stopped at a red light and I always smell oil burning after spirited drives. Took it too my dealers service Center and described my issues. I receive a call from my SA saying the car will be of the road for a couple of weeks. Turns out
Engine valves very badly coked with carbon build up. They must pull engine out and remove heads and do a head job. Also walnut blasting
Burning smell turned out too be both turbos leaking oil.
There are some other minor issues.
Right now the bill is close to $13,000 plus tax. My point if I was not covered under warranty I would be in trouble
Ouch, $13k to clean the engine... Are the turbos damaged?
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      06-18-2014, 11:25 AM   #15
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I got mine for 3k.
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      06-18-2014, 01:31 PM   #16
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Quote:
Originally Posted by 007mead View Post
Ive been quoted by two dealers.
3 year / 100,000 Platinum Coverage

$5,600! - Does this seem very high to anyone else?

I drive a 2011 - 550xi

I am in the process of getting quotes for BMW extended warranty myself, the cheapest one I got so far is $4300 for 7 years and 70000 miles, platinum warranty. It seems like BMW extended warranty have gone up quite a bit in price this year. I also got quotes from after market companies such as Fidelity for 8yr 72K miles for $3200 and from Mercury warranty 7 yrs 80K for $4200. I am considering putting the $4300 aside and self insure the car.
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      06-18-2014, 04:11 PM   #17
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Quote:
Originally Posted by robbieracer View Post
Ouch, $13k to clean the engine... Are the turbos damaged?


13 CDN. Clean engine. Replace intakes. New turbos. Vacuum lines ,new cats. Head job etc
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      06-18-2014, 04:31 PM   #18
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Quote:
Originally Posted by Siren05 View Post
13 CDN. Clean engine. Replace intakes. New turbos. Vacuum lines ,new cats. Head job etc
Wow, that's a lot of stuff to be fixed. I'm glad it's not out of your pocket. How many miles on the car?
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      06-18-2014, 05:49 PM   #19
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45000 miles.yes I just purchased it back in January this year. I bought it CPO and it is still under original warranty. Did I forget to mention new injectors? The work order was 6 pages long. It had a slight stumbling when I was stopped in Drive and several passengers mentioned a burning smell. I brought it to my SA and voila 1 month later I get my hand rebuilt engine. Pretty much a new engine!
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      06-18-2014, 08:15 PM   #20
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May have been much cheaper had you purchased the warranty on day one. Mine was/is half that cost.
$6,000 would go a long way toward a new car...
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      06-19-2014, 12:16 PM   #21
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Quick follow up: my personal decision was to purchase the Platinum Warranty for 7 years / 100K (including coverage of my Dinan participation).
I was given 12 months financing at 0%.

My 550i is respectably optioned. Setting aside the major mechanical parts, I felt there was still too much that COULD go wrong not to be protected. I already had a few seat motor, window shade, and other small / simple,yet costly things repaired.

The peace of mind, as a few have mentioned, was worth it for me. I have great service and tech relationships at the dealers I patron, and for my money I expect to be worry free and serviced at a high level from them.

The final contributing factor was that I love my car. I plan on keeping it for most if not all of this extended warranty period. The warranty is also transferable and/ or refunded at a prorated rate if not used.
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      06-19-2014, 12:40 PM   #22
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Quote:
Originally Posted by 007mead View Post
Seems to be non-negotiable and set by BMW.
It is certainly negotiable, the profit margin is very high on extended warranty. My guess is that there is at least 25 to 30% profit the dealer can play with.
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