[Beemertj]

I have to ask, because it really seems odd to me.

Pay $4k for a top tier warranty AT BMW DEALERSHIP, and somehow the warranty company indeed seams items are covered (4 of them essentially) but somehow the price they (Warranty Company Lithia) Will not cover the entire amount?

Now, I'm going on the premises the dealer is trying to soak me for about $2000 (includes $200 deductible) before they strong arm into me telling that I am on the hook for the money "difference". Um, how can that be?

I (at this point) don't fault the warranty company or the dealer. I just cannot fathom a warranty company agrees that items need replaced and won't cover all the labor costs that a BMW warranty dealer sold me for a BMW repair.

Help me understand who to be upset at.

A/C compressor leak
R front boot torn
stage 3 leak at oil pan
stage 1 leak at valve cover

The bill is about $6000.


2013 535Xi 92k miles

[dzz]

the key is in the fine print, if an item is considered wear & tear item or a warranty company considers that it failed because of outside influence (accident, pothole...) then it will likely deny the claim. I had similar situation where driver side CV joint was leaking grease and needed to be replaced and also the radiator was leaking. Warranty company denied CV joint replacement because they said it was damaged because of hitting a pothole and they also denied paying for 3 radiator hoses (wear & tear items) but they've paid for radiator replacement.

[Beemertj]

Nope, all 4 issues were indeed agreed upon required repairs. They were at 100 % on the parts. Dealer said they were not agreeing to pay the labor..... It's a BMW! They SOLD me the warranty. How could the rate not be known at the warranty repair center?

[wcr3d]

You will have to take that up with the dealership, they are an independent.
Sounds like they are trying to squeeze you for more, they set their own labor rates.

[mness]

Read your warranty. Sounds like it's not a BMW warranty, but was sold to you by a BMW dealership. But you're right if a BMW dealer sold you the warranty, you'd "assume" that it covers BMW labor rates on covered repairs. Was it the same dealer who's doing the work? If so you'd have more leverage to insist on this.

I have a 3rd-party warranty (Route 66), and they paid my BMW dealer's labor rates ($220/hr). I thought there was a risk they wouldn't with a 3rd party warranty, since I didn't buy it from a BMW dealer. From a BMW dealer you should expect their labor to be covered.

P.S. also warranty may not cover fluids/similar even as part of a covered repair, but that wouldn't be in the $2000 range.

Good luck.

[Beemertj]

I told him for $1800 and some change, I would find an independent shop that will comfortably do the repair for my deductible only, which is $200. About 45 minutes later I got a phone call from them telling me that their manager authorized all the work to be done for my deductible. You know you negotiate your ass off to buy the car and then you find yourself being forced to negotiate What a BMW dealer is willing to pay for a warranty that they sold me for an offset of labor costs. I told the dealer when I picked up the car I’m done I’ll never own another BMW if this is the crap you guys pull for a warranty that they sell and if I was smart, I’ll get a hold of the BBB and tell them about this unfair practice. I told them it felt VERY deceitful.

If anything, I hope this warns others to a possible practice.

“BMW of Salem” Oregon was the dealership.
Warranty was the FULL COMPREHENSIVE and the Warranty Company was Lithia.

[mediocrechris]

Originally Posted by tmartin000

I told the dealer when I picked up the car I’m done I’ll never own another BMW if this is the crap you guys pull for a warranty that they sell and if I was smart, I’ll get a hold of the BBB and tell them about this unfair practice.

“BMW of Salem” Oregon was the dealership.
Warranty was the FULL COMPREHENSIVE and the Warranty Company was Lithia.

You say you'll never own another BMW but is the problem here with BMW or is the problem with BMW Of Salem? This could be a situation where BMW has nothing to do with it and this is all a scam solely on the dealer's side.

Regardless, it does sound fishy and I would avoid all further business with that dealership if at all possible; unless of course you can find out that everything was on the up and up.

[Beemertj]

Well, I was upset. I will probably not buy one there.
Sorry about that slip.... 😁

[Unspec]

Sounds like standard run of the mill BS for a third party warranty. Don't bother contacting the BBB, they have zero relevance these days, you're just wasting your own time. BBB is just yelp for old people lol, they're not even a real government authority.

[OnlyGerman]

Dealer will always try to mark up their labor times and cost for any job for a third party warranty. Warranty knows better and only pays book times and average labor prices, if dealer will not match, always move to independent shop.

[Beemertj]

Originally Posted by OnlyGerman

Dealer will always try to mark up their labor times and cost for any job for a third party warranty. Warranty knows better and only pays book times and average labor prices, if dealer will not match, always move to independent shop.

I couldn’t agree more. Too bad there wasn’t an option for a non-certified car BMW warranty available, at least, that’s what I was told.

[Sylverlee]

I recently had an issue like this with MaxCare (CarMax) extender warranty. Underwritten by Fidelity and sold at dealers as well. Insurance kept insisting a power hose replacement was 3 hours of labor, one dealer and another independent shop were saying engine out was required 22 hours. (Car was a Porsche 911). I kept calling them and persisting until they gave in.

[ezaircon4jc]

Originally Posted by tmartin000

I told him for $1800 and some change, I would find an independent shop that will comfortably do the repair for my deductible only, which is $200. About 45 minutes later I got a phone call from them telling me that their manager authorized all the work to be done for my deductible. You know you negotiate your ass off to buy the car and then you find yourself being forced to negotiate What a BMW dealer is willing to pay for a warranty that they sold me for an offset of labor costs. I told the dealer when I picked up the car I’m done I’ll never own another BMW if this is the crap you guys pull for a warranty that they sell and if I was smart, I’ll get a hold of the BBB and tell them about this unfair practice. I told them it felt VERY deceitful.

If anything, I hope this warns others to a possible practice.

“BMW of Salem” Oregon was the dealership.
Warranty was the FULL COMPREHENSIVE and the Warranty Company was Lithia.

There you have it... it was a 3rd party warranty, NOT a BMW warranty.

That's because it's a 3rd party warranty. As said earlier, a 3rd party warranty will (generally) pay only a certain amount for a repair; usually less than book time. They don't make any money paying out claims! I'm surprised they're paying anything other than the compressor. The other items are considered wear items and I'm pretty sure not even the BMW extended warranty covers those.

Originally Posted by tmartin000

I couldn’t agree more. Too bad there wasn’t an option for a non-certified car BMW warranty available, at least, that’s what I was told.

I'm not so sure Lithia is a factory certified BMW 3rd party warranty. Seems like it's something that dealer sells on their own. There are from what I've read here much better 3rd party warranties. A BMW extended warranty isn't cheap by any means, which is why most opt for a 3rd party. I would be upset at the salesman, not the car or necessarily the dealership. Have you talked the service manager about this? If no satisfaction there try going up the chain. Threatening them will get you nowhere, unless you're a many multiple repeat buyer. Even then the threat will most likely be met with deaf ears. You aren't the only buyer out there!

[Unspec]

Originally Posted by ezaircon4jc

There are from what I've read here much better 3rd party warranties.

I believe Route 66 is generally very well regarded.

[graphite]

As someone who has recently worked for Lithia, I can tell you that their "First Extended" warranties are not exactly top-tier, as you're now discovering. Did you buy the warranty from BMW of Salem? If so, you're going to have more leverage to take things up with the service manager, or general manager, if necessary. You should not be left out of pocket for a covered item that their warranty won't pay their own labor rate on.

Originally Posted by Unspec

I believe Route 66 is generally very well regarded.

As a repeat Route 66 service contract holder, I can attest to this. Upon acquiring my CPO 2015 528xi w/ 31k miles, I chose to purchase a Route 66 factory-type contract from a local credit union, as I knew the CPO warranty would only go so far. It's already paid out on two claims, one of which was a pricey flex disc/guibo replacement that my service advisor said he's never seen any extended warranty cover, including BMW's own Platinum warranty.

For 84 months/120,000 miles of factory-type coverage including the technology addendum that provides coverage for the head-up display, I paid less than $3,000. Coverage until 2026, and no deductible.

[mediocrechris]

Originally Posted by graphite

For 84 months/120,000 miles of factory-type coverage including the technology addendum that provides coverage for the head-up display, I paid less than $3,000. Coverage until 2026, and no deductible.

Is that 84 months from date of purchase or 84 months from date of in service?
Is that 120k miles from date of purchase or 120k miles on the odometer?

[graphite]

Originally Posted by mediocrechris

Is that 84 months from date of purchase or 84 months from date of in service?
Is that 120k miles from date of purchase or 120k miles on the odometer?

It’s for 84 months from the date of purchase, or 120,000 miles on the odometer.

[Unspec]

Originally Posted by graphite

It’s for 84 months from the date of purchase, or 120,000 miles on the odometer.

Date of purchase of the plan, or the car?

[lleser]

The GM is the person to go to if you have a problem with warranty. Sales doesn't sell the extended warranty, the F&I person sold it.

I have Route 66 Easy Street, purchased through credit union. Very happy with, they covered everything that's broken. I wish I had purchased to 120K miles as I'm at 99,600 and want to keep car and can't get the Easy Street at this mileage.

[graphite]

Originally Posted by Unspec

Date of purchase of the plan, or the car?

84 months from the date of the purchase of the plan. It's an incredible value.