# Extended warranty worth it?



## kevdogX6 (Aug 22, 2020)

I recently purchased a 2016 X6 iDrive50i with now about 40k miles. Was very well maintained at a dealership according to the Carfax. It has a 100k mile powertrain warranty from Allstate.

The original warranty expires next month. Anyone feel strongly about whether I should purchase an extended warranty? I have a local mechanic that I trust and he himself has a BMW, he would be doing any repair work if I do not extend the warranty.


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## Autoputzer (Mar 16, 2014)

Statistically, no. On average, repair costs are lower than what the warranties cost. If they weren't, the company selling them would go bankrupt.


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## jeff661 (Sep 22, 2017)

I agree with Autoputzer. On average the cost of maintenance must be less than the cost of the warranty. It's really insurance. If you had $3,000 repair would that be a problem? The warranty allows you to cap your downside (to some degree). Odds are on your side but if you had a couple of major expenses over the next 3 years would that be ok? I only bought an extended warranty once. It was a Volvo S80 and the warranty paid for a new transmission that I'm sure was way more than than warranty.


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## Autoputzer (Mar 16, 2014)

You buy insurance to protect you from losses which you wouldn't financially survive, e.g. you causing a traffic accident which resulted in a school bus full of lawyers' kids careening off a cliff.

I just had a $3400 repair bill on my 535i. Most of that was suspension damage after hitting a massive hole. It wasn't a pot hole, which is caused by environmental conditions (rain and/or freezing temperatures). This hole was intentionally dug by the Bubbaville Beach Water Department. 

The way I mentally and financially cope with these large repair bills is that I budget for them. After 50k miles, I budget $0.20/mile for the maintenance and repairs of my BMW's. I also quantify my annual deprecation by looking up the values of my cars on KBB.com. Once you see what deprecation is on a newer BMW, those occasional $3k repair bills don't seem all that bad.


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## effduration (Nov 11, 2008)

A Bmw 4.4 liter V8 with twin turbos (iDrive50i)? What could go wrong? Sounds cheap to repair too....😁

I would read the Allstate warranty carefully and understand any exclusions, deductibles. 
I would also get a couple of quotes on reputable extended warranties & understand what they do and do not cover. 

Then I would think about it. IME, most of the value in these extended warranties are in the last 6 months /10,000 miles of their lives. Many warranties are not transferable to subsequent owners. If I thought I was going to own your car for another 5 years and 60,000 miles and I could get a reputable warranty for that period for $2,000-$2,500 with terms I could live with, I might buy it. If it's $4,000+ probably not.


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## SriniK (Aug 26, 2020)

My M550i had about 45K miles when I bought it. After hearing nightmare stories, I ended up buying extended warranty from a BMW dealer. I paid $3700 for 5 yrs/70K miles bumper to bumper with no deductible from a company called ASC.


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## jeff661 (Sep 22, 2017)

I'm not sure if this is true in all states but in California, extended vehicle warranties are regulated as insurance. And if you cancel the warranty before the end of the term you can get back the prorated value. So, when i traded in my Volvo, the dealer wasn't interested in me transferring the warranty to them, so i cancelled it and got back a lot of money. Keep this in mind if you bought an extended warranty and then sold (or totaled) the car before you used up the term.


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## Doug Huffman (Apr 25, 2015)

Will you cite the regulation, please?


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## jeff661 (Sep 22, 2017)

See "Can I cancel a vehicle service contract" Guide to Automobile Service Contracts, Extended Warranties and Other Repair Agreements


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## Doug Huffman (Apr 25, 2015)

jeff661 said:


> See "Can I cancel a vehicle service contract" Guide to Automobile Service Contracts, Extended Warranties and Other Repair Agreements


*Can I Cancel a VSC ? *
All VSCs are cancelable under California Civil Code Section 1794.41. The obligor must give you a full refund of the VSC purchase price if you meet all of the following requirements:

You cancel the VSC within 60 days after receiving the contract, or 30 days if your car is used and came without a manufacturer warranty.
You send your cancellation notice as specified in the VSC.
You have not filed a claim with the dealer or VSCP.(If you have filed a claim, you may still cancel, but you will only receive a partial refund. The obligor may keep some of the purchase price based on the elapsed time or mileage, as specified in the VSC.)


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## BeemRN-5S (Dec 5, 2016)

I had purchased an extended warranty for my 2013 528i xDrive. Months before its expiration, I had some problems that needed repairs. They shouldered the $3000.00 cost of repair. Now, in less than a year after the repair, my car is dead and BMW suggested my car needed an engine replacement that'll cost close to $20K. Guess what? I have no more coverage. Probably might end up taking my car to a local mechanic for a cheaper cost of repair. Extended warranty is recommended especially for a used out of warranty expensive European cars.


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