Help with choosing BMW warranty please
Discussion
Hi all ,my auc warranty runs out 19th my quote is £48 a month or £422 for the year so cheaper buying in one go.
At the end of that year it will still be under 60k miles so do you think the yearly premium after that will be a bigger jump than the £154 that I save paying monthly which I know from experience has only gone up by £2 or £3 every year (before this mad inflation mind)
Last time I did this I went for £100 excess this time £250 because for the 2 years I had it I never used it.
Thanks
At the end of that year it will still be under 60k miles so do you think the yearly premium after that will be a bigger jump than the £154 that I save paying monthly which I know from experience has only gone up by £2 or £3 every year (before this mad inflation mind)
Last time I did this I went for £100 excess this time £250 because for the 2 years I had it I never used it.
Thanks
I’ve renewed today. Same price as last year which was a pleasant surprise so hopefully you’ll have no increase. Like you I’ve gone with £250 xs with the top level cover as it’s really only for major component cover in my view.
Did make a £3,000 claim recently with absolutely no quibbles so easy to recommend.
I’ve heard horror stories before but not in my experience.
Did make a £3,000 claim recently with absolutely no quibbles so easy to recommend.
I’ve heard horror stories before but not in my experience.
I had my renewal and also £422 with £250 excess.
Interestingly I had the car in for a brake fluid service and MOT today (I take it to main dealer for all servicing in event I need goodwill) and on the job sheet was a massive stamped mark “BMW Extended Warranty with £250 Excess”.
Interesting as
1. Extended (Allianz?) warranty talk to main dealer servicing
2. I wonder if it impacted their quality of service at all.. for the first time ever they didn’t try it on with any other work or identify any other faults so I paid what I was quoted for the work and not a penny more. Eg no upselling windscreen wipers, anti-bacterial clean or more importantly identify anything mechanical which would then invoke a claim.
Maybe I’m just too cynical
Interestingly I had the car in for a brake fluid service and MOT today (I take it to main dealer for all servicing in event I need goodwill) and on the job sheet was a massive stamped mark “BMW Extended Warranty with £250 Excess”.
Interesting as
1. Extended (Allianz?) warranty talk to main dealer servicing
2. I wonder if it impacted their quality of service at all.. for the first time ever they didn’t try it on with any other work or identify any other faults so I paid what I was quoted for the work and not a penny more. Eg no upselling windscreen wipers, anti-bacterial clean or more importantly identify anything mechanical which would then invoke a claim.
Maybe I’m just too cynical
I'm at £116 pcm for mine now, but it is 16 years old and I went monthly before I hit 60k miles, so I can't really complain too much.
I have the top level cover with assist and £100 excess. Not actually made many claims yet. Most recent was a worn tie rod which was good to have covered.
I have the top level cover with assist and £100 excess. Not actually made many claims yet. Most recent was a worn tie rod which was good to have covered.
ukpolak said:
I had my renewal and also £422 with £250 excess.
Interestingly I had the car in for a brake fluid service and MOT today (I take it to main dealer for all servicing in event I need goodwill) and on the job sheet was a massive stamped mark “BMW Extended Warranty with £250 Excess”.
Interesting as
1. Extended (Allianz?) warranty talk to main dealer servicing
2. I wonder if it impacted their quality of service at all.. for the first time ever they didn’t try it on with any other work or identify any other faults so I paid what I was quoted for the work and not a penny more. Eg no upselling windscreen wipers, anti-bacterial clean or more importantly identify anything mechanical which would then invoke a claim.
Maybe I’m just too cynical
From my own previous experience I was told by the BMW service department at the local dealer that they have someone working within the dealership who is the appointed warranty liaison with Allianz so I imagine most dealerships are the same. Interestingly I had the car in for a brake fluid service and MOT today (I take it to main dealer for all servicing in event I need goodwill) and on the job sheet was a massive stamped mark “BMW Extended Warranty with £250 Excess”.
Interesting as
1. Extended (Allianz?) warranty talk to main dealer servicing
2. I wonder if it impacted their quality of service at all.. for the first time ever they didn’t try it on with any other work or identify any other faults so I paid what I was quoted for the work and not a penny more. Eg no upselling windscreen wipers, anti-bacterial clean or more importantly identify anything mechanical which would then invoke a claim.
Maybe I’m just too cynical
In my case the exhaust valve needed work on my M240i, when they came to do that they found the actuator was also faulty apparently which resulted in a bill of over £1000 in total including the service, of course the exhaust components were not covered by the warranty.
I cancelled the warranty afterwards and (Touch wood) have never had anything which would have needed a claim.
Don't buy the warranty, just put the money in the bank and pay for any repairs out of the premiums you haven't paid!
BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
e21Keith said:
Don't buy the warranty, just put the money in the bank and pay for any repairs out of the premiums you haven't paid!
BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
Yes I have thought of that and thanks for the input.I did pay £60 a month for 2 years and never used it over 40,000 miles.It is a lottery I agree I just worry about the Turbo blowing or for example some nasty driveline issue . BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
e21Keith said:
Don't buy the warranty, just put the money in the bank and pay for any repairs out of the premiums you haven't paid!
BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
The point of buying a warranty is partly piece of mind, for some that is good value. BMW calculate the price of the warranty against the cost of repairs they have to pay for, and they expect to make a hefty profit (out of which they have to pay all the admin costs, advertising etc.). So on balance you're unlikely to get your money back on the warranty premiums.
Paying for a warranty is a bit like playing the lottery or buying scratch cards, you might win but the chances are you will lose out in the long run.
It also depends on what car you buy. Allianz (not BMW) make money of those that do not claim, but you as the customer would need to calculate how likely it is that you are going to be in the non claimant group. Buying a used BMW made since 2000, especially any M car, a V8, an N54 or a 4 cylinder diesel, is a risky proposition in the first place.
It's also all fair and well saying just save the money, but what if the fault happens sooner? What if the fault costs £15k to put right? What if you don't have the discipline to save the money?
Having the warranty also helps with resale value, I know I will have a slightly easier time of selling mine, which has been under continuous warranty since new, than one that has not.
It's not for everyone, but extended warranty can be a useful risk mitigator, like any other insurance product.
It may be a risk mitigator, it may be peace of mind, however the premium is calculated on the age and model of car to make a profit for the warranty vendor, so in the long run the chances are that it will cost more money than it will ever pay out. The other issue with a BMW extended warranty is that it ties you in to having the repair carried out within the BMW network, where the cost of repair is almost certainly going to be more than going to an independent, so you pay for an overpriced warranty that pays for overpriced repairs!
The long term economics just don't add up, but if you need peace of mind this is definitely the way to go.
The long term economics just don't add up, but if you need peace of mind this is definitely the way to go.
There is also the fact that if you do not have a warranty and do servicing regularly with BMW (which is usually heavily discounted for vehicle out of warranty. I just paid £1300.00 to have both front and rear brake pads and discs of my M6GC replaced with a BMW main dealer, rivalling and better than amounts quoted by some non specialist and specialist BMW indies), you are likely to get discounted price to repair your car with BMW dealers if you do not have the BMW extended warranty.
I had paid £88/month with £250.00 excess for 18 months with BMW extended warranty before I stopped. Only used it to repair a non working wireless charger that cost £400.00 (so it saved me £150.00)
I calculated the way I use the car (now 54,000 mileage) as a daily with mainly A road of 46 miles per day using high octane petrol and allowing it to warm up before pushing it (I don’t drive it hard anymore anyway) and the fact that the car had been trouble free since, meant I could take the gamble. I don’t want to be spending money based on fear. I put aside every month an amount I would have used for warranties for both cars and it was this saving I used for the brake disc replacement I mentioned above
I always have this feeling that this expensive warranties remove the financial advantage of not changing for new cars every 3 years with PCP etc
I had paid £88/month with £250.00 excess for 18 months with BMW extended warranty before I stopped. Only used it to repair a non working wireless charger that cost £400.00 (so it saved me £150.00)
I calculated the way I use the car (now 54,000 mileage) as a daily with mainly A road of 46 miles per day using high octane petrol and allowing it to warm up before pushing it (I don’t drive it hard anymore anyway) and the fact that the car had been trouble free since, meant I could take the gamble. I don’t want to be spending money based on fear. I put aside every month an amount I would have used for warranties for both cars and it was this saving I used for the brake disc replacement I mentioned above
I always have this feeling that this expensive warranties remove the financial advantage of not changing for new cars every 3 years with PCP etc
e21Keith said:
It may be a risk mitigator, it may be peace of mind, however the premium is calculated on the age and model of car to make a profit for the warranty vendor, so in the long run the chances are that it will cost more money than it will ever pay out. The other issue with a BMW extended warranty is that it ties you in to having the repair carried out within the BMW network, where the cost of repair is almost certainly going to be more than going to an independent, so you pay for an overpriced warranty that pays for overpriced repairs!
The long term economics just don't add up, but if you need peace of mind this is definitely the way to go.
Profit across the group of vehicles not every vehicle. Which is the crucial difference. The long term economics just don't add up, but if you need peace of mind this is definitely the way to go.
e21Keith said:
I mitigate the risk and get my peace of mind by keeping the money in my bank account instead of giving it to someone for a service which will likely never pay for itself.
But hey, each to their own.
That is what I do for reliable cars, like our Alfa (But hey, each to their own.
), but the BMW is just too risky for me! Gassing Station | BMW General | Top of Page | What's New | My Stuff